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Moroccan Industry Blames Maghreb Steel Trade Sanctions for Sector Challenges

Steel News - Published on Wed, 17 Jul 2019

Image Source: Morocco World News
According to the Federation of Metal, Mechanical, and Electromechanical Industry, due to trade protection measures favoring Maghreb Steel, investments in the metal sector has dropped 57% since 2010, from MAD 3.5 billion to MAD 1.5 billion in 2016. According to Chafiq Essakalli, the director of Moroccan metal company Chantiers & Ateliers du Maroc, the problem comes from the trade protection measures in favor of Maghreb Steel, Morocco’s only flat steel supplier, which negatively impact local industry competitiveness. His views echo a previous FIMME statement.

Mr Essakalli notes that “Preference towards national industry presupposes competitiveness. It makes no sense to ask someone to buy something at a more expensive price, when they can buy it elsewhere for cheaper. Our product needs to be competitive before we can require public infrastructure developers to choose local industry. But we can’t be competitive if, because of the Maghreb Steel trade protection measures, we are required to buy raw materials at a higher price than the international market price.”

Maghreb Steel produces sheet metal in Tit Mellil east of Casablanca and has benefited from trade protection measures for five years.

On 24 May, the Ministry of Industry launched an inquiry into a request by Maghreb Steel for further trade protection measures. On July 4, the FIMME officially opposed the decision. In a letter to the Minister, the FIMME reminded that the measures impact the competitiveness of the industry, risking “serious consequences.”

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Posted By : Ratan Singh on Wed, 17 Jul 2019
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