Spanish Enclaves Ceuta and Melilla Face Economic Crisis as Morocco Border Closure Continues

The economic crisis born of the closure of the borders between Morocco and Spain is felt on both sides of the border. In Fnideq, where nearly 10,000 people have lost their jobs and are left without income due to this closure, the residents demonstrated on February 5 and 12 last to demand an economic recovery plan. An envelope of 400 million dirhams (37 million euros) had been released in 2020 by the government for the construction of an industrial zone in Fnideq, M’diq and Tétouan, relying on the ports of Tanger Med and Beni Ansar, as well as the airports of Al Hoceima and Nador.

The two Spanish enclaves, Ceuta and Melilla, since the late 1980s, have specialized in the import of Asian products and the smuggling of basic necessities in northern Morocco, particularly in Fnideq, M’diq or Nador. A trade that, before the closure of the borders, generated nearly 1.5 billion euros per year, and which escaped the Moroccan treasury. This led the Moroccan authorities to close, on August 1, 2018, the commercial customs of Melilla, without informing Madrid. In Ceuta, Rabat closed the border to smuggling on October 7, 2019, without consulting the Spanish government. This unilateral decision also had a huge impact on the city, the volume of irregular exports having reached 750 million euros.

The elected officials and civil society of Ceuta and Melilla have not failed to denounce this attempt by Morocco to economically asphyxiate the two cities. On the Moroccan side, the authorities advocate, according to some diplomatic sources, "a dialogue" with Spain. But the reality shows that the tension between the two governments is high. This is evidenced by the last-minute cancellation, on December 17, of the Morocco-Spain summit, and the reaction, on February 3, of Nasser Bourita, Moroccan Minister of Foreign Affairs, regarding the mistreatment suffered by young Moroccan migrants in the Canary Islands.

Moreover, beyond Ceuta and Melilla, the Sahara issue is at the heart of the crisis between Morocco and Spain, especially after the recognition of Moroccan sovereignty over the Sahara by Donald Trump.