Brussels, 10/07/2014 (Agence Europe) - In the context of the crisis in its relationship with the EU, Morocco has highlighted its agricultural product sales potential (particularly tomatoes) on both European and non-EU markets. A report by a public body in Morocco, the Direction des Études et des Prévisions Financières, published at the end of June, underlines its concerns about having to confront an increased number of obstacles. The report highlights that “the Moroccan tomato sector benefits from undeniable comparative advantages”, particularly its proximity to Europe. Its concerns are partly justified by the regulatory and phytosanitary measures put in place on the European and other markets. As proof of this, one need look no further than the current crisis stemming from the decision made by the Commission and the European Parliament last April, to amend the fruit and vegetables access regime, which particularly affects Morocco's tomato sales.
The agreement reached in June (see EUROPE 11105) has not entirely satisfied Moroccan agricultural associations. They have announced that they intend to lodge a complaint at the European Court of Justice. Spanish agricultural organisations believe that the Commission has conceded to too many Moroccan demands. They say Morocco's exports are increasing.
The report, in its “analysis of the performance” of Moroccan tomato exports and illustrates “an improvement in Morocco's international market share between 2002 and 2012, increasing from 2.7% to 6.8%”, which put the country in fourth position in 2012. 76.2% of European imports (from outside the Community) come from this country. France is the biggest EU customer, according to the report, (79%). These European sales, however, are still not very diversified: only 16.2% of German requirements (in a market with very high demand) in tomatoes come from Morocco. The United Kingdom and Spain represent 4.3% and 3.5% respectively for Moroccan tomato purchases in Europe. Diversification at an international level is also just as low. The US market is negligible due to the fact that it “imposes drastic phytosanitary constraints on tomatoes”. As it stands, according to the report, “Morocco's high level of specialisation in tomatoes provides it with the highest level of comparative advantages compared to other competing countries”. Howeverr, its export competitiveness “remains hampered mainly by the monthly quotas restricting volumes in Europe and the entry prices imposed over the October-May period”. This is in addition to “prohibitive tariff protection between June and August” which makes Moroccan tomatoes “less competitive”.
The “danger of negatively impacting on the development prospects for Moroccan tomato exports on the EU market… resides in the new mechanism recently adopted by the European Commission, which changes the access conditions for fruit and vegetables to this market”. Morocco may have to “reduce the volume” of its sales on the Community market. “This situation demands further efforts to defend the position of Morocco in terms of EU market access, which has been protected in the new Morocco-EU agricultural agreement” in force.
Morocco therefore intends to fight tooth and nail to defend its agricultural sector. Modernisation plans have been launched. “Through their contribution to food safety in the country, growth, employment and external trade, agriculture and the agri-foods industry constitute key sectors for the Moroccan economy.”
The report points out that, in 2013, “agriculture and the food industry accounted for 15.5% and 5.3% respectively of nominal GDP. Similarly and although well below their potential, these sectors also contribute to the improvement in our external trade”. The report highlights that “the performance of agri-food exports over the past few years underlines the high development potential that would benefit from the improved use of its undeniable comparative advantages from which this sector benefits”. (FB)