U.S. fertilizer companies are “materially injured” by imports of subsidized phosphate fertilizer from Russia and Morocco, said the U.S. International Trade Commission on Thursday, so it approved, on a 4-1 vote, the imposition of countervailing duties on the imports. The tariffs are expected to range from 9 to 47 percent, said Mosaic Co., the U.S. fertilizer producer that brought the complaint last June.
The Commerce Department will announce the duties soon. A month ago, it concluded that fertilizer imports benefited from subsidies in the same range as the duties Mosaic said would be imposed to remove their unfair advantage. Farm groups said fertilizer prices would rise during the planting season because of the duties.
“Today’s decision upholds our belief that fair trade is a cornerstone of a healthy U.S. economy, and that American farmers will benefit from having a more competitive American fertilizer industry,” said Mosaic chief executive Joc O’Rourke. Mosaic is one of the largest fertilizer producers in the world.
Mosaic said the countervailing duties would be in place for five years. They are expected to be 20 percent on imports from OCP, a Moroccan producer. Russian producer PhosAgro would face 9 percent duties, and EuroChem, another Russian producer, would pay a 47 percent duty. All other Russian producers would pay 17 percent.