The European Commission has imposed countervailing duties on aluminum wheels imported from Morocco to protect the European industry and the 16,600 jobs threatened by what it deems unfair trade practices. An anti-subsidy investigation reportedly revealed that the Moroccan government was supporting its automotive sector with subsidies that violate WTO rules, including direct subsidies, preferential loans, and tax benefits. The investigation also allegedly uncovered cross-border financing from China to one of the two Moroccan producers exporting to the EU, facilitated under the Belt and Road Initiative (BRI). Brussels claims these subsidies have caused significant harm to the European industry. The duties imposed vary based on the level of support received: 5.6% for the producer benefiting only from Moroccan aid and up to 31.4% for the producer receiving both Moroccan and Chinese financing through the BRI. These measures are in addition to anti-dumping duties imposed in January 2023 on the same product, ranging from 9% to 17.5%. Similar duties are already applied to Chinese imports of aluminum wheels. This move comes as Morocco strengthens its position in the global automotive industry by attracting foreign investments and developing competitive infrastructure.
