US review backs keeping duty on Moroccan phosphate fertiliser; OCP disputes findings
A five-year review by the US Commerce Department concluded that removing the 20% countervailing duty would harm American producers. The final decision rests with the International Trade Commission next May.
- 20% duty on Moroccan phosphate fertiliser in place since 2021
- Commerce review released 3 November 2026
- Duty temporarily suspended for eight months since late June
- ITC vote on continuing the duty expected in May
The US Department of Commerce has concluded that lifting the 20% countervailing duty on phosphate fertiliser from Morocco would hurt the American fertiliser industry. The finding, released on 3 November as part of a five-year review, also says Morocco has not fully ended the subsidies that justified the duty in 2021.
The subsidies cited include tax refunds, low fees for mining rights and possible government-backed loans. Commerce said programmes not currently in use had not been formally terminated and could return.
OCP: "inconsistent with the facts"
OCP Group, Morocco's state-controlled phosphate and fertiliser company, argued during the review that any subsidies had stopped or were minor. It called the determination inconsistent with the facts and the law and said it expects the International Trade Commission to find that revoking the duty would not damage US producers.
US producers Mosaic and J.R. Simplot supported keeping the duty. Mosaic said the decision showed that trade remedies work as intended.
Farmers want it gone
American farm groups have been pushing in the opposite direction. In late June, the US administration suspended the duty for eight months amid high fertiliser prices, and eight national and more than 50 state farm organisations asked for it to be revoked. A USDA estimate put the potential saving for farmers at $1.82 billion a year.
During the suspension, OCP delivered 54,000 tonnes to the Port of New Orleans in August. Several bills have also been introduced in Congress to repeal the tariff.
Next step
The ITC is scheduled to vote in May on whether the duty continues. For Morocco, the outcome affects access to one of the largest fertiliser markets in the world.