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· Several European manufacturers got exposed to the risk of over-reliance on China’s supply where they had set up manufacturing bases lured by low production costs and skills.
· With its reliable infrastructure, competitive wages and skilled workforce, Morocco could gain from this restructuring, the report said.
A study done jointly by the Oxford Business Group and DW has pointed out that Morocco can benefit from the shifting of European manufacturing companies from China due to the disruption caused by Pandemic. Several European manufacturers got exposed to the risk of over-reliance on China’s supply where they had set up manufacturing bases lured by low production costs and skills. With its reliable infrastructure, competitive wages and skilled workforce Morocco could gain from this restructuring, the report said.
Reacting to the report, Moroccan industry minister Moulay Hafid Alamy observed that a global shift was underway redesigning how industrial centers are distributed throughout the world. Companies in the US as well as Europe are reviewing their overdependence on China. Morocco he felt could position itself as “a complementary manufacturing platform” with its track record as a “strategic partner” for world industry giants such as Boeing. By bringing supply chains closer home to Morocco, the EU Companies can gain more autonomy, he said. He added that his country was raising its competitiveness level closer to that of India and that Morocco was the most competitive country in the southern neighborhood.
It is also reported that the European Commission has already announced its plans to diversify supply chains which could accelerate negotiations on the new trade agreement between EU and Morocco. Morocco’s position as an alternate manufacturing platform gets strengthened due to various factors like its proximity, being part of EU’s regional trade agreements, and its rules of origin which are integrated with those of the EU. Morocco’s automotive industry is a good example of capitalizing on this restructuring plan due to its proximity and trade ties with Europe, Africa and the Middle East, an analyst observed.
