Morocco gains trade flexibility, boosting exports and growth

Morocco now has more room to adjust its trade policies without breaking international agreements, according to the latest Global Trade Update, March 2025 from the United Nations Conference on Trade and Development (UNCTAD). 

The report classifies Morocco as “unrestricted,” meaning it can change tariffs more freely to suit its economic needs. 

This flexibility gives Morocco a major advantage in managing its trade strategy, helping it stay competitive in both regional and global markets.

With this flexibility, Morocco can rethink some of its trade deals, fine-tune its industrial strategies, and push for stronger exports in key sectors like agriculture, automotive manufacturing, and renewable energy. 

The report says that this flexibility could reinforce Morocco’s position as a key business hub in Africa and the Mediterranean.

According to the report, about two-thirds of global trade happens without tariffs, thanks to trade agreements and special rules that encourage lower duties. 

Many countries cut tariffs under the “most-favored-nation” (MFN) system or through other deals, making it easier for goods to move across borders.

But for the remaining third of global trade, tariffs can be steep, and they vary widely by industry. 

Agriculture is one of the most protected sectors, while manufacturing still faces trade barriers in some key areas. 

On the other hand, raw materials usually get lower tariffs, making them cheaper to export.

Developing countries often get hit with higher tariffs, making it harder for them to compete. 

Agricultural products from these countries face import duties of nearly 20% under MFN rules. 

Textiles and clothing also have some of the highest tariffs, with import taxes averaging around 6%. 

These high costs make it tough for developing countries to sell their products in global markets and stay competitive.

Tariffs are a big part of global trade, often used to protect local industries and generate revenue. 

While many countries are lowering tariffs through international agreements, developing countries still face high tariff barriers that limit their access to global markets. 

At the same time, tariffs help protect growing industries in developing countries, giving them a chance to strengthen before facing full international competition. 

But there’s a downside and that’s higher tariffs on imported goods can drive up costs for businesses and consumers, potentially slowing economic growth. 

The report also points out that developing countries often struggle to export value-added products because of these tariff structures, which favor raw materials over finished goods.