As part of the showdown between Mosaic Company against OCP and the Russian group PhosAgro, American companies are expressing their opposition to the American producer’s plea to introduce taxes on phosphate imported by the United States.
So, in a press statement, Kent Kaiser, executive director of the Trade Alliance to Promote Prosperity (TAPP), a coalition of U.S. companies, workers, trade associations, said on Monday that he believes Mosaic wants “Create a sort of monopoly” in this market through its legal battle against the two companies.
“If there are taxes on phosphates from other countries, it will drive up the price,” he cautioned, stating that “this unfortunately means that farmers would have a higher fertilizer cost”.
Phosphates are used on around 60% of the country’s cultivated land, the media recalls. Kent Kaiser adds that farmers would pay additional costs to farmers. “The impact is vast in terms of geography and in terms of the end products that would be affected. We really think these taxes are a bad idea,” he said.
As a result, a campaign was launched in the United States called “No On Farm Tax“. Its aim is “to call for an end to the investigation into Morocco and Russia not only for farmers and consumers, but also for international trade relations,” said TAPP’s executive director.
“These types of commercial partnerships that we have with Russia and Morocco are good for our country (…) Most of the phosphate reserves in the world are in Morocco. Our trade agreement with Morocco dates back to 1786: it is the longest uninterrupted agreement of the United States,” he concludes.
In July, the US Department of Commerce announced the opening of new countervailing duty (CVD) investigations to determine whether phosphate fertilizer producers in Morocco and Russia are receiving unfair subsidies in the United States.
A month earlier, Mosaic Company, an American company producing phosphate and potash, had seized the American authorities with a request for phosphate fertilizers imported into the United States from the two countries. For her, the purpose of the complaints would be “to remedy the distortions that foreign subsidies cause on the US phosphate fertilizer market and thus restore fair competition”.
In reaction to the recent decision of the American authorities, “Russia and Morocco have reduced almost entirely the supply of the United States of phosphate”, reported the agency Rossia Sevodnia in late August. Sources from the Office chérifien des phosphates had already threatened to “suspend” exports of fertilizer products to the United States and “redirect its exports to other markets”.