Morocco Investigates Dumping of Steel Wire Imports from Egypt and UAE: A Threat to Local Industry
Rabat, Morocco, March 13, 2025 — The Moroccan Ministry of Industry and Trade has launched an anti-dumping investigation into the importation of galvanized steel wires from Egypt and the United Arab Emirates (UAE). This investigation comes after local Moroccan companies raised concerns that the significant price differences between local production costs and the export prices of steel wire from these countries could be indicative of dumping.
The investigation, which began on March 13, 2025, will focus on steel wire imports between January 1, 2024 and December 31, 2024. Moroccan companies that filed the complaint provided evidence suggesting that these imports are being sold at artificially low prices, which, in turn, is causing harm to local industries and putting their sustainability at risk.
Understanding the Dumping Allegations
Dumping refers to the practice of selling goods in foreign markets at prices lower than their domestic market value, often to gain a competitive advantage. According to Moroccan companies, the steel wires from Egypt and the UAE are being sold at prices well below the factory prices in the countries of origin. The Moroccan Ministry examined this price disparity in detail and found the dumping margin to be unusually high, exceeding the legal threshold set by international trade regulations.
In particular, the investigation will focus on galvanized steel wires, which are widely used in industries like agriculture (for wire mesh and fences), construction, and automotive manufacturing. These products are integral to the creation of barbed wire, metal structures, and fencing, which makes their availability crucial for local Moroccan industries.
Rise in Imports and the Impact on Local Industry
The ministry’s investigation will also analyze the sharp increase in steel wire imports from Egypt and the UAE since the product's entry into the Moroccan market in 2020. According to the data, imports surged by a staggering 12,997%, rising from 112 metric tons in 2020 to 14,699 metric tons by September 2024. Relative to the national consumption of galvanized steel wires, the imports from Egypt and the UAE increased by an alarming 13,073% over the same period.
These massive increases in imports have led to a decline in market share for local producers, with many companies arguing that they are struggling to stay competitive in the face of these unfairly priced imports. As a result, Moroccan manufacturers have raised concerns about the long-term sustainability of their operations and jobs within the industry.
What Happens Next?
In response to the complaint and the evidence provided, the Moroccan Ministry of Industry and Trade has deemed the allegations credible and significant enough to warrant a formal investigation. The ministry will continue to assess whether the dumping practices are violating international trade laws and whether measures such as anti-dumping tariffs or quotas should be applied to protect local industries.
The investigation’s outcome will have major implications not only for the Moroccan steel industry but also for international trade practices involving steel imports. If Morocco’s suspicions are confirmed, it may impose duties on steel wire imports from Egypt and the UAE to restore fairness to the market and ensure that local producers are not unfairly disadvantaged.
The Global Context of Steel Trade and Dumping
The practice of dumping has been a subject of ongoing scrutiny in global trade. Countries around the world have implemented anti-dumping measures to safeguard their domestic industries from unfair competition. In recent years, numerous countries have taken steps to protect their manufacturing sectors, particularly in industries such as steel, which is considered critical to a country’s economic development and infrastructure.
For Morocco, steel is an essential component of its industrial base. The alleged dumping of steel wire could have far-reaching consequences for the economy, especially as local industries depend heavily on these materials for construction, manufacturing, and other key sectors.
Key Takeaways:
• Anti-Dumping Investigation: Morocco's Ministry of Industry and Trade has initiated an investigation into steel wire imports from Egypt and the UAE for alleged dumping practices.
• Price Discrepancy: Moroccan companies claim that steel wires from Egypt and the UAE are sold at significantly lower prices than their domestic market prices, suggesting dumping.
• Massive Import Increase: Between 2020 and 2024, imports of galvanized steel wires increased by 12,997%, causing significant harm to local industries.
• Threat to Local Producers: Moroccan manufacturers argue that these unfair imports are negatively affecting their market share, sustainability, and profitability.
• Potential Tariffs or Quotas: If the investigation confirms the dumping claims, Morocco could impose anti-dumping tariffs or other measures to protect its local industries.
• Impact on Key Industries: The investigation focuses on galvanized steel wires used in agriculture, construction, and automotive industries, all of which are vital to Morocco's economy.
• Global Trade Implications: The case highlights the broader issue of dumping in international trade and its potential impact on national economies.
