Doha – The European Commission recently beat Moroccan aluminum cyclists, which interprets experts as a broader signal for China as a direct challenge for Morocco itself.
On March 14th the European Commission published Implementation Ordinance No. 500/2025, in which final compensation tasks to Moroccan exports of aluminum wheels are determined. The regulation leads to duties of 31.45% for Dika Morocco Africa and 5.60% for HAFS8.
The Moroccan Ministry of Industry and Trade replied. It was stated that these tasks were applied after an investigation process initiated on February 16, 2024 after the European Wheel Manufacturers Association (EuWA) received a complaint. The association claimed that Moroccan aluminum cycling exports benefit from subsidies that damage European industry.
“The partnership with the European Union is comprehensive and cannot be subject to selective logic,” said Mustapha Baitas, government spokesman during a press conference after a meeting of the government council. He insisted that the government “categorically rejects the contract decided by the European Commission”.
According to the EU results, Moroccan imports rose dramatically between 2020 and 2023 and grow from 2% to 9% market share, with prices being 16% lower than that of European manufacturers. The European Commission argues that this quick progress in combination with what it describes as “unjustified subsidies” causes their industry to harm economic damage.
These compensation tasks have been in force since January 12, 2023, which is between 9% and 17.5% and may increase the total tariffs to over 40% for some Moroccan manufacturers.
The Moroccan government has announced that it will not be idle. The Ministry of Industry and Commerce said that there would be no effort to defend the interests of companies and investors who have trusted the Kingdom as a competitive basis for production and export. “
In a clear sign of the consequences, the ministry showed that “the construction of the fourth factory of Dika Morocco Africa, which was planned for Kenitra, was canceled in favor of an ongoing investment for setting up a factory in Portugal”.
A report by Chatham House published in December predicted This scenario as a warning: “Morocco can turn out to be a focus in an upcoming trade war.” The Think Tank added that “under Trump, the USA and the European Commission could use new measures to organize Chinese EV investments and joint ventures in third countries, including Morocco.”
This means that “Morocco could now play the same role for Europe”, which Mexico plays for Chinese companies that are trying to access the US market, the report says. Such a development would make the North African country an “ideal choice for the offshoring China’s EV industry”, since it is free trade agreements with the USA and the EU, geographical proximity to European markets and the advanced automotive infrastructure.
“This is not directed against Morocco, but against China, wherever possible.”
Badr Zaher Al Azrak, business analyst and researcher in business and trade, said Morocco World News (MWN) that Chinese Investment In the Morocco’s automotive industry, which has started to worry about European neighbors.
“Morocco has numerous free trade agreements with many countries: Turkey, Egypt, Jordan, the United States and many Arab and African free trade agreements. This disturbs the Europeans, especially since there is an open war in automotive production between Europeans, Chinese and Americans,” said Al Azrak.
“I don’t think this decision is directed against Morocco, but against China, wherever it works. Chinese goods, especially in car production, are undesirable for Europeans,” he emphasized. “If China wants to use Morocco as a platform that is directed towards Europe, this can take concerns and require protective pay decisions from the European side from the European side to protect a threat to the automotive sector.”
Al Azrak pointed out that Morocco is now finding a party conflict: “The Kingdom of Morocco will try to clarify the European partners that Morocco is an open platform. Just as it is open to European industry, it is also open to Asian industry.”
“This could easily change the situation, since the battle does not affect Morocco as much as an international struggle between the European Union, the United States and China,” he added. “If sanctions against products manufactured in Morocco or other countries with Chinese investments are escalated, this can cause China to search for other places to locate its investments, which would be a loss for the Moroccan economy.”
“EU measures translate the growing power of the Moroccan industry”
In conversation with MWN, Abdennabi Aboulaarab, an economic expert, made it clear that this EU protection measures against a key sector “translate the band that represent Moroccan exports in the automotive sector to the European Union”.
“The European Commission’s trade investigation showed that tires manufactured in Morocco are cheaper and cheaper compared to European products and that this market share of these Moroccan tires has risen from 2% to over 9% in a short time,” said Aboulaarab. “This indicates that Moroccan products are achieved steady growth This enables you to record larger market shares in the coming years. That is why the European Commission has moved against these products. “
“This undoubtedly means the strength of the Moroccan industry, the strength of this sector, which managed to open up international actors in the size of Chinese companies, which of course represent a challenge for companies in European or American origin,” he added.
Aboulaarab detailed detailed details that Morocco still has an important maneuvering area: “Morocco is a reliable business partner with a trade deficit with the European Union that gives it a red card against customs, protectionists or commuting measures that the EU could take against Morocco.”
“Morocco should not be deterred from the further coordination in these industrial sectors, since this coordination not only affects European companies, but also attracts European and American companies,” he argued. “The solution in this context that Morocco should use strongly and effectively is a stronger integration into various important markets worldwide and urges more industrial and economic partnerships.”
“On this basis, it will be difficult for these industrial fees to take protectionist measures against Morocco,” concluded Aboulaarab. “So we have to stay optimistic and careful at the same time while we are working on taking more measures and guidelines, which, as I said, to deepen the economic integration of the kingdom into his international environment.”
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