Morocco's strategic positioning in turbulent global trade

Morocco is currently maneuvering through a landscape marked by diplomatic and trade challenges, amidst a backdrop of global economic uncertainty. The year 2025 unfolds with apprehensions regarding international trade, particularly as the U.S. administration under President Trump signals potential tariffs aimed at protecting American manufacturing while encouraging foreign investment.

This global climate fosters a “buy/build local” ethos among nations, reminiscent of the origins of trade policy exemplified by the Tariff Act of 1789. As Morocco finds its footing in light and medium manufacturing, it must adeptly navigate the complexities introduced by evolving trade policies.

The Moroccan government has responded to the European Commission’s recent imposition of tariffs on Moroccan-made aluminum vehicle rims with a blend of confidence and caution. The countervailing duties announced range from 5.6% for producers solely benefiting from Moroccan subsidies to as high as 31.4% for those receiving additional support from China’s Belt and Road Initiative. Such measures are typical within a World Trade Organization (WTO)-guided framework that simultaneously uplifts emerging trade powers like Morocco and entrenches established entities such as the EU, USA, and China.

Mustapha Baitas, the government spokesperson, emphasized the Moroccan administration’s commitment to exploring appropriate responses to these challenges, underscoring the importance of maintaining a robust trade relationship valued at over $50 billion. Illustrating this point, Morocco’s state-owned rail operator ONCF recently announced a substantial investment of $2.9 billion in the procurement of 168 trains from France, Spain, and South Korea, a strategic move ahead of the FIFA World Cup in 2030 that will highlight EU-Morocco relations.

The EU’s agriculture commissioner has also affirmed that Moroccan tomatoes, despite exceeding established tariff quotas, can enter the EU legally provided that appropriate customs duties are paid. This reflects Morocco’s ongoing engagement with the EU and other nations on various trade matters, ranging from agricultural exports to the aluminum rim tariffs. The emphasis on continued dialogue over confrontational posturing marks a new phase in trade relations across the EU-Mediterranean region.

Over the past decade, Morocco’s manufacturing sector has displayed remarkable growth, even in the face of the disruptions caused by the COVID-19 pandemic, which prompted many countries to reassess their economic strategies. Notably, Morocco’s automotive exports to the EU soared to €15.1 billion ($16.4 billion) in 2023, a 30% increase from the previous year. With nearly 500,000 vehicles produced in 2024, Morocco has positioned itself advantageously as production declines in traditional European manufacturing centers.

Investment agreements with China have facilitated the establishment of electric vehicle (EV) battery production in Morocco, complemented by a partnership with South Korea to build a lithium-phosphate-iron (LFP) cathode plant. Furthermore, collaborations with aeronautics firms from the EU and the US have positioned Morocco as the leading manufacturer of aviation equipment and spare parts in Africa.

Morocco’s strategic location as a bridge between Europe and Africa also opens avenues for eastern trade engagement. A recent agreement between the Korea International Cooperation Agency (KOICA) and Rabat aims to develop an environmentally sustainable public transportation system, funded by KOICA, aligning with Morocco's expanding electric vehicle manufacturing sector.

As Morocco diversifies its manufacturing landscape, minor trade challenges, such as the aluminum rim tariffs, are viewed as manageable technical issues for policymakers. The nation stands to benefit from the broader geopolitical dynamics surrounding renewable energy, as identified by the Center for Strategic and International Studies. However, these advantages stem as much from Morocco’s intrinsic attributes—its talent pool, geographic positioning, and cultural richness—as from external influences.

In the world of global trade, challenges may ebb and flow, yet Moroccans are reminded of the enduring wisdom encapsulated in the Arab proverb: “Winds do not blow as the ships wish.”