US Trade Commission rejects duties on fertilisers from Trinidad and Tobago

Energy Minister Stuart Young and Trade and Industry Minister Paula Gopee-Scoon on Wednesday welcomed a ruling by the United States Trade Commission not to impose any tariffs on fertilisers from Trinidad and Tobago.

A Reuters report said the commission revoked hefty anti-dumping and anti-subsidy duties on urea ammonium nitrate fertilisers from Russia and TT on Monday, concluding that those imports did not hurt American producers.

The decision cancelled recently-imposed US combined anti-dumping and anti-subsidy duties of up to 132.6 per cent on Russian urea nitrate fertiliser solutions and 113.5 per cent on such imports from TT.

In 2021, the US imported $231.1 million worth of urea ammonium nitrate from TT, according to the US Commerce Department. Urea ammonium nitrate (UAN) is used in liquid fertilisers.

The report said, had the commission found that US fertiliser producers were being negatively affected by the imports from Russia and TT, the duties would have been locked in for five years.

In a statement issued on Monday, Proman and MHTL (Methanol Holdings (Trinidad) Ltd) welcomed the ruling.

Proman, headquartered in Switzerland, is the world's second largest producer of methanol and has assets in several countries, including TT. MHTL, with a AUM (ammonia, urea ammonium nitrate, melamine) complex in Point Lisas, is part of the Proman group.

The statement read in part, "Fertiliser products like UAN play a vital role in supporting agricultural production and meeting global food supply needs. We believe that today's judgment reflected testimony from across the US agricultural sector that application of these duties would have resulted in significant supply constrictions in an already concentrated domestic market, particularly during the planting season when imports are essential to meeting fertiliser requirements.

"As the sole UAN producer and exporter in Trinidad and Tobago, this decision will enable us to resume UAN exports to the United States, providing much-needed relief to supply constraints in that market."

In a statement, Young said issues involving fertilisers produced in TT were discussed by the Prime Minister and himself when they met decision makers in Washington DC at different levels and in many different quarters over the last few months.

"This decision of the US International Trade Commission in favour of Trinidad and Tobago is a welcomed one."

When he returned from the US in June after the Ninth Summit of the Americas in Los Angeles, Dr Rowley said the US and Caricom agreed to the formation of joint committees to deal with several issues of mutual interest. The agreement on the US side came from US President Joe Biden and Vice-President Kamala Harris.

One of them is a US/Caribbean energy security committee. Rowley co-chaired that committee's first meeting on July 12. He was nominated by other Caricom leaders to be the committee's co-chairman.

A statement issued by the Office of the Prime Minister on July 12 said Rowley will lead efforts to develop a joint action plan to address identified energy security issues affecting the Caribbean. Young participated in the committee's meeting and will continue to assist in its ongoing work.

US State Department senior advisor for energy security Amos Hochstein is the designated US lead representative on the committee.

Gopee-Scoon said, "We are pleased with the outcome and it was a collaborative effort, including the work of the anti-dumping unit of the Ministry of Trade and Industry."

She also praised the role by TT's Embassy in Washington DC in support of Rowley and Young's discussions with US lawmakers in Washington DC to address matters such as this.

Former energy minister Kevin Ramnarine said, "This is great news for our local producers of UAN."

He observed, "These are ongoing issues that pop up when US companies complain about imports from TT and Russia."

Energy Chamber president and CEO Dr Thackwray Driver said, "The Energy Chamber welcomes the decision.

"It is good news for our exports of UAN from Point Lisas, as it allows access to the major US market without high tariffs."

National Flour Mills (NFM) chairman Nigel Romano said, "The removal of tariffs should ease the price pressure on grain originating in the US, and this should have a positive effect on prices in general.” But he was uncertain how much of an effect this would be.

"We did a review of the crops and planting corn and wheat for later this year and, so far, the indicators look good.

"Most crops are thriving well, and planting appears to be back on track."

He was optimistic this augured well for grain prices to ease downward.

In a statement, the TT Manufacturers Association (TTMA) said, "It is heartening to note that a small country like TT can be successful in its plea to gain entry into the United States market.

"This favourable outcome would allow our goods (fertilisers) to be allowed unencumbered entry into the US market, notably one of our largest trading partners.

The TTMA thanked all technocrats, attorneys and ministerial support that led to this outcome.

Former trade minister Vasant Bharath welcomed the decision.

"Whether as a self protection mechanism to protect their own farmers from soaring fertiliser prices or not, the result is that TT can continue to supply the US market without being forced to pay an import duty of 113.6 per cent which would have doubled it’s price and crippled its ability to compete."

He suggested Government move swiftly to protect local farmers who are also suffering from significant price hikes in imported chemicals and fertilisers.

"Fertiliser prices have increased to record levels driven by supply chain issues, surge in natural gas prices, the Ukrainian crisis and the Chinese ban on export of fertiliser."

He suggested that Government subsidise the cost of fertiliser in the first instance but also provide nitrogen fixing plants to farmers (such as black eyed peas, lentils and other legumes) which add nitrogen to the soil and are also cash crops.