- Over 83 US congressmen and women have made a representation to the US International Trade Commission (ITC), to suspend import tariffs on fertilizers coming from foreign suppliers including Morocco. The move is expected to curb the skyrocketing fertilizers prices by increasing market supply.
Over 83 US congressmen and women have made a representation to the US International Trade Commission (ITC), to suspend import tariffs on fertilizers coming from foreign suppliers including Morocco. The move is expected to curb the skyrocketing fertilizers prices by increasing market supply.
In a letter to USITC, it argued that restraining tariffs coupled with the Ukraine crisis have restricted supply and contributed to a 93% rise in fertilizers prices. The production costs also went up by 15% due to disruption of supply chain. These factors affected the farmers and consumers with rising food prices. Republican Senators from Kansas proposed a draft legislation to exempt Moroccan fertilizers from import duties amid a looming global food crisis.
Last year, the US International Trade Commission (USITC) had imposed import duties on foreign competitors of US fertilizer giant Mosaic. The US Company lobbied with the government alleging that fertilizers supplied by OCP Group and Russia enjoyed unfair market advantage and were sold at a lower price in the US. Following the complaint, import restrictions were imposed on foreign suppliers. The senators through a representation have sought waivers on import duties on foreign fertilizers. A recent report from the United Nations Conference on Trade and Development (UNCTD) also warned against the soaring fertilizers prices and their effect on global food security.
