Morocco Imposes Tariffs on Egyptian Canned Tomatoes to Protect Local Producers

Wednesday 04 December 2024 - 08:20

By: Dakir Madiha

Morocco Imposes Tariffs on Egyptian Canned Tomatoes to Protect Local Producers

Morocco has introduced temporary anti-dumping tariffs on canned tomato imports from Egypt following an investigation by the Ministry of Trade and Industry. This move responds to a complaint from the National Federation of Food Industries, highlighting concerns about unfair trade practices affecting the local tomato industry.

The investigation, launched on August 7, 2023, revealed that Egyptian producers were dumping canned tomatoes into the Moroccan market at significantly low prices. This practice, defined as selling products below their normal production cost, was found to harm Morocco’s domestic industry.

Key Findings of the Investigation

The Ministry of Trade’s Directorate of Trade Protection and Regulation discovered that Egyptian producers failed to cooperate with the inquiry. As a result, the dumping margin was determined to be 29.93%, based on available data. This figure was calculated by comparing the export price of Egyptian canned tomatoes with their production cost at factory level.

The surge in Egyptian imports was found to have a significant impact on the Moroccan market. This included noticeable reductions in the prices of local tomatoes, diminishing the share of domestic production in national consumption, stagnating employment levels in the industry, and creating instability in investment returns for local producers.

Protecting Domestic Production

The tariffs apply to Egyptian-origin canned tomatoes, including preserved tomato paste packaged in sealed containers such as boxes and cups. The measures aim to safeguard the local tomato industry from further economic harm and restore balance to the market.

While other factors also contributed to challenges in the sector, the ministry identified dumping practices as a primary cause. The investigation concluded that Morocco’s local tomato industry remains vulnerable to economic harm due to the influx of cheaper Egyptian imports.

This action underscores Morocco’s commitment to protecting its domestic industries and ensuring fair competition in its markets.