Moroccan trade is dominated by its import and export partner in France. The shares are declined of the company. The Morocco is not dependent on the exports it is also paying emphasis on manufactured and agricultural products as the tourism is increasing day by day but there is drawback and also the competition is affected by the of low labor productivity and high wages. The EU is considered as the largest partner in trading. Morocco is dependent on the fuel and food which are imported and which can raise in the years of drought. Morocco also controls the structural trade which has given enhancement in the growth and also the country has a small current account surplus with them.
Morocco’s with EU entered into the force in 2000 and also which is signed in 1996. It has also aimed at creating free trade zone in 2012 by seeing that the industrial goods has achieved boom and also many products are exported to Europe. Morocco’s largest partner is France and Spain which helps in trading.
The morocco’s is controlling the direct investment of 60%. It has also created cheap labor to the manufacturers of European and also the goods which are delivered in shipment from the world are passing through straits of Gibraltar. Moroccans also established a French banking and a call centre firms which emphasis on setting many service operators in Morocco.. In October 2007 the president of French travelled to morocco for an official visit to King Mohammed VI. There are top 70 business executives who have given confirmation of contracts for French firms in morocco. There are several dollars which are used by the French firms in Morocco.
The US trade of Moroccan has achieved enhancement and also there is free trade agreement made between two countries in 2006. The minister of trade and economy told this in 2007. The minister pinned out the clothing of Moroccan which is exported to USA and also enhanced by 122% in 2006 and also the perfume sales has increased by 41% also the US investment in morocco has expanded mainly in tourism and clothing. Morocco can export to us by taking advantage of duty free quota of 15 million square feet of finished goods and also 500 tones of thread and materials is involved which is made from fibers and cotton from less developed sub Saharan African countries. The company is also looking to expand the business due to the strong competition. The direct merchant maritime line was established between tangier and ports on the East coast which is an important step which can take the trade at next level.
Morocco is considered as the second African country that has ties with china since the founding of the People’s Republic in 1949. The relation between Sino Moroccan is established and developed in sound and stable form with friendly cooperation which gives emphasis on deepening continuously in all the fields and also the efforts are praised by the leaders and many people who belong from the two countries. Taking no consideration of how the situation of international changes. This is said by the chairman of the standing committee of the Chinese national people’s congress at the time when the meeting is conducted with president of morocco’s chamber of representatives in 2005.The bilateral trade is increased and also there is cooperation in traditional fields like agriculture, health and in fisheries. The china worked together for developing the ties covering all the fields in 2005.
As taking consideration the economic liberalization policy the Morocco also completed the free trade agreements with the GCC countries which linked it with the 1 largest free trade networks in the world and also by providing duty free access to a large market.
The UAE is important for the development. There are many investments which are in construction and tourism. The recent investments have given direction to the areas such as information technology, telecommunications, automobile, agriculture, Transportation and also in aviation development. The investment has played a great role in economy. It has played a significant role in the economy of Moroccan. IT has given main emphasis on the economy of Moroccan.
The trade with African countries has changed in 1998.There are millions which has enhanced in 2008 and also it given facilitation by opening Morocco’s carrier. It also serves major cities and also gives existence to many operators of Moroccan, Especially to royal air Maroc and attijariwafa bank.
Remittances which are from Moroccan which works in abroad, foreign aid and a growing tourist industry have given assistance to the severe trade deficits. Morocco has also increased the foreign borrowings which can easily meet the financial needs.
The CIA reports that Morocco has many exports and imports in billion and millions which has given result in trade deficit of many billions. The IMF reports that the morocco has many exports of goods which result in total of 7.1 billion and import result in total of 10.2 billion. The credit amount is totaled in 4.03 billion and debit in 2.12 billion. This is the table in which the balance of payments is shown by taking into consideration the report of IMF in millions of the US dollars.
|
Current Account |
1,606 |
|
Balance on goods |
-3,022 |
|
Balance on services |
1,910 |
|
Balance on income |
-833 |
|
Current transfers |
3,550 |
|
Capital Account |
-9 |
|
Financial Account |
-967 |
|
Direct investment abroad |
-97 |
|
Direct investment in Morocco |
144 |
|
Portfolio investment assets |
… |
|
Portfolio investment liabilities |
-8 |
|
Other investment assets |
… |
|
Other investment liabilities |
-1,006 |
|
Net Errors and Omissions |
230 |
|
Reserves and Related Items |
-860 |
In 2015 the Morocco was the 64th biggest exporter in the world by taking into consideration the exports. From the last year the exports is enhanced at annual rate of 5.7% in 2015. The main exports are considered on cars which represents 10.2% of final exports of Morocco and by considering the insulated wire which represents the count for 9.6%.
