OCP takes US phosphate dispute to federal appeals court

This update focuses on OCP US federal appeal. The long-running dispute between Morocco’s OCP Group and US authorities over phosphate fertilizers has entered a new phase, with the company now taking its fight to a US federal appeals court.

OCP US federal appeal focuses on injury finding

After nearly three years of remands and reviews before the US Court of International Trade, the case has moved up a level. On 17 September, the US Court of Appeals registered case number 26-2275, OCP’s appeal against a ruling issued on 15 July.

That ruling upheld the US International Trade Commission’s (USITC) second determination that imports of phosphate fertilizers from Morocco and Russia caused material injury to US producers.

OCP’s US federal appeal does not challenge how the US Department of Commerce calculated alleged subsidies. It targets only the injury component, a crucial point because countervailing duties imposed in 2021 could not have applied without an established injury.

A high-stakes case for a strategic Moroccan sector

In the original investigation, Washington set OCP’s countervailing duty rate at 19.97 percent. Of that, 18.42 percentage points were linked to the terms under which the Moroccan state grants access to phosphate resources, treated by US authorities as the provision of resources for less than adequate remuneration.

The dispute stems from a petition filed on 26 June 2020 by US company Mosaic. For 2019, the USITC valued covered imports from Morocco and Russia at 835 million dollars, compared with 148 million dollars from other suppliers.

In his July ruling, Judge M. Miller Baker found that the administrative record sufficiently supported the USITC’s position. He concluded that combined import volumes from Morocco and Russia, offered at competitive or lower prices, had depressed prices and harmed US producers.

Ongoing procedure and tight timetable

Procedurally, OCP filed its notice of appeal with the Court of International Trade on 14 September. The federal appeals court received it on 15 September and then added the case to its docket.

So far, the file does not yet contain OCP’s full legal arguments. Initial appearances and submissions are expected on 1 October, with OCP’s brief due on 16 November.

The case involves several other fertilizer market players alongside the Moroccan group, including:

• Eurochem North America
• Phosagro
• International Raw Materials
• Koch Fertilizer

They are facing the US government and US producers such as Mosaic and J.R. Simplot.

Why this matters for the Moroccan economy and its global links

For Morocco, this is more than a technical trade case. Phosphates and fertilizers are a cornerstone of the national economy, supporting foreign-currency earnings, investment and jobs.

For Moroccans living abroad who keep financial ties with the country or consider investment projects, the outcome of this dispute is worth following. It can affect, over the medium term, the overall business climate and visibility of a flagship sector.

This judicial battle is separate from the US administration’s political decision to temporarily suspend collection of the duties. That suspension, announced in the context of an agricultural supply emergency and limited in duration, does not prejudge how the federal court will rule.

As the calendar of hearings unfolds, OCP is betting on this US federal appeal to challenge the USITC’s injury analysis and, ultimately, to influence the future of countervailing duties on Moroccan phosphate fertilizers.

For more context, readers can follow Canal212 news for Moroccans abroad.

For official updates, readers can check the relevant official source.