EU Imposes Countervailing Duties on Wheels Imports

Rabat – The European Commission has imposed countervailing duties on imports of aluminium road wheels from Morocco, aiming to protect EU producers and safeguard 16,600 jobs from unfair trade practices.

An investigation by the Commission revealed that the imports from Morocco were unfairly subsidized, including through China’s Belt and Road Initiative (BRI), which resulted in harm to the EU industry.

The anti-subsidy probe found that the Moroccan government was providing systematic support to its automotive sector through subsidies that violate World Trade Organization (WTO) rules, including grants, preferential loans, and tax exemptions or reductions.

The investigation also revealed that China had made direct financial contributions to one of the two Moroccan producers involved within the framework of BRI cooperation. The subsidized imports were shown to have caused damage to the EU industry.

According to the Commission, the decision to impose duties on Moroccan aluminium road wheels reflects the EU’s commitment to defending its industry and maintaining a fair global trade environment.

The duties imposed range from 5.6% for the producer benefiting only from Moroccan subsidies to 31.4% for the producer receiving both Moroccan and Chinese BRI financial support.

These countervailing duties are in addition to the anti-dumping duties on the same product from Morocco, which were imposed on January 12, 2023, ranging from 9% to 17.5%. Anti-dumping duties are also currently in place on aluminium road wheel imports from China.

This measure comes as Morocco enhances its standing in the global automotive industry, drawing foreign investments and developing competitive infrastructure.

In 2024, Morocco surpassed China to become the European Union’s top automotive trading partner, marking a significant development in the country’s industrial growth.

With automotive exports to the EU valued at €15.1 billion ($16.2 billion) in 2023, Morocco surpassed China, whose exports reached €13.6 billion ($14.6 billion).

Although China remains the leader in terms of the number of vehicles exported to Europe—shipping 782,000 vehicles compared to Morocco’s 536,000—the North African country’s achievement underscores its growing influence in the European market.