Coronavirus Disrupts China-Morocco Trade, Impacting Local Markets and Prices

While the toll continues to rise in China, following the proliferation of the coronavirus that has already killed more than 2,442 people, the first economic consequences are being felt. For several weeks, entire cities have been confined, quarantined, factories and markets closed. This is not without repercussions on many countries in the world that have more than close business and trade relations with China. Many have declared bankruptcy, awaiting the country to leave the red zone, reports H24infos.

Morocco is one of the affected countries. In Derb Omar, the most important purchasing center in Morocco, which accounts for nearly 26% of imports, according to a study by the Casablanca CRI, the impact of the coronavirus on activity is unanimous among merchants. Same refrain at "Garage Allal" and Souk Korea, where Chinese products abound. Importers are facing huge losses and expect the worst in the coming months if the virus continues to resist all the measures taken.

According to the secretary general of the Union of Merchants and Professionals of Derb Omar, "even if the Chinese authorities in the cities of Guangzhou and Yiwu have opened the doors of the markets, the fear of the coronavirus prevents many merchants from making the trip to China". For Said Farah, "even the interesting incentives that go as far as full coverage, including flights and all-inclusive hotels, have failed to sway merchants who fear for their health".

Travel agencies are also complaining of huge losses. "Worse than the epidemic is the uproar that followed," laments a travel agent who requested anonymity. An international freight forwarder, who also requested anonymity, said that "apart from the operations carried out during the first half of last December, there is no more activity".

In the same vein, the president of the General Union of Enterprises and Professions (UGEP), Ahmed Afilal El Alami Idrissi, states that "sales have fallen by nearly 40% in certain segments, such as a company that has the exclusive distribution of the Moulinex brand of household appliances (blender, cookeo, multifunction robot, bread maker, fryer, toaster)".

For him, prices of all products for which imports from China represent a certain advantage are expected to rise. These include, among others, fabrics, automotive and motorcycle spare parts, helmets and other accessories, toys, jewelry and watchmaking products, leather importers, including soles and bags, as well as all plastic products.