The Moroccan phosphate fertilizer industry has been targeted by a US investigation into possible subsidies harmful to industry players operating in the US. This move comes after complaints from Mosaic Company, a rival of the “Office Cherifien des Phosphates” (OCP).
The US Department of Commerce has launched an investigation into possible “illegal subsidies” given to phosphate fertilizer producers in Morocco.
This approach comes after the submission of a double request by the American company Mosaic Company, world leader in phosphate concentrates and competitor of the “Office cherifien des Phosphates” (OCP) to the Department and the American International Trade Commission (ITC).
In details, the government institution indicates that it will rely in particular on the preliminary conclusions expected by August 10 of an investigation by the ITC on the consequences of imports of “subsidized” fertilizers on the American industry. If the ITC can prove that the said purchases penalize domestic players, the Department should continue its own investigations and release its first results by September 21.
“OCP is determined to vigorously defend itself in view of the unfounded allegations (of unfair competition in the US market from foreign phosphate fertilizer producers) in this petition. The OCP Group recalls that it operates in full compliance with the laws and regulations relating to the sales of its products in the US market,” the OCP said on its website earlier this month.
As a reminder, the US is one of the main export markets for the Moroccan fertilizer industry. Uncle Sam’s country imported Moroccan phosphate fertilizer worth $ 729 million in 2019.
OCP is also the world’s largest producer of phosphate and phosphoric acid and the world’s second-largest producer of phosphate-based fertilizers.