Improved economic relations between Israel and Morocco

Morocco and Israel signed a cooperation agreement in the field of cybersecurity. This is the first cooperation agreement signed by the two countries since the establishment of diplomatic relations last year. The agreement was signed last month with the foundations laid during the visit of the Director-General of the Ministry of Foreign Affairs, Alon Oshbis, ahead of the visit of Israeli Foreign Minister Yair Lapid to Morocco later this week. In addition to the agreement, Oshbiz outlined the necessary steps to enhance economic and trade cooperation. It is also expected that Minister of Economy Orna Barbivai will visit Morocco in the coming weeks, at the head of a delegation of businessmen and industrialists. The cyber security agreement was signed in Rabat between the head of the Israeli National Directorate Yigal Una, his Moroccan counterpart, General Mustafa al-Rabie, and the Moroccan Minister of National Defense Abdellatif El Ouedi. The agreement provides for cooperation in operations, research and development, data sharing and protection, and more. The agreement was reached with the close participation of the Israeli Defense Ministry. The agreement comes on the heels of allegations that Moroccan security services used NSO’s Pegasus spyware program to hack mobile phones and monitor regime opponents and even French President Emmanuel Macron. A senior source said that Morocco denies the accusations and that the agreement just signed is completely irrelevant and deals completely with other areas of activity. Moroccan Prime Minister Saad Eddine El Othmani, head of the Islamist Justice and Development Party, and a supporter of the Palestinian struggle, said last week that he would not meet Balbid during his visit to Morocco. The Israeli foreign minister will have to make do with meeting his Moroccan counterpart, Nasser Bourita. Lapid’s visit is part of the main momentum in the economic and trade relations between the two countries. Trade has not taken off to the same extent between Israel and the UAE, but after the formation of the new Israeli government, the two countries are planning to boost trade infrastructure and more agreements will be signed. According to an Israeli diplomatic source, Morocco expects, if there are no obstacles or surprises, to announce the lifting of its diplomatic representation in Israel, with the opening of an embassy, ​​perhaps in December to mark the one-year anniversary of the signing of the normalization agreement. . Related articles NSO’s rival Quadrim in talks with Moroccan government Netanyahu: peace with Morocco would be “very warm” Israeli-American delegation arrives in Morocco According to Steve Ohana, businessman, industrialist and head of the Moroccan-Israeli Business Council, the biggest obstacles to trade are in the areas of taxes and banking . He says an agreement is needed to prevent double taxation, and that agreements that will allow the transfer of trade information, banking services between nations, and direct financial transfers will speed up trade. An annual export potential of $250 million, the normalization agreement signed as part of the Abraham Accords signed by former Prime Minister Benjamin Netanyahu despite the Covid pandemic and the political crisis in Israel led to a real increase in exports to Morocco. According to the Federation of Israeli Chambers of Commerce, Israel’s exports of good goods to Morocco in the first half of 2021 amounted to $13.2 million, compared to $8.1 million in the first half of 2020. In 2020, total exports amounted to $12.4 million, compared to $3.9 million . In 2019, the value of merchandise imports from Morocco was $6 million in the first half of 2021, similar to $5.9 million in the first half of 2020. Total merchandise imports from Morocco in 2020 amounted to $10.2 million, up from $9.8 million In 2019. These figures do not include services including tourism. These are not large sums in Israeli terms, but according to the Israeli Export Institute, the potential for annual exports to Morocco is about $250 million, mainly in agricultural inputs, water treatment, digitization, smart technology industries including cybersecurity, homeland defense, digital health systems, and smart cities. As well as renewable and clean energy, especially solar energy. Tourism also offers great potential. According to Ohana, even before 50,000 Israeli tourists visit Morocco each year, the inauguration of direct flights and the relaxation of visa granting will lead to a sharp rise in this number. The Israeli-Moroccan Chamber of Commerce will open this week, headed by former Knesset Member and Israeli Ambassador to the United Nations Yehuda Lancry. Lancry told Globes that tourism is very important to both countries, not only for economic reasons, but to bring Israelis and Moroccans closer together. Among the agreements expected to be signed in the next few days is one between the Federation of Israeli Chambers of Commerce and the Moroccan Agency for Investment and Trade, a government body responsible for national and foreign investments as well as exports of goods and services. The agreement will encourage exports to Israel and encourage investments and the entry of Israeli companies into Morocco. Published by Globes, Israel business news – en.globes.co.il – August 10, 2021 © Copyright Globes Publisher Itonut (1983) Ltd. 2021