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    The Iberian Solution Could Offer Europe More Gas

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    Never has the question of where Europe’s foreign gas supplies come from, and whether there are alternatives to the continent’s dependence on Russia, been so much debated as in recent weeks. A subject that is usually the preserve of specialists has become the focus of endless discussion. Are there other sources of gas supplies for the European Union?

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    The immediate answer is there are very few today outside of Russia itself, hence the large rise in gas prices witnessed lately. Over the medium term, however, Libya and Algeria have ample opportunity to increase their supplies to the EU.

    Supplies From Libya and Algeria

    Libya boasts proven gas reserves of 1,500 billion cubic meters (bcm). Its production is a modest 16 bcm. Algeria has 4,500 bcm of proven reserves and 20-25 trillion cubic meters (tcm) of unconventional gas reserves, the third-largest in the world after the United States and China (and Argentina whose proven reserves tie with Algeria). How much gas that could produce is anyone’s guess, but we are speaking of a figure in the tens of bcm.

    Algeria today produces 90 bcm, of which 50 bcm were exported. Another feature of Algeria is the huge storage capacity — 60 bcm — of the Hassi R’Mel gas field, its oldest and largest compared with the EU’s storage capacity of 115 bcm.

    Pierre Terzian, the founder of the French energy think-tank Petrostrategies, points out that four underwater gas pipelines link these two producers directly to the European mainland: the first links Libyan gas fields with Italy; the second Algerian gas fields to Italy via Tunisia; the third Algerian gas fields to southern Spain; and the fourth the same gas fields to southern Spain via Morocco.

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    The latter has been closed since November 1, 2021, due to deteriorating relations between Algeria and Morocco, but this has not affected the supply of gas to the Iberian Peninsula. Algeria also has two major liquified natural gas (LNG) terminals, which adds flexibility to its export policy. Its exports to France and the United Kingdom are in LNG ships.

    The leading cause of the current crisis is structural as, according to Terzian, EU domestic gas production has declined by 23% over the last 10 years and now covers only 42% of consumption, as compared with 53% in 2010. That decline is the result, in particular, of the closing of the giant Groningen gas field, which is well underway and will be completed by 2030.

    Europe has done a lot to expand the gas transmission grid among EU countries, but some major gas peninsulas remain. In 2018, it was suggested that connections between the Iberian Peninsula and the rest of Europe needed developing. Spain boasts one-third of Europe’s LNG import capacity, much of it unused, and is connected to Algeria by two major pipelines that could be extended.

    As Alan Riley and I noted four years ago, the “main barrier to opening up the Iberian energy market’s supply routes to the rest of the EU is the restricted route over the Franco-Spanish border. Only one 7-bcm gas line is available to carry gas northwards … The main blocking factor has been the political power of Electricité de France, which is seeking to protect the interests of the French nuclear industry.” An Iberian solution, we added, would not only “benefit France and Spain, but also Algeria, creating additional incentives to explore for new gas fields and maybe kick start a domestic renewables revolution,” which would encourage a switch in consumption from gas to solar in Algeria.

    Germany, the Netherlands and Italy

    Germany, for its part, has never put its money where its mouth is with regard to Algeria. In 1978, Ruhrgas (now absorbed in E.ON) signed a major contract to supply LNG to Germany. Germany never built the LNG terminal needed to get that contract off the ground. So far, it is the only major European country to have no LNG import terminals, although it can rely on existing facilities in the Netherlands and Belgium.

    In 1978, the Netherlands also contracted to buy Algerian gas. Algeria dropped the contract in the early 1980s because of Germany’s refusal to go ahead. Later in the 1980s, Ruhrgas again expressed its interest in buying Algerian gas, but the price offered was too low and because Ruhrgas wanted to root the gas through France, which insisted on very high transit fees. By discarding Algerian gas, Germany has tied itself to Russian goodwill.

