Morocco and Japan are beginning to establish a very good relationship that is becoming closer and closer. Plans are now underway to create a legal framework that will allow the two nations to cooperate in the trade sector together. This would benefit both the Alawi kingdom and Japan in economic terms, and the relationship promises to grow further.
To establish this framework, the two countries have announced that two major treaties have been signed. These are primarily aimed at fostering business between the two sides.
The first is an agreement in which Morocco and Japan agree to encourage the promotion and protection of mutual investments. This is intended to encourage companies to invest in each other's territories. To ensure the creation of good activity, this agreement aims to review investment activities when one party spends money in the other.
The second treaty deals with the creation of a tax agreement to encourage the establishment of companies in the countries. This is intended to facilitate access to the two territories so that businesses can operate normally and in a secure and stable environment. According to Les Inspirations ECO, a Moroccan newspaper, "it is an agreement on the elimination of double taxation, as there was no framework for the establishment of Japanese companies in Morocco". Another objective of this treaty is to protect investments by signing agreements and measures that companies like.
Thanks to the cooperation between the two countries, investors can establish themselves in Morocco directly to develop their business, and vice versa. The creation of this legal framework will also lead to an increase in the number of Japanese companies in the Alawi kingdom. Although it is worth noting that, previously, when there was a vacuum, firms had already been setting up in the North African nation for ten years and were operating with great ease, obtaining a series of benefits.
"In the last ten years, the number of Japanese companies operating in Morocco has more than doubled by 75%, making the country the second largest investment destination for Japanese companies in Africa," says the Moroccan daily.
The Kingdom of Morocco offers a number of investment-friendly features that are very attractive for international business. It is notable for the reduction of taxes and tax incentives, so that companies do not have to wait as long to establish themselves in order to be able to exercise their function. In addition, its political and economic stability make the country one of the ideal places to invest and expand into other areas.
"It must be said that the country actively attracts foreign investment through the creation of free economic zones while taking advantage of its proximity to European and African countries, its abundant young labour force and its affordable prices," recalls Le Inspirations ECO.
These booming relations have also led to Japan becoming the largest generator of foreign private sector jobs in the North African nation. Japan has managed to create more than 50,000 jobs in the Kingdom, resulting in a significant development of the national economy. Moreover, it is worth noting that Tokyo is Morocco's 18th largest customer in the export sector, bringing in around 299 million dollars a year, according to the Moroccan Embassy in Japan.
Japan also recently held the 8th Tokyo International Conference on African Development, where it hinted at its interest in investing in certain sectors of the Maghreb country that are experiencing considerable growth. The Eastern nation reveals that Morocco's recent progress in the fight against climate change is marking a turning point in the battle to improve the planet. As a result, Japan wants to support the creation of new sustainable development projects in Africa. Other industries of interest to Japan include the automotive, aeronautics and high-tech industries.