Morocco Ends Informal Trade with Spanish Enclaves, Seeks Economic Development

The report represents a roadmap tracing the steps to be followed to definitively ban this "highly organized and structured traffic, of which only a part is apparent," the document indicates, relayed by Les Eco.

The cessation of this informal activity between the two enclaves is a sovereign and necessary decision. Although Covid-19 has played an important role, the council’s document estimates that this decision must be followed by an integrated development strategy.

Thus, the conclusions of the report suggest a host of recommendations, including the creation of the economic activity zone in Fnideq, the establishment of an "industrial corridor" to cross the Mediterranean strip of the kingdom, on the logistics axis from Tanger Med to Nador West Med, as well as the adoption of an attractive tax and land regime for investment, the development of the tourism offer in the regions bordering Ceuta and Melilla and others.

The main concern of the authorities of Ceuta and Melilla, as well as the experts, is the restoration of the pre-crisis balances, without informal trade.

Hence the report by Kissy Chandiramani Ramesh and Jaime Bustillo Galvez, respectively advisor in charge of the economy, public treasury, public administration and employment, within the regional government of Ceuta and economist and former regional advisor in Ceuta, noting that Ceuta’s imports fell by 44.3% in the first quarter of 2020 compared to 2019. But "the uncertainty will concern 40.5% of imports, if Morocco persists in the impermeability of the border."

In addition, all the recommendations imply the deduction of funds from the Spanish state. This makes things difficult for the two regions, especially in this period of economic crisis, concludes the same source.