Both heads of government highlighted in Rabat the strength of trade, investment and diplomatic relations between the two nations

Sánchez y Akhannouch clausuran el Foro Empresarial Marruecos-España con el anuncio de 800 millones de euros para proyectos conjuntos

photo_camera AFP/JALAL MORCHIDI - Morocco's Prime Minister Aziz Akhannouch (L) shakes hands with his Spanish counterpart Pedro Sanchez during the Morocco-Spain summit in Rabat on 1 February 2023

The Prime Minister of Morocco, Aziz Akhannouch, and the President of the Spanish Government, Pedro Sánchez, closed the Spain-Morocco Business Forum in Rabat as part of the 12th High-Level Meeting between the two countries.  

This meeting, jointly organised by the General Confederation of Moroccan Companies (CGEM) and the Spanish Confederation of Business Organisations (CEOE), was attended by important representatives of the Spanish and Moroccan business community. Pedro Sánchez was accompanied by 11 ministers: the Vice-Presidents of Economy and Ecological Transition, Nadia Calviño and Teresa Ribera, and the heads of Foreign Affairs, Interior, Industry, Transport, Inclusion, Agriculture, Education, Culture and Science. 

In this setting, President Pedro Sánchez wished to highlight the important process of modernisation that Morocco's economy has undergone, signifying "a true benchmark in the region"; all thanks to factors such as political and institutional stability and the endorsement of the confidence of the international financial community that its economic policy enjoys. The President of the Government addressed the complex context in which this modernisation has taken place, highlighting the COVID-19 crisis, the drought and the effects of the Russian invasion in Ukraine, as reported by official information such as that of the Spanish Ministry of the Presidency.  

The President of the Spanish Government stressed that Spanish companies intend to contribute to this modernisation and transformation of the Moroccan economy. Sánchez stressed the importance of continuing to eliminate barriers to trade and investment, in particular, "making legal certainty the key tool for boosting our economic relations". In order to continue supporting projects of common interest, the President of the Spanish Executive presented the imminent signing of a new protocol that will double the financing available to Morocco, to 800 million euros, as reported by the media outlet Rue20. 

Pedro Sánchez welcomed the "new stage" with Morocco, based on mutual "trust" and "respect". A new process opened after the last diplomatic rapprochement between the two countries, which took place after Spain recognised the Moroccan proposal for Western Sahara as the "most serious, credible and realistic" way to resolve the Saharawi conflict. A political move that closed a diplomatic clash that worsened with the reception on Spanish territory of Brahim Ghali, leader of the Polisario Front, in April 2021 to be treated for a respiratory ailment in a hospital in Logroño. The Moroccan kingdom denounced the lack of information and cooperation on the part of a nation considered an ally like Spain, and a turbulent period marked by tense episodes began, which ended with the Spanish recognition of the Moroccan initiative for Western Sahara, which led to a reception by the King of Morocco, Mohamed VI, to the Spanish President Pedro Sánchez to establish a political roadmap that has marked the bilateral relationship between the two countries until the holding of this High-Level Meeting.  

The Spanish President remarked in Rabat that the two countries are in agreement on "advancing towards a horizon of shared prosperity through dialogue and friendship", within the new optimal environment established between the two nations.   

Spain and Morocco: strong economic relations

Pedro Sánchez stressed that both countries are facing adverse conditions with measures that are moving their societies forward while modernising their economies. "We are doing so from a shared vocation of economic openness and ignoring those who want to take advantage of this situation to close in on themselves," he explained.  

With regard to bilateral trade relations, the President of the Government highlighted the importance of the agreement to normalise the passage of people and goods through land and sea customs posts. He also discussed the excellent economic relations between the two countries, stressing that between January and October last year, 55.4% of Spanish exports to Africa were destined for Morocco. So much so that Spain reached a figure of 9,870 million euros in exports. As for Spanish imports from Morocco in the same period, they reached an all-time high of 7.271 billion euros. 

"The true magnitude of this relationship is measured by another value with much more symbolism," said Pedro Sánchez, "that of the 17,600 Spanish companies that export to Morocco," he said. 

The Spanish President highlighted the fact that Spain is now Morocco's third largest investor, something that has a direct impact on employment. This reality is visible in sectors such as textiles, agriculture and the automotive industry, where more than 20,000 direct jobs have been generated. In this sense, today there are 674 Spanish companies with at least 10% Moroccan capital and 529 Moroccan companies that are subsidiaries of Spanish companies. 

This strong business presence has been favoured by the opening of the Moroccan economy to the outside world. In this regard, Pedro Sánchez recalled the importance of the African Continental Free Trade Agreement signed by most of the countries in the region and stressed that through this agreement "Morocco can play a key role for Spanish companies as a platform for entry into sub-Saharan Africa", as stated by the Spanish Ministry of the Presidency in an official communiqué.  

In this sense, "Spain and Morocco share the ambition to move forward in this new stage," said President Sánchez, highlighting the imminent signing, during the High Level Meeting, of 24 agreements with the participation of a ministerial delegation at the highest level. "The better the relationship between Morocco and Spain, the better for Spain and the better for Morocco, and also for Europe," he said, stressing that the stage that begins with the holding of this summit will lay new foundations of trust, mutual respect and understanding, and compliance with what has been agreed. 

Pedro Sánchez announced a financing protocol of 800 million for the implementation of joint projects in Morocco, as reported by the media Rue20. The Spanish President pointed out that these projects will be executed by Spanish companies in Morocco, stressing that both nations share the ambition to move towards this new stage, especially with the 24 agreements that will be signed between the two countries. 

For his part, Aziz Akhannouch said that "relations between Morocco and Spain are exemplary on several levels". "We can be proud of our cooperation in security and the fight against terrorism", in addition to the deep economic cooperation between the two countries. 

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