Key facts
- The US Department of Commerce recommended keeping countervailing duties on Moroccan phosphate imports.
- The recommendation follows a preliminary result of a five-year review.
- Moroccan producer OCP would likely receive subsidies at a level of 20.04% if the duty order were revoked.
- President Trump had temporarily suspended these duties for eight months in June.
- Commerce found several Moroccan subsidy programs are still considered active.
- Final results of the review are expected around October 28.
The U.S. Department of Commerce has recommended maintaining countervailing duties on Moroccan phosphate fertilizer imports, according to preliminary results of its five-year review. This recommendation comes despite President Donald Trump's temporary suspension of these duties for eight months in June, which was cited as a "supply emergency" for U.S. farmers.
Commerce determined that revoking the countervailing duty order would likely result in the continuation of subsidies for Moroccan producer OCP, estimating a subsidy level of 20.04%. This rate incorporates new subsidy programs found in later administrative reviews, alongside the original investigation rate, minus a terminated export-tax incentive program.
There have been no confirmed sales of Moroccan phosphate to the U.S. since Trump's suspension, leaving OCP's future participation in the U.S. market uncertain. Commerce found that several Moroccan subsidy programs remain active and assumes these subsidies will continue.
The review, which began in March, involved U.S. fertilizer producers Mosaic and Simplot, the Moroccan government, and OCP. The final results are anticipated around October 28.
OCP and Russian fertilizer producers have been subject to U.S. countervailing duties since 2021, following a petition by Mosaic alleging material injury to the U.S. market. Commerce also recommended that duties remain on Russian phosphate fertilizer imports, citing ongoing countervailable subsidies. Final rates for Russian producers include 24.11% for EuroChem, 14.64% for PhosAgro, and 16.64% for others.