In the spotlight, this week is the bustling city of Johannesburg, where the BRICS group gathers for a crucial meeting. As the world watches, markets eagerly anticipate a cascade of economic decisions and transformative developments, including potential additions to this formidable alliance seeking to redefine global dynamics and challenge established Western alliances.
Embracing five nations – Russia, China, India, South Africa, and Brazil – the BRICS alliance commands an impressive 26% of the global GDP, boasting a collective population of over 3.24 billion and a staggering $26 trillion in Gross Domestic Product (GDP). Remarkably, their combined trade activities represent a significant 20% of the world’s commerce. However, in a curious imbalance, their voting rights in the International Monetary Fund (IMF) lag at a mere 15%.
Amid speculations surrounding several countries, Morocco among them, expressing interest in joining the BRICS fold, the Moroccan Ministry of Foreign Affairs categorically dismissed these claims. This unequivocal stance was accompanied by pointed criticisms towards Pretoria for perceived hostility, prompting a broader discourse on the Kingdom’s Sahara-related issues.
As a counterpoint, Morocco has been keen to emphasize the vibrant and promising bilateral relations it maintains with the other four BRICS nations. It has cemented strategic partnership agreements with three of these nations, with numbers that paint an insightful picture for each country.
Trade Dynamics with Brazil
The foreign trade annual report unveiled figures portraying a burgeoning trade relationship between Rabat and BrasÃlia. The trade volume hit a significant milestone at 30.3 billion dirhams last year, with Morocco enjoying a favorable trade surplus of approximately 4.1 billion dirhams. This contrasts with the trade volume of 25.8 billion dirhams recorded in 2021.
Morocco’s exports to Brazil stood at 17.2 billion dirhams in the previous year, marking a 5.6% decrease. Conversely, imports soared by a remarkable 72%, reaching a total of 13.1 billion dirhams.
Within the realm of imports, Brazil emerges as Morocco’s second-largest trade partner in the Americas, surpassed only by the United States. In terms of exports, Morocco’s commodities find a welcoming home in Brazil, securing the leading destination position, followed by the United States, Argentina, Mexico, and Canada.
Russia: Navigating Free Trade
In the year 2022, trade between Morocco and Russia exhibited an impressive reach of about 23.7 billion dirhams. Rabat’s imports from Moscow surged to approximately 22.8 billion dirhams, recording a substantial 25.4% increase. However, Morocco’s exports experienced a notable dip, plummeting to 905 million dirhams – a 46.8% decrease.
Analysis of official data unveils an interesting trajectory for Morocco’s exports to Russia. Peaking at around 2.8 billion dirhams in 2018, the figures have seen a consistent decline, dropping to less than 1 billion dirhams in the previous year.
Energy sourcing forms the bedrock of Morocco’s interaction with Russia, with fuel imports reaching a substantial 6.4 billion dirhams in the last year. This signals a remarkable escalation from the 2.4 billion dirhams recorded in 2021.
Sino-Moroccan Relations
The narrative pivots towards the East, as China emerges as Morocco’s leading Asian trading partner, accounting for 30% of the total trade in the past year. The Morocco-Beijing trade partnership witnessed an upward trajectory for the eleventh consecutive year, culminating in a trading volume of 77.4 billion dirhams in 2022 – a substantial 18.7% rise.
During the same period, Morocco’s imports from China hit a remarkable 74 billion dirhams, reflecting a robust 19.5% year-on-year increase. Simultaneously, exports surged by 66.1%, culminating in a total of 3.3 billion dirhams. However, this robust trade dynamic also contributed to a trade deficit of approximately 70.7 billion dirhams.
South Africa: Challenging Dynamics
Despite diplomatic nuances, trade between Morocco and South Africa demonstrates a steady ascent. Following Egypt, South Africa secures its position as Morocco’s second-largest trading partner on the African continent, surpassing nations like Tunisia and Cote d’Ivoire in 2021.
Official data from the exchange office outlines a trade volume of about 6.4 billion dirhams in the past year, comprising imports worth 5.5 billion dirhams from South Africa. In parallel, exports totaled around 855 million dirhams, compared to 1.7 billion dirhams in the previous year.
Morocco’s imports from South Africa surged significantly, scaling fourfold from 1.3 billion dirhams in 2021. Meanwhile, exports witnessed a similar growth, more than doubling to 421 million dirhams.
In a landscape rife with global rivalries, the diverse trade partnerships formed among the BRICS nations offer a vibrant tapestry of economic interactions, cementing the ongoing transformation of global economic dynamics.