Economic void left by EU-Morocco trade ties, to be filled by US, Russia and China- Washington Institute paper

The Washington Institute for Near east Policy warned that the EU’s decision to annul fisheries and agriculture deals, will push Rabat to foster commercial ties with the US, Russia, and China.

The EU issued a politically-motivated verdict annulling fisheries and agricultural trade deals with Morocco because they included products originating from the Sahara territory. The European commission and the council both said they were attached to partnership with Morocco.

“At first glance, this development may appear to create an opportunity for increasing U.S. investment in Morocco,” author of the paper Souhire Medini wrote on the Washington Institute.

“More likely, however, the ruling will push Rabat further into the arms of China and Russia unless further action is taken, giving officials on both sides of the Atlantic a keen interest in breaking the legal deadlock,” she said.

As the EU’s top court undermines trade relations between Morocco and the EU, the US stands to gain, especially with the inauguration of Trump, who promised to open a consulate with an economic focus in Dakhla, in the Sahara territory, Medini wrote.

Although her paper did not add much to what is already known, Medini recalls that Morocco and Russia have signed a fisheries deal, as the EU retreats from Moroccan waters.

With China, Morocco sought to attract leading EV battery manufacturers and infrastructure investments, she said.

The EU however needs to mitigate the impact of the court on trade with Morocco by re-interpreting what the court conditions as the consultation of the local population in the Sahara, she said, urging an active role of the UN and Algeria in resolving the Sahara issue.