Summary:

On October 9, 2025, the Confédération Générale des Entreprises du Maroc (CGEM) welcomed the new Morocco–EU trade agreement, highlighting its potential to boost exports, attract investment, and create jobs across strategic sectors such as renewable energy, tourism, industry, and logistics. 

The CGEM is a Moroccan association that advocates for private sector business interests. 

The agreement, which came into provisional effect on 3 October 2025, extends preferential market access for agricultural, fishing, and other products from Morocco, including the southern provinces and Western Sahara. 

Morocco’s southern provinces are also increasingly positioned as a “new growth hub” under the renewed Moroccan–French economic cooperation program, as highlighted at the recent Morocco–France Economic Forum in Dakhla. Jointly organized by CGEM and the French Business Movement (MEDEF), the forum underscored investment opportunities in sectors like renewable energy, industry, infrastructure, and logistics, leveraging the provinces’ geographic role as a link between Europe and Africa and strategic maritime routes. 

However, the agreement has faced political and legal opposition in the EU, with twenty-nine Members of the European Parliament, including six from Spain, urging the EU Parliament to denounce its provisional implementation. Concerns focus on the inclusion of Western Sahara products, lack of full parliamentary consent, and potential violations of international law, which could affect investor confidence and the agreement’s long-term stability. 

Outlook: 

The provisionally implemented trade agreement is a continuation of Morocco’s bold opening to foreign investment and willingness to leverage national power and resources to create economic opportunities. 

While the agreement offers Morocco the potential to boost trade, attract investment, and accelerate development in the southern provinces, the refusal or denunciation by EU lawmakers introduces significant risks that could expose Morocco to legal and diplomatic disputes, as it is accused of economically exploiting the region, which could further intensify tensions over its legitimacy in the territory.  

These challenges may lead to delays in ratification, disruptions to market access, and reduced investor confidence, highlighting the ongoing geopolitical and legal sensitivities surrounding the Western Sahara issue. 

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