Mosaic files petition for US to investigate Morocco, Russia phosphates imports

LONDON (ICIS)–Mosaic is filing petitions with the US Department of Commerce and the US International Trade Commission that request the initiation of countervailing duty investigations into imports of phosphate fertilizers from Morocco and Russia, the US-based fertilizer producer said on Friday.

Mandatory Credit: Photo by TIM KEETON/EPA-EFE/Shutterstock (10600214d)A farmer ploughs his fields for planting seeds in Leicestershire, Britain, 02 April 2020. Farmers in Britain started preparations for a seson amid the SARS-CoV-2 coronavirus which causes the Covid-19 disease pandemic.Farming season preparations in Britain, Leicestershire, United Kingdom – 02 Apr 2020

Mosaic said in a press release that large volumes of unfairly subsidized imports from Morocco and Russia are causing significant harm to Mosaic’s operations.

Mosaic is the largest producer of finished concentrated phosphates in the world with 16.1m tonnes of operational capacity, with mines and production facilities in Florida and processing plants in Louisiana.

“Mosaic believes in free trade and vigorous competition, and we believe we should compete on a level playing field. The duties we are seeking will help ensure that North American farmers can rely on the American phosphate industry to supply critical fertilizers for the long term,” Mosaic President and CEO Joc O’Rourke said.

The producer is asking to restore fair competition, since foreign subsidies are causing distortions in the US phosphates market and will participate actively in the proceedings.

The company added that “Mosaic is not competing on a level playing field. Government subsidies in Morocco and Russia give phosphate producers unfair cost advantages. This has been a long-term and increasingly injurious situation, and we have engaged in this process to demonstrate unfair trade practices by international competitors.”

In January-April 2020, Morocco and Russia were the top exporters of diammonium phosphate (DAP) and monoammonium phosphate (MAP) to the US, according to data accessible via the ICIS Supply & Demand Database.

Volumes have dropped compared to last year due to the Coronavirus pandemic.

US DAP Top 5 Imports (tonnes) January-April

Country	2019	2020	Market share (%)	YOY change (%)
Morocco	313,891	187,968	49.65	-40.12
Russia	254,047	130,891	34.57	-48.48
Saudi Arabia	48,533	55,184	14.58	13.70
Mexico	15,249	1,709	0.45	-88.79
Canada	929	1,701	0.45	83.10
World	634,890	378,608	100	-40.37
Data Source: US Census Bureau

US MAP Top 5 Imports (tonnes) January-April

Country	2019	2020	Market share (%)	YOY change (%)
Morocco	388,895	385,620	67.90	-0.84
Russia	331,747	133,114	23.44	-59.87
Saudi Arabia	82,548	38,322	6.75	-53.58
Mexico	45,730	4,654	0.82	-89.82
Lithuania	11,393	3,272	0.58	-71.28
World	868,916	567,922	100	-34.64
Data Source: US Census Bureau

US DAP Top 5 Imports (tonnes) January-December

Country	2018	2019	Market share (%)	YOY change (%)
Morocco	660,667	696,235	60.10	5.38
Russia	283,432	300,538	25.94	6.04
Saudi Arabia	50,026	101,183	8.74	102.26
Mexico	14,258	51,672	4.46	262.41
Canada	10,292	3,357	0.29	-67.38
World	1,124,352	1,158,426	100	3.03
Data Source: US Census Bureau

US MAP Top 5 Imports (tonnes) January-December

Country	2018	2019	Market share (%)	YOY change (%)
Morocco	839,608	1,154,119	61.09	37.46
Russia	633,495	442,356	23.41	-30.17
Saudi Arabia	41,842	160,393	8.49	283.33
Mexico	94,152	107,370	5.68	14.04
Lithuania	162	12,056	0.64	7341.98
World	1,699,984	1,889,334	100	11.14
Data Source: US Census Bureau