In a move widely seen as a broader message to China rather than a direct trade dispute with Morocco, the European Commission has introduced substantial compensatory duties on Moroccan aluminium wheel exports.
On March 14, the Commission issued Implementation Regulation No. 2025/500, imposing definitive countervailing duties on imports of certain aluminium road wheels originating in Morocco.
Under the new ruling, Dika Morocco Africa faces a steep 31.45 per cent duty, while Hands8 is subject to a 5.60 per cent tariff.
Industry experts interpret this decision as part of the EU’s larger strategy to address concerns over global trade imbalances and market distortions, particularly in sectors where Chinese influence looms large.
The Moroccan Ministry of Industry and Commerce responded, clarifying that the duties were imposed following an investigation launched on February 16, 2024. This inquiry was initiated after the European Wheel Manufacturers Association (EUWA) filed a complaint, alleging that Moroccan aluminium wheel exports received subsidies that negatively impacted the European industry.
Exporting producers and their related companies in Morocco and the People’s Republic of China (‘PRC’)
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Government spokesperson Mustapha Baitas said during a press conference following a government council meeting that the partnership with the European Union was comprehensive and could not be subjected to a selective logic. He firmly stated that the government unequivocally opposes the surcharge imposed by the European Commission.
According to EU reports, Moroccan imports surged between 2020 and 2023, increasing their market share from 2 per cent to 9 per cent. With prices reportedly 16 per cent lower than those of European producers, the European Commission contends that this rapid growth, coupled with what it describes as “unjustified subsidies,” is causing economic harm to the European industry.
The recently imposed compensatory duties come in addition to the anti-dumping tariffs, which have been in effect since January 12, 2023, ranging from 9 per cent to 17.5 per cent. As a result, total levies on some Moroccan manufacturers could exceed 40 per cent.
In response, the Moroccan government has vowed to act. The Ministry of Industry and Commerce affirmed that it “will spare no effort to defend the interests of companies and investors who have chosen the kingdom as a competitive hub for production and export.”
Highlighting the impact of these measures, the ministry disclosed that Dika Morocco Africa had cancelled plans for its fourth factory in Kenitra, opting instead to invest in a new facility in Portugal.
A business and trade economic analyst noted that China's growing investments in Morocco's automotive sector have been expanding rapidly, raising concerns among European neighbours.
The analyst highlighted that Morocco has established numerous free trade agreements with countries such as Turkey, Egypt, Jordan, the United States, and various Arab and African nations. This extensive network of trade partnerships has raised concerns among Europeans, particularly amidst the intensifying competition in the global automotive manufacturing sector between European, Chinese, and American players.
He does not believe that recent decisions specifically target Morocco but rather aim to curb China’s influence wherever it operates. European nations are particularly wary of Chinese goods, especially in the automotive industry. If China were to leverage Morocco as a manufacturing and export hub for the European market, it could prompt protective trade measures from Europe to safeguard its automotive sector.
As a result, Morocco now finds itself entangled in this broader trade dispute. The Kingdom will seek to reassure its European partners that it remains an open and neutral industrial platform that welcomes European investment and Asian participation.
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