A positive move for the Moroccan phosphate fertilizer trade and a relief for American farmers.
The U.S. Department of Commerce has decided to significantly reduce import duties on Moroccan phosphate fertilizers, offering a boost to both Moroccan producers and U.S. farmers.
The U.S. Department of Commerce has announced a substantial reduction in import duties on Moroccan phosphate fertilizers, bringing the tariffs down from 19.97% to a mere 2.12%. This decision has been warmly welcomed by American farmers, who see it as a significant relief from the burden of high fertilizer prices.
Moroccan phosphate – The decision to lower duties
The decision to reduce import duties comes after an administrative review by officials concerning countervailing duties (CVD) on fertilizer imports from the Morocco’s OCP group. The U.S. Court of International Trade (CIT) recently ruled that the Department of Commerce had made errors in its calculation of duties imposed on Moroccan phosphate imports.
Bipartisan efforts to address the issue
In response to the court’s ruling, a bipartisan group of 39 U.S. lawmakers composed a letter to Secretary of Commerce, Gina Raimondo. They expressed concern over the imposition of CVD on Moroccan phosphate fertilizers in 2020, which had led to volatile fertilizer prices, increased costs, and the risk of inadequate supply for U.S. farmers due to insufficient domestic production.
Agricultural groups’ advocacy
Agricultural organizations, including the National Corn Growers Association (NCGA), the American Farm Bureau Federation and the American Soybean Association, have actively lobbied the International Trade Commission, a part of the Commerce Department, to reverse the 19.97% tariff on Moroccan phosphate fertilizers. Their persistent efforts have borne fruit with the recent decision.
“The victory is the result of corn growers’ collective voices against these tariffs, as they faced escalating fertilizer costs and supply shortages,” stated Harold Wolle, the president of NCGA. He added, “While no duty on fertilizers is the best duty, we are nonetheless thrilled that these tariffs’ financial impact on corn growers will be alleviated thanks to this decision.”
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