    Italy, like Germany, a big importer of Russian gas, has positioned itself much more adroitly. In December 2021, Sonatrach, Algeria’s state oil and gas monopoly, increased the amount of gas pumped through the TransMed pipeline, which links Algeria to Italy via Tunisia and the Strait of Sicily at the request of its Italian customers. This followed a very successful state visit by Italian President Sergio Mattarella to Algeria in early November. On February 27, Sonatrach confirmed it could pump additional gas to Europe, but contingent on meeting current contractual commitments.

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    Relations between the Italian energy company ENI and Sonatrach are historically close because of the important role played by the Italian company’s founder, Enrico Mattei, in advising the provisional government of the Republic of Algeria in its negotiations with France, which resulted in the independence of Algeria in July 1962.

    The pursuit of very liberal energy policies since the turn of the century by the European Commission overturned the policies of long-term gas and LNG purchase contracts, which were the norm in internationally traded gas until then. Yet security of supply does not rest on such misguided liberalism. New gas reserves cannot be found, let alone gas fields brought into production if producers and European customers are, as Terzian points out, “at the mercy of prices determined by exchange platforms which have dubious liquidity (and can be influenced by major players).” This is an attitude, he adds, “that borders on the irresponsible.”

    German energy policy has mightily contributed to the present crisis. It has blithely continued to shut down the country’s nuclear plants, increased its reliance on coal in the electricity sector and with that a consequent increase in carbon emissions.

    Serious Dialogue

    When considering Caspian gas as an alternative to Russian gas, I would add another country, Turkey, which has a very aggressive and independent policy as a key transit for gas. However, few observers would argue that such a solution would increase Europe’s security.

    Engaging in serious long-term strategic dialogue with Algeria would provide Spain and the EU with leverage. This could help to build better relations between Algeria, Morocco and also the troubled area of the Sahel. When trying to understand the politics of different nations, following the money often offers a good guide. One might also follow the gas.

    *[This article was originally published by Arab Digest, a partner organization of Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      From the Maghreb to the East, Poking the EU Has an MO

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      Contemporary diplomatic relations between Morocco and Spain saw their genesis after the Spanish departed from Western Sahara and the tripartite agreement was reached in 1975. Signed in Madrid, this agreement between Morocco, Mauritania, and Spain tried to normalize the future of the region’s borders and of the people of Western Sahara.

      However, after signing the deal, the government in Madrid never formalized its political and diplomatic position regarding Moroccan sovereignty over Spain‘s former colony in Western Sahara. A geopolitical matter of vital importance for Morocco, the question of Western Sahara remains an unhealed wound in the relationship between Madrid and Rabat.

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      In 2021, this wound was reopened after Spain, in a somewhat secret and irregular move, welcomed Brahim Ghali, secretary-general of the Polisario Front, a nationalist movement seeking independence for Western Sahara vis-à-vis Morocco. On top of the fact that Ghali is wanted in Spain for crimes against humanity, rape and torture, among others, he is also a staunch enemy of the government in Rabat.

      This politically embarrassing situation, a product of a diplomatic miscalculation by the Spanish government, created a feeling of betrayal in Rabat. Morocco quickly conveyed its discomfort, considering Spain’s harboring of Ghali a challenge to the kingdom’s sovereignty and interference in an internal state matter. Thus, Morocco issued a warning that continuing to host Ghali would have consequences.

      Spain in North Africa

      Despite these warnings, the government in Madrid decided not to make any political or diplomatic overtures to Morocco, declining to resolve the misunderstanding in a consensual manner. Therefore, in a way, the Spanish government forwent its diplomatic relationship with Morocco and disregarded the important role that Rabat has always played as a critical partner in the fight against illegal trafficking and terrorism stemming from the Maghreb and the Sahel.

