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Growing Trade Relations Between the United Kingdom and Morocco

Growing Trade Relations Between the United Kingdom and Morocco
Monday 30 December 2024 - 09:35
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The trade relationship between the United Kingdom and Morocco has experienced significant growth over the past year, underscoring the strengthening economic ties between the two nations. According to the UK Department for Business and Trade, bilateral trade reached 48.5 billion Moroccan dirhams (3.8 billion British pounds) in the four quarters ending in the second quarter of 2024, marking an increase of 10.9% compared to the previous year.

Divergent Trends in Trade Flows

Data from the UK’s Office for National Statistics (ONS) reveal contrasting trends in the trade flows between the two countries. British exports to Morocco decreased by 4.1%, totaling 17.9 billion dirhams (1.4 billion pounds), while imports from Morocco surged by 22% to reach 30.6 billion dirhams (2.4 billion pounds). This imbalance resulted in a trade deficit of 12.8 billion dirhams (1 billion pounds) for the UK.

Goods dominate these exchanges, accounting for 69.1% of UK exports to Morocco and 62.9% of Moroccan exports to the UK. The UK’s primary exports to Morocco include refined petroleum (3.98 billion dirhams), vehicles (1.21 billion dirhams), and metallic ores (938 million dirhams). Conversely, Morocco exports fruits and vegetables (6.43 billion dirhams), electrical equipment (4.79 billion dirhams), and vehicles (2.1 billion dirhams) to the UK.

Growth in the Services Sector

The services sector has also witnessed remarkable growth, with UK imports of Moroccan services increasing by 32.4% to 11.55 billion dirhams (903 million pounds). Travel services dominate this category, accounting for 83.5% of Morocco’s service exports to the UK.

Morocco’s Growing Role in UK Trade

Morocco now ranks as the UK’s 52nd largest trading partner globally, a significant improvement from its previous positions. Bilateral trade has steadily increased since 2021, when it stood at 26.9 billion dirhams (2.1 billion pounds). The upward trajectory continued in 2022 (42.3 billion dirhams) and 2023 (47.2 billion dirhams).

By 2024, Morocco had become the UK’s 45th largest supplier of goods, contributing 0.3% of the UK’s total goods imports, and the 44th largest export market for British goods. This growth highlights Morocco’s increasing importance as a strategic trading partner for the UK, even amidst fluctuations in specific trade categories.

Challenges and Strategic Importance

Despite a decline in UK exports to Morocco (-6.9% year-on-year as of October 2024), Moroccan goods imports to the UK continue to rise (+11.7%). This dynamic reflects both challenges and opportunities in the bilateral trade relationship, emphasizing the importance of continued collaboration and diversification.

As global trade patterns evolve, the partnership between the United Kingdom and Morocco remains a testament to the potential for sustained economic cooperation, benefiting both nations in an increasingly interconnected world.

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