Morocco’s stable trade relations with the United States have positioned the country to weather potential storms in global trade, according to a new report from the United Nations Conference on Trade and Development (UNCTAD).
The UNCTAD report highlights Morocco’s balanced trade with the U.S., avoiding significant trade surpluses and refraining from imposing higher tariffs than those levied by its American counterpart.
This strategic positioning shields Morocco from the potential repercussions of shifts in U.S. trade policy, unlike countries like China and India that have experienced larger trade imbalances or implemented more protective tariffs.
As global trade is set to hit a record high of $33 trillion in 2024, Morocco is well-placed to capitalize on this growth.
The report attributes this optimistic outlook to a projected 3.3% increase in global trade this year, driven primarily by a robust 7% growth in services trade, while goods trade is expected to grow at a more modest 2%.
To further bolster its economic position, Morocco is encouraged to focus on sectors experiencing surging global demand, such as services and technology.
The UNCTAD report notes that the technology and communications sector has seen a 13% increase in the third quarter of 2024, while the apparel industry has grown by 14%.
In contrast, sectors like automotive and energy have experienced declines, underscoring the need for Morocco to redirect investments towards more dynamic sectors.
While Morocco’s current trade relationships are stable, future challenges loom. The report warns of potential risks in 2025 due to geopolitical tensions and the possibility of escalating trade wars.
To mitigate these risks, Morocco is urged to diversify its trade partnerships, particularly in Africa and emerging markets, and to strengthen its capabilities in globally promising sectors.
The report also expresses concerns about the uncertainties surrounding global trade in 2025 stemming from potential shifts in U.S. policy, including the imposition of broader tariffs.
Such measures, the report warns, could disrupt global value chains and adversely impact key trading partners.
“The threat of tariffs alone creates uncertainty, undermining trade, investment, and economic growth,” the report states.
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