RABAT – The Moroccan Ministry of Industry and Trade has commenced an anti-dumping investigation into imports of galvanized steel wire from Egypt and the United Arab Emirates (UAE), following allegations of unfair pricing practices that are harming local industries.
The investigation, spanning from January 1, 2024, to December 31, 2024, was initiated after Moroccan companies presented compelling evidence of dumping. The core of the complaint lies in the significant price discrepancy between the production costs in Egypt and the UAE and the export prices to Morocco.
Key Findings Triggering the Investigation:
Substantial Dumping Margins: The ministry's preliminary assessment revealed that the calculated dumping margins exceeded the legal threshold, indicating significant price manipulation.
Dramatic Import Surge: Data highlighted a staggering 12,997% increase in steel wire imports from Egypt and the UAE between 2020 and September 2024, escalating from 112 tons to 14,699 tons.
Market Share Erosion: Local producers claim that this surge has directly led to a substantial decline in their market share, threatening their financial stability and long-term sustainability.
Evidence of Unfair Pricing: Moroccan companies provided detailed comparisons of production costs and export prices, supported by a local market study in Egypt and direct factory price comparison in the UAE.
Impact on Moroccan Industries:
Galvanized steel wires are vital components in numerous sectors, including agriculture and industry. They are used in the production of wire mesh, barbed wire, metal structures, fences, car parts, and various other industrial applications. The influx of low-priced imports poses a significant threat to the competitiveness and viability of Moroccan producers.
Ministry’s Response:
The Ministry of Industry and Trade has deemed the evidence presented by local companies credible and sufficient to warrant a formal investigation. The investigation aims to determine the extent of the alleged dumping and its impact on the Moroccan market.
This investigation underscores Morocco's commitment to protecting its domestic industries from unfair trade practices and ensuring a level playing field for local producers. The outcome of the investigation will have significant implications for the steel wire market in Morocco and its trade relations with Egypt and the UAE.
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