Morocco Trade And The Relationship

Introduction :

Morocco is a member of the United Nations and belongs to the Arab League, Arab Maghreb Union (UMA), Organisation of Islamic Cooperation (OIC), the Non-Aligned Movement and the Community of Sahel-Saharan States (CEN_SAD). Morocco's relationships vary greatly between African, Arab, and Western states. Morocco has had strong ties in order to gain economic and political benefits. The Arab world invests 19.3%. Many countries from the Gulf and Maghreb regions are getting more involved in large-scale development projects in Morocco A recall on the Moroccan.

Foreign relations have had a significant impact on economic and social development in Morocco. Certain evidence of foreign influence is through the many development projects, loans, investments, and free trade agreements that Morocco has with other countries. Some free trade agreements include the Euro-Mediterranean free trade area agreement with the European Union; the Greater Arab Free Trade Area with Egypt, Jordan, and Tunisia.

So, Moroccan economy benefits Does its relations with the Arab countries?

I- morocco trade and the relationship of investment in general

Moroccan trade is still dominated by its main import and export partner France, although France's share in Moroccan trade is declining, in favour of the US, the Gulf Region and China. If seen as a single entity, the EU is by far Morocco's largest trading partner.

In recent years, Morocco has reduced its dependence on phosphate exports, emerging as an exporter of manufactured and agricultural products, and as a growing tourism destination. However, its competitiveness in basic manufactured goods, such as textiles, is hampered by low labour productivity and high wages. Morocco is dependent on imported fuel and its food import requirement can rise substantially in drought years, as in 2007. Although Morocco runs a structural trade deficit, this is typically offset by substantial services earnings from tourism and large remittance inflows from the diaspora, and the country normally runs a small current-account surplus.

Morocco signed in 1996 an agreement of association with the European Union which came into effect in 2000. This agreement, which lies within the scope of the Barcelona Process (Euro-Mediterranean partnership) started in 1995.

Morocco is a member of the United Nations and belongs to the Arab League, Arab Maghreb Union (UMA), Organisation of Islamic Cooperation (OIC), the Non-Aligned Movement and the Community of Sahel-Saharan States (CEN_SAD). Morocco's relationships vary greatly between African, Arab, and Western states. Morocco has had strong ties to the West in order to gain economic and political benefits. France and Spain remain the primary trade partners, as well as the primary creditors and foreign investors in Morocco. From the total foreign investments in Morocco, the European Union invests approximately 73.5%, whereas, the Arab world invests only 19.3%. Many countries from the Gulf and Maghreb regions are getting more involved in large-scale development projects in Morocco.

Foreign relations have had a significant impact on economic and social development in Morocco. Certain evidence of foreign influence is through the many development projects, loans, investments, and free trade agreements that Morocco has with other countries. Some free trade agreements include the Euro-Mediterranean free trade area agreement with the European Union; the Greater Arab Free Trade Area with Egypt, Jordan, and Tunisia; as well as the US-Morocco Free Trade Agreement with the United States. An example of recent foreign influence is through loan agreements. Morocco signed three loan agreements with the French Development Agency (AFD) in 2009, totalling up to 155 million euros. These were for the purpose of reforming the education system, rural roads and rehabilitation, as well as infrastructure projects.

There are many reasons why foreign powers have chosen to establish relations with Morocco. These factors are important to analyze because it shows that relationships are based on specific considerations. For example, Morocco had to be perceived as a democracy before receiving major loans and investments from western states.

Role of Political Organization

Policies associated with foreign relations are determined by the king, King Mohamed VI, and his advisors, despite the fact that Morocco has a constitutional monarchy.[1] Morocco has had a history of monarch rule. For example, the king of Morocco in 1965 suspended parliament and ruled as a dictator for two years. This was in response to the discovery of a plot on the king's life, of which the political party, UNFP, was accused. Foreign relations with western powers became strained as a result of this. Portraying Morocco as a democratic state became important if Morocco wished to receive loans and investments by foreign powers.

Role of Colonialism

Morocco's current relations with some countries are related to its colonial history. Morocco was secretly partitioned by Spain and France and in 1912 Morocco became a protectorate. Despite achieving independence in 1956, Morocco still has a strong relationship with its former colonizers. Spain and France are currently the largest exporting and importing partners to Morocco. French is still popularly spoken and remains the second language in Morocco whilst Spanish is also widespread, particularly in the northern regions. France now is home to more than a million Moroccans legally residing in the country. This is the largest population of Moroccans in a country, followed next by Spain. These former colonizers remain influential in economic matters, such as development projects, investments, trade, and loans.

Role of Free Market

Relations with foreign powers, especially with the West, have also been strengthened as Morocco has liberalized its economy and implemented major economic reforms. In 1993 there was major privatization and markets were opened up to foreign powers. Morocco now is focusing more on promoting foreign direct investments. In 2007, Morocco adopted the Hassan II Fund for Development, which are measures that simplify procedures to make the process easier and more financially beneficial for foreign investors. This was done with financial incentives, as well as tax exemptions. These policies make it beneficial for other countries to have relations with Morocco so that they can take advantage of their

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