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Western Sahara Conflict Re-Emerges: What It Means for Business

A long-standing conflict in Western Sahara, a disputed territory in North Africa, has reignited tensions between Morocco and the Saharawi Arab Democratic Republic (SADR). The hostilities, which have lasted over a decade, have resulted in the signing of a ceasefire agreement in 1991. However, negotiations have failed to reach a compromise, maintaining the status quo.

Flawed Trade Agreements

Morocco has consolidated its presence in Western Sahara, concluding trade agreements involving resources from the territory. The Polisario Front, which declared SADR’s independence in 1976, has attacked these agreements in court, citing non-compliance with UN resolutions and international law.

  • The lawsuits have caused reputational, supply-chain, and legal problems for many businesses operating in the region.
  • European companies such as BNP Paribas, Société générale, Crédit Agricole, Axa Assurances, Transavia, and UCPA have been accused of colonization crimes by the Polisario Front.

EU-Morocco Deals in Question

The EU holds several trade agreements with Morocco, but these deals have been challenged by the Polisario Front. In 2016, the European Court of Justice (ECJ) issued a ruling that the EU’s Agriculture Agreement with Morocco cannot include Western Sahara in its scope of application.

  • In 2018, the ECJ ruled that the EU’s Fisheries Agreement with Morocco also violates international law.
  • These rulings have raised questions about the legality and morality of trade agreements involving Western Sahara’s resources.

Sanctions Risks

Given the moral uncertainty surrounding trade agreements in the region, there is a risk of sanctions being imposed. Recently, 53 Norwegian NGOs called on their government to act on the matter at the UN Security Council. Other organizations are calling for institutions to impose sanctions on Morocco for violating human rights in Western Sahara.

Companies operating in Western Sahara or involved in trade agreements with Morocco need sound information to navigate the complex threats presented by this conflict. Businesses should be aware of the political situation, design business continuity plans and emergency protocols, and monitor developments through media, corporate, and institutional communications.

  • Adverse media screening (AMS) services and due diligence reports can provide a robust defense against regulatory violations and reputational issues.
  • Dow Jones offers reliable information in over 26 languages and can help assess and prevent risks through its risk & compliance database, due diligence reports, and advanced AMS.

Expert Insights

Davide Contini, a researcher for Dow Jones Risk & Compliance, emphasizes the importance of understanding the apparent risks and being aware of the political situation. “Companies need to design business continuity plans and emergency protocols,” he says. “They should also keep abreast of developments by monitoring the situation through media, corporate, and institutional communications.”

Conclusion

The re-emergence of the Western Sahara conflict presents significant challenges for businesses operating in the region. Companies must be aware of the political situation, design business continuity plans, and monitor developments to mitigate risks. With the threat of sanctions looming, it is crucial that companies prioritize sound information and compliance to avoid reputational issues and regulatory violations.

About the Author

Davide Contini is a researcher for the adverse media entities unit of Dow Jones Risk & Compliance. He has extensive knowledge of North and Francophone Africa and has worked as a lobbyist for Western Sahara Resource Watch, a Brussels-based NGO. Contini holds a master’s degree in international relations and diplomatic affairs from the University of Bologna.