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      Though the relationship between Morocco and Spain has lived through ups and downs, the tensions last year felt much different. Through relaxation of its military controls, Rabat‘s threat became a reality in May 2021 when Morocco effectively opened its border with Ceuta, a Spanish enclave and autonomous city located on the African continent, which made it easier for waves of irregular migrants to reach Tarajal beach. Around 8,000 people, including more than 1,500 estimated minors, tried to cross the Spanish-Moroccan border on foot and by swimming to enter Spanish soil illegally.

      As crude as it may seem, this political move by the government in Rabat, using Moroccans and Africans in general as a weapon against Spain, is not new. For years, Morocco has used this modus operandi as a diplomatic weapon to pressure and obtain concessions from its European neighbor. However, there has not been such a mass arrival of people, especially such a high percentage of minors, to the Spanish border in recent history.

      The diplomatic crisis last May led to authentic moments of chaos and siege along Ceuta‘s border, making the passage of many of these immigrants to the European territory possible. Through its actions, Rabat sent a message without palliatives and implored the Spanish government to back down from political moves, such as open invitations to regional nationalist leaders.

      The Existential Issue of Territorial Integrity

      Morocco’s red lines related to Western Sahara have been drawn, and the kingdom has reiterated that interferences with its national sovereignty will not be tolerated. The crude political response at the Spanish border of Ceuta represents the harshness of Rabat‘s diplomatic relations, choosing, yet again, to weaponize its population.

      Spain needs Morocco; indeed, Europe needs Morocco. Rabat is a crucial partner in Africa, especially given the many challenges in the region. However, Spain and the European Union should not allow the pressure and blackmail from their North African neighbor to stand because they embolden others. Spain and the EU should impose strict red lines on Morocco as well as clear and intelligent economic sanctions concerning development, education and health funds.

      Political, and diplomatic issues can be resolved with class and delicacy without cheap blows and without trivializing despair and compassion. For this, Spain needs to reach a rapprochement with Morocco regarding the status and future of Western Sahara.

      Energy and Copycats

      In tandem with Morocco’s migrant valve vis-à-vis Spain, Algeria started leveraging its gas valve to counter France’s escalation on matters like issuing visas to Algerian citizens. In this latter issue, Spain and Morocco, neither of whom are particularly close with Algeria, are collateral damage to the Paris-Algiers feud whether in the form of declining pipeline revenues or a higher power bill.

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      Since these episodes toward the middle of last year, the same playbook has been used by Moscow’s client in Minsk, who has fostered a migrant cul-de-sac along the EU’s Polish border. In doing so, Russia and Belarus are feeding the euroskeptic spirits within the Visegrad countries and beyond, which are particularly sensitive to migration and border sovereignty issues. Moreover, Alexander Lukashenko and Vladimir Putin are playing good cop, bad cop on the issue of Europe’s gas supply by offering both threats and assurances that further highlight the EU’s vulnerable dependency on external providers when it comes to energy.

      On the migration front, the European Union needs to reinforce its external borders and FRONTEX agency, particularly within the Schengen area, and formulate a common framework to tackle both migration quotas and allocation throughout Schengen member countries. Not only is the migrant reality in places like Spain, Greece, and Poland a human tragedy, but it is also increasingly a geopolitical lever weaponized by Morocco, Turkey, Belarus and other adversaries to destabilize the EU and bolster internal chaos to the benefit of figures such as Viktor Orban, Geert Wilders, Santiago Abascal, Marine Le Pen, and Eric Zemmour.

      Whether nuclear, solar or wind, a common and comprehensive European defense framework urgently requires a holistic approach that tackles the issue of energy independence, in addition to that of border security, particularly in an increasingly hostile and multipolar neighborhood.

      Building Solutions Where Possible

      Along the Maghreb, one of the best solutions would be a new pragmatic and flexible bipartisan agreement between Spain and Morocco. An agreement that commemorates the golden jubilee of the Tripartite Agreement provides a firm solution to the Western Sahara dispute in a framework that benefits coexistence in the region and maintains collaboration in critical matters such as the fight against terrorism, illegal immigration and human trafficking.

