Western Sahara Crisis: Morocco’s Trade Agreements Under Fire
Rabat, Morocco - The Western Sahara crisis has resurfaced, threatening to disrupt three decades of relative peace in a region crucial for North African security.
The Polisario Front, which declared the Saharawi Arab Democratic Republic (SADR) in 1976, is contesting Morocco’s trade agreements with European companies, citing violations of international law and human rights. The conflict has been ongoing since 1975, when Morocco annexed Western Sahara, a territory claimed by the Polisario Front.
Background
The hostilities lasted for over a decade before a ceasefire was signed in 1991, with the creation of MINURSO (United Nations Mission for the Referendum in Western Sahara) to organize a referendum on independence. Despite the ceasefire, negotiations have stalled, and Morocco has continued to consolidate its presence in the territory.
Trade Agreements Under Fire
The Polisario Front is challenging Morocco’s trade agreements with European companies, arguing that they do not comply with UN resolutions, the Principle of Permanent Sovereignty over Natural Resources, and the Principle of Self-Determination of Peoples. The lawsuits have caused reputational, supply-chain, and legal problems for several businesses, including agricultural companies and airlines operating in the Sahara or importing Western Sahara’s products into Europe.
Reputational Risks
In October 2018, the Polisario Front accused six major French companies of violating international law by trading with Morocco. The conflict has also raised concerns about sanctions risks. Recently, 53 Norwegian NGOs called on their government to act on the matter at the UN Security Council, while other organizations are demanding institutions impose sanctions on Morocco for human rights violations in the territory.
Navigating the Crisis
To navigate this complex crisis, companies need reliable information. Davide Contini, a researcher for Dow Jones Risk & Compliance, advises businesses to monitor the situation through media, corporate and institutional communications, and enhanced due diligence reports.
- Adverse media screening services and due diligence reports can be costly but guarantee a robust defense against regulatory violations and reputational issues.
- Companies must remain vigilant and adapt their strategies accordingly to avoid potential fallout.
Conclusion
The Western Sahara crisis serves as a reminder of the importance of carefully assessing risk in complex political environments. As the situation continues to unfold, companies must prioritize transparency, due diligence, and effective crisis management to mitigate the risks associated with this ongoing conflict.
Contact Information
Davide Contini is a researcher for Dow Jones Risk & Compliance and can be reached at dcontini@dowjones.com.