The United States government has dropped its appeal in a long-running trade dispute over phosphate fertilizer imports from Morocco’s state-owned OCP Group, potentially easing tensions in a case closely watched by farmers and fertilizer producers.
The appeal, filed at the U.S. Court of Appeals for the Federal Circuit, was dismissed on March 4 by mutual agreement of the parties under Federal Rule of Appellate Procedure 42(b), bringing an end to a legal battle that began in 2021. Each side was ordered to bear its own legal costs.
The dispute originated when the U.S. Department of Commerce imposed a 19.97% countervailing duty on Moroccan phosphate fertilizers following a petition from U.S.-based producer The Mosaic Company. Mosaic had alleged that OCP benefited from unfair government subsidies, including access to phosphate mining rights at below-market prices.
Phosphate is a key ingredient in fertilizers used to grow staple crops such as corn, wheat, and soybeans. The case therefore drew intense attention from U.S. agricultural groups concerned about rising input costs and global supply disruptions.
Over several years, the dispute moved through the U.S. Court of International Trade, where both companies challenged aspects of the Department of Commerce’s calculations. In an April 2025 decision, Judge Timothy C. Stanceu ruled largely in favor of OCP on a key point involving a Moroccan tax relief program.
The court determined that the program did not qualify as a “specific” subsidy under U.S. trade law because it was broadly available to taxpayers across Morocco’s economy rather than targeting a particular industry. Commerce was instructed to reconsider its earlier determination.
Following the court’s order, the Department of Commerce revised its calculations in July 2025. The recalculated subsidy rate for OCP dropped slightly to 2.11%, down from the previous 2.12%. The court subsequently upheld the revised determination in December 2025.
Although the original countervailing duty order remains in place, the U.S. government’s decision to withdraw its appeal signals a potential shift in the broader policy environment surrounding fertilizer imports.
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The legal development comes as American farmers warn of rising fertilizer costs linked to geopolitical tensions and supply chain disruptions. Agricultural groups say higher prices could threaten farm profitability and food production if input costs continue to climb.
The American Farm Bureau Federation has called on the U.S. government to consider temporarily suspending countervailing duties on imported fertilizers in order to stabilize supply and reduce price pressure on farmers.
Farm leaders say fertilizer prices have surged in recent weeks as global markets react to conflict in the Middle East and disruptions to shipping routes. The Strait of Hormuz—one of the world’s most important energy and commodity transit corridors—has experienced disruptions that have affected fertilizer shipments and raised concerns about supply availability.
Benchmark urea fertilizer prices at New Orleans climbed sharply in early March, rising from about $465 per short ton to nearly $580 within less than two weeks, according to market data cited by farm groups.
Agricultural organizations warn that continued increases in fertilizer costs could force some farmers to scale back crop planting. That, in turn, could affect food supply and increase inflationary pressures across the economy.
At the same time, the U.S. government has recently designated phosphate and potash as critical minerals under the Defense Production Act framework, highlighting the strategic importance of fertilizer supply chains for national food security.
Morocco, which holds more than 70% of the world’s known phosphate reserves, plays a central role in global fertilizer markets. Analysts say maintaining stable trade relations with Moroccan producers could become increasingly important as countries seek to secure reliable sources of agricultural inputs.
Meanwhile, the Department of Commerce has begun a five-year “sunset review” to determine whether the countervailing duty order on Moroccan phosphate fertilizers should remain in force. The review will assess whether removing the tariffs could lead to renewed subsidization or injury to domestic producers.
The outcome of that process could ultimately determine whether duties on Moroccan fertilizer imports continue or are lifted, potentially reshaping trade flows and fertilizer prices in the United States.