      In the same way, Spain and the EU must encourage the good behavior of Morocco with humanitarian aid and fruitful commercial relations to definitively close the post-colonial wound that sometimes reopens between the two countries.

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      Expect an Uneven Rebound in MENA and Central Asia

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      Projections, no matter how well-grounded in analytics, are a messy business. Three years ago, COVID-19 was unheard of and then-US President Donald Trump’s politics caused uncertainty in international relations, with democracy in retreat across the world. Despite the best-informed prognostications, predictions failed to capture cross-border variables such as immigration and civil conflict that have yet to play out in rearranging local and regional economic prospects.

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      No region is more complex in terms of confusing signals than the Middle East and North Africa (MENA) and Central Asia. This is the subject of the latest report by the International Monetary Fund titled, “Regional Economic Outlook: Arising from the Pandemic: Building Forward Better.”

      What is clear from a review of the data is that 2020 was an outlier in terms of trend lines earlier in the decade, skewed by the COVID-19 pandemic, erosion of oil prices, diminished domestic economic activity, reduced remittances and other factors that have yet to be brought into an orderly predictive model. Even the IMF had to recalibrate its 2020 report upward for several countries based on rising oil exports, while decreasing marks were given countries slow to vaccinate against COVID-19 and that rely on service-oriented sectors.

      Mixed Outlook

      The numbers indicate a mixed picture, ranging from Oman growing at 7.2% and the West Bank at 6.9%, to Lebanon receiving no projection and Sudan at the bottom of the range with a 1.13% real GDP growth rate. Yet, so much can impact those numbers, from Oman’s heavy debt burden to continuing turmoil in intra-Palestinian and Palestinian-Israeli affairs.

      The good news is that real GDP is expected to grow by 4% in 2021, up from the projection last October of 3.2%. Much of the lift has come from two factors: a more optimistic trend line for the oil producers and the rate of vaccinations in countries that will promote business recovery.

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      As CNBC pointed out, Jihad Azour, director of the IMF’s Middle East and Central Asia department, noted that recovery will be “divergent between countries and uneven between different parts of the population.” Key variables include the extent of vaccine rollout, recovery of tourism and government policies to promote recovery and growth.

      In oil-producing countries, real GDP is projected to increase from 2.7% in 2021 to 3.8% in 2022, with a 5.8% rise in the region’s sector driven by Libya’s return to global markets. Conversely, non-oil producers saw their growth rate estimates reduced from 2.7% to 2.3%. In fact, Georgia, Jordan, Morocco and Tunisia, which are highly dependent on tourism, have been downgraded in light of continuing COVID-19 issues such as vaccination rollout and coverage.

      As the IMF report summary notes, “The outlook will vary significantly across countries, depending on the pandemic’s path, vaccine rollouts, underlying fragilities, exposure to tourism and contact-intensive sectors, and policy space and actions.” From Mauritania to Afghanistan, one can select data that supports or undercuts the projected growth rates. For example, in general, Central Asia countries as a group seem to be poised for stronger results than others. Meanwhile, Arab countries in the Gulf Cooperation Council face greater uncertainty, from resolving debt issues to unforeseen consequences of negotiations with Iran.

      So, how will these projects fare given a pending civil war in Afghanistan and the possible deterioration of oil prices and debt financing by countries such as Bahrain and Oman? Highlighting this latter concern, the report goes on to say that public “gross financing needs in most emerging markets in the region are expected to remain elevated in 2021-22, with downside risks in the event of tighter global financial conditions and/or if fiscal consolidation is delayed due to weaker-than-expected recovery.”

      An Opportunity

      Calling for greater regional and international cooperation to complement “strong domestic policies” focused on the need “to build forward better and accelerate the creation of more inclusive, resilient, sustainable, and green economies,” the IMF is calling on the countries to see a post-pandemic phase as an opportunity. This would involve implementing policies that promote recovery, sustain public health practices that focus on sustainable solutions, and balance “the need for debt sustainability and financial resilience.”

