The Mauritanian government decided on May 1 to lift tariff increases on fresh products of Moroccan origin, according to media reports quoting professional sources. Since the beginning of the year, the Mauritanian government has decided to increase customs duties on these products by 171%. This decision was decried by both Moroccan exporters and Mauritanian consumers and described as a retaliation measure aimed to sanction the banning of exports of Moroccan fresh produce to Mauritania.
According to Amine Amanatoullah, a Moroccan-Mauritanian producer and exporter, "the decision to increase customs duties is directly linked to Morocco's decision to ban the export of certain products to West Africa, including Mauritania. This decision is also aimed at stimulating local production. In any case, behind these decisions on both sides are many details that create unease in agricultural trade between the two countries."
Chronology of the feud
The first episode of this "crisis" dates back to February 2023. Morocco, in the grip of constant drought and acute water stress, exacerbated by global inflation, saw the price of fresh produce rise unbearably on its local market. The government has therefore decided to intervene before Ramadan 2023, by limiting exports. It was decided to reduce volumes destined for Europe and to impose a clear ban on exports to West Africa.
"That's where the big misunderstanding was born," Amanatoullah explains. "Not only was the decision abrupt, but it was also badly perceived in West Africa, particularly in Mauritania: why continue to export to Europe and close the taps in Africa? That's the question professionals and public opinion were asking, and that's a major miscommunication. Firstly, the restriction of exports - ineffective though it is a measure - can be explained by water stress and rising prices on the local Moroccan market. Secondly, all Moroccan exports to West Africa are made without a program or contract, whereas the majority of exports to Europe are under contract. The Moroccan government could not stop exports to Europe, as this would be a failure to honor contractual obligations."
The gap left by Morocco on the Mauritanian market was quickly filled by imports from Turkey, Senegal, and Egypt, shares Amanatoullah. "It should be remembered that the local Mauritanian market, due to its habits and customs, does not consume many vegetables, except for onions, which are widely consumed. Vegetables are mainly destined for restaurants or expatriates living in Mauritania. That said, the Moroccan decision was experienced as a humiliation. It led to a number of reactions, including an increase in customs duties on Moroccan fresh produce in January 2024.
Amine Amanatoullah, CEO of Fast Expo.
The Moroccan ban inspires Mauritania to produce locally
"Mauritania has seen this affair as a lever to encourage local production, in the interests of food security but also with the ambition of becoming an exporting country. The success of the vegetable export sector in Morocco, and before that of watermelons, has inspired Mauritanian producers. The government has supported this impetus with a great deal of effort. The land has been granted at symbolic prices to growers, including Moroccan investors, in the Rosso and Jahra regions. In the Jahra artificial lake, water is pumped free of charge for agricultural purposes. In November 2023, the government even offered growers a boatload of potato seeds free of charge.
The season has given rise to a paradigm shift in Mauritanian production, Amanatoullah explains. Before Moroccan supplies were cut off, agricultural production in Mauritania mainly consisted of watermelons. But there were a few problems. Firstly, the success of the first watermelon exporters five years ago encouraged other investors, who replicated the experience without much planning. The result was that the market was flooded with Mauritanian watermelons the previous season, driving down prices and causing storage problems due to supply congestion. Secondly, the halt to imports from Morocco has encouraged vegetable production in Mauritania. As a result, 1200 ha are converted to bell pepper and tomato production in 2023. This is a significant area, given that the total surface area produced in the country does not exceed 6,000 ha. Substantial investments were deployed in irrigation equipment and greenhouses."
In tandem with the government's efforts, Mauritanian producers, many of whom are Moroccan investors, have organized themselves for dialogue with the government: "Two producers' associations have been created, which is a big step towards modernizing the sector," says Amanatoullah.
These associations have acted as interlocutors with the Mauritanian government, steering the transition and conveying the concerns of producers, but they also have every interest in dialogue with Morocco. In fact, behind the vegetable's turmoil lies another long-standing issue that is not well perceived in Mauritania.
Why doesn't Morocco allow Mauritanian watermelons?
The Mauritanian watermelon season kicks off in February, two months before the Moroccan season. This is a window that Mauritanian producers could use to export to Morocco, where the local market is fond of watermelons. However, "for one reason or another, Mauritanian watermelons are not welcome in Morocco. We raised the question with the Moroccan side, but did not get an answer. Officially, there is no import ban. But in reality, the Moroccan health authorities do not accept them. The reason may be the fear of importing viruses, but in this case, the fear is unjustified, as our products are accepted in Europe, and our phytosanitary certificates are accepted in Europe, which is very vigilant in this respect. Nor is the protection of local production a reason, since Moroccan watermelons are not available on the market at this time of year."
A Mauritanian exporter has stress-tested exporting watermelons to Morocco as recently as in 2023 and provided all the documents required by the Moroccan authorities. "He was made to understand informally that the watermelons will not pass," says Amanatoullah. "It's an unfair situation that needs to be corrected. What makes it even bizarre is that it affects Senegalese watermelons too, while Senegalese mangoes are imported on a massive scale."
"It's time to work together"
Reacting to the reinstatement of the prior customs rates, a Moroccan exporter, speaking on condition of anonymity, said: "Both Mauritania's increase in customs duties and Morocco's export ban make no sense. The volumes of vegetables exported to Mauritania are very low. To give you an idea, if a single Moroccan exporter has a monopoly on the entire Mauritanian market, he'll still be in difficulty. Specialized exporters to Mauritania are quite small-scale and pose no problems either for the local Moroccan market or for other destinations. Volumes are much lower than Moroccan exports to Mali, for example."
"On the Mauritanian side, the authorities have understood that they cannot replace Moroccan supply from one season to the next," the exporter continues. "There may be a further increase in customs duties when local production is sufficient, but this is too negligible to affect Moroccan exports as a whole or local prices on the Moroccan local market."
Amanatoullah comments: "Customs duties are used as a tool of sanction. It's in the interests of both countries to discuss and complement each other and resolve unresolved issues. It's time to work together. Despite this tension, we are demonstrating on the ground that such an arrangement is entirely possible. Moroccan investors enjoy the same incentives as their Mauritanian counterparts to produce fresh produce in Mauritania. They are even more favored than other nationalities. Mauritanian producers also look favorably on Morocco's experience and know-how in production and export."
The tension eases a notch with the reinstatement of the old customs rates. The lifting of the Moroccan ban on export is to be expected soon, according to press reports quoting professional sources. But this thorny episode may well have been a blessing in disguise: "It served as an incentive for Mauritania to produce locally. Several products have been successfully tested this season. Natural resources, water, and land are available in abundance."
The producer continues: "There are still a number of challenges to be met, starting with infrastructure. Mauritania still lacks investments such as packing stations and cold storage facilities. I think this will come soon, as the country will start exporting natural gas, which will be a valuable financial boost. The second challenge is skilled manpower. There is still no transfer of know-how in production and marketing. And I don't see who else could provide it other than Moroccan executives and workers, and that's another area of collaboration between the two neighbors."
For more information:
Amine Amanatoullah
Fastexpo
Tel: +212 661-281321
Email: [email protected]