News Releases
WASHINGTON – Today, U.S. Senator Jerry Moran (R-Kan.) led his colleagues in calling on the U.S. International Trade Commission (ITC) to oppose the imposition of countervailing duties on phosphate fertilizers from Morocco, a product U.S. farmers rely on to produce a variety of crops, including corn, soybeans, cotton, wheat, sorghum, sugar beets and fruits and vegetables.
In July 2020, the U.S. Department of Commerce announced a countervailing duty (CVD) investigation into imports of phosphate fertilizers from Morocco, which could result in the imposition of duties. The ITC Commission decided to continue the investigation in August, with a final determination from the ITC expected this month.
“We write in opposition to the countervailing duty (CVD) petition filed on June 26, 2020 against the import of certain phosphate fertilizers and urge the U.S. International Trade Commission to reject the imposition of duties in its final injury determination (Inv. No. 701-TA-650-651),” the Senators wrote. “The imposition of duties between 9.19 and 47.05 percent on phosphate fertilizers would result not only in higher input costs for U.S. farmers but also potentially limit their options for applying necessary crop inputs. Given the unprecedented volatility experienced in the agricultural economy over the past three years, it is especially important to avoid imposing unnecessary duties that will further limit fertilizer options and raise the cost of production for farmers.”
The letter was also signed by U.S. Senators Cindy Hyde-Smith (R-Miss.), Roger Marshall (R-Kan.), John Cornyn (R-Texas), Joni Ernst (R-Iowa), Todd Young (R-Ind.), Roger Wicker (R-Miss.), Chuck Grassley (R-Iowa), Thom Tillis (R-N.C.), Deb Fischer (R-Neb.) and Ben Sasse (R-Neb.). The letter received wide-spread support, including from the American Farm Bureau Federation, National Corn Growers Association, National Cotton Council, American Soybean Association, National Taxpayers Union and Americans for Tax Reform.
Sen. Moran previously led his Senate colleagues in calling on Chairman Kearns and then Secretary of Commerce Wilbur Ross to not impose tariffs on phosphate fertilizers in August 2020.
The full letter can be found here or below.
The Honorable Jason E. Kearns, ChairU.S. International Trade Commission500 E Street, SWWashington, D.C. 20436Dear Chair Kearns,
We write in opposition to the countervailing duty (CVD) petition filed on June 26, 2020 against the import of certain phosphate fertilizers and urge the U.S. International Trade Commission to reject the imposition of duties in its final injury determination (Inv. No. 701-TA-650-651).
U.S. farmers depend on phosphate fertilizers to produce a variety of crops, including corn, soybeans, cotton, wheat, sorghum, sugar beets, and fruits and vegetables. Phosphorous is the second most widely used plant nutrient and accounts for approximately 20 percent of total fertilizer usage for producers. While U.S. farmers value domestic supply, U.S. production is highly concentrated. Multiple sources of phosphate products help to ensure the reliability of supply and to meet the logistical needs of farmer customers around the country. Indeed, up to a third of domestic phosphate fertilizer demand is typically supplied by imports.
U.S. farmers experienced increasingly inadequate supplies of domestically produced phosphate fertilizers during the 2017-2019 period under the Commission’s investigation. Shortages of phosphate fertilizers were observed after the 2017 closure of the Plant City, Florida manufacturing facility. Likewise, in late 2019, production was reduced at other Florida facilities and a processing plant in Louisiana was temporarily idled. These planned supply reductions increased the need for imported product during the investigation period.
Further, the current CVD investigation begun in 2020 has resulted in a precipitous drop in imported supply. The combined volume total of diammonium phosphate (DAP) and monoammonium phosphate (MAP) fertilizer imports in 2020 was down 35 percent compared to 2019. Despite this decrease in imports, production from the largest producer in the U.S. was reduced 2 percent for the first three quarters of 2020 compared to the same period in 2019 and reported inventories were also lower. Reduced imports and lower domestic production are adversely impacting inventory rebuilding and have resulted in critically tight supplies. Available and reliable supplies of phosphate fertilizers are essential for narrow seasonal application windows.
The imposition of duties between 9.19 and 47.05 percent on phosphate fertilizers would result not only in higher input costs for U.S. farmers but also potentially limit their options for applying necessary crop inputs. Given the unprecedented volatility experienced in the agricultural economy over the past three years, it is especially important to avoid imposing unnecessary duties that will further limit fertilizer options and raise the cost of production for farmers.
We urge the U.S. International Trade Commission to deny this petition that would impose financial harm on U.S. farmers by further disrupting and restricting the available supply of phosphate fertilizers.
Thank you for your efforts to fairly enforce U.S. trade laws and for your consideration of our views.
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