800 326 9054As a five-year review of countervailing duties on phosphate fertilizer from Russia and Morocco gets underway, one of the largest U.S. producers says it is time to lift the tariffs.
“Based on evolving global phosphate supply and demand dynamics since 2021, we believe removing countervailing duties on phosphate imports would be a constructive step that supports U.S. farmer economics, balanced fertilizer application and agricultural productivity,” a Nutrien spokesperson told Agri-Pulse.
Nutrien, based in Saskatchewan, Canada, produces 20% of the U.S.’ phosphate fertilizer output through two production facilities in Aurora, North Carolina, and White Springs, Florida. It has been one of the main beneficiaries from the countervailing duties, which have been in place since 2021.
“Farmers and food security are at the centre of everything we do, and we continuously engage with our customers and associations on issues that are important to U.S. agriculture,” the spokesperson added in an email.
The International Trade Commission is investigating whether repealing the countervailing duties would hurt U.S. producers as part of a mandatory five-year review. The trade body put out an appeal for information from domestic industry on Monday.
If the ITC finds no evidence of likely injury, the duties, which range from 16% on Morocco’s OCP to 47.1%, the tariffs could be lifted.
Farmers and their allies in Congress have long complained that the duties are contributing to tight fertilizer supplies and higher costs. The countervailing duties alone cost U.S. farmers an estimated $6.9 billion through the 2021 to 2025 planting seasons, according to an analysis by Texas A&M University economists.
Mosaic, the petitioner in the countervailing duty cases, did not respond to Agri-Pulse’s request for comment.
Mosaic is responsible for more than half of all U.S. phosphate production from its four facilities – including the largest in the U.S. located in New Wales, Florida. It has previously argued that duties are necessary to counter state support in Russia and Morocco and create a “fair and competitive” U.S. fertilizer market.
Bloomberg reported Wednesday that the Department of Justice is also looking into whether fertilizer companies, including Nutrien and Mosaic, colluded to raise prices. The probe comes after Deputy Agriculture Secretary Stephen Vaden in January accused the two companies of running a “duopoly” and working together to control fertilizer supply and fix prices, while hinting at future administration action.
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