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The U.S. Department of Commerce released the final results of the sunset review today, recommending the continued maintenance of countervailing duties on imported phosphates from Morocco; previously, U.S. President Trump had temporarily suspended such duties based on a supply emergency.
After reviewing feedback from stakeholders, the Department of Commerce determined that the Moroccan government provides subsidies to the phosphate production of the state-owned phosphate company OCP, with a subsidy rate of 20.04%, and accordingly recommended that the U.S. International Trade Commission (ITC) impose a 20.04% countervailing duty on imports of Moroccan phosphates.
In June of this year, the U.S. Department of Commerce simultaneously completed the final determination of the sunset review of countervailing duties on imported phosphate fertilizers from Russia. This case applied an expedited review procedure because U.S. domestic companies Mosaic and Simplot actively participated, while the Russian side did not respond or participate in the investigation process.
Currently, the U.S. International Trade Commission (ITC) is responsible to the sector injury aspects of the five-year reviews of phosphate items from Morocco and Russia. The ITC will assess whether the U.S. domestic phosphate sector would suffer material injury if the duties are removed. According to U.S. trade remedy rules: If the Department of Commerce recommends maintaining the duties, however the ITC determines there is no risk of material injury, the duties will be revoked; only when both agencies simultaneously determine that the duties should be retained and that removing the duties would trigger material injury, will the countervailing measures remain in effect.
According to information on the ITC official website, the Commission plans to vote on the case on might 5, 2027, and issue a formal ruling on might 26, 2027.
In June of this year, Trump announced a temporary suspension of countervailing duties on certain imports of Moroccan phosphate fertilizers, with an exemption period of 8 months, or until the relevant duty order terminates, citing that U.S. farmers are facing an emergency in fertilizer supply. Affected by this policy, in this summer and autumn, multiple batches of Moroccan diammonium phosphate (DAP), monoammonium phosphate (MAP), and triple superphosphate (TSP) have re-entered the U.S. market.
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