Saharawi Arab Democratic Republic (SADR) Declares Independence Amid Ongoing Conflict
The decade-long conflict between the Polisario Front and Morocco has come to an end with a ceasefire agreement, but negotiations have stalled, leaving the status quo intact.
Flawed Trade Agreements Under Fire
The Polisario Front has attacked trade agreements between Morocco and Western Sahara, citing non-compliance with UN resolutions, the Principle of Permanent Sovereignty over Natural Resources, and the Principle of Self-Determination of Peoples. This has led to reputational, supply-chain, and legal issues for businesses worldwide.
EU-Morocco Deals in Question
The European Court of Justice has issued judgments on the Polisario Front’s case regarding the EU-Morocco Agriculture Agreement (Case C-104/16 P) and the Fisheries Agreement (Case 266/16). The court ruled that EU agreements with Morocco cannot include Western Sahara’s territory, as this would not comply with EU and international law.
Important Business Considerations
The ongoing conflict poses significant risks for companies operating in the region. Legal and trade implications include:
- Detention of vessels carrying phosphate rock from Western Sahara
- Seizure of cargo by courts
- Lawsuits against agricultural and airline companies
- Increased supply-chain, compliance, security, and business risks
Operational Risks
The renewed conflict increases uncertainties about doing business in Western Sahara. Companies involved in large-scale projects face legal and moral risks.
Sanctions Risks
There is a risk of sanctions being imposed due to the moral uncertainty surrounding trade agreements in the region. Recently, 53 Norwegian NGOs called on their government to act at the UN Security Council.
Reliable Information for Complex Decisions
Companies need sound information to navigate the complex threats presented by the conflict. Understanding apparent risks and monitoring developments through media, corporate, and institutional communications can help design business continuity plans and emergency protocols.
Adverse Media Screening (AMS) Services
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About the Author
By Davide Contini, researcher for Dow Jones Risk & Compliance Contact: davide.contini@dowjones.com
Note: The author is a researcher for the adverse media entities unit of Dow Jones Risk & Compliance and has expertise in English-, French-, Spanish- and Italian-language research. He holds a master’s degree in international relations and diplomatic affairs from the University of Bologna.