      There is great uncertainty assigning these projections without more conclusive data on the impact of the pandemic, the stress on public finance and credit available to the private sector, and overall economic recovery across borders that relies on factors such as the weather, oil demand, external political shocks and international monetary flows. The IMF report is a very helpful bellwether for setting parameters for ongoing analyses and discussions.

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      Western Sahara: Washington’s Accidental Red Line

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      Secretary of State Antony Blinken has made one thing clear about the Trump administration’s approach to US foreign policy: It’s going to change. In his first month on the job, Secretary Blinken rescinded former President Donald Trump’s designation of the Houthis as a terrorist group, reaffirmed America’s strategic partnerships and announced plans to rejoin the UN Human Rights Council.

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      This is just the beginning. Blinken’s predecessor, Mike Pompeo, left what many consider to be an internecine mess on the world stage, and Secretary Blinken could hardly have inherited his department at a more crucial moment. However, between his firm words on the US relationship with China and Russia, Blinken must also give top priority to a lesser-known foreign policy debacle simmering in North Africa: the Western Sahara conflict. Thanks to the Trump administration’s shortsighted acts, this conflict now directly threatens US regional diplomacy and has turned more dangerous than ever.

      Trouble in the Sahara

      The trouble first began in Western Sahara in the 1970s, when Spain decolonized the territory following pressure from the United States. Neighboring Morocco held secret negotiations with Madrid to take over half of Western Sahara, with the other half going to Mauritania. These plans leaked, to the ire of the Polisario Front, a nationalist rebel group in Western Sahara, and its military wing began a 16-year guerrilla war that ensnared Morocco, Mauritania, Spain, Algeria, France, Libya and the US. Tens of thousands of people died.

      Officially, the fighting concluded in 1991 with a UN-brokered ceasefire agreement, which created the United Nations Mission for the Referendum in Western Sahara (MINURSO) to facilitate a solution. Three decades later, that solution has yet to appear, and opportunistic decisions by the Trump administration have now thrown even the ceasefire into doubt.

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      In fact, hostilities resumed on Trump’s watch. In November 2020, the Polisario Front began blocking commercial trade in the border zone of Guerguerat. In response, Moroccan troops launched a military operation to secure local roads, resulting in sporadic shooting matches and casualties along the berm — a 1,700-mile-long sand barrier Morocco built to contain opposing forces. Polisario top brass immediately condemned the move, lamenting the end of the UN ceasefire. The situation appeared incredibly fragile.

      Then in swooped President Trump with the Abraham Accords. Capping off a spate of victories that restored diplomatic relations between Israel and the United Arab Emirates, Bahrain and Sudan, Trump focused his energies on securing the support of Morocco. Rabat agreed to the terms on December 10, in exchange for the United States to finally recognize Moroccan sovereignty over Western Sahara, which became the only country in the world ever to do so.

      Diplomatically, Morocco’s participation in the accords won Trump another round of praise from supporters of the state of Israel, to say nothing of Trump’s longtime ally, Israeli Prime Minister Benjamin Netanyahu. But strategically, the Abraham Accords sent a far sharper message in North Africa: Stop the violence. The move to back Moroccan claims of sovereignty signaled America’s commitment to invest greater security resources in Morocco, including in regional peacekeeping to tamp down the Western Sahara conflict. It restyles American support as a high-stakes tripwire in the Maghreb, not to be crossed by either the Polisario Front or Rabat.

      Tripwire

      The US International Development Finance Corporation’s pledge to invest $5 billion in Morocco, as well as former US Ambassador to Morocco David Fischer’s announcement of a consulate in Dakhla, Western Sahara, began enforcing this tripwire. Nevertheless, this did not stop Polisario fighters from causing more violence in Guerguerat on January 24, launching four rockets at Moroccan targets overnight. Moroccan and American forces dramatically outnumber the rebels in both numbers and weapons, making the January flare-up stunning. However, by disregarding the US conditions and striking Morocco, the Polisario Front has made good on its threats to resume its armed struggle, imperiling both American activities and regional stability in the process.

