Al Armouti News Bulletin - December 2025
Prepared by Al Armouti – International Trade & Customs Law
Dec 4, 2025
December 2025 – covering November developments (Arab region & global)
Morocco Imposes High Anti-Dumping Duties on Egyptian PVC
Morocco’s Ministry of Industry and Trade has issued its final determination in the anti-dumping investigation on imports of PVC from Egypt. Final duties reportedly reach around 75% for EPC and up to about 92% for other Egyptian exporters.
Why it matters (Egypt & Arab region)
Major market-access loss for Egyptian chemical exporters into Morocco.
Shows that Arab–Arab trade is increasingly governed by strict WTO-consistent trade-remedy rules, not just preferential tariffs.
A warning to regional exporters on the importance of cooperating in investigations, defending costs and prices, and avoiding high residual margins.
Beyond the Schoolyard: Why Egypt's Uniform Crackdown Matters to Global Brands
The Hidden Battle Behind Back-to-School Shopping
For countless parents, the annual back-to-school season brings a familiar frustration: the requirement to purchase school uniforms from a single, designated supplier, often at a high cost with no alternative. This common grievance has now moved from the household budget to the courtroom. The Egyptian Competition Authority (ECA) is taking significant legal action against these exclusive arrangements. This crackdown has implications that reach far beyond the schoolyard, sending a clear message to major industries operating across Egypt.
Egypt is Breaking Up School Uniform Monopolies
The Egyptian Competition Authority (ECA) has formally addressed this issue by issuing 13 violation decisions within the school-uniform sector. The core legal problem identified is "abuse of dominance." In simple terms, this refers to anti-competitive practices in which schools and their chosen suppliers create rules that force parents to purchase uniforms from a single outlet. This effectively prevents families from seeking better prices or quality from other vendors.
This move from the ECA is significant, representing a shift from issuing passive guidelines to pursuing active, high-profile enforcement at a consumer level—a clear signal of the agency's growing assertiveness. The decisions demonstrate a clear commitment to dismantling practices that limit market access and harm consumers directly.
The Warning Shot Extends to Electronics, Pharma, and Global Brands
The principles driving the school uniform case have a much broader reach, serving as a precedent for other key sectors in the Egyptian economy. The ECA's focus on anti-competitive distribution and sales practices puts several major industries on notice.
Companies operating in the following sectors must pay close attention to this development:
Clothing and Apparel
Fast-Moving Consumer Goods (FMCG)
Electronics
Pharmaceuticals
This development serves as a final warning: Egyptian manufacturers, distributors, and foreign brands in these sectors must proactively audit their distribution contracts and discount policies or risk becoming the ECA's next target.
A Common Business Practice—Price Control—Is Officially a Target
By targeting both a consumer-facing "abuse of dominance" in the school uniform sector and a B2B "vertical agreement" like Resale Price Maintenance (RPM), the ECA is demonstrating a two-pronged enforcement strategy that scrutinizes anti-competitive behavior at every level of the supply chain. At the heart of this B2B focus is RPM, a practice where a manufacturer or supplier imposes price controls on its distributors, such as setting minimum resale prices or fixing profit margins.
A recent legal update reaffirmed that Egyptian law explicitly prohibits RPM. The law treats such arrangements as anti-competitive "vertical agreements," regardless of whether the price controls are written into formal contracts or enforced through informal commercial pressure. Consequently, companies engaging in RPM are no longer operating in a gray area; they are in direct violation of established Egyptian law and should expect regulatory scrutiny.
A New Era of Competition in Egypt
The crackdown on school uniform monopolies is not an isolated event. It is a clear and powerful signal of a comprehensive competition law enforcement strategy in Egypt. By taking simultaneous action against consumer-facing monopolies and restrictive B2B pricing agreements, the ECA is demonstrating its intent to ensure a fairer, more open market from the factory to the final consumer.
As Egypt strengthens its market regulations, will international brands adapt their strategies, and what could this mean for the Egyptian consumer in the long run?
Kuwait's New Digital Commerce Law: A Strategic Blueprint for Blockchain, Influencers, and a Post-Oil Economy
The Unseen Rules of Our Digital Shopping Carts
When we add an item to a digital shopping cart and click "buy," we engage in an act of implicit trust. We trust that the product will arrive as described, that our payment information is secure, and that we have some recourse if things go wrong. For the most part, this system works on a global scale, but the underlying rules are often a patchwork of old laws applied to new technology.
Recognizing this, Kuwait's government has just approved a new Digital Commerce Law, a landmark piece of legislation designed to formalize and strengthen the trust between consumers and businesses in the digital age. This isn't just about catching up; it's about building a robust framework for the future of online business.
This article highlights the law's most impactful changes, demonstrating how a foundation of consumer trust, influencer accountability, and streamlined dispute resolution is essential for embracing future-forward technologies like blockchain.
