Turkey’s dump game

Turkey’s dump game
Turkey’s dump game

In an investigation into electric ovens from Turkey, the Ministry of Industry and Trade concluded that dumping existed. The Ryad Mezzour department is considering an anti-dumping duty on Turkish producers. Decryption…

In a new investigation, the Ministry of Industry and Trade confirms the existence of dumping practices for electric ovens (mobile, non-built-in, with a capacity not exceeding 70 liters) from Turkey. In detail, the dumping margins, calculated and expressed as a percentage of the export price, are of the order of 34.05% for the exporting producer ITIMAT and 71.43% for the exporting producers of the other brands of Turkish electric ovens, we read in the notice of the Commercial Defense Division. The ministry is considering, after the opinion of the Import Surveillance Commission meeting on April 22, the application of a provisional anti-dumping duty. This duty will be 34.05% for the exporting producer ITIMAT “having cooperated in the investigation and provided complete responses”. For other Turkish exporting producers, on the other hand, this duty increases to 62.07%.

Key elements of the investigation

The examination and analysis of the elements of the damage made it possible to identify that the volume of imports of electric ovens originating in Turkey experienced a notable increase during the period examined, both in absolute terms and in relation to production and sales. national consumption.

Read also | Commercial defense. The underside of the Moroccan response

This analysis also showed that imports had a notable effect on the prices of locally produced electric ovens, materialized by the existence of an undercutting maintained throughout the period examined. Likewise, the data from the national production branch highlight damage materialized by the deterioration of its economic and financial indicators during the period examined. For economist Driss Assaoui, “the fact is that Morocco cannot prevent Turkish industrialists from having access to the Moroccan market”. “Turkey today has a perfect mastery of the rules of international trade. And it uses the policy of openness to position itself on the Moroccan market. »

And to continue: “this decision by the Ministry of Industry to practice what could be called an anti-dumping duty against Turkey and Egypt is justified. These are countries which benefit from very flexible monetary policies at their level and therefore continue to send products, especially in the agri-food sector, which are very interesting for the Moroccan consumer but which, in terms of competition, constitute dumping. It was imperative to react. »

Remember that at the start of 2024, Turkish exports to Morocco continue their upward curve. During the first quarter, their value reached $733 million, making Rabat Ankara’s second African client. Over the last 20 years, trade between the two countries has increased from 700 million dollars to 4.4 billion, with a very negative trade balance for Morocco.

BIM, the Trojan horse

Since the arrival of BIM in Morocco in 2009, major retail players have been on alert. Its meteoric rise – from 390 stores at the end of 2017 to 604 stores to date – and without forgetting dumping practices, leads us to ask questions about the unfair competition that local operators face. Today, with its aggressive strategy in local commerce, BIM is the Trojan horse of Turkish industry in Morocco. Serving as a key point of sale for Turkish products, BIM does not hesitate to use the lever of dumping to sell its products.

Read also | Government imposes anti-dumping measures on Turkish electric ovens

In Derb Omar, for example, when we went to meet certain sellers, Hussein, a wholesaler, told us that a few years ago, he sold 80% Chinese products and 20% Moroccan products. Today, it is almost 40% Chinese products, 50% Turkish products and less than 10% Moroccan products. Another, on condition of anonymity, tells us that some get their supplies from BIM or directly in Turkey. Today, it is likely that BIM has become the gateway for Turkish industrialists to Morocco.

Note that in 2019, the former Minister of Industry, Moulay Hafid Elalamy, sounded the alarm, calling for a total review of the Free Trade Agreement (FTA), sealed in 2006 between the two countries. In 2020, Morocco reached an agreement with the Turks, obtaining a negative list of products on which customs duties will be restored to 90% of common law. These include more than 1,200 local products impacted by imports from Turkey and grouped into 630 tariff positions. The list covers products in the textile and clothing, leather, metallurgy, electricity, wood and automobile sectors. But despite these measures, the balance still tilts in favor of the Turkish economy.

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