Countervailing Duties on Moroccan Phosphates Recommended by U.S. Department of Commerce
In a significant development for the Moroccan phosphate industry, the U.S. Department of Commerce has released the final results of its sunset review, recommending the continuation of countervailing duties on imported phosphates from Morocco. This recommendation comes in the wake of a temporary suspension of such duties previously enacted by U.S. President Trump, which was justified by a supply emergency affecting U.S. farmers.
Upon thorough evaluation of stakeholder feedback, the Department of Commerce concluded that the Moroccan government provides substantial subsidies to the state-owned phosphate producer OCP, specifically identifying a subsidy rate of 20.04%. Consequently, the department has advised that the U.S. International Trade Commission (ITC) impose a 20.04% countervailing duty on Moroccan phosphate imports, a move that could have significant implications for trade relations between the two nations.
The U.S. International Trade Commission is currently tasked with examining the potential injury to the domestic phosphate industry in light of these duties. Their review will focus on whether the elimination of such duties would lead to material injury for U.S. producers. According to existing U.S. trade remedy regulations, the duties remain in place only if both the Department of Commerce and the ITC concur that their removal would be detrimental to the domestic industry.
Looking ahead, the ITC has slated a vote on this issue for May 5, 2027, with a formal ruling expected to be announced on May 26, 2027. This timeline underscores the careful scrutiny the U.S. government is applying to this matter.
Earlier this year, in June, President Trump had temporarily suspended countervailing duties on specific imports of Moroccan phosphate fertilizers, granting an exemption period of eight months due to the urgent fertilizer supply crisis faced by U.S. farmers. This suspension led to the re-entry of various Moroccan phosphate products, including diammonium phosphate (DAP), monoammonium phosphate (MAP), and triple superphosphate (TSP), into the U.S. market during the summer and autumn months.
As reported by news.chemnet.com.