It's Official: Blockchain and Smart Contracts Are In
In a significant move, the new law provides a formal legal framework for modern technologies that are reshaping global commerce. It goes beyond simple electronic transactions to explicitly permit the use of blockchain technology and smart contracts.
This is a profoundly forward-thinking decision. By legally recognizing these technologies, the law aims to enhance the reliability and security of digital transactions, protecting the rights of all parties involved. By embedding these technologies into its legal framework, Kuwait is not just regulating e-commerce; it is building the rails for a future diversified economy, aiming to attract global fintech investment and talent beyond its traditional oil and gas sector.
A New Era of Accountability for Digital Ads and Influencers
The law introduces comprehensive regulations for digital advertising and the promotional activities of influencers, moving to standardize a largely unregulated space. The goal is to bring greater transparency and professionalism to the digital marketplace.
Specific new requirements include:
Merchant Linkage: All advertisements must be clearly linked to the merchant's official data.
Contract Archiving: Cooperation contracts, such as those between a brand and an influencer, must be documented and stored for a minimum of five years.
Official Payment Channels: All payments for promotional activities must be processed through official channels as directed by the Central Bank of Kuwait.
This new level of scrutiny is designed to protect consumers from misleading promotions and ensure that digital marketing operates with clear, enforceable standards. The Minister of Commerce and Industry, Khalifa Al-Ajil, emphasized the law's core philosophy:
...its provisions tackle the balance of protecting consumer rights with enabling merchants to operate within clear and flexible controls, keeping pace with the rapid development of modern technologies.
This focus on accountability in advertising is mirrored by a powerful upgrade to foundational consumer rights in every digital transaction.
Consumer Rights Get a Powerful Digital Upgrade
The law establishes a comprehensive set of rules to protect consumers navigating the digital marketplace. These measures are designed to increase transparency, build confidence, and provide shoppers with clear, enforceable rights.
The law now mandates that all digital merchants provide:
Clear Disclosure: All store data and product prices must be transparently displayed.
Transparent Policies: Written policies for returns and exchanges must be easily accessible.
Withdrawal Periods: Consumers are granted defined periods during which they can withdraw from a purchase (tراجع عن الشراء).
Certified Invoices: Every purchase must be accompanied by a guaranteed, certified electronic invoice.
These mandates shift the digital shopping experience from a "buyer beware" environment to one where consumer protection is built directly into the process, fostering greater trust and encouraging broader participation in e-commerce.
Say Goodbye to Paperwork: Disputes Are Going Digital
Resolving a disagreement between a consumer and a merchant can often be a slow, paper-intensive process. The new law completely modernizes this system by creating an integrated electronic platform for managing digital disputes.
This new system eliminates the need for paper-based complaints and introduces a streamlined, fully digital workflow. Its key features include a unified platform for submitting complaints, review by specialized committees operating within set timelines, and the electronic enforcement of all decisions. The objective is to provide a mechanism that delivers "speed, transparency, and deterrence" in settling disputes. This move is critical, as an efficient and trusted dispute resolution mechanism is a key factor in attracting and retaining both domestic and international e-commerce players.
Conclusion: Building a Blueprint for the Global Digital Economy
This is not a piecemeal update. By simultaneously tackling consumer trust, influencer accountability, digital dispute resolution, and future-facing technologies, Kuwait is building a complete, self-reinforcing digital ecosystem designed for long-term growth and stability. As Minister Al-Ajil stated, the law is a key part of a broader national strategy:
...the new legislation supports the state's direction towards consolidating Kuwait's position in the global digital economy, enhancing its competitiveness, and creating a more advanced and transparent digital business environment.
As digital life becomes more integrated into our society, what can other nations learn from Kuwait's comprehensive approach to building a trusted and future-ready digital marketplace?
Jordan's New 16% Parcel Tax: What Every Online Shopper Must Know Before 2026
The convenience of international online shopping has made it a popular choice for consumers across Jordan. In a significant development set to reshape the country's e-commerce landscape, the Jordanian Customs Department has announced a major policy change for personal parcels that will directly impact these shoppers, set to take effect in early 2026.
A Firm Date is Set: February 1, 2026
After a period of speculation, the Jordanian Customs Department has decisively ended the ongoing debate surrounding the tax treatment of postal parcels, confirming that new instructions will be implemented starting from February 1, 2026. This announcement puts a firm date on a policy shift that has been a subject of considerable discussion, providing a clear timeline for both consumers and businesses to prepare.
It’s a 16% Sales Tax, Not a Customs Duty
The core of the new system stipulates that the contents of personal parcels with a customs value up to 200 Jordanian dinars will be subject to a 16% sales tax.
