U.S. lowers countervailing duty on Moroccan phosphate fertilizers after OCP appeal

After challenging the recent increase in U.S. countervailing duty on Moroccan phosphate fertilizers, OCP has won its case. The U.S. Department of Commerce has decided to lower the countervailable subsidy rate for the producer/exporter, setting it at 16.60%, down from 16.81%, although it was previously at 14.21% before November 11, 2024.

This slight adjustment follows a review by U.S. officials of the appeal submitted by the Moroccan side and heard on November 18, including the company Mosaic. The American chemicals company has accused the Moroccan firm for years of «benefiting from state subsidies», which it claims amounts to «unfair competition».

After reviewing the case, the Department of Commerce «determined that one of the two errors alleged by OCP constitutes a ministerial error» and subsequently ordered a reduction in the tariffs.

As a reminder, OCP had expressed regret on November 11 in a statement regarding «the review process conducted by the U.S. Department of Commerce (DOC), which resulted in a fundamentally flawed decision. The increase in the countervailing duty order stemmed from the DOC’s use of inappropriate methodologies that are inconsistent with applicable laws and regulations and unsupported by the case record».