Morocco, Portugal resolved to enhance economic, financial cooperation
Morocco-Portugal, Economics, 5/16/2001

Moroccan and Portuguese Prime Ministers, Abderrahmane Youssoufi and Antonio Gutteres, co-chaired this Wednesday morning over a plenary session of the 6th Moroccan-Portuguese high level meeting, focusing this year on economic and financial cooperation.

The two Prime Ministers who underlined the excellent political relations binding the two countries voiced resolve to deepen political dialogue and consultation and to energize economic and financial cooperation.

The meeting, that will actually assess bilateral cooperation and explore ways of energizing political, economic and cultural relations between the two countries, will highlight by the signing of a loan agreement worth more than 100 million Dirhams (about $8.69 million).

The loan will finance the purchase by Moroccan small and medium sized enterprises (SME) of Portuguese goods and services and the setting up and promotion of joint ventures.

The two sides will also agree on mechanisms likely to ease the use of another credit line worth $ 50 million and destined to finance projects.

Other agreements to be signed during this 6th session of the high level meeting are meant to consolidate the legal frame of bilateral cooperation and will cover higher education, territory planning, urbanism and environment, culture, telecommunication and new information technologies.

Youssoufi who arrived in Lisbon Tuesday at the head of a ministerial delegation was received by President Jorge Sampaio in the afternoon and was guest in the evening to a dinner hosted in his honor by his Portuguese peer.

At an exchange of toasts, both Prime ministers described Moroccan-Portuguese political relations as "excellent" but deplored as "weak" economic cooperation.

Youssoufi called for the setting up of instruments and mechanisms to promote the flow of exchanges and investments and stressed the need to set up a network of Moroccan and Portuguese SME and to foster contacts between the economic operators of the private sector.

Recalling that the ancestors of "the brotherly people of Morocco have contributed to shape the Portuguese national identity," the Portuguese Premier pleaded for enhanced economic relations. "This cultural identity shared in the difference compels us to have a more successful economic, cultural and social cooperation," Guterres insisted.

The Portuguese Premier stated further that Portugal will always be Morocco's advocate within the European Union.

Although trade exchanges between Morocco and Portugal posted a steady increase (15 to 20 percent) over the past decade, they remain short of the two countries' potentials and opportunities.

According to the Portuguese statistics institute, in 2000, Morocco was Portugal's 21st client with exchanges totaling 34.7 billion Escudos. During that year, Portugal imported 13.3 billion Escudos worth of products from Morocco and exported to Morocco 21.4 billion Escudos.

Regarding the flow of capital, Portuguese investments in the North African country are irregular. In 1999, Portugal made a breakthrough in the Moroccan market and held the first rank in terms of foreign private investments in the kingdom with 5 billion Dirhams (about $ 435 Million). In 1995 it held the second rank and in 1998, it was not on the top ten of foreign investors in Morocco.

The major Portuguese investors in Morocco operate in the sectors of cement industry, water, electricity, sanitation, and telecommunication. About 50 Portuguese firms are currently doing business in Morocco and some outstanding Portuguese groups have opened units in Morocco. These include ready-to-wear manufacturer Maconde, cork processing group Amorim, and car equipment manufacturer Yazaki-Soltano Portugal. Cooperation also exists between Portuguese and Moroccan banks and Portuguese tour operators are eyeing investments in the Moroccan tourism sector.

The number of Portuguese tourists visiting Morocco did not exceed 31,300 in 2000. Tour operators, like other economic operators, deplore the weak transport means between the two countries.

The maritime line that used to service Southern Portugal and Morocco was cancelled and the Portuguese carrier has stopped servicing Morocco for years. The Moroccan carrier RAM and Regional Airlines do service daily flights but the number of seats and freight capacity are low. Morocco is only one-hour flight from Portugal.

Some 500 Moroccans are regularly settled in Portugal.

The high level meeting was instituted by the treaty of friendship, cooperation and neighborliness binding Morocco and Portugal since May 1994. Portugal is bound by such a mechanism only to three countries, namely Brazil, Morocco and Spain.

Previous Stories:
  Moroccan-Portuguese high level meeting convenes in Lisbon   (5/15/2001)
  Moroccan, Portuguese fisheries ministers meet in Fez   (4/20/2001)
  Portugal seeks access to Morocco for traditional fishermen, EU concedes Morocco proposed access to 100 units   (4/12/2001)

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