A recent discovery by the United States International Trade Commission (ITC) determined that some fertilizer imports are hurting American industries. The move comes after an investigation into imports of ammonium urea nitrate (UAN) solutions from Russia and Trinidad and Tobago. The ITC has found that US industries are suffering “material injury” as a result of UAN imports. The action comes after a petition from CF Industries Holdings, Inc. that claimed fertilizers were being dumped into the US market at unfair margins.
“Following the Commission’s affirmative determinations, the US Department of Commerce will continue its investigations into imports of ammonium nitrate and urea solutions from Russia and Trinidad and Tobago, its preliminary duty determinations countervailing duties due on or about September 23, 2021, and its anti-dumping duty determinations due on or about December 7, 2021, ”the ITC said in a press release.
The Commerce Department will assess whether imports from Russia and Trinidad and Tobago have been unfairly subsidized. The full report on fertilizer imports will be available on September 13. According to an analysis by the American Farm Bureau Federation (AFBF), Russia and Trinidad and Tobago provide more than 80 percent of UAN fertilizer imports. Last year, the total value of UAN imports from Russia and Trinidad and Tobago was $ 297.3 million. Should the two agencies find injury to the US industry, anti-dumping and countervailing duty orders would be put in place. Any new ordinance that is implemented would remain in effect for five years.
The AFBF warned that any additional tariffs on UAN imports would be inconvenient for producers. The prices of fertilizer products have continued to increase in recent years. New duties imposed on fertilizer imports could ultimately hurt American farmers by further increasing the cost of production. AFBF noted that limiting UAN supplies with increased rights would have important implications for producers for years to come.