Tomatoes are Egyptian under-listed: Morocco is preparing a response.
Recent claims suggesting tomatoes originated in Egypt have sparked controversy in the agricultural and historical communities. These assertions challenge the widely accepted belief that tomatoes originated in the Americas. Morocco, a significant tomato producer and exporter, is reportedly preparing a response to these claims, potentially to protect its agricultural interests and historical narrative. This situation highlights the complex interplay between agricultural history, national identity, and economic interests in the global food market.
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Tomatoes are Egyptian under-listed: Morocco is preparing a response.
In the face of the unfair competition of canned tomatoes from Egypt, whose prices are greatly under-rated, the Ministry of Industry and Trade of Morocco is considering the establishment of an anti-dumping duty of up to 30%. This measure aims to restore the balance in the market, to protect the local producers, and to preserve the national industry.
Canned tomatoes from Egypt, which occupy an important place in the Moroccan market, are increasingly drawing the attention of local authorities, including the Ministry of Industry and Trade. A detailed investigation has recently been put in light of commercial practices considered unfair associated with these imports, which have a negative impact on local production.
This situation has led the ministry to consider corrective measures; the main one would be the establishment of an anti-dumping duty rate that could reach up to 30%. This initiative aims to restore the balance in the market and to protect farmers in Morocco, severely affected by this unfair competition.
The survey, conducted by the Moroccan authorities, revealed a margin of dumping substantial between the export price of a can of Egyptian tomatoes and those of local products. Indeed, the observed difference reached a rate of 29.93%, which constitutes a sub-listing significant price. Lack of cooperation from the Egyptian producers, the investigators had to rely on data that is accessible by comparing the export price of Egyptian tomatoes with those on the Moroccan market, particularly in the large surfaces. The reference prices have been calculated from the information available in the local market of Egypt, while the adjustments take into account the margins, costs, logistics, and local taxes for a fair comparison. These results confirmed the systematic practice of under-dimensioning of the products of Egyptians, which hurts the competitiveness of farmers in Morocco.
In addition, imports of canned tomatoes from Egypt have seen a marked increase in recent years, both in terms of volume and market share, and this has contributed to a large influx of low-cost products on the Moroccan market. This has directly affected the prices of local products and led to significant losses for the farmers in Morocco.
According to the economic indicators of the sector, a downward trend in the consumption of domestic products was observed, accompanied by a stagnation of job creation in the sector. The profitability of companies producing Moroccan cans of tomatoes has also been seriously impacted. The data collected during the investigation indicates that the increase in imports at a low price is the main cause of these economic difficulties and that no other external factor explains this situation.
Faced with this worrying situation, the Moroccan authorities are under an obligation to intervene to preserve local industry and to improve the economic status of the industry. The introduction of an anti-dumping duty, the rate of which is calculated based on the margin of dumping as identified by the survey, is currently in the study. This measure aims to restore competition in the Moroccan market by preventing foreign products at low prices from disrupting local prices and undermining the national economy. By introducing the anti-dumping duty, the government hopes to limit the negative impact of these imports, which are unfair, while supporting the farmers in Morocco in their desire to remain competitive in the face of international competition that is increasingly aggressive.
Such a measure is part of a logic of protection of the domestic industry while remaining consistent with international trade rules. International trade agreements do allow the imposition of anti-dumping duties when unfair trade practices, such as price quotation, are proven. This is an appropriate response to business practices that, without government intervention, could stifle local production in favor of practices that are not fair.
