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Morocco has imposed temporary anti-dumping duties on Egyptian polyvinyl chloride imports, Moroccan news outlet Hespress reports, citing a circular from the country’s Customs and Indirect Tax Administration. The move will see duties on the material — known more commonly by its acronym PVC — of up to 92.2% imposed on shipments from Egypt for a four-month period starting last Friday.
REFRESHER- The news comes following a recent flare-up in trade tensions that spurred on efforts to rebalance the lopsided trade relationship between the two countries in favor of Egypt, alongside Moroccan anti-dumping investigations into certain Egyptian goods. In February, Morocco held up some 150 containers of Egyptian goods in Moroccan ports in an attempt to rebalance the two countries’ trade relationship.
Imports from the state-owned Egyptian Petrochemicals Company will be subject to a lighter duty of 74.9%, while all other Egyptian PVC producers and exporters face a higher rate of 92.2%, according to the circular. The decision was enacted under a joint decree issued on 22 May by Morocco’s Industry and Trade Ministry and Economy and Finance Ministry. All sums collected under the anti-dumping measure — including VAT on the applicable amount — will be held by Moroccan customs authorities until further notice, the circular states.
Rabat already has import restrictions and anti-dumping measures on some Egyptian goods — and more could be on their way. Our North African neighbor already has restrictions on Egyptian air conditioning units due to a lack of local components, a 35% anti-dumping duty on Egyptian carpets, and a five-year 35% anti-dumping duty on canned tomatoes exported from Egypt. Moroccan authorities also launched an anti-dumping investigation into imports of galvanized wire from Egypt and the UAE.
Efforts are already underway to address the trade imbalance between the two countries, inducing a plan to ramp up imports from Morocco to USD 600 mn over the coming period, Secretary General of the Federation of Egyptian Chambers of Commerce Mohamed Saada said last month. Saada added that the government is also exploring the import of Moroccan fish and securing a quota for Egyptian fishing in Moroccan territorial waters.
DATA POINT- Egyptian exports to Morocco reached some USD 1.0 bn last year, while Egypt imported less than USD 50 mn worth of goods from Morocco, according to data from state statistics agency Capmas seen by EnterpriseAM.