This change is based on a "financial equation" approved by the Council of Ministers in its latest session, which officially cancels the previous 0% customs duty on these goods. This "financial equation" framing appears to be a deliberate messaging strategy, positioning the change not as a new tax, but as a restructuring. For the consumer's wallet, however, the distinction is academic—it represents a new 16% cost on previously untaxed goods.
The Focus is Squarely on Small, Personal Imports
This policy is laser-focused on the smaller, personal packages that constitute the bulk of typical e-commerce transactions. To streamline the process, the collection of this new tax will be handled directly by the staff at the e-commerce customs center, indicating a targeted approach for these types of goods. This also hints at a broader economic goal: leveling the playing field for local Jordanian retailers, who must collect sales tax, and boosting government revenue from the booming online shopping sector.
What This Means for Shoppers
The key takeaway for consumers is straightforward: starting in February 2026, a new 16% sales tax will be applied to personal imports valued under 200 JOD. This marks a fundamental shift in the cost structure of international online shopping in the country. How might this new tax influence online shopping trends and local purchasing habits in Jordan in the years to come?
When Competitors Conspire: How Jordan's Government Uncovered a Plot to Crush a Rival
The Unseen Rules of Fair Play
In any competitive market, the ideal is a level playing field where companies succeed based on innovation, efficiency, and customer value. The reality, however, is often a battleground of unseen tactics. Businesses sometimes resort to unfair practices to gain an edge, moving from healthy competition to aggressive strategies designed to eliminate rivals. This is not just a theoretical risk; it's a reality that can stifle growth and harm the entire economic ecosystem.
A recent case from Jordan's logistics sector provides a powerful real-world example. A local delivery company found itself suddenly cut off, as several other firms collectively terminated their business relationships with it at the same time. This coordinated action triggered a government investigation that uncovered what authorities deemed an illegal, anti-competitive plot.
The swift and decisive response from Jordan's Ministry of Industry and Trade offers crucial lessons for any business operating in a competitive landscape. This incident isn't just about one company's complaint; it's a clear signal about how regulators interpret the law. Below, we deconstruct the three signals Jordan's government just sent to the entire market—and why every business leader should pay attention.
Behavioral Patterns Over Paper Trails: The New Evidence Standard
The investigation, led by the Ministry of Industry and Trade's Competition Directorate, was not triggered by a leaked email or a whistleblower with a signed contract. Instead, the primary red flag was the timing. Multiple companies in the logistics sector ceased dealing with the smaller company all within the same period.
This simultaneous action was treated as a clear indicator of an "implicit agreement" to collude. Investigators concluded this was an illegal effort to squeeze the smaller firm out of the market, violating the specific prohibitions outlined in Article (4/1/5) of Competition Law No. (33) of 2004. This is a critical insight for business leaders: regulators are looking beyond formal, written proof. Patterns of behavior, especially synchronized actions that harm a competitor, can be considered sufficient evidence of a violation. From a strategic perspective, this lowers the burden of proof for complainants and significantly raises the risk for companies considering coordinated but undocumented actions.
Revenue, Not Profit: The Penalty Designed to Cripple, Not Just Punish
After identifying the anti-competitive behavior, the Ministry issued a formal warning to the offending companies, giving them a one-week deadline to correct their practices and halt the boycott. The consequences for failing to comply are severe and designed to be a powerful deterrent.
Under Article (20) of Jordan's Competition Law, violators face a financially devastating fine: no less than 2% and up to 10% of the company's total annual sales or revenue. This penalty is not a minor slap on the wrist or a simple cost of doing business. A fine calculated against total revenue, rather than profit, can have a crippling financial impact, underscoring the seriousness with which the government views these offenses.
The Bigger Picture: It's About More Than Just One Company
The Ministry's concluding statements revealed that its intervention was driven by a much broader objective than just resolving a single complaint. The government's goal is to protect and maintain the health of the entire market ecosystem. This action was about sending a clear message that the rules of fair play will be enforced to safeguard the national economy.
The Ministry explicitly stated its commitment to ensuring a fair competitive environment that protects three key interdependent groups. By creating a predictable and fair environment for businesses (the private sector), the Ministry boosts investor confidence, which in turn leads to more innovation and better pricing, directly benefiting consumers. The personal involvement of the Minister of Industry and Trade, Ya'arub Al-Qudah, who is noted to follow such cases closely, further signals that maintaining a competitive market is a high-level government priority.
Conclusion: A Level Playing Field, Enforced
This case serves as a powerful reminder that in Jordan, fair competition is not just a theoretical concept but an actively enforced principle with significant legal and financial consequences. The government has shown it is willing to act decisively based on behavioral evidence to dismantle practices that threaten market integrity. For businesses, the message is clear: strategies that cross the line from competition to collusion will not be tolerated.
It leaves one to wonder: how many other "market trends" are actually the result of unseen, coordinated actions?