      First, the Polisario Front will likely launch a campaign of low-level tactical aggression in key southern zones, which will force a Moroccan response through either political pressure or military channels. This could lead Morocco to threaten military action. Such a provocation would almost certainly inflame nationalist zeal in Morocco — to which reclaiming Western Sahara is key — and immediately complicate the US role in Dakhla. Finally, Washington will be faced with an awful choice. It will be forced to either support a hawkish, emboldened Morocco or talk Rabat into a position of non-action that will be extremely unpopular domestically and may give a green light to the Polisario Front to wage even broader campaigns.

      In other words, the rocket launches in Guerguerat were not wanton decisions by a flailing guerrilla force. They were calculated, deliberate acts by the Polisario Front to test the US tripwire in Dakhla. They drive Washington to the extreme options of reining in its historical ally, sanctioning a new, Morocco-led war in Western Sahara or committing US forces to preserve peace and deal with the problem itself. Put simply, the tripwire failed, and the Polisario Front deftly called America’s bluff. With Trump-era actions laying the groundwork for present developments, the Polisario’s actions effectively begin a broader strategy to weaken the collective defense elements of the US-Morocco alliance.

      By injecting himself into the Western Sahara fiasco, with no hindsight or understanding of its history, Trump planted diplomatic and strategic landmines that the Biden administration will need to work tirelessly to defuse. Worse, the former president’s actions have sucked Washington into the unenviable position of enforcing an accidental red line in North Africa, one that the Polisario Front has already, gleefully, crossed. And if Joe Biden sends in troops, it will serve only to raise the ghosts of Vietnam: another drawn-out, faraway engagement in which the United States holds no legitimate best interest.

      Secretary Blinken must do more than take “a hard look” at the Abraham Accords. He must rescind the State Department’s recognition of Moroccan control over Western Sahara and allow MINURSO to continue its work. He must renegotiate the Western Sahara provisions of the accords — which former Secretary of State James Baker, former National Security Adviser John Bolton, Senator Jim Inhofe and Western Sahara expert Stephen Zunes have all denounced as mistaken — and join President Biden in rescinding Trump’s proclamation on the topic. He must scrap plans to build a US consulate in Dakhla, and, unless he wants to entangle our troops in an unnecessary foreign incursion, he must do it at once. The stability of North Africa depends upon it.

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      The Western Sahara Conflict and Great Power Competition

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      On December 10, 2020, then-US President Donald Trump recognized Moroccan sovereignty over Western Sahara, circumventing a decades-long UN-sponsored peace process for the territory. In return, Morocco agreed to normalize relations with Israel.

      The US-brokered agreement goes beyond a simple quid pro quo for Trump’s Arab peace deals. It represents a US investment in a North African security partner that is key to Washington’s conception of great power competition. Trump’s decision pulls Morocco closer to the US and the European Union. It also brings Rabat closer to the United Arab Emirates’ spheres of geopolitical influence in Africa and the wider Arab world. At the same time, the decision gives the EU cover to further align with Morocco.

      Yet Trump’s gift to Morocco could have unintended consequences. Algeria might deepen its relationship with Russia and China, increasing their presence in the Maghreb region. The Biden administration is scrutinizing past deals signed by the previous president, and the decision pertaining to Morocco might come up for reconsideration. 

