Casablanca- In the wake of recent conflicts, trade exchanges between Morocco and Israel have taken a significant hit, experiencing a sharp decline of 61%. This revelation comes as a blow to the economic ties between the two nations, signaling a challenging period ahead for bilateral trade.
According to the latest data from the Foreign Trade Management Unit of the Israeli Ministry of Economy and Industry, Israeli exports to Morocco witnessed a remarkable surge of 128% in 2023. This surge was not isolated, as exports from Tel Aviv to other regional partners such as Egypt, Bahrain, and Jordan also saw substantial increases of 73.5%, 54.5%, and 13%, respectively. Additionally, Israeli exports to the United Arab Emirates registered a modest rise of 5.2%, reaching an impressive total of approximately $650 million.
Despite these positive trends, the Abraham Accords Peace Institute reported a concerning decline in bilateral trade volume between Morocco and Israel during the first ten months of 2023, dropping by approximately 61% compared to the figures recorded in October 2022. This decline coincided with the initiation of the “Al Aqsa Flood” offensive, indicating the far-reaching impact of regional conflicts on economic dynamics.
Moreover, while Israel experienced notable successes in expanding its trade relations globally, with exports to countries like Romania, Ireland, Germany, the Netherlands, and Japan witnessing significant increases, the overall export figures experienced a slight annual decline of around 6% compared to 2022. The Israeli Ministry of Economy and Industry attributed this decline to various factors, including currency fluctuations, interest rate effects, and internal events in recipient countries.
In response to these challenges, Nir Barkat, Israel’s Minister of Economy and Industry, emphasized the strategic imperative of increasing Israeli exports to secure the economic future of the country. Barkat highlighted the pivotal role of the Department of Foreign Trade in achieving this goal, operating through 55 branches across multiple countries to boost exports annually and bolster the Israeli economy.
Since the resumption of diplomatic relations with Rabat in 2020, Israel has actively sought to increase its trade volume with Morocco, even expressing its desire to sign a free trade agreement with the Moroccan government. However, ongoing Israeli military operations in the Gaza Strip have strained relations between the two countries, with Morocco condemning these actions and calling for their cessation multiple times.
As tensions persist, the future of trade relations between Morocco and Israel remains uncertain. While both nations aspire to deepen economic cooperation, geopolitical complexities and regional conflicts continue to pose challenges, potentially impacting bilateral trade dynamics in the foreseeable future.
