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Morocco introduces anti-dumping system on canned Egyptian tomatoes

Morocco has imposed a definitive anti-dumping duty of 29.93% on imports of canned tomatoes from Egypt, a measure that came into force on December 24, 2024. This decision, which follows an investigation into unfair trade practices , aims to protect local industry against competition from Egyptian products, whose prices have seriously disrupted the Moroccan market.

Morocco has taken a decisive step regarding the importation of canned tomatoes from Egypt, by establishing a definitive anti-dumping duty lasting 5 years. This decision, which entered into force on December 24, 2024, aims to defend the local industry against commercial practices by Egyptian producers deemed unfair.

On December 23, 2024, the Customs and Indirect Tax Administration (ADII) published Circular No. 6618/211, formalizing the application of this permanent anti-dumping duty on imports of canned tomatoes from Egypt. This right, which had been applied provisionally at a rate of 29.93% since May 2024, is now confirmed for a period of 5 years. The move follows an investigation that highlighted the adverse effects of the importation of cheap canned tomatoes, which have significantly affected the domestic industry. However, this measure, although it protects the local industry, also results in a loss in terms of tax revenue for the State, due to the reduction in imports and customs duties levied on the products concerned.

Read also: Underpriced Egyptian tomatoes: Morocco prepares a response

Since 2018, canned Egyptian tomatoes have been systematically offered at prices much lower than those of local products, with a price difference which has changed from 13% to 35% between 2018 and 2022. This practice of undercutting has had a direct impact on the competitiveness of Moroccan producers, leading to a drop in their margins and a reduction in their market share in the face of cheap supply. In its April 2024 report, the National Agri-Food Federation (FENAGRI) revealed a 14% decrease in market shares for local production, illustrating the extent of the impact of this unfair competition on the industry. national.

The investigation carried out by the Moroccan authorities highlighted a notable difference between the export prices of canned Egyptian tomatoes and those of local products. The dumping margin observed reached 29.93%, confirming the systematic practice of undercutting. In the absence of cooperation from Egyptian producers, investigators had to rely on data from the local Moroccan market, particularly in supermarkets, to make a fair comparison. This analysis clearly revealed the negative impact on the profitability of local producers.

Over the years, imports of canned tomatoes from Egypt have increased significantly, both in volume and market share. This increase in low-cost imports has put significant pressure on the Moroccan market, leading to a drop in the prices of local products. This situation has not only affected the profitability of producers, but also led to stagnation in job creation in the sector.

To remedy this situation, the executive branch decided to impose a definitive anti-dumping duty of 29.93%, calculated on the basis of the dumping margin identified during the investigation. This measure aims to restore a competitive balance on the market, protect Moroccan producers and preserve local industry.

Global trade agreements, particularly those of the World Trade Organization (WTO), allow countries to impose anti-dumping duties when they encounter unfair trade practices. By making this decision, Morocco is acting within the framework of international rules to protect its economy while respecting its commercial commitments.

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