Casablanca – Morocco is making significant strides in expanding its global investment strategy by deepening economic relations with Brazil, positioning the South American nation as a key gateway for broader engagement in Latin America. This move was formalized when the Brazilian Senate officially approved the Cooperation and Investment Facilitation Agreement between the two countries, marking a new era of collaboration.
The legislative decree, endorsed by the Brazilian Senate on August 15, 2024, after being unanimously supported by the Chamber of Deputies in February, solidifies the agreement initially signed in June 2019. The decision highlights the commitment of both Morocco and Brazil to enhance investment flows and establish a strong institutional framework that fosters cooperation between their respective private sectors.
Senator Margareth Buzetti, who led the initiative in the Senate, praised the strategic significance of the agreement. She emphasized that it will generate substantial economic benefits for both nations by simplifying the process of investment and fostering closer bilateral relations. According to Buzetti, facilitating these exchanges is crucial to unlocking new opportunities for growth and development.
The Cooperation and Facilitation Agreement provides a comprehensive framework to ensure legal security for investors. It addresses key issues such as expropriation, compensation for losses, adherence to environmental and technical standards, fiscal measures, and corporate social responsibility. Furthermore, the agreement sets up a mechanism for dialogue, dispute resolution, and mitigation, ensuring a stable environment for investments to thrive in both countries.
Morocco views this agreement as an essential part of its long-term vision to diversify its economic partnerships and increase its global reach. By focusing on Brazil, Morocco is opening the door to new opportunities in Latin America, with key sectors like agriculture, industry, and infrastructure expected to benefit from the increased cooperation. The Dakhla Atlantic Port project, currently under development in southern Morocco, is anticipated to play a vital role in attracting Brazilian investments, particularly in agriculture and logistics, which align with Morocco’s economic priorities.
At the same time, Brazil stands to benefit from Morocco’s well-established fertilizer industry, which is crucial for supporting the growth of Brazil’s agricultural output. As a leading exporter of agricultural goods, including meat and grains, Brazil can provide Morocco with much-needed resources to address domestic challenges such as drought and climate change.
This partnership goes beyond agriculture. Brazil will be able to leverage Morocco’s strategic position as a gateway to Africa, opening up new markets for Brazilian businesses and offering expanded access to the continent’s growing economies. Morocco, in turn, will benefit from the increased flow of Brazilian investments, particularly in key areas such as infrastructure development and trade.
This agreement is part of Morocco’s broader effort to diversify its international trade and investment relationships. By forging stronger ties with Brazil, Morocco is expanding its network of global partners, including countries like China, India, and Russia. This diversification strategy is critical as Morocco seeks to navigate the complexities of the global economic landscape, which has been marked by inflation, disrupted trade, and reduced demand in key markets.
The Morocco-Brazil investment agreement underscores the Kingdom’s proactive approach to securing new partnerships and expanding its influence on the world stage. As both countries look ahead, this collaboration is expected to bring mutual economic benefits, strengthen trade links, and create new opportunities for growth in both regions.
With Brazil emerging as a strategic ally, Morocco is positioning itself to tap into the vast potential of Latin America, while also providing Brazil with a gateway to Africa’s promising markets. This landmark agreement is set to foster sustainable economic growth and solidify Morocco’s role as a global investment hub.