Drought, Coronavirus Drag Down Moroccan Growth Forecasts

Farmers carry containers of strawberries, to be exported, after picking them in a field in the town of Moulay Bousselham in Kenitra province. (Reuters)
Farmers carry containers of strawberries, to be exported, after picking them in a field in the town of Moulay Bousselham in Kenitra province. (Reuters)
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Drought, Coronavirus Drag Down Moroccan Growth Forecasts

Farmers carry containers of strawberries, to be exported, after picking them in a field in the town of Moulay Bousselham in Kenitra province. (Reuters)
Farmers carry containers of strawberries, to be exported, after picking them in a field in the town of Moulay Bousselham in Kenitra province. (Reuters)

A Moroccan business center has expected the country's economic growth to drop to 0.8 percent this year due to drought and the impact of the new coronavirus on non-agricultural sectors.

The Centre Marocain de Conjuncture (CMC) noted that agricultural production will decline by 3 percent in 2020 compared to 2019. Last year’s season had also witnessed a sharp drop in production due to drought.

As for non-agricultural sectors, the CMC expected a slowdown in growth as a result of COVID-19.

Tourism is one of the most affected sectors amid estimates of a drop by 25 percent and a slow and difficult revival.

The transportation sector will also take a significant hit. The minerals and extraction industries will be impacted by the drop in global demand. Growth in the mineral sector is expected to drop 2.5 percent, said the center.

Growth in the manufacturing sector is predicted to drop to less than 2 percent, said the CMC, noting that several industrial establishments are suffering from a shortage in raw material and others are facing difficulties in accessing the markets. Several factories have already stopped production, especially in the car making sector.



Trump Vows New Tariffs on Mexico, Canada and China

FILE PHOTO: US President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, US, November 19, 2024. Brandon Bell/Pool via REUTERS/File Photo
FILE PHOTO: US President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, US, November 19, 2024. Brandon Bell/Pool via REUTERS/File Photo
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Trump Vows New Tariffs on Mexico, Canada and China

FILE PHOTO: US President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, US, November 19, 2024. Brandon Bell/Pool via REUTERS/File Photo
FILE PHOTO: US President-elect Donald Trump attends a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, US, November 19, 2024. Brandon Bell/Pool via REUTERS/File Photo

US President-elect Donald Trump vowed on Monday to impose sweeping new tariffs on Mexico, Canada and China as soon as he takes office as part of his effort to crack down on illegal immigration and drugs.

He said he would impose a 25% tax on all products entering the country from Canada and Mexico, and an additional 10% tariff on goods from China, as one of his first executive orders.

In a series of posts to his Truth Social account, Trump vowed to hit some of the United States' largest trading partners with duties on all goods entering the country.

“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% tariff on ALL products coming into the United States,” he wrote, according to AFP.

He said the new tariffs would remain in place “until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”

The President ignored the US, Mexico and Canada three-decade-old free trade agreement, now called the USMCA.

In another post, Trump said he would also be slapping China with a 10% tariff, “above any additional Tariffs,” in response to what he said was its failure to tackle fentanyl smuggling.

“No one will win a trade war,” Liu Pengyu, a spokesman for China's embassy in the United States, told AFP by email, defending Beijing's efforts to curb fentanyl smuggling.

“China believes that China-US economic and trade cooperation is mutually beneficial in nature,” Liu added.

Canada said it was “essential” to US energy supplies, and insisted the relationship benefits American workers.

“We will of course continue to discuss these issues with the incoming administration,” said the statement from Deputy Prime Minister Chrystia Freeland.

Tariffs are a key part of Trump's economic agenda, with the Republican vowing wide-ranging duties on allies and adversaries alike while he was on the campaign trail.

Many economists have warned that tariffs would hurt growth and push up inflation, since they are primarily paid by importers bringing the goods into the US, who often pass those costs on to consumers.

But those in Trump's inner circle have insisted that the tariffs are a useful bargaining chip for the US to push its trading partners to agree to more favorable terms, and to bring back manufacturing jobs from overseas.