2023-07-04 10:43:51
Trade between Morocco and Israel is on the rise, but remains well below potential. In reality, they only “scratched the surface”, deplores the Abraham Accords Peace Institute (AAPI).
According to the latest statistics released by the Institute, trade between Israel and Morocco reached $4.6 million in May 2023, an increase of 4.55% compared to May 2022. For the first 5 months of 2023 , bilateral trade reached 33.4 million dollars, representing a 110% increase in trade compared to the first 5 months of 2022. Amounts that remain far from the target of 500 million dollars in trade between the two countries, announced during the visit to Rabat by Israeli Minister of Economy and Industry Orna Barbivay in February 2022.
For the AAPI, the take-off of trade inevitably goes through the conclusion of a free trade agreement (FTA). “Israel and Morocco should immediately start negotiations for a free trade agreement, similar to the agreement signed between Israel and the United Arab Emirates and the agreement awaiting signature between Israel and Bahrain “, suggests the rapport.
According to the same source, these trade agreements “would help facilitate the creation of a free trade area between the countries of the Abraham Accords”. This would allow, it is added, the member countries of the Agreement to trade more easily among themselves and with other partners, including the United States. Existing US FTAs with Israel, Bahrain, Morocco and Jordan might be used to establish such a common free trade area.
A very “busy” month of June
In the meantime, the AAPI does not fail to point out that the month of June 2023 was “one of the busiest months for Moroccan-Israeli relations in the history of bilateral relations between the two countries”. In this month alone, Israel’s national security adviser, the speaker of the Knesset, the interior and health minister, the innovation minister and the environmental protection minister all returned to Morocco, the report notes.
The Israeli defense company Elbit Systems has also announced its intention to open two factories in Casablanca. In addition, Israeli soldiers participated in US-led military exercises in the Kingdom. Finally, the two countries have signed agreements to ease visa requirements for Moroccan workers.
In terms of visitors, the AAPI indicates that 300 Moroccan citizens visited Israel in May 2023, which represents no change compared to May 2022. Since the beginning of the year, and until the end of May, 1,800 Moroccan citizens visited Israel, an increase of 80% compared to the first five months of 2022. In the other direction, 20,750 Israelis flew to Morocco in May 2023, an increase of 16.35% compared to May 2022.
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