Hajira: Morocco’s trade deficit is not a negative indicator when linked to productive activity
In a recent statement, the Secretary of State for Foreign Trade, Omar Hajira, asserted that Morocco’s trade deficit “is not a universally negative indicator as often portrayed in public discussions.” He elaborated that a significant portion of the imports contributing to the trade balance is essential for supporting the local economic activity and is not merely non-productive consumption.
During his presentation of the budget draft for the Ministry of Industry and Trade before the Production Sectors Committee in the House of Representatives, Hajira noted that around 40% of the Kingdom’s imports consist of critical materials that cannot be dispensed with, primarily including grains, energy, spare parts, and raw materials intended for local industries, especially the automotive sector, which relies on international supply chains requiring the import of about 55% of its components.
The government official emphasized that “the discourse around the trade deficit should focus on understanding its nature rather than just the figures.” He added that major industrial nations also face trade deficits due to the connection between production dynamics and openness to global value chains.
Regarding free trade agreements, the Secretary of State insisted that Morocco is not “the losing party” but rather “a winning country” thanks to the opportunities these agreements have provided to national companies, whether through access to reliable markets or attracting foreign investments.
He illustrated that the network of agreements linking Morocco to Europe, the United States, China, Turkey, and several Arab and African countries allows access to a global market of over 3 billion consumers, thereby enhancing the Kingdom’s attractiveness to investors.
Hajira pointed out that the boom in the automotive sector, the rise of the aviation industry, and the expansion of phosphate and fertilizer exports are clear examples of the effectiveness of economic openness, which has enabled Morocco to double its exports within a few years and elevate its status as an industrial leader on the continent.
He concluded by stating that the real challenge lies not in closing borders or limiting imports, but in developing national production capabilities and enhancing added value, so that necessary imports become a developmental leverage that creates job opportunities and increases Morocco’s presence in global markets.
