Street lighting: Legal battle in prospect
New anti-dumping complaint against China. After plywood, refrigerators and mechanical carpets, this time it’s the turn of LED street lighting fixtures from the China. The Ministry of Industry and Commerce launched its investigation on September 2, 2024.
The complainant is Lux Lighting, based in the Moulay Rachid industrial zone in Casablanca. The company alleges «the existence of dumping», relying in particular on invoices and import price quotations from a Chinese manufacturer. Lux Lighting’s arguments include the average normal ex-works value and the average export price adjusted at this stage……
«The estimates of export price and normal value are objective and sufficiently documented. The dumping margin calculated is high and far exceeds the de minimis level of 2% (allowed by the World Trade Organization)», says the Directorate of Defense and Trade Regulation. Opinion number DDC/06/2024 cites other statistics such as those relating to national production.
Between 2020 and 2023, domestic production fell by 31% compared with imports from China. Their volume is not mentioned in the ministerial opinion of August 28, 2024.
However, the Department of Foreign Trade states that imports are «the direct cause of the deterioration in the situation» of the Moroccan manufacturer. In terms of sales volumes, market share and profits…
An important point: «Lux Lighting’s production accounts for 82% of national output», indicating a high level of economic concentration in the sector. In any case, the company represents the «national production branch» for LED fixtures. This status is of the utmost legal importance. It enables a company to invoke the law on trade defense measures. This means it can lodge a complaint against alleged unfair competition. Until then, nothing is certain. The National Federation of Electricity, Electronics, and Renewable Energies (Fenelec) is «closely monitoring this thorny issue», according to one of its officials.
Faiçal FAQUIHI
