[Global IDT Insights] EU Imposes Countervailing Duties on Imports of Aluminium Road Wheels From Morocco

Editorial Team – [2025] 172 taxmann.com 677 (Article)

EU imposes countervailing duties on imports of Aluminium Road Wheels from Morocco The European Commission has imposed countervailing duties on imports of Aluminium Road Wheels from Morocco, aiming to protect EU producers and safeguard approximately 16,600 jobs. The decision follows findings that the imports were unfairly subsidised, including through support linked to China’s Belt and Road Initiative (BRI), which was found to be detrimental to the EU industry. An investigation by EU revealed that the Moroccan government had systematically supported its automotive sector through subsidies that breach World Trade Organization (WTO) rules. These included direct grants, preferential loans, and various tax exemptions and reductions. Additionally, the probe found that China provided direct cross-border financial contributions to Moroccan exporters under BRI cooperation, further compounding the distortions in competition. The subsidised imports were determined to be causing injury to EU manufacturers.

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