Diplomatic tensions weaken trade within Maghreb region

Diplomatic tensions weaken trade within Maghreb region
Tuesday 13 August 2024 - 22:39

Ongoing diplomatic and political tensions between Morocco and Algeria since 2021, and with Tunisia since 2022, have significantly impacted the economic sector, particularly affecting trade within the Maghreb region.

This has further strained the already fragile economic integration of the region, making it one of the least integrated in the global economic landscape.

In 2023, trade between Morocco and Algeria dropped sharply, with Moroccan imports from Algeria falling by 61.6% and exports decreasing by 18.9%.

Relations between Morocco and Tunisia also suffered, with Moroccan imports from Tunisia declining by 6.9%, although exports to Tunisia increased by 13%. In contrast, trade with Mauritania and Libya showed positive growth, suggesting relative stability in those relations.

Abderrazak El Hiri, a professor of economics, told Hespress that intra-Maghreb trade remains weak compared to overall African trade. Moroccan imports from Maghreb countries represent less than 0.7% of total imports, while exports to these countries account for only 1.5%. El Hiri attributed this weakness to broader issues with economic integration in the region, which are exacerbated by ongoing diplomatic tensions.

El Hiri noted, “This reality is a direct result of diplomatic tensions, as relations between countries are primarily governed by political and diplomatic frameworks. When these frameworks are positive, trade relations are more likely to develop and increase.”

The director of the Coordination Laboratory for Studies and Research in Economic Analyses and Forecasts at the University of Fez, El Hiri emphasized that weak trade relations in the Maghreb are partly due to a lack of production integration, which relies heavily on the exchange of raw materials.

He added that the Arab Maghreb Union countries possess economic complementarities that, if fully utilized, could enhance their economies and improve the welfare of their populations.

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