Morocco Unrest Threatens Spain’s 21 Billion Euro Trade Lifeline

As Morocco’s leading trade partner, Spain is closely following the current situation in the kingdom, marked by demonstrations by young people in several cities demanding reforms in the health and education sectors. The volume of trade between the two countries has reached 21.178 billion euros per year. According to information from ICEX, Spanish exports to Morocco have increased over time, from 11.758 billion euros in 2022 to 12.146 billion euros in 2023. Fuels and mineral oils, machinery and mechanical appliances, motor vehicles and tractors, or electrical appliances and equipment are the products that the Iberian peninsula supplies to Morocco, according to Economia Digital.

Spain has also gradually increased its imports from Morocco, which have risen from 8.694 billion euros in 2022 to 9.032 billion euros in 2023. Imported products include electrical appliances and equipment, clothing, vehicles and tractors, fish, crustaceans and molluscs, as well as fruits and vegetables. According to data from the Spanish Ministry of Foreign Affairs, some 350 Spanish companies are established in Morocco, in sectors such as agri-food, energy or infrastructure. This is the case of Alsa, which has a fleet of 1,745 buses in Morocco and is present in Marrakech, Agadir, Tangier, Khouribga, Rabat and Casablanca.

The steel giant Arcelor Mittal has two steel bar and rod production plants for construction in the north and west of the kingdom. As for Acciona, it recently signed a financing agreement for the Casablanca desalination plant, which will be the largest in the world to operate on renewable energy and will produce 300 million cubic meters of water per year. In the food sector, the oils and nuts company Borges holds a 10% stake in the Moroccan subsidiary Framaco, which has table olive packaging facilities. Ebro Foods is also present in Morocco through its stake in the subsidiary Mundiriz, which has a rice factory in the Larache region.

Repsol has also been present in Morocco since 2010, where it has a lubricant sales and distribution office. Moeve (formerly Cepsa) has also been operating in Morocco for decades. For him, the kingdom is a "key" partner due to its proximity to Spain and its strong growth potential. After launching into the service station sector a few years ago, the energy group has recently partnered with Acciona as part of Morocco’s "macroplan" of over 30 billion euros to develop renewable energy projects in the Sahara.