According to information from the Vietnamese Mission in Geneva, World Trade Organization has been notified by Morocco of its decision to continue extending the safeguard measure currently applied to imported hot-rolled steel products. This is a global safeguard measure that may directly impact the export activities of Vietnamese enterprises.

General Information on the Case

The products subject to the measure are hot-rolled steel, in coils or not in coils, corresponding to the HS codes specified in Morocco’s notification, including: 72.08; 72.11.13; 72.11.14; 72.11.19; 72.25.30; 72.25.40; 72.26.20.00.11; 72.26.20.00.20; 72.26.20.00.51; 72.26.20.00.52; 72.26.20.00.59; 72.26.91; and 72.26.99.80.00.

The current measure is an additional safeguard duty of 19% calculated on the value of the goods. The extended measure is expected to take effect from June 19, 2026, following official publication, and remain in force for three years until June 18, 2029.

The extension is notified pursuant to Articles 7.2 and 12.1(c) of the WTO Agreement on Safeguards and is also related to provisions on the exclusion of certain developing countries under Article 9 of the Agreement.

Key Contents of the Notification

The safeguard measure on hot-rolled steel in Morocco was first imposed on June 19, 2020, for a period of three years and has already been extended once until June 18, 2026. Based on the latest review results, Morocco intends to further extend the measure for an additional three years until June 18, 2029.

Morocco’s investigating authority considers the continuation of the measure necessary to prevent or remedy serious injury to the domestic industry. The review process comprehensively assessed factors such as import trends, the financial and economic situation of the domestic industry, the risk of increased imports if the measure is removed, and the progress of structural adjustment in the steel sector.

Although some indicators of the domestic industry have improved, Morocco still assesses the hot-rolled steel sector as being in a vulnerable condition. The indicators analyzed include production, capacity, capacity utilization, revenue, costs, profits, inventories, productivity, and employment.

Data shows that imports decreased from 47,579 tons in the first half of 2024 to 33,169 tons in the same period of 2025; the ratio of imports to production also declined from an index of 100 to 63. However, inventories remain high, with an index of 128 in the first half of 2025 compared to 100 in the same period of the previous year.

Looking ahead, Morocco believes there is a risk that imports of hot-rolled steel may increase again if the measure is lifted. Factors cited include global steel overcapacity, shifts in trade flows due to geopolitical factors, and the increasing use of protectionist measures in many countries. These factors may lead to trade diversion toward the Moroccan market.

In addition, the domestic industry is reportedly implementing restructuring programs to enhance competitiveness. As this process is ongoing, Morocco considers it necessary to maintain the safeguard measure for an additional period to support the completion of these adjustments.

Content of the Proposed Extended Measure

The proposed measure will continue to apply an additional safeguard duty of 19%. However, to comply with the progressive liberalization requirement under Article 7.4 of the WTO Agreement on Safeguards, the duty rate will be reduced by one percentage point annually during the extension period.

If the measure is implemented as planned, exporting enterprises will need to reassess pricing strategies, logistics costs, payment terms, and competitiveness in the Moroccan market.

Excluded Developing Countries

Morocco has announced a list of developing countries excluded from the measure pursuant to Article 9.1 of the WTO Agreement on Safeguards. This list includes several ASEAN countries such as Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, and Thailand.

Vietnam is not included in the exclusion list. Therefore, Vietnamese enterprises concerned should pay particular attention when exporting products covered by this measure.

Notes and Recommendations for Enterprises

Enterprises should review their export plans to Morocco for the 2026–2029 period, including contracts, orders, and delivery schedules, and assess the impact of safeguard duties on business performance.

Accurately determining product scope is crucial. Enterprises are advised to carefully verify HS codes, product descriptions, technical standards, and end uses to avoid risks related to taxation and customs procedures.

Furthermore, under Article 12.3 of the WTO Agreement on Safeguards, Morocco is willing to engage in consultations with members having substantial exporting interests. Enterprises should proactively report difficulties so that authorities can raise them with Morocco when necessary.

In the context of increasing trade remedy measures on steel products, enterprises are also encouraged to diversify export markets, monitor early warning signals, and develop appropriate pricing strategies to mitigate risks.

Source: ASLGate