Lawmakers From Kansas Introduce Bill to Waive AD/CVD on Fertilizers
Sen. Roger Marshall, R-Kan., and Rep. Tracey Mann, R-Kan., introduced a bill that would allow for a one-year waiver of antidumping and countervailing duties "if there is an emergency situation including natural disasters, war, epidemics, labor disputes, or major accidents."
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Marshall said in a March 10 press release, "Fertilizer prices are at an all-time high yet additional tariffs continue to be placed on fertilizer, worsening the burden of historic production costs for America’s farmers. While we don’t want foreign governments to distort trade with the United States, we must provide flexibility during emergency situations to ensure input costs don’t hinder our farmers’ ability to feed, fuel, and clothe the world.”
National Sorghum Producers said that while they support trade remedy laws' purpose, "we also need to ensure that we do not create near-monopoly conditions here at home that results in exorbitant fertilizer prices. The legislation introduced by Senator Marshall and Rep. Mann strikes that important balance." Other commodity trade groups also hailed the bill.
The International Trade Commission doesn't consider the costs to purchasers in AD/CVD cases. This bill would not change that, but would allow for petitions after the duties are hiked. The petitions would have to argue that the emergency limits domestic production "in a manner that causes economic hardship for users of that merchandise or merchandise made from merchandise subject to the duty," or would have to be able to show that there was either a demand surge or a supply crunch that substantially increases the price of the product.
Currently, there are countervailing duty orders on Moroccan and Russian firms, with rates ranging from 9.19% to 47.05%. One of the Moroccan firms that is challenging the ITC's injury determination in court asked farmers to lobby their representatives on the issue in February (see 2201310052).