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West Sahara Conflict Reignites: Morocco’s Trade Agreements Under Scrutiny

A decades-old dispute over Western Sahara’s independence has flared up, threatening to disrupt trade agreements between Morocco and the European Union. The Polisario Front, a separatist movement fighting for Western Sahara’s autonomy, is challenging Morocco’s control of the region, citing violations of international law.

The Conflict and Trade Agreements

The conflict began in 1976, when Morocco occupied Western Sahara after Spain withdrew from the territory. Since then, negotiations have failed to produce a compromise, leaving the status quo intact. The dispute has also led to a series of flawed trade agreements between Morocco and the EU, which have been challenged by the Polisario Front.

The Agreements in Question

The agreements involve resources from Western Sahara, including:

  • Phosphates
  • Renewable energy
  • Fisheries

The Polisario Front claims that these deals do not comply with UN resolutions, the Principle of Permanent Sovereignty over Natural Resources, and the Principle of Self-Determination of Peoples.

A series of legal battles has ensued, with the European Court of Justice issuing judgments in favor of the Polisario Front. In 2016, the court ruled that the EU’s agriculture agreement with Morocco could not include Western Sahara in its scope of application. A similar ruling was made in 2018 regarding the EU’s fisheries agreement.

The implications of these rulings are significant, as they create legal precedents for trade relations with Morocco and have already affected several businesses operating in the region. For example:

  • A South African court seized a vessel carrying phosphate rock from Western Sahara.
  • A Danish ship was detained after delivering the same resource to Canada.

Operational Risks and Sanctions

The conflict also poses operational risks for companies doing business in Western Sahara. With increased hostilities, uncertainties about doing business in the region have risen, and there is concern that organized crime could fill the vacuum left by any war.

Sanctions are also a risk, as some organizations have called on governments to impose penalties on Morocco for violating human rights in Western Sahara. In 2011, the Pan African Parliament did just that, imposing sanctions on Morocco.

Mitigating Risks

To navigate these complex threats, companies need reliable information about the situation. This can be achieved through:

  • Monitoring media reports
  • Corporate and institutional communications
  • Enhanced due diligence (EDD)
  • Adverse media screening (AMS) services
  • Due diligence reports

Conclusion

The conflict over Western Sahara’s independence has significant implications for trade agreements between Morocco and the EU. As tensions escalate, companies operating in the region must be aware of the risks involved and take steps to mitigate them through reliable information and enhanced due diligence.

About the Author

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