Morocco Ends Safeguard Measures on Steel Imports: Key Implications
In a significant development for the global steel industry, Morocco announced the end of safeguard measures on imports of cold-rolled and plated or coated steel sheets. This decision, effective from December 31, 2024, comes after a decade-long implementation of these protective tariffs. The move was officially communicated through a notification to the World Trade Organization Committee on Safeguards on January 10, 2025, marking a major shift in Morocco’s steel import policies.
Background of the Safeguard Measures
The safeguard measures were initially put in place by Morocco to protect its domestic steel industry from an influx of cheap imports, which were seen as a threat to local production and employment. These tariffs targeted two main categories of steel products: cold-rolled sheets (non-plated or non-coated) and plated or coated sheets. Over the last ten years, the measures were meant to provide temporary relief to local manufacturers and allow them time to adjust to global competition.
The affected steel products were classified under a variety of Moroccan customs codes, which are used to identify specific types of cold-rolled and plated steel sheets. These products are essential in industries such as construction, automotive manufacturing, and home appliances.
Steel Product Classifications Affected by the Measures
The cold-rolled and plated steel sheets covered by the safeguard measures are part of several specific categories under Moroccan customs nomenclatures. The non-plated or non-coated cold-rolled sheets include products classified under:
• 7209 (excluding certain subcategories),
• 7211 (excluding specific subcategories),
• 7225.50.10.00 and 7225.50.90.00, and
• 7226 (with exclusions for certain products).
On the other hand, the plated or coated cold-rolled sheets are classified under:
• 7210 (excluding specific subcategories),
• 7212 (with some exclusions),
• 7225 (with certain exclusions),
• 7226 (also excluding certain products).
These classifications cover a wide range of cold-rolled steel products used for various applications, from industrial manufacturing to consumer goods production.
Reasons Behind the End of Safeguard Measures
The decision to lift these safeguard measures comes as Morocco assesses its economic and trade strategies moving into 2025. The safeguard measures were initially implemented to protect the local steel industry from surges in foreign imports, particularly from countries with lower production costs. Over the years, however, Morocco’s steel sector may have adapted to these competitive pressures, and there may now be sufficient capacity for local producers to compete more effectively with international markets.
Furthermore, international trade relations, particularly under the framework of the WTO, have likely influenced Morocco’s decision to lift these tariffs. With evolving trade agreements and the push for global trade liberalization, Morocco’s trade policies may need to adjust to remain in alignment with global standards, which often discourage prolonged safeguard measures unless justified by an ongoing market disruption.