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      The Moroccan kingdom conceives of its neighborhood’s stability in terms of a strong grip on Western Sahara, the continued development of the southern territory’s resources, and limited terrorist threats in and around its porous Saharan borders. In late November 2020, the US committed to investing $3 billion in Morocco — through the Development Finance Corporation — and designated the country as a regional hub for its Prosper Africa trade and investment program. A month later, the US committed to selling four sky guardian drones to Morocco, which expands its intelligence, surveillance and reconnaissance (ISR) capacity. By acknowledging Moroccan sovereignty over Western Sahara, allotting Morocco more development funding and providing increased ISR, the US bolsters neighborhood stability as seen by King Mohammed VI.

      In turn, increased stability for Morocco may reverberate across its littoral Sahara — a vacuum for terrorists and a potential target of Russian intrigue. New US development initiatives could amplify previous Moroccan actions in the region, such as the delivery of COVID-19 aid packages to Mauritania and Burkina Faso in June 2020. New ISR capacity will also see the increased interdiction of traffickers and terrorists, whose roles progressively overlap. These actions will not decisively change the nature of conflict plaguing the Sahel region, located just south of the Sahara Desert. But even marginal gains for Moroccan stability would decrease power vacuums for Russia to exploit with the Wagner Group, a private military company Moscow uses to surreptitiously advance its foreign policy.

      Europe and the Gulf

      Trump’s decision also provides political cover for the EU to overcome obstacles in its relationship with Morocco, which retains advanced status under the union’s European Neighborhood Policy. The Brussels-Rabat relationship is fraught with disputes over whether goods from Western Sahara should come under the jurisdiction of the EU-Morocco free trade agreement. Rulings in 2016 and 2018 by the European Court of Justice decreed that EU-Morocco trade and fishing agreements would only remain valid if they excluded goods originating from Western Sahara, contradicting the Moroccan autonomy plan for the territory.

      Washington’s recognition of Moroccan sovereignty gives political cover to European states, including France, that lean toward the autonomy plan. European judicial decisions do not derive from US decrees, but if key EU member states were to change their stance on Western Sahara, the legal basis of the earlier court rulings could also differ. If so, like the US, the European Union would find itself pulled closer to Morocco, portending new initiatives that align with the European interest of Morocco as a stability exporter.

      Embed from Getty Images

      In the Gulf, Washington’s recognition of Moroccan sovereignty pushes Rabat and Abu Dhabi closer into alignment. This would continue their rapprochement after previous tensions, which stemmed from Morocco’s refusal to back the Saudi-Emirati-led blockade of Qatar between 2017 and 2021. To punish Morocco for its neutrality, in 2018, the UAE and Saudi Arabia voted against Morocco’s bid to host the 2026 FIFA World Cup. The states also recalled each other’s ambassadors.

      In October 2020, however, the UAE opened a consulate in Western Sahara’s Laayoune, which at that time was not recognized as Moroccan territory by the US. This was an important symbolic gesture, given that the UAE was the first Arab state to do so. UAE actions that favor Morocco come amidst deteriorating Emirati-Algerian relations, as Abu Dhabi is unhappy with Algeria’s alleged support of Turkey or, according to the UAE, “anti-Emirati lobbies in the region.” That the UAE is strengthening ties with Morocco while Saudi Arabia makes no such overtures could foreshadow Emirati attempts at constructing a new, intra-Sunni coalition.

      Russia and China

      US rivals have adopted less amenable stances. Russia has already condemned Washington’s recognition of Moroccan sovereignty over Western Sahara. The US decision, consequently, gives Russia and China an excuse to increase security and economic cooperation with the Algerians. As the most strident supporter of the Polisario Front — an armed group demanding independence for Western Sahara — Algeria is upset about the diplomatic win Morocco secured in the US recognition of Moroccan sovereignty.

      To balance Rabat’s victory, Algiers could invite in Russian troops under the guise of counterterrorism operations to the Sahel. Algeria is one of Russia’s largest arms clients and China has already committed billions to phosphates in the east of the country. In light of the US move, both of these relationships could further develop.

