CVD

Countervailing Duties

November 24, 2020

U.S. Department of Commerce Announces Preliminary Finding That Phosphate Fertilizer Imports from Morocco and Russia Benefit from Countervailable Subsidies

The U.S. Department of Commerce announced today that it preliminarily found that phosphate fertilizer imports from Morocco and Russia benefit from countervailable subsidies. Commerce calculated a subsidy rate of 16.88 percent for Moroccan producer OCP. In the Russia investigation, Commerce calculated rates of 20.94 percent and 72.5 percent for the PhosAgro and EuroChem respondent entities, respectively, and a rate of 32.92 percent for all other producers/exporters. 

U.S. law provides remedies to American manufacturers against unfair and injurious foreign trade practices. Today’s ruling addresses countervailing duty petitions filed by The Mosaic Company on behalf of the U.S. phosphate industry to address government subsidies in Morocco and Russia that give their phosphate producers unfair cost advantages. These practices are causing significant harm to Mosaic’s operations and putting American farmers at risk for long-term dependence on foreign suppliers to meet critical crop nutrient needs. 

Mosaic provides high quality, responsibly produced and competitively-priced products to its customers. We welcome the chance to demonstrate our value and fight fairly for every sale we make. However, we have not been operating on a level playing field in the U.S. market for years. Today’s finding brings us one step closer to the vigorous competition and fair trade we expect.

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Quote from Joc O'Rourke
 
Florida facts and import stats
 

 

June 26, 2020

Mosaic Announces Petitions Seeking U.S. Countervailing Duties on Phosphate Fertilizer Imports From Morocco and Russia

The Mosaic Company has filed petitions with the U.S. Department of Commerce and the U.S. International Trade Commission that request the initiation of countervailing duty investigations into imports of phosphate fertilizers from Morocco and Russia. The purpose of the petitions is to remedy the distortions that foreign subsidies are causing in the U.S. market for phosphate fertilizers, and thereby restore fair competition.

Mosaic is not competing on a level playing field. Government subsidies in Morocco and Russia give phosphate producers unfair cost advantages. This has been a long-term and increasingly injurious situation, and we have engaged in this process to demonstrate unfair trade practices by international competitors.

Phosphate imports to the U.S. have risen dramatically in recent years as producers seek markets where domestic players are not protected by import duties. Europe and other major fertilizer markets impose tariffs to which Mosaic is subject as an exporter.

As the largest U.S. producer of phosphate fertilizers, Mosaic took this action because large volumes of unfairly subsidized imports from Morocco and Russia are causing significant harm to Mosaic’s operations. Mosaic’s phosphate fertilizer business employs approximately 3,500 U.S. workers and operates mines and production facilities in Florida and processing plants in Louisiana.

The U.S. Department of Commerce and the U.S. International Trade Commission will consider the petitions and determine the next steps, which typically involve extensive administrative investigations. Mosaic intends to participate actively in those proceedings. We are bringing these actions under well recognized laws, and the remedies (in the form of countervailing duties) we are requesting are directly connected and proportional to the level of the subsidies.

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