Fertilizer imports from Russia and Trinidad and Tobago are likely harming U.S. industries, according to a new finding released Friday by the International Trade Commission.
The finding that U.S. industries are being “materially injured” by imports of urea ammonium nitrate solutions (UAN) means the Commerce Department will continue to conduct its separate investigation into whether Russia and Trinidad and Tobago are unfairly subsidizing exports of the fertilizer. The investigations could result in countervailing duties on the input that many American farmers depend on.
The ITC and Commerce Department were petitioned by the Illinois-based CF Industries Holdings, Inc.
“The preliminary ITC decision is an important step towards leveling the playing field for U.S. UAN producers and their workers,” said CF Industries President and CEO Tony Will on Friday. He stressed the company “will continue participating actively in the ongoing investigations in order to restore fairness to our highly competitive industry and ensure that American UAN producers remain a reliable source of fertilizers for American farmers for years to come.”
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Russia and Trinidad and Tobago are two major suppliers of the fertilizer to the U.S. and any duties could raise production costs for farmers, according to the American Farm Bureau Federation.
“Imports are an important part of the UAN supply to farmers,” Farm Bureau economist Veronica Nigh said in a report released by the group in July. “The application of the duties requested by (CF Industries), potentially in effect for five years, with the possibility of extension, will result in a constricted supply and higher prices for farmers for years to come, which would have a major impact on planting decisions and production.”
Russia and Trinidad and Tobago supply more than 80% of U.S. imports of UAN fertilizer, according to the Farm Bureau analysis.
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