Last week the United States International Trade Commission (ITC) ruled on information concerning the fertilizer markets in the United States. After holding a public hearing on the influx of Russian and Moroccan phosphates flooding the marketplace, the ITC announced it was placing duties on the products. Much to the delight of some organizations here in America.
Audio: Full Interview with Ben Pratt of The Mosaic Company
Ben Pratt is with the Mosaic Company and Ag Independence for America. We had the chance to visit right before the ITC placed the duties on the phosphate imports. Pratt said their concerns came from improper subsidies being paid by the Russian and Moroccan governments to support their phosphate industries and drive their product prices lower, thus creating an unfair trade balance for American products in our own country.
The U.S. Commerce Department agreed to put duties on both Russia and Morocco, and the ITC voted 4-1 to go along with those countervailing duties. Some commodity groups have warned this action could raise fertilizer prices by as much as $80 per ton. However, Pratt argues that any increases would not be very noticeable. He says that once Mosaic filed their petitions, Russia and Morocco halted their exports to the United States. Pratt says the market has already adjusted to that change. The market has been rising due to global supply and demand fluctuations, which is something that happens in the normal course of events.
Pratt added that he believes that there will be plenty of phosphate fertilizer to go around for American farmers this year.
The Mosaic Company issued a statement on the ITC ruling saying, ?Today?s decision upholds our belief that fair trade is the bedrock of a healthy U.S. economy and that American farmers will benefit from having a more competitive American fertilizer industry.? Pratt talks about the work the Mosaic Company does to provide American-produced phosphate products for U.S. farmers.
Moroccan importer OCP says in a news release that it disagreed with the ruling and will cooperate with U.S. authorities.
