Morocco’s Occupation of Western Sahara Reignites Regional Tensions as EU Trade Agreements Come Under Fire

Date: February 22, 1991

Buenos Aires, Argentina

The conflict in Western Sahara has reignited regional tensions between Morocco and Algeria, with the European Union’s trade agreements with Morocco coming under scrutiny.

Breakthrough Agreement Stalls

In a major breakthrough, the United Nations (UN) agreed to organize a referendum of independence for Western Sahara, a move that could pave the way for self-determination for the territory. However, negotiations have stalled since 1991, leaving the status quo intact.

Moroccan Occupation and Resource Exploitation

The Moroccan occupation of Western Sahara has led to the exploitation of the territory’s natural resources, with phosphate exports becoming a major source of revenue for Morocco. However, the Polisario Front, which has been fighting for independence since the 1970s, claims that these agreements violate UN resolutions and international law.

European Court Ruling

In recent years, lawsuits have been filed in Europe against companies operating in Western Sahara or importing its products. The European Court of Justice has ruled that the EU’s trade agreements with Morocco cannot include Western Sahara in their scope of application, citing the principle of self-determination and permanent sovereignty over natural resources.

Implications for Businesses

The conflict has significant implications for businesses operating in the region, with increased risks of supply-chain disruptions, reputational damage, and legal problems. Companies such as OCP and Ballance Agri-Nutrients have faced challenges in recent years, with vessels transporting phosphate rock from Western Sahara being detained by authorities.

Sanctions and Human Rights Concerns

The situation also raises concerns about sanctions, with some calling for institutions to impose penalties on Morocco for violating human rights in the territory. Norwegian NGOs have already urged their government to take action at the UN Security Council.

Navigating Complex Risks

To navigate these complex risks, businesses need reliable information and enhanced due diligence. Dow Jones provides companies with access to adverse media screening services, due diligence reports, and advanced risk assessment tools to help them make informed decisions.

Conclusion

The conflict in Western Sahara serves as a stark reminder of the importance of responsible business practices and respect for human rights. As the situation remains unresolved, it is crucial that businesses prioritize transparency, accountability, and compliance to avoid reputational damage and regulatory violations.