OCP-Mosaic case: here is the final decision of the US Department of Commerce

In connection with the request filed by the American Mosaic, the final decision of the United States Department of Commerce (DOC) fell on Tuesday, February 9, 2020.

Thus, the countervailing duties that will be applied to imports of phosphate fertilizers from Morocco have been revised downwards, from 23.46% to only 19.97%.

This decision is the culmination of a process initiated by DOC in June 2020, following a request from Mosaic, filed with the latter and the American International Trade Commission (ITC) and aimed at imposing duties on the OCP group. compensators amounting to more than 70%.

These countervailing duties would only be applicable if the ITC, which began its process in parallel with that of the DOC, determines that imports of phosphate fertilizers from Morocco have caused or are likely to cause injury to the local US industry. .

“We continue to support the absence of a basis for imposing countervailing duties on Moroccan fertilizer imports and remain optimistic about the ITC decision which is expected to be rendered in the coming weeks,” he said. on the side of the OCP group.

“We are continuing our cooperation with all the competent authorities and remain deeply committed as a privileged and innovative partner of American farmers”, continues the same source.

Asked about the new rate of 19.97% stopped by the DOC, a source close to this file tells us that 18.42% correspond to “mining rights”, that is to say the operating licenses of mines of Phosphate.

Indeed, OCP does not pay “operating rights” but pays dividends and various taxes to the Moroccan State, in addition to the group’s contribution to major socio-economic development projects in the country.

Through its role as a corporate citizen, the OCP group mobilizes other forms of contribution that do not meet the standard of the American market.

Mosaic had requested in its petition to apply countervailing duties of 70%. “Thanks to the arguments developed by OCP, in collaboration with the Moroccan government and to the defense of our case in the face of this unfounded request, but also thanks to the important voices that have been raised in the United States, and in particular in the sector agriculture, to criticize Mosaic’s request, the DOC defined a rate of 19.97%, considerably lower than that requested by Mosaic, ”adds our interlocutor.

The OCP group will therefore continue to defend its case with the ITC and remain hopeful that the rest of the process will demonstrate the absence of injury caused to the American industry by the importation of Moroccan fertilizers. The ITC is expected to render its decision on March 11.

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