the economic effects of the proximity between Paris and Rabat

by time news

2024-08-05 18:43:36

Does the adoption of diplomacy between Paris and Rabat and the conflict which has reasserted itself between Paris and Algiers have economic consequences? RFI interviewed experts.

Published on: 05/08/2024 – 20:43

3 min

On July 30, the Day of the Throne in Morocco, French President Emmanuel Macron, in a letter to Mohammed VI, expressed his support for the Moroccan plan on Western Sahara. On August 1, the French company Egis Rail won the contract for project management assistance for the Kenitra-Marrakech LGV, ahead of its Spanish competitor Ineco.

“Restructuring of economic relations with Morocco”

Without seeing an immediate cause and effect link, the diplomatic integration of Paris and Rabat means the strengthening of economic relations, which have been in the works for several months. Last April, the French Minister of Commerce visited Shereef’s government, along with a whole bunch of companies and public finance companies. France, already present in cars and real estate and services, wants to increase its investments in Morocco in water, sustainable energies and transport, especially in the Sahara regions.

According to Abdelmalek Alaoui, president of the Moroccan Institute of Strategic Intelligence, the Paris political will further strengthen Franco-Moroccan relations on the economic level: ” It is the renewal of the economic partnership in which Morocco has many projects, either in infrastructure, in renovations or in technology which is not limited to Morocco, but extends to all this western space – Africa on which Morocco shines., before adding: ” We cannot return to power dependence with Algeria overnight. »

Read againIn the news: Western Sahara, France aligns with Morocco’s position

For its part, Algiers immediately recalled its ambassador to Paris, but that does not mean that Franco-Algerian economic and trade relations will be rejected. Indeed, French investments are three to four times more than in Morocco, Algeria which has a more restrictive law, but trade exchanges – 11 billion euros – are comparable to Franco-Moroccan exchanges.

France exports agro-food products to Algeria and, increasingly, industrial products. On the other hand, Algeria is exporting more and more gas to France, since it has done without Russian gas.

Perhaps there will be more management problems for French companies or products, identified Dhafer Saidane, professor at the Skema Business School, but not to the point of fundamental chaos, Algerian gas still weighs heavily on business co-worker ” We cannot brush aside everything that has been built and all this real economy that has been established in terms of jobs, business, industry. We cannot go back to power dependence. What would be the alternative? The principle of trade balance cannot be called into question overnight. »

Read againRelations between Algeria and France: “the status quo can no longer stand”

“Algeria must ensure the economic stability of the agreements”

Regarding the release of French companies from Algeria, especially in hydrocarbons, the oil politician Philippe Sébille-Lopez does not believe: ” The Algerian government must also ensure the stability of investments, this is for the economic stability of the contracts. In this area, political reasons do not count. »

Algeria will be exposed to heavy fines and a damaged image among investors, while hoping that they develop new gas fields.

Read againFrance-Morocco relations: in Rabat, ministers wrap up contacts

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