On March 11, United States International Trade Commission staff announced that phosphate fertilizers from Morocco and Russia are subsidized by their respective governments, and as such, harm corporations such as the Mosaic Company.
In December 2019, Mosaic Company staff announced that production of phosphate in Central Florida would be reduced by 150,000 tons per month due to market conditions. Phosphate production was reduced in Louisiana by 500,000 tons per month in 2019 and has also been operating at lower production rates in Canada based on a previous Mosaic press release.
Mosaic Company lawyers petitioned the USITC for a federal tariff on phosphate imports from Morocco and Russia in June 2020.
As a result of the Commission’s determination, some time after March 30, U.S. Department of Commerce staff will issue countervailing duty orders on imports of phosphate fertilizers from Morocco and Russia.
The tariff doesn’t require any kind of legislative approval, Mosaic Public Affairs Manager Jackie Barron said.
According to the USITC, the United States imports $835 million worth of phosphate from Morocco and Russia. Around $148 million of phosphate is imported from Saudi Arabia but a tariff is not being placed on Saudi Arabia.
The USITC is comprised of five commissioners, three of which were appointed by President Barack Obama and two were appointed by President Donald Trump.
The final report is not available until April.
The Mosaic Company is one of three corporations doing business in Florida, Idaho, Louisiana, Minnesota, North Carolina and Wyoming.