Morocco Develops Automobile Industry Despite Global Trade Slowdown

Employees work at the assembly line of Dacia Sandero cars at a factory operated by Somaca in Tangiers (file photo: Reuters)
Employees work at the assembly line of Dacia Sandero cars at a factory operated by Somaca in Tangiers (file photo: Reuters)
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Morocco Develops Automobile Industry Despite Global Trade Slowdown

Employees work at the assembly line of Dacia Sandero cars at a factory operated by Somaca in Tangiers (file photo: Reuters)
Employees work at the assembly line of Dacia Sandero cars at a factory operated by Somaca in Tangiers (file photo: Reuters)

Morocco’s recent involvement in global value chains for automobiles is an example of a country’s ability to expand its own trade despite global trade slowdown, according to the Arab Sustainable Development report.

The report, issued by the United Nations bodies operating in the region, headed by the Economic and Social Commission for Western Asia (ESCWA), said that Morocco sought to diversify its sources of growth through the development of the automotive industry by launching its Renault-Nissan Tangier plant in 2012.

The report noted that the automobile manufacturing saw a 20 percent annual growth in Morocco, and became a major driver for the country’s exports, adding that it is supposed to help launch the Peugeot-Citroen plant in Kenitra, further consolidating its position.

It also indicates the untapped potential for Arab countries to participate in the international economy.

The report noted that “improved investment is a policy choice” calling upon Arab countries to support innovation and entrepreneurship, absorb the potential and capacities of youth, create a conducive environment for the development of new industries, and integrate countries further into global value chains.

“Make greater efforts to forge agreements between countries to foster full regional integration and increased access to global value chains.”

In the field of adopting modern technology as a mechanism for implementation in the Arab region, the report sees that Morocco, along with a few other countries, has adopted noteworthy initiatives. It pointed out that educational systems, political structures, and social norms in most countries do not focus on critical thinking and creativity, which prevented the emergence of a critical mass of people effectively using, innovating, and producing technology.

The weak absorptive capacity in many countries has resulted in the widespread consumerist approach where people use technologies and products, without producing or adapting them according to their local needs.

Morocco is one of the few Arab countries that have adopted guaranteeing access to information as a fundamental right, according to the report.

Also, the document highlighted that some countries have made great strides in reducing maternal mortality, including Morocco, especially in rural areas.

It called for greater equality in health care provided especially maternal health care and during childbirth, however, it criticized the absence of social protection systems that mitigate marginalization and exclusion in the region.

The report warned that in the Arab region, the poor, refugees, and displaced people are at the risk of being left behind when it comes to social development goals. It cautioned that the impact of the situation is borne disproportionately by groups that face multiple layers of social, economic, or political marginalization including women, persons with disabilities, migrant workers, refugees, and displaced persons.



Britain Vows to Toughen Its Trade Defenses Under New Strategy

Shadow Secretary of State for Work and Pensions Jonathan Reynolds speaks during Britain's Labour Party annual conference, in Brighton, Britain, September 27, 2021. (Reuters)
Shadow Secretary of State for Work and Pensions Jonathan Reynolds speaks during Britain's Labour Party annual conference, in Brighton, Britain, September 27, 2021. (Reuters)
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Britain Vows to Toughen Its Trade Defenses Under New Strategy

Shadow Secretary of State for Work and Pensions Jonathan Reynolds speaks during Britain's Labour Party annual conference, in Brighton, Britain, September 27, 2021. (Reuters)
Shadow Secretary of State for Work and Pensions Jonathan Reynolds speaks during Britain's Labour Party annual conference, in Brighton, Britain, September 27, 2021. (Reuters)

Britain said it would toughen up its trade defenses to better protect industries amid a turbulent global outlook of trade wars and tariffs that has shaped its new trade strategy to be published on Thursday.

Britain is set to partially implement a deal to remove some of US President Donald Trump's tariffs, but acknowledged that its trade remedies system needed to be more "agile, assertive, and accountable to guard British businesses against global turbulence".

"The UK is an open trading nation, but we must reconcile this with a new geopolitical reality and work in our own national interest," Business and Trade Secretary Jonathan Reynolds said.

"Our trade strategy will sharpen our trade defense so we can ensure British businesses are protected from harm."

As part of the strategy, the government will reform the Trade Remedies Authority.

UK Steel has said that the TRA's current powers, under which it proposed to cap how much of certain kinds of steel could be imported, needed to be more robust, and welcomed the trade strategy as a "critical turning point".

Britain is aiming to remove US tariffs on steel imports under their agreement, although the implementation of the deal has not been finalized.

The government has stepped in to take control of British Steel, and other industries are also seeking support, with AB Foods extending its deadline for deciding the fate of its Vivergo bioethanol plant to Thursday in the hope of a support package.

The trade strategy is Britain's first since it has had an independent trade policy after leaving the European Union.

The previous Conservative government hailed the opportunities of Brexit as it pursued several free trade agreements.

While the Labor government, which came to power a year ago, has concluded free trade agreement talks with India and is making progress on another with the Gulf Cooperation Council, it said the new strategy would focus on quicker and more practical deals than the previous government did.