Tomato paste: an important decision regarding Egyptian imports
According to the Moroccan press last April, the country's producers of tomato pastes won their case by imposing an anti-dumping duty on Egyptian imports. But operators have no intention of stopping there. In fact, the Fenagri (National Food-industry Federation) is considering the use of trade defense measures to protect the local food industry from unfair competition.
Following a request filed by the Fenagri on behalf of the national tomato industry, an anti-dumping investigation into imports of tomato paste from Egypt was initiated.
As a result of this investigation, last April, the Ministry of Industry was considering applying a provisional anti-dumping duty of 29.93% on these products. Among other things, this decision would protect the national canned tomato sector. According to Abdelmounim El Eulj, President of the Fenagri, this category continues to face fierce, unfair competition from dumped products imported from Egypt "at prices that defy all competition compared to the cost of the national production".
The Moroccan press has emphasized that the production of canned tomatoes represents an important lever in guaranteeing national food security in terms of finished consumer products. Average annual production is estimated at 21,000 tonnes, which covers 60% of domestic needs.
The country's productive infrastructure has suffered the brunt of a sharp rise in imported volumes since 2018. Indeed, the proportion of imported products of Egyptian origin compared to total national imports has risen from 63% in 2018/2019 to 75% in 2023/2024, causing major disadvantage to local operators.
Some companies were forced to cease operations between 2020 and 2021, and the manufacture of two local brands (Mabrouka and La Chaîne) has been suspended. Between 2019 and 2022, the market share of Egyptian products rose from 19.2% to 29.4% of national consumption, and local operators feared that the situation would worsen.
According to the Fenagri President, the gap between the prices of products imported from Egypt and those of national brands has been widening year on year, rising from 13% in 2018 to 35% in 2022. This situation has forced local processors to charge below cost.
At the beginning of June 2024, at the outcome of the anti-dumping investigation, the Moroccan Ministers of Industry & Commerce and of Economy & Finance jointly decided to apply an anti-dumping duty of 29.93% on imports of Egyptian tomato paste for a period of six months. This decision took effect on May 31.
Some complementary data
Evolution and distribution of Moroccan expenditure on tomato paste imports.
Sources: leseco.ma, bladi.net, TDM
