By Chakib Alj, President of the CGEM (Confédération Générale des Entreprises du Maroc – General Confederation of Moroccan Enterprises) (picture). The article was reviewed and edited by Pieter Cleppe.
Europe and Morocco have been intertwined for centuries, owing to their proximity. Now that history is knocking at our door, we should make sure that businesses and institutions respond with unity and determination and resolve to get our relation into the future. We cannot afford to miss this opportunity.
From climate change to pandemics, from the fallout of war on energy and food prices to mass migration, we are facing major challenges. This is particularly true in the Mediterranean, which as many times before sits in the front row of history. as businesess, we have realised this the hard way, as the global economy turns out to be vulnerable – and close friends are needed more than ever.
During Covid 19, we witnessed supply chain bottlenecks, price increases, trade restrictions, and negative impacts on trade flows. We thus realised that we need shorter, diversified, more resilient and sustainable supply chains to mitigate risks.
With the war in Ukraine, we experienced dramatic energy and food security challenges. We thus realised that we need to leave aside short-termism and lingering political conflicts, and close ranks with our friends and allies, especially in our shared neighbourhood.
In the Mediterranean, to satisfy both needs, we can build on EU-Morocco relations.
Our Association Agreement has indeed increased trade and allowed closer economic, political and cultural cooperation. Morocco is now the main EU trade partner in Africa, and trade with the EU represents 20% of Morocco’s GDP. In its strategies on the Southern Neighbourhood and Trade Policy Review, the EU recognises this opportunity to diversify its supply chains and create a bridge to the African continent by modernising relations with Morocco.
Strengthening EU-Morocco relations
This is why Morocco is the first neighbouring country to sign a Green Partnership with the EU. This is why Morocco is the first country to benefit from investments from the EU Global Gateway. This is why both the EU and Morocco have plans that regear their economies and trade and making them more sustainable.
This is why, with our European counterparts at BUSINESSEUROPE, we are committed to further develop EU-Morocco relations. Both sides seek a modernisation of our trade agreement, which would benefit both economies and empower us to seize opportunities.
Today, we have the chance to build integrated value chains that can foster sustainability as well as stability in the Mediterranean. We can integrate our energy markets to develop renewables and face the energy crisis – using green energy to fuel the green transition. We can ensure, with European investment and Moroccan resources, that, as foreseen by the International Renewable Energy Agency, Morocco becomes a global leader in green hydrogen production and the EU benefits from other alternatives for gas, as foreseen by the International Renewable Energy Agency. We can also ensure integrating our value chains in manufacturing, agri-food and industry, we can create those jobs that can help stabilise a delicate region and manage migration.
The hurdles
However, this enormous potential of EU-Morocco relations risks remaining untapped. This is something that neither Morocco nor the EU can afford. Not now.
The modernisation of our relations is on hold, waiting for the decision of the Court of Justice of the EU, regardless of all the investment that European, international and Moroccan businesses have made in the Sahara, notably on renewable, solar and wind energy, regardless of how much local populations rely on exports to the EU for their socio-economic development and regardless of the fact that the US and key EU Member States like Spain or Germany, China, and more recently Turkey, recognise that Morocco’s engagement is the way forward for the region.
EU court cancels Morocco trade deals over Western Sahara dispute https://t.co/fHbUicdnu0 pic.twitter.com/jqEkDEtxnC
— FRANCE 24 English (@France24_en) September 29, 2021
We simply cannot let those difficulties stop us from bringing our economies into the future. Now that our economies and societies face similar challenges on both sides of the Mediterranean, the private sector needs to join forces and demand to be given the instruments, the institutional architecture to protect our economies and make them thrive.
We need to focus on economic opportunity, on bringing economic ties to the next level. This is the only way to foster sustainable development, stability and security in the Mediterranean.
Businesses are increasingly called upon to create the jobs that can help control migration, to be more sustainable to green the economy, to empower youth, women and minorities, to rise to challenge of emergencies and shocks. And rightly so: businesses can do all of that and more. But we, together with our institutions, need to focus on economic opportunities, on bringing economic ties to the next level. This is the only way to foster sustainable development, stability and security in the Mediterranean.
The choice is ours – and companies have made theirs.
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