July 22 International Fertilizer and Agriculture News

U.S. Commerce Department Recommends Keeping Tariffs on Moroccan Phosphate

The U.S. Commerce Department today recommended imposing countervailing duties on phosphate imports from Morocco, despite President Donald Trump’s eight-month suspension of the measure in June.

Based on preliminary findings from a five-year review, the department believes that revoking the countervailing duty order on Moroccan phosphate fertilizer would likely lead to continued subsidization. Today, the department said that if the duty order were revoked, Moroccan producer OCP would likely receive subsidies from Morocco at a rate of 20.04%.

That rate is slightly above the original 19.97% found in the initial investigation, after deducting the now-terminated export tax incentive program, but including new subsidy programs identified in later administrative reviews.

Last month, Trump temporarily suspended countervailing duties on certain Moroccan phosphate fertilizer imports for eight months or until the order is terminated, citing a “supply emergency” for U.S. farmers. Since the suspension, no confirmed sales of Moroccan phosphate to the U.S. have been reported.

Based on today’s recommendation, it remains unclear how OCP will proceed in the U.S. fertilizer market. The Commerce Department found that several Moroccan subsidy programs remain in effect and assumed that the subsidies will continue.

The 20.04% subsidy rate in the department’s report is not considered a new tariff rate, but rather a recommendation for the International Trade Commission to consider.

The review began in early March and involved U.S. fertilizer producers Mosaic and Simplot, the Moroccan government, and OCP. Final results are expected around October 28, 240 days after the review began.

Since 2021, OCP and Russian fertilizer producers have faced countervailing duties on phosphate exports to the U.S., after Mosaic filed petitions alleging that imports from both countries materially injured the U.S. market.

The Commerce Department also recommended continuing countervailing duties on Russian phosphate imports in the final results of the five-year review, saying Russian producers would also continue receiving subsidies.

According to a ruling issued on June 30, the department’s final subsidy rates were 24.11% for Russian producer EuroChem, 14.64% for PhosAgro, and 16.64% for other companies.

The Commerce Department also noted that the Russian review process was accelerated because domestic petitioners Mosaic and Simplot showed sufficient interest, while Russia did not respond or participate in the proceedings.

Many fertilizer traders were not surprised that Russia did not participate in the sunset review, but they remain uncertain about OCP’s next move following the latest ruling.

Iranian Vessels Defy the Blockade and Pass Through Hormuz

Despite claims by U.S. officials to the contrary, vessels continue to defy the U.S. blockade on Iranian ports, while commercial shipping through the Strait of Hormuz remains under Iranian control.

U.S. Central Command (Centcom) said that as of July 20, seven commercial vessels had been rerouted and one was anchored to prevent ships from entering or leaving Iranian ports.

Today, U.S. President Donald Trump told reporters during a meeting with Lebanese President Joseph Aoun that the blockade is “... like a steel wall,” and that no vessel can pass through.

But data from vessel tracking service Vortexa show that since the U.S. reinstated the blockade on July 14, nine vessels have departed from Iranian ports or sailed toward the Strait of Hormuz. Of those nine vessels, six were empty inbound tankers, with a total carrying capacity of about 2.35 million barrels of crude oil and refined products.

Commercial vessels passing through the Strait of Hormuz have also mostly continued to use Iran’s preferred northern transit route, after a rise in attacks on U.S.-approved southern lanes along the Omani coast.

According to ship tracking company Windward, there were 11 transits into the Middle East Gulf through the Strait of Hormuz on July 20, of which 10 used the Iranian-controlled northern route and only one used the U.S.-backed southern corridor.

Among vessels leaving the Middle East Gulf, three used the Iranian northern route on July 20 and one used the southern route.

According to Windward data, Iranian-flagged ships were also the most common vessels passing through the waterway on July 20, accounting for 6 of 15 transits.

Windward said traffic through the strait remains only about 11% of pre-war levels.

In an advisory report on July 21, the UK maritime trade organization said: “U.S.-assisted commercial transit continues to reduce vessel traffic, reflecting increased operator risk assessments in a high-risk environment.”

“Recent attacks on tankers in Omani waters have further affected operator behavior and significantly reduced traffic density.”