EU Imposes Duties on Moroccan Aluminum Wheels to Protect Industry

"The European Commission has imposed countervailing duties on imports of aluminum wheels from Morocco, thus protecting EU producers and defending 16,600 jobs against unfair trade practices," reads an article published on the institution’s website. The duties imposed vary from 5.6%, for the producer-exporter benefiting only from Moroccan subsidies, while they are set at 31.4% for the producer benefiting from Moroccan and Chinese BRI (Belt and Road Initiative) financial contributions, it is specified. These countervailing duties are added to the anti-dumping duties imposed on the same product from Morocco on January 12, 2023. These range from 9% to 17.5%.

The imposition of customs duties on aluminum wheels from Morocco follows the finding that the imports were unfairly subsidized, in particular through the Chinese "Belt and Road" (BRI) initiative, and that they were consequently harming the European industry. According to an anti-subsidy investigation conducted by the Commission, the Moroccan government systematically supports its automotive sector through subsidies incompatible with WTO rules, including subsidies, preferential loans and tax exemptions/reductions.

The investigation also reveals that China had provided direct cross-border financial contributions to one of the two Moroccan exporting producers, as part of the BRI cooperation. It also shows that the unfairly subsidized imports are causing injury to the European industry (EU).