The Morocco biggest exports are of cars, insulated wires, phosphoric acid, mixed mineral and also calcium phosphates on which the major emphasized is made.
There many export items like phosphates and textiles of Morocco’s export industry. The important are phosphates and textiles and other item of exports are electric components, Inorganic chemicals, citrus fruits, fish and vegetables, transistors.
The import items are textile fabric, wheat, gas, plastics, crude petroleum, telecommunications equipment, electricity, transistors and plastics.
Morocco also recorded a trade deficit in February of 2017 which results in millions. There are many averages, low and high record which has given results. In February the trade deficit is of 11927 MAD million and the averaged was 9726.85 MAD million. The duration is from 1998 to 2017 which also considered the high time which is 1254.60 MAD million in January 1999 and the low record was 23012 MAD million in May of 2012. The results showed that it has competitive advantage by exporting of citrus fruit. The competition is valued by considering the value of unit and the market share which has result in decline in EU market. But raised in non EU markets. The results also given direction the sector strategies which consist of low value products of non EU markets but it has also modifications in the export chain and in investments which enhanced the quality and safety. The investments are considered as an important element of the EU market.
The Company has established many suppliers of citrus fruit to European and in North American markets. It is seen that the sector of citrus has made the GDP of 3 per cent by taking into consideration the source of income which is more than 10,000 growers and for their families. In 2007 Morocco exported the citrus fruit which result in million in which it also consist of mandarins and oranges which are millions in number. The value of export of oranges and mandarins was taken by considering the tomatoes which result in amount of millions. The fruit and vegetable exporters who belongs from the developing countries and the Moroccan exporters of citrus faced pressure of competition in the market structure which is changing from time to time and also which has enhanced complexity. The consumer focuses on the safety and quality of product or on trade regimes. This the main reasons by which exporters have plan their export strategies which can give security to the international markets where competition prevails or where there is high level of competition.
The annual production of citrus fruit was passed in one million tons in which only 40% is exported and rest 60% is consumed domestically. Less than 2 per cent of the production of citrus fruit is only processed. The export citrus sector is positive with the average of 6% growth rate in the period of 1993 to 2008 and also it has shown positive results. The positive results are seen and observed while considering the citrus sector. The citrus fruit total production that is ranged from 80,000 hectares only.
The main competitors are Spain, South Africa, Mexico, turkey, US and Argentina. From 1993 to 2008 the Spain exported 40% of citrus which consist of 7% oranges and 66% of mandarins. The morocco also kept a global share of citrus market which result in4 % and it does not export more than 7% of the world mandarins and 5% of oranges. The turkey supplied same amount of citrus if compared with morocco. The citrus was exported by US in the ratio of 12% and 15% of oranges also. The Greece, Australia and Mexico exported approximately 2% to the citrus. 3% of the citrus fruit is of Argentina and Cyprus has less than 1% of the share. The citrus exportation is declining which has result in each case like for Australia by 1%, Cyprus by 3%, Greece by 4%, Spain by 1% and for US it range by 4% also the rise of other countries is taken into consideration. The decline has taken place in many countries of the citrus fruit which has also given many affects on the other countries. South Africa also exported 6% of the citrus and 9% of the oranges from the duration of 2000 to 2008.
References
https://en.wikipedia.org/wiki/Trade_in_Morocco
https://memrieconomicblog.org/bin/content.cgi?article=190
https://www.fmprc.gov.cn/zflt/eng/zxxx/t210622.htm
https://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/mar/all/show/2015/
https://tradingeconomics.com/morocco/balance-of-trade
https://www.academia.edu/555862/Export_Performance_Comparative_Advantage_and_Competitiveness_The_Case_of_Moroccan_Citrus_Sector
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