Trade Deficit

Directions.

1. Response posts 

Don't use plagiarized sources. Get Your Custom Essay on
Trade Deficit
Just from $13/Page
Order Essay

1. Select two peers to respond to. 

2. Take on the role of a consultant. Read their recommendations thoroughly then provide some rationale as to why you think their recommendations are persuasive (or not).

 

Directions.

1. Response posts 

1. Select two peers to respond to. 

2. Take on the role of a consultant. Read their recommendations thoroughly then provide some rationale as to why you think their recommendations are persuasive (or not).

 

 

Alex Castro

Morocco has an overall trade deficit of roughly $10 billion. The country imported $49.2 billion and exported $39.2 billion worth of goods in the year 2019 (OEC Morocco, 2021). Morocco’s main trade partners are Spain, France, and Italy. The primary reason for this is most likely due to the EU-Morocco Association Agreement, which was established in the year 1996 (EC Europa, 2021). This agreement allows for free trade between Morocco and 15 member states of the European Union. Europe makes up the lion’s share of Moroccan trade totaling over $22 billion. The second largest region would be Asia with $4.95 billion. Africa is Morocco’s third largest trade region totaling $2.41 billion (OEC Morocco, 2021).

Morocco trades with many countries in Sub-Saharan Africa. However, the amount of trade with these countries is significantly less than with most European and Asian nations. According to the Observatory of Economic Complexity, Morocco’s top three trade partners in Sub-Saharan Africa for the year 2019 were Senegal, Mauritania, and Côte d’Ivoire. The country of Djibouti is actually Morocco’s second top trade partner on the continent of Africa, but as it is not considered to be part of Sub-Saharan Africa it has been omitted.

Regarding trade within Sub-Saharan Africa, Senegal is Morocco’s top trade partner totaling about 9.31% of the $2.41 billion worth of trading that is conducted on the continent. Morocco exported about $225 million worth of goods to Senegal in the year 2019. Mauritania was Morocco’s second largest trade partner totaling 8.49% of trade. Total exports to the country were $205 million for 2019. Côte d’Ivoire is Morocco’s third top trade partner totaling 8.48% of African trades. This also equates to about $205 million in exports.

Taking on the role of an advisor, the most practical recommendation would be for the country of Morocco to negotiate a free trade agreement that includes all of the countries within Sub-Saharan Africa. Although there is no reliable railway connecting Morocco with Sub-Saharan Africa, Morocco is equipped with over 10 sea ports (Sea Rates, 2021). This means containers can easily be shipped from Morocco to all coastal countries within Sub-Saharan Africa. Containers and cargo can then either be transported via rail or truck to the inner areas of the region. It is quite obvious how the EU-Morocco Association Agreement has significant benefitted trade between Morocco and the European member states included in the agreement. In my opinion, a Morocco-Sub-Saharan Africa free trade agreement should theoretically yield similar results and be quite promising for boosting economies in the region.

 

References

EC Europa. (2021, June 24). Morocco. https://ec.europa.eu/trade/policy/countries-and-regions/countries/morocco/ (Links to an external site.)

OEC Morocco. (2021). Morocco. https://oec.world/en/profile/country/mar (Links to an external site.)

Sea Rates. (2021). Sea Ports of Morocco. https://www.searates.com/maritime/morocco

 

 

 

Emma Chatterton

The trade between Morocco and Sub-Saharan Africa has been on the up since 2009 with an average growth of 12.8%. (Policy Center, 2018) Morocco’s three main trade relationships within Africa are Ethiopia, Ivory Coast and Senegal. In 2019, Morocco exported $42.4M worth of goods to Ethiopia. On the other hand, in 2019, Ethiopia exported $632k worth of goods to Morocco. The main thing that Morocco exports to Ethiopia is chemical fertilizers and cars. The main things that Ethiopia exports to Morocco are woven cotton, coffee and spices. (OEC, 2021) Morocco’s trade within Africa has increased by 20% in recent years. Ivory Coast Imports from Morocco were US$209.96 Million during 2019. Morocco’s trade exports to the Ivory Coast from 2010-2015 increased by 300%. This statistic only improved with time, therefore the current trade between these two countries is really high. (North Africa Post, 2015) The imports that come to the Ivory Coast from Morocco are mainly fertilizers which in 2019 valued $62.53M. (Trading Economics, 2021) Morocco and Senegal are two countries that have a strong alliance. They are strongly bonded through the Muslim religion and other similarities with their cultures and economy. (MWN, 2013) Morocco Exports to Senegal were US$213.87 Million during 2020. The biggest exports from Morocco to Senegal was electrical equipment with the value being $33,89M. (Trading Economics, 2021)

As a consultant I will propose some ideas that can help to grow trade between SSA countries and Morocco. Trade agreements are vital for the continent. They are able to help the economy grow. The first idea to help boost trade within Africa would be to try to diversify products that they are looking to trade. Seeing as many African countries are producing similar products to export it is hard for different countries to become important trade partners if they are already getting those products from other countries. (Mutume, 2002) Another reason why it is important to do trade with countries within Africa is because if you can’t even trade locally then how do you expect to trade globally. There is a lot of good material and product that gets produced within Africa. I would like to see them helping neighbouring countries by trading with them. In return it can help Africa as a whole to become more economically stable.

References

MWN. (2013). Morocco-senegal bilateral relations, an ancestral alliance. https://www.moroccoworldnews.com/. Retrieved November 22, 2021, from https://www.moroccoworldnews.com/2013/07/99200/morocco-senegal-bilateral-relations-an-ancestral-alliance.

Mutume, G. (2002). How to boost trade within Africa | Africa Renewal. United Nations. Retrieved November 22, 2021, from https://www.un.org/africarenewal/magazine/september-2002/how-boost-trade-within-africa.

 

North Africa Post North Africa Post’s news desk is composed of journalists and editors, & *, N. (2015, June 1). Morocco-côte d’ivoire, a forward-looking partnership. First Independent Mena Newspaper. Retrieved November 22, 2021, from https://northafricapost.com/7852-morocco-cote-divoire-a-forward-looking-partnership.html (Links to an external site.).

OEC. (2021). Morocco (MAR) and Ethiopia (ETH) trade. OEC. Retrieved November 22, 2021, from https://oec.world/en/profile/bilateral-country/mar/partner/eth.

Policy Center. (2018, March 20). Relations between Morocco and sub-Saharan africa: What is the potential for trade and foreign direct investment? Policy Center for the New South. Retrieved November 22, 2021, from https://www.policycenter.ma/publications/relations-between-morocco-and-sub-saharan-africa-what-potential-trade-and-foreign.

 

Trading Economics. (2021). Ivory Coast imports from Morocco2021 data 2022 forecast 1995-2019 historical. Ivory Coast Imports from Morocco – 2021 Data 2022 Forecast 1995-2019 Historical. Retrieved November 22, 2021, from https://tradingeconomics.com/ivory-coast/imports/morocco.

ORDER NOW »»

and taste our undisputed quality.