Morocco weighs response to EU tariffs on aluminum wheels

The Moroccan government announced on Thursday that it is considering «all possibilities» in response to the European Commission's decision to impose countervailing duties on aluminum wheels imported from Morocco. These tariffs, which Brussels justifies as a measure against «unfair practices» linked to Moroccan and Chinese public subsidies, have drawn opposition from Rabat.

«The government is exploring all appropriate measures to address this situation», said government spokesperson Mustafa Baitas during a press conference. He emphasized the «comprehensive» nature of the Morocco-EU partnership, warning that it should not be subjected to a «selective logic».

On March 14, the European Commission defended its decision, stating that the duties aim to protect «EU producers and 16,600 jobs» from subsidies deemed «incompatible with WTO rules». Brussels' anti-subsidy investigation found that Rabat provided «systematic» support to its automotive sector through financial aid, preferential loans, and tax exemptions. It also revealed that China directly financed one of the two Moroccan producer-exporters through the Belt and Road Initiative (BRI).

According to the Commission, the tariffs range from 5.6% for companies benefiting solely from Moroccan subsidies to 31.4% for those also receiving Chinese support. These duties come on top of the anti-dumping taxes imposed in January 2023, which ranged from 9% to 17.5%.