Here is the article rewritten in markdown format:
Western Sahara Conflict Re-Emerges, Threatening Regional Stability and Business Operations
March 15, 2023
The Polisario Front, the Saharawi Arab Democratic Republic (SADR), has declared independence from Morocco, reigniting a decades-long conflict that threatens regional stability and business operations.
Background of the Conflict
The conflict began in the 1970s when Morocco occupied Western Sahara, a territory claimed by the SADR. After more than a decade of hostilities, a ceasefire was signed in 1991, with the United Nations (UN) establishing MINURSO to oversee a referendum on independence. However, negotiations have since stalled, and the situation remains unresolved.
Implications for Businesses
The re-emergence of the conflict has significant implications for businesses operating in the region. Morocco’s presence in Western Sahara has led to the signing of trade agreements involving resources from the territory, including phosphates. The Polisario Front has attacked these agreements in court, citing violations of UN resolutions, the Principle of Permanent Sovereignty over Natural Resources, and the Principle of Self-Determination of Peoples.
European Court of Justice Rulings
The European Court of Justice (ECJ) has issued judgments on several cases brought by the Polisario Front and other NGOs, ruling that EU trade agreements with Morocco cannot include Western Sahara’s resources without the consent of the people. These rulings have created legal precedents that have already affected several businesses in recent years.
Risks for Businesses
The conflict poses significant risks for businesses operating in the region, including:
- Sanctions: The risk of sanctions being imposed on Morocco or other countries involved in the conflict.
- Organized Crime: A war in Western Sahara could lead to a power vacuum, which organized crime groups and terrorist organizations may exploit.
- Reputational Damage: Companies that do not comply with international law and human rights standards may face reputational damage.
Advice for Businesses
To navigate these complex threats, businesses are advised to:
- Monitor the situation through media, corporate, and institutional communications.
- Conduct enhanced due diligence (EDD) on partners and suppliers in the region.
- Use adverse media screening (AMS) services to identify potential risks.
- Design business continuity plans and emergency protocols.
Reliable Information
Dow Jones provides reliable information to help businesses assess and prevent risks through its risk & compliance database, due diligence reports, and advanced adverse media screening.
About the author: Davide Contini is a researcher for Dow Jones Risk & Compliance’s adverse media entities unit. He has extensive knowledge of the political environments in North and Francophone Africa and is an expert in English-, French-, Spanish-, and Italian-language research.