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Morocco to Raise Import Tariffs for Soft Wheat Sharply in H2
17.05.2010 14:31 "Agro Perspectiva" (Kyiv) —
Citing a senior government official, Reuters recently reported that Morocco will raise tariffs for soft wheat imports sharply between 1 June and 31 December. Tariffs will be raised from the current 90% to 135% in order to shield local farmers from foreign competition. The authorities expect prices of soft wheat to be low in international markets because of an abundant supply. Thus an increase in tariffs will help farmers sell their products without pressure on prices from foreign competition. Government officials believe that Morocco is likely to import around 3.6 million tonnes of soft wheat in 2010 in order to meet domestic demand.
Significance:Morocco recently slashed soft wheat import tariffs to 90% from 135% and durum wheat tariffs to 80% from 170%. Grain harvests are expected to amount to around 8 million tonnes in 2010, down from 10.2 million tonnes in 2009. The lower harvest will lead to an increase in wheat imports by Morocco from 2.4 million tonnes in 2009 to 3.6 million tonnes. Most of the imported wheat will come from the United States and the European Union (EU) under free-trade deals. In IHS Global Insights view, the tariff increase will protect domestic farmers but could introduce distortions in the economy.
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