February 16, 2021 – 12:00 – Economy
Last Tuesday, the US Department of Commerce (USDC) ordered the national Moroccan phosphate company OCP to pay a 19.97% tax on all fertilizers exported to the United States.
The decision was made in response to a complaint filed in June 2020 by the OCP’s rival Mosaic Group. They accused the Moroccan company of placing subsidized goods on the US market. The U.S. Fertilizer Manufacturer has filed a complaint with the U.S. Department of Commerce (USDC) and the U.S. International Trade Commission, according to Jean Africa. Russian fertilizer manufacturers Eurocem and Posacro also have to pay import tax on Mosaic’s previous tariffs. Eurosem pays 47.05% import tax and Posacro 9.19%.
Mustapha Terrop, director of the OCP, disagreed with the American rival’s complaints. According to him, the question is whether the taxation will actually be introduced, because the US International Trade Commission must first provide evidence that the mosaic panel was damaged by OCP’s fertilizer imports. The final decision on the introduction of the import tax is expected on March 25.
According to the OCP, this decision will not affect trade relations with the United States. “OCP continues to work with US companies and is committed to being a reliable partner for US farmers,” said the Moroccan Phosphate Company. Mosaic welcomes USDC’s decision to impose a 19.97% tax for five years.
According to rating agency Fitch, Morocco was the largest supplier of phosphate fertilizers to the United States in 2019, accounting for 60% of total imports and Russia 25%.
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