Private sector activities contribute to strengthening economic cooperation between Morocco and Germany

The trade relations of Morocco and Germany were not affected by the repercussions of the “diplomatic crisis” between the two governments during 2021, as concluded by a recently published research paper by the “Moroccan Institute for Policy Analysis”, which tracks the impact of economic policy. ties, especially in the industrial and commercial sectors, that have linked Berlin and Rabat over the past decade.

“Despite the diplomatic crisis between the two governments in 2021, trade relations between Germany and Morocco have largely remained stable,” records the document prepared and completed by Professor Michael Tanchum, non-resident fellow of the Economics and Energy in the Middle East. Institute.

The author of the article, professor at the University of Navarra and member of the team of the Austrian Institute for European and Security Policy (AIES), spoke in his presentation about “the contribution of the private sector to the deepening of collaboration between Germany and Morocco, that provided a permanent basis for cooperation.”

The same policy document, published under the title “Strengthening the German-Moroccan partnership: flexibility of supply chains is the driving factor”, stopped at the station “The diplomatic crisis in 2021 about Berlin’s position on the Rabat initiative for autonomy in the Sahara, noting that “commercial relations between the two countries have not been affected.

It is the structural transformation that brings sources and manufacturing closer to European markets, adds the same source, underlining the orientation to neighboring countries, maintaining a competitive advantage, which “motivated German companies and other international companies to establish facilities industries in Morocco, which helped to develop a suitable climate for business”.

Commercially, Germany ranks eighth on the list of Morocco’s largest export market, according to data reported by the same newspaper, highlighting that the Kingdom’s total exports to Germany amounted to $1.2 billion in 2021; While Germany is the seventh largest source of imports from Morocco, with total exports exceeding 3,000 million dollars.

Despite the “slight widening of the gap in 2021 due to Covid-19”, the trade imbalance between the two countries remained “relatively small”. The researcher explains this by the fact that Moroccan exports to Germany between 2010 and 2019 grew more than double the growth rate of German exports to Morocco, before this “relative parity” was considered important for Morocco as a participant. important in value chains in the field of manufacturing in Germany, and recorded an increase in German direct investments in the Kingdom (from €0.18 billion to €1.32 billion).

The research work did not overlook the contribution of the signing of the “Rabat Declaration” in 2013 between the foreign ministers of Germany and Morocco to boost German and Moroccan economic cooperation to a higher level, concluding that it “paved the way for a deeper Germany”. participation in the Moroccan economy, which witnessed a 600 percent increase in German investment.” In Morocco”, in just 11 years, from 2010 to 2021.

The document also referred, in a related context, to the value chains of the automotive industry as “the pillar of the economic partnership between Germany and Morocco”, where automotive products, whether they are vehicles or auto parts, constitute “the category largest Moroccan export”. to Germany, with about 21 percent of total exports.” before the Russian invasion of Ukraine.

Michael Tanchum stated, in the content of his article, that “German car manufacturers are looking for Moroccan wire factories to fill the shortage, after a crisis caused by the sudden closure of car wire factories in Ukraine after the Russian operation in February 2022”.

The researcher suggested that “the important Moroccan cobalt reserves are used for the production of “Opel” for electric cars”, and pointed out that the German company “BMW” seeks to ensure the supply of cobalt amid the growing demand for electric cars in Europe. By signing a contract worth 100 million euros, the Moroccan Mining Company will supply in July 2020 20 percent of the cobalt needed to manufacture the next generation of electric trains.

The researcher concluded by observing “a growing trend of large German companies using Morocco as a sales and distribution center for their markets in North and West Africa”, citing examples of “BASF”, “Bayer” and “Bosch” that have marketing and distribution centers in Casablanca, pointing to the work of a German logistics and freight services company “Dachser” to expand its storage capacity in Morocco to meet growing demand.

The document concluded by emphasizing “Germany’s need to create more flexible and profitable value chains”, leading German industrial companies to seriously consider moving to Morocco, considering that “the transition from a development framework to a Euro-African communication that focuses on promoting manufacturing value chains for the private sector allows Berlin to seize the opportunity to develop a strategic partnership with Morocco, which will strengthen Germany’s geopolitical position in the Mediterranean basin and Africa.”