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Image header Agence Europe
Europe Daily Bulletin No. 11727
Contents Publication in full By article 25 / 36
EXTERNAL ACTION / Western sahara

Fish processing industry concerned at possible retroactive legal action

The ruling of the European Court of Justice in December 2016 (see EUROPE 11718), distinguishing the Western Sahara from the territory of Morocco – the signatory of comprehensive cooperation agreements on agriculture and fisheries – has reportedly far from ended up producing its effects, and weighs negatively on Euro-Moroccan relations.  The European Commission is being pressed by the Polisario and MEPs to make a decision and to fall into line with the Court's ruling.  A chain reaction from business has been noted.

A heavy loss for European processed fish operators would reportedly be expected, FRUCOM (the European federation for trade in dried fruits, processed fruit and vegetables and processed fish products) has already stated.  In a letter to the European Commission on 14 February, it highlights the risk for its flow of goods coming from this contested territory.

FRUCOM states that 30,000 tonnes of processed fish normally enjoy "preferential access", under the EU-Morocco agreement, with total exemption from customs duty (instead of 12.5% to 25% duty depending on the species).  FRUCOM's fear comes from the risk of a possible retroactive application of the Court's ruling and from the imposition of full duty on goods in stock.  "European companies would automatically be eliminated from the market and possibly made bankrupt", FRUCOM states, proposing a system of "cumulation of origin" to protect the current system.

This opinion is not reportedly shared by the Polisario, supported by MEPs who want the immediate recovery of the wealth taken from the Western Sahara, as the review of a transfer to France revealed in January.  A (Norwegian) charter company confirmed the facts, but denied any contravention of the law.  The scandal denounced is certainly earlier (September 2016) than the Court's ruling, but the risk of a retroactive application would be the biggest fear.

An initial success for the Sahrawis is reportedly seen in the export of salt, of which the Western Sahara is a historical supplier. On 31 January, the Danish company Dansk Vejsalt which is involved in this trade, announced the break-up of cooperation with the Crystal Mountain Sel Sahara company.  "This is an important victory for the people of the Western Sahara (which) means that the occupation of the Sahrawi territory is becoming a little less profitable", the Western Sahara Resource Watch (WSRW) stated.  Another Norwegian company, MESTA, had announced its withdrawal from this same market in mid-December.

The Swiss big distribution cooperative (Coop), following its counterpart Migro, announced a year ago that it would no longer import (from 2017) tomatoes or melons produced in this territory.  There has also been tension between Morocco and Sweden linked to the setting up of IKEA shops.

The chain reaction seems to have multiplied and will probably oblige the Commission to clarify its position.  Morocco, which holds to its position, is not responding much to the demands for clarification, counting on European leniency that was reaffirmed during the recent meeting between one of its ministers and High Representative of the EU for Foreign Affairs and Security Policy Federica Mogherini (see EUROPE 11721, 11723).  (Original version in French by Fathi B'Chir)

Contents

BEACONS
SECTORAL POLICIES
EUROPEAN PARLIAMENT PLENARY
ECONOMY - FINANCE - BUSINESS
INSTITUTIONAL
COURT OF JUSTICE OF THE EU
SOCIAL AFFAIRS - EDUCATION
EXTERNAL ACTION
BREACHES OF EU LAW
NEWS BRIEFS
CORRIGENDUM