Saharawi Arab Democratic Republic: The Long-Standing Conflict Continues
A Decade-Long Ceasefire Broken
A decade-long ceasefire between Morocco and the Polisario Front, which declared independence for Western Sahara as the Saharawi Arab Democratic Republic (SADR), has been broken. The dispute over resources has sparked a new wave of tensions in the region.
Morocco’s Consolidation of Presence
In recent years, Morocco has consolidated its presence in Western Sahara through trade agreements involving phosphate resources. However, these agreements have been attacked by the Polisario Front in court due to non-compliance with UN resolutions and international law.
ECJ Rulings
The European Court of Justice (ECJ) has issued judgments on two cases brought by the Polisario Front and an NGO, Western Sahara Campaign UK, challenging the EU-Morocco Agriculture Agreement and Fisheries Agreement. The ECJ ruled that these agreements cannot include Western Sahara’s resources without the consent of its people.
Business Risks
The conflict poses significant risks for businesses operating in or trading with Western Sahara. Some of the potential consequences include:
- Supply-chain disruptions
- Compliance issues
- Security concerns
- Reputational damage
Several companies have already been affected by lawsuits related to these trade agreements.
Increased Uncertainties
As hostilities increase, uncertainties about doing business in Western Sahara grow. Companies involved in large-scale projects, such as Siemens and Enel, may face legal and moral risks.
Sanctions Risks
There is also a risk of sanctions being imposed due to the moral uncertainty surrounding trade agreements in the region. Norwegian NGOs have called on their government to act at the UN Security Council, while others are calling for institutions to impose sanctions on Morocco for human rights violations.
Navigating Complex Threats
To mitigate these risks, companies need:
- Sound information and awareness of the political situation
- Monitoring developments through media, corporate communications, and enhanced due diligence
- Adverse media screening services and due diligence reports to prevent regulatory violations and reputational issues
Conclusion
The conflict in Western Sahara continues to pose significant risks for businesses operating in or trading with the region. Companies must be aware of these threats and take proactive measures to mitigate them. Reliable information and sound risk assessments are essential in navigating this complex situation.