The European Carbon Tax Threatens 60% of Morocco’s Exports
It is expected that the European Carbon Adjustment Mechanism (CBAM) will be implemented in January of next year. This step could negatively impact Morocco’s exports to European Union countries, which account for 60% of the kingdom’s external trade. This mechanism is part of the European Green Deal, aimed at levying tariffs on imported goods, such as steel and cement, whose production has contributed to carbon dioxide emissions.
According to this mechanism, exports directed to the European market will bear the costs of these harmful emissions. The aim is to encourage more environmentally friendly manufacturing, support the EU’s climate goals, and prevent European businesses from losing competitiveness.
In September, Abdelkader Amara, the head of Morocco’s Economic and Social Council, urged his government to expedite negotiations with the EU regarding the carbon adjustment mechanism. In a press conference in Rabat, he stated, “We must hasten the negotiations with the EU to obtain approval for a system to verify greenhouse gas emissions associated with the carbon adjustment mechanism.”
He added that “the EU is Morocco’s primary trading partner, and activating this mechanism early next year could have immediate repercussions on the competitiveness of exports.” Amara noted that “the cost of updating production tools to integrate low-carbon solutions remains high, according to national industrialists, especially for small and medium enterprises.”
He recommended adopting an integrated and coordinated approach that effectively enhances national exporters’ readiness for the requirements imposed by the European mechanism.
Moroccan economist Omar Al-Kattani commented that “the EU is attempting to impose a tax on materials contributing to pollution, so alternative negotiation strategies with Europe must be explored.” He viewed this step as an attempt by the EU to pressure the kingdom’s exports, indicating that “the future of the country’s economic relations lies more with the Global South than with the North.”
Al-Kattani called for Morocco to diversify its trade partners, especially considering that the EU accounts for over 60% of the country’s foreign trade. He stated, “The nation must prepare for its economic future outside the European market in a gradual manner based on a strategy to seek other markets.”
He emphasized the need to consider the balance of power with Europe and to seek leverage to apply pressure on the EU during any negotiation process.
Al-Kattani criticized the EU’s efforts to enforce this tax while Morocco is facing a trade deficit with EU countries. Last August, Eurostat announced that the trade deficit between Morocco and the EU reached €500 million in the first half of 2025. Exports from the EU to Morocco were valued at about €2.8 billion, while imports from Morocco were around €2.3 billion.
He further stated, “The country should negotiate ways to reduce this deficit rather than limit discussions to the carbon issue.” Al-Kattani asserted that Rabat must not succumb to what he called “blackmail,” while working to secure favorable terms during negotiations and obtaining European concessions if they insist on imposing the tax.
He continued, “Despite the trade balance favoring the EU, they still try to impose additional measures.” Al-Kattani called for increased customs duties on goods coming from the EU to achieve trade balance, noting that the EU benefits from fishing in Morocco’s waters, privileges for foreign investments, and visa advantages for Europeans, in addition to other trade benefits.
In light of this, he stressed the need for a realistic review of economic relations with the EU, ensuring a balance to achieve mutual benefits. He added that the EU needs Morocco, especially amid its crisis following American tariffs on products from EU countries.
In late July, Washington and Brussels signed an agreement imposing a 15% American tariff on selected European exports, predominantly cars. Meanwhile, European tariffs on American cars are reduced to 2.5%, alongside the EU committing to increase its purchases of American energy and expand industrial investments in the American market.
