ABSTRACT

This chapter focuses on the evolution of the fertilizer industry during the post-World War II period and on its concomitant impact on US-Canadian bilateral relations. The primary issue is whether any actions of US firms or of the US government have resulted in strained relations between the United States and Canada. The chapter draws on the entire fertilizer issue and emphasizes the interaction and complementarity of individual fertilizer nutrients and industries. It reviews the major structural changes that have occurred in the North American fertilizer industry and analyzes their specific impact on the fertilizer sectors in the United States and Canada. Intermediate fertilizer products, which are used in the manufacture of fertilizers for final consumption, include normal superphosphate, triple superphosphate, phosphoric acid, monoammonium phosphate, diammonium phosphate, and ammonia. The investment activity in the US fertilizer industry resulted in a rapid expansion of production capacity and in a subsequent oversupply when the expected demand did not materialize.