Morocco
Smuggling costs Moroccans employment and revenues

afrol News, 20 May - After the American Chamber of Commerce in Morocco (AmCham) published the results of its workshop about fighting contraband, the issue has caught interest in Moroccan business circles. Smuggling generates annual sale revenues of 15 billion untaxed dirhams (1.45 billion euro) and decreased employment in registered companies, the Moroccan press finds.

A recent AmCham workshop on contraband had presented several case studies on companies affected by smuggling. Prominent was the study by Goodyear -one of the world's leading tire producers - showing that its Moroccan factory recently had to lay off 150 workers in direct relation to smuggling. 

Of the tires circulated in Morocco, two-thirds origin from smuggling (both second-hand and new tires). In particular, tires restored in Spanish factories were smuggled from the Spanish enclaves Ceuta and Melilla to the Moroccan market under false name. These tires escaped taxation, reduced Moroccan employment, lowered traffic security and increased pollution, the Goodyear study concluded. 

The AmCham workshop had also proposed several strategies to fight contraband activities. Proposals were made to reduce the inflow of smuggled goods, to reduce their access to the marketplace, campaigns to discourage smuggling, economic reform and presenting economic alternatives for smugglers.

On reducing inflows of smuggled goods, the workshop favoured "a reduction in access to the Spanish enclaves by limiting the days and hours of access for those transporting contraband." It also proposed lobbying the Spanish government to end access to the enclaves based solely on the Moroccan national identity card, and supported the development of local norms to combat poor quality smuggled goods. 

The workshop further proposed a reduction in import duties, the more rigorous inspection of markets known for the presence of contraband and increasing publicity about the intellectual and industrial property laws. Considering economic alternatives for smugglers, the workshop suggested that they be integrated into the formal economy through the creation of micro-enterprises in such fields as agri-food products, tourism, services, and crafts. An estimated 45.000 people are engaged in the illegal industry.

The Moroccan industry - the legal players - seems to have embraced the AmCham study's results as they are among the principal losers within the current framework. 

Also the Moroccan press reports positively on the study. The Casablanca-based 'Libération' yesterday especially focused on the societal problems caused by a big contraband industry. Employment, unfair competition, state revenues and consumer security were emphasised. "Smuggling thus hits a multitude of economic sectors in Morocco, ranging from cosmetics, tires, detergents to food production." Morocco was not the only developing country suffering from such practices, it was noted. 

Sources: Based on AmCham, press reports and afrol archives

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