Morocco-Algeria Trade Declines Amid Diplomatic Tensions and Pandemic

Trade between Morocco and Algeria is focused on imports and exports. Over the 2010-2019 decade, trade between the two countries showed an average annual decline of 2.6%, from 8.2 billion dirhams in 2010 to 6.5 billion dirhams in 2019. In 2020, this trade was marked by the health crisis related to the coronavirus. As a result, it has steadily declined to reach 5.4 billion dirhams, according to the latest figures from the Foreign Exchange Office. In 2020, they represent only 0.8% of Morocco’s trade, compared to 1.8% in 2010, details the newspaper l’Economiste.

In 2019, goods imported from Algeria amounted to 5 billion dirhams against 7 billion in 2010. In 2020, these acquisitions also recorded a decline to stand at 4.1 billion dirhams. 90.5% of these imports are petroleum gas and other hydrocarbons. In addition to petroleum products, Morocco imported 275 million dirhams of dates in 2020, followed by ammonia (148 million dirhams), glass and glass products (86 million dirhams). Other imports: plants, refrigerators, dishwashers, electricity... They are less important.

As for Moroccan exports to Algeria, they went from 1.2 billion dirhams in 2010 to 1.5 billion dirhams in 2019 and 1.3 billion dirhams in 2020. Morocco mainly exports to its neighbor flat-rolled products, of iron or non-alloy steel (363 million dirhams in 2020 against 147 million dirhams in 2010), natural and chemical fertilizers (174 million dirhams in 2020 against 26 million in 2010). Moroccan exports to Algeria also include ready-made clothing (155 million dirhams in 2020 against 10 million dirhams in 2010), coffee or tea extracts and essences (103 million dirhams in 2020 against 67 million dirhams in 2010.

Over the past five years, service imports from Algeria have mainly focused on insurance and transportation, accounting for two-thirds of total service imports exported by the eastern neighbor to Morocco in 2020. According to figures from the Foreign Exchange Office, other financial flows such as MRE income, investment, etc., from or to Algeria remain at very low levels.

Over the years, trade between Algeria and Morocco has not developed. The severing of diplomatic relations between the two countries is therefore an epiphenomenon.