With new, more stringent European Union corporate sustainability and due diligence policies coming into force, more than 360 Spanish companies have relocated their production to Morocco, according to the Spanish Export and Investment Institute (ICEX).
Around 10% of these companies are in the food industry, including several food giants such as Ebro Foods (Brillante, SOS) and Borges (nuts).
ICEX data indicate that several Spanish companies have actually moved their production facilities, while others are operating through subsidiaries or in partnership with Moroccan companies to avoid complicated customs procedures.
EU exporters will ultimately benefit from the elimination of Moroccan customs duties on imports of 70% of agricultural and fishery products, a new measure that will save around 100 Mln euros in customs duties once it is implemented.
“More and more Spanish companies are showing interest in investing or opening subsidiaries in the Maghreb country,” a Spanish source in Morocco close to the business sector told EFE.
Another Spanish company that has decided to expand production in Morocco is the textile giant Inditex. “This will allow us to meet demand and adapt quickly and efficiently to new social and environmental standards. Proximity is one of the key criteria of our supply chain, which enables us to respond quickly to the market,” sources from the Spanish company told the news agency.
Spain is Morocco’s leading trading partner, ahead of France and China in terms of exports and imports. Spanish exports to the North African kingdom reached a record 9.5 billion euros in 2021.
On April 24, 2024, the European Parliament voted to adopt the Corporate Sustainability Due Diligence Directive (CSDDD). The new law introduces comprehensive mandatory human rights and environmental due diligence obligations, with significant financial penalties and civil liability for companies that do not fully comply.
In addition to Spain, other European companies such as Renault (France) and Stellantis (Netherlands) have chosen to relocate part of their production in Morocco. Both of these companies in the automotive industry have now established their headquarters in the Kingdom.