Western Sahara Conflict Erupts: Morocco and Polisario Front at Odds Over Independence Referendum

The Western Sahara conflict has reignited after three decades of relative peace, threatening to disrupt the region’s delicate balance and putting European businesses at risk.

Background

Rabat, Morocco - The Moroccan government has refused to agree to a referendum on independence with the Polisario Front, the Sahrawi people’s movement, despite UN-backed negotiations since 1991. The stalemate has led to a surge in tensions between Morocco and Algeria, both key allies of the EU and US in the fight against terrorism and migration.

The Conflict

The conflict centers around Western Sahara, a territory rich in natural resources, including phosphates, which are crucial for North African security. Morocco’s consolidation of its presence in the territory through trade agreements has been contested by the Polisario Front, which argues that such deals violate UN resolutions, the Principle of Permanent Sovereignty over Natural Resources, and the Principle of Self-Determination of Peoples.

European Court of Justice Ruling

The European Court of Justice (ECJ) has ruled that EU-Morocco trade agreements cannot include Western Sahara’s resources without the consent of its people. The ECJ judgments have already affected several businesses operating in the territory or trading its resources.

Risks for European Companies

• Agricultural and energy projects: Six major French companies were recently accused by the Polisario Front of committing “colonization crimes” for their involvement in the region’s economy.
• Chaos and uncertainty: A war in Western Sahara could bring chaos and uncertainty to operations, creating opportunities for organized crime and terrorism.

Sanctions and Legal Implications

• Polisario Front sanctions: The Polisario Front has called on international organizations to impose sanctions on Morocco for its occupation of Western Sahara.
• UN Security Council action: The Norwegian government has urged the UN Security Council to take action, while the Pan African Parliament imposed sanctions in 2011.

Reliable Information Key to Complex Decisions

To navigate the treacherous landscape, businesses must rely on sound information and monitoring of the situation through corporate and institutional communications. Davide Contini, a researcher for Dow Jones Risk & Compliance, emphasizes the importance of understanding apparent risks and designing emergency protocols.

Conclusion

The Western Sahara conflict highlights the need for European businesses to be aware of the complex political situation in North Africa and to take proactive measures to mitigate risks. With reliable information and monitoring, companies can assess and prevent risks more effectively, avoiding regulatory violations and reputational issues.