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As part of the standoff between phosphate producer Mosaic, Morocco's OCP and Russia’s PhosAgro, American companies rejected the company’s wish to impose taxes on phosphate imported to the United States.
In a press release, Kent Kaiser, executive director of the Trade Alliance to Promote Prosperity, said on Monday that Mosiac «owns the majority of phosphate mines in the U.S.», which can «create a monopoly of sorts».
«If there are tariffs on the phosphates coming in from other countries, that will drive up the price», Kaiser said. «Unfortunately that means farmers would have higher cost of fertilizer», he added.
Phosphates are used on around 60% of cropland in the United States, the same source explained. «The impact is broad in terms of geography and in terms of the end products that would be impacted», Kaiser said, adding that «these tariffs are a bad idea».
As a result, a campaign was launched in the United States called «No On Farm Tax». Its objective is «is to stop the investigation into Morocco and Russia not only for farmers and consumers, but for international trade relations», the executive director of the Trade Alliance to Promote Prosperity said.
«These kinds of trading partnerships we have with Russia and Morocco are good for our country. Maybe people think if Russia is involved it must be bad. This is an import from Russia that’s actually helping us. Most of the phosphates reserves in the world are in Morocco. Our trade agreement with Morocco goes back to 1786—it’s the longest unbroken agreement the U.S. has».
For the record, the US Commerce Department launched an investigation into whether phosphate fertilizers in Morocco and Russia are receiving unfair subsidies. The move was made after American company Mosaic Co filed a petition against OCP.
OCP is planning to challenge the petition as its fertilizers «do not receive any form of subsidy from the state», the officials from the company said.
OCP had even announced that it could consider stopping fertilizer sales in the United States if the country’s Commerce Department imposes an anti-subsidy duty on its imports.
