Border Crackdown Sparks Economic Tension in Spanish Enclaves of Ceuta and Melilla

The Spanish press is already talking about "unease for the local trade" in the city of Melilla. The fact that Madrid and Rabat have decided to suspend the clandestine trade sounds like a betrayal, as these merchants were hoping for the reopening of the borders to rebuild their financial health. Moreover, the decision is a blow to the economy of the two enclaves, which have made it the heart of their economy, by massively importing from Spain. 70% of imports are reserved for trade with Morocco.

Smuggling trade was earning the two cities between 600 and 800 million euros per year for Ceuta and about 500 million for Melilla, while officially they export to Morocco less than 1 million euros per year. A real shortfall for the Moroccan customs.

According to the Spanish press, despite the ban, the smugglers of the two Spanish cities hoped to deceive the vigilance of the customs officers by passing the goods through cross-border passengers or the traveler’s regime, who would go with the products in their trunks as if they were just personal purchases. But the Moroccan authorities are on the alert and have been very clear on the issue since the reopening of the borders on May 17.

It is precisely to thwart the smugglers’ plan that the Moroccan authorities inaugurated in February 2022 an economic activity zone (ZAE) in Fnideq, the implementation of which required an investment of 200 million dirhams. This project should create more than 1,000 direct jobs and put an end to smuggling. At least, that’s what Morocco hopes for.