Home / Finance & Economy / Morocco remains the EU’s leading exporter of fresh tomatoes

Morocco remains the EU’s leading exporter of fresh tomatoes

Morocco remains the number one provider of fresh tomatoes to the European Union (EU), according to the EU Agricultural Outlook 3021-2031.

Per the outlook, Morocco’s imports of tomatoes are posing strong competition to Spanish produce given the decline in Spanish winter production and the shift to small-size tomatoes.

Compared to Moroccan tomatoes, Spanish ones have lower volume and value-Added Tax (VAT), the outlook shows. It further specifies that the EU’s imports of fresh produce from Turkey and Tunisia are due to a gradual increase in the 10-year outlook.

The EU is Morocco’s largest trading partner, with good trade set at 56% in 2019, and almost half of Morocco’s imports came from the EU in the same year.

The total figure of the EU-Morocco trade in goods stood at €35.3 billion in 2019. Morocco’s exports to the EU, set at €15.2 billion, consisting mainly of electrical machinery and transport equipment (40.8%), 16.2% of agri-food, and a combined 15.1% of textile and clothing.

Morocco entered into a Free Trade Area agreement with the EU in 1996. Morocco-EU trade in industrial products became fully liberalized (unhinged by tariffs) under the agreement.

Despite robust imports, Morocco still suffers from a large trade deficit that was made worse as a result of the economic fallout of the COVID-19.

Over the first 10 months of 2021, the country’s trade gap widened by a 25.5% year-to-year rate. The spike was caused by increased imports (which went up by 22%), dwarfing the modest increase in exports that increased at an annual rate of 20.7%, according to Morocco’s Exchange Office.

Offset by rising prices of energy and capital goods amid COVID-induced disruptions worldwide, Morocco’s trade deficit is forecasted to gradually decrease at the end of 2021.

Check Also

The Israeli company NewMed Energy will look for gas in southern Morocco

The Israeli company NewMed Energy announced the signing of a memorandum of understanding for the …

Leave a Reply