Iraq's Market Overhaul: How a Key Legal Amendment Aims to End Monopolies and Remake Its Economy
For years, consumers and businesses in many markets have faced a familiar frustration: a limited selection of goods, stubbornly high prices, and lackluster after-sales service. This is often the reality in an economy where a few exclusive commercial agencies control the entry of major products and brands, effectively limiting competition and choice. In Iraq, this long-standing issue has been a significant barrier to both consumer satisfaction and broader economic growth.
In a quiet but pivotal move, the Iraqi government has approved the First Amendment to its Commercial Agencies Law. This is not a brand-new initiative, but a targeted reform designed to address critical loopholes that have emerged since the original law was enacted in 2017. While it may not capture daily headlines, this legislative change represents a foundational shift in the country's economic strategy, aimed at dismantling market constraints, protecting consumers, and strengthening the state's economic architecture.
This post will explore the most impactful takeaways from this amended law. We will break down what these changes mean for the Iraqi market, how they open the door for new investors, and why this is a critical step in Iraq's ambition to build a resilient, modern economy integrated with the world.
The Goal: Break Up Monopolies to Lower Prices and Boost Quality
A primary driver behind the legal amendment is to confront the "de facto monopolies" held by certain commercial agencies. The reform specifically targets the structure of "closed agencies" that have long dominated key sectors, including sensitive devices and essential consumer goods, giving a handful of players immense control over pricing and availability. The law is explicitly designed to break this stranglehold and foster a more competitive environment.
According to Mazhar Muhammad Salih, the Prime Minister's financial advisor, the core economic benefit is clear. The law is engineered to "improve market efficiency by lowering prices and raising the quality of goods" simply by introducing more competition. The vision is to move from a restricted market to an open and dynamic one where businesses compete on quality and value, not just on exclusive access.
The official vision behind this reform is to create a more just and efficient economic landscape, as Salih explains:
"The First Amendment to the effective Commercial Agencies Law represents an important legislative reform that enhances competitiveness, improves the quality of goods and services, and supports investment and integration into the global economy... The amendment also contributes to building a disciplined and more just market, which is directly reflected in the growth of the economy and the protection of the consumer in Iraq."
The Impact: Better Products and Services for Consumers
The amendment places consumer rights and protection at its center. For too long, the market has left consumers vulnerable to "shoddy goods and poor after-sales services," a situation that not only frustrates individuals but also drains the national economy through spending on low-quality, disposable products.
To counter this, the new law imposes specific and stricter obligations on commercial agents. It mandates that agents meet "higher standards for quality, warranty, and maintenance." This is a significant shift in focus. It moves beyond simply regulating the act of importing and selling goods and creates a framework of accountability that ensures a quality, long-term experience for the Iraqi consumer. This ensures that money spent within the economy circulates to support durable, high-value goods and reliable local service networks.
The Strategy: Enhancing State Capacity and Opening Doors to the World
This reform is not merely an internal housekeeping measure; it is a strategic move of economic statecraft. By dismantling the old system of exclusive agencies, the law is explicitly intended to "attract new international companies and brands to the Iraqi market." Global firms that may have been hesitant to enter a market controlled by a single gatekeeper will now have a clearer, more competitive path to entry.
Crucially, this legal reform is a building block for Iraq's larger international ambitions, particularly its accession to the World Trade Organization (WTO). The amendment supports WTO requirements by enforcing stricter registration and auditing procedures through the Ministry of Trade, enhancing transparency. Furthermore, it strengthens institutional capacity by improving "government oversight, taxation, and digitization." By building a more disciplined and transparent regulatory environment, Iraq is signaling to the world that it is serious about adopting international standards for trade and business.
The Vision: Building Domestic Strength Beyond Imports
Perhaps the most forward-looking aspect of this reform is that its vision extends beyond simply importing foreign goods more efficiently. The amendment is a strategic tool designed to strengthen Iraq's internal economic machinery. It explicitly aims to "strengthen national supply chains and encourage local manufacturing."
This move is intended to "stimulate local investment in distribution, logistics, and commercial services," creating a ripple effect that builds domestic capacity and reduces reliance on external systems. By fostering a more competitive and organized commercial environment, the law lays the groundwork for a more robust and self-reliant national economy. This fundamentally reframes the reform as a project of both international integration and domestic economic sovereignty.
Conclusion: A Foundation for a New Economy?
This amendment to the Commercial Agencies Law is far more than a simple legal revision. It represents a foundational step toward building a "competitive and fair market" in Iraq. By breaking up disguised monopolies, empowering consumers, enhancing state functions, and seeding domestic industrial growth, the government is working to create a "stable and attractive legal environment for foreign direct investment."
The true test will be in the implementation and enforcement of these new rules. However, the intent and structure of the law signal a comprehensive and decisive break with the past. With these foundational changes in place, could this be the catalyst that finally unlocks Iraq's vast economic potential on the world stage?
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