      Increased Russian and Chinese activity in Algeria would also diminish advances made in terms of Moroccan stability in the Sahel. Russia expanding its North African power projection and China increasing its investments in natural resources would balance Moroccan actions that close power vacuums to the Wagner Group. Unforeseen by Trump, Russia can also cite the US recognition of Moroccan sovereignty over Western Sahara as justification for its annexation in 2014 of Crimea, which is officially part of Ukraine. The US may have improved ties with Morocco but, in doing so, pushed Algeria, another North African behemoth, firmly into a sphere of Russian and Chinese influence and provided Russia justification for its illegal invasions.

      The New US Administration

      The Biden administration has already stated its support of the Abraham Accords, a term used for the peace deals Israel signed with the UAE and Bahrain in 2020. In response to a question concerning US recognition of Western Sahara, however, Secretary of State Antony Blinken said, “We’re also trying to make sure that we have a full understanding of any commitments that may have been made in securing those agreements.”

      On January 27, 2021, US President Joe Biden froze the Trump-era F-35 sale to the UAE, pending review. Many considered the F-35 sale as a carrot Trump offered to the UAE. The freeze does not necessitate the reversal of the sale, but it indicates Biden’s resolve to scrutinize the quid pro quos that accompany the Abraham Accords. Once the US reaches “a full understanding of any commitments,” it will either continue or withdraw recognition of Moroccan sovereignty over Western Sahara.

      If the Biden administration continues recognition of Western Sahara, Blinken would most likely work through an international framework at the United Nations to achieve increased support for Washington’s unilateral decision, as the US is the only state to recognize full Moroccan sovereignty over Western Sahara. If EU states lean toward the Moroccan autonomy plan, the Biden administration will find some find needed political cover.

      Embed from Getty Images

      At the same time, Russia and China would continue their support for Algeria, and Morocco would export its version of stability across North Africa. Rabat would also continue its recognition of Israel. Malignant non-state actors, however, could use the endurance of the US decision to galvanize violent actions from some Polisario fighters, creating another opening for terrorist groups. Maintenance of the decision also comes at the expense of true self-determination for the Saharawi people in Western Sahara.

      The US can also withdraw recognition of Moroccan sovereignty over Western Sahara. This action would see the White House realign with the UN-sponsored peace process and international law. Potentially, a US return to non-recognition would invigorate efforts toward a true autonomy plan. In this case, Morocco would withdraw its recognition of Israel and US relations with Morocco would cool. Although the US and Morocco would remain important partners, the Moroccans would feel betrayed by this decision and potentially align closer with Russia and China to castigate the Americans. The Polisario, moreover, would also find a renewed chance at some form of self-determination.

      Regardless of the Biden administration’s actions, Trump blatantly circumvented a UN-sponsored peace process and gave Morocco a carte blanche to implement its autonomy plan. New US-Moroccan collaboration could see Morocco push Sahelian stability that benefits the US position in great power competition by closing power vacuums to Russian interests. Trump’s thirst for diplomatic wins, however, caused his administration to view Western Sahara through a transactional lens, obfuscating a legitimate international solution and potentially inviting new Russian and Chinese activity in North Africa.

      *[Fair Observer is a media partner of Gulf State Analytics.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      Not All Quiet on the Western Sahara Front

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      On October 21, groups of Polisario Front’s supporters blocked the highway at Guergarat, in the extreme southwest of the Western Sahara. This is in the buffer zone between territory controlled by Morocco and the land claimed by the Polisario — the Popular Front for the Liberation of Saguia el-Hamra and Río de Oro, the rebel movement fighting for the independence of the former Spanish territory of Western Sahara, now under Rabat’s control — effectively blocking transportation between Morocco, Mauritania and countries further south. Moroccan troops responded quickly and cleared the road so that more than 100 trucks could resume carrying goods. The Polisario claimed no knowledge of the action and labeled Morocco’s response as an “act of war.”

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      What happens next could determine the fate of the 29-year-old ceasefire that marked the cessation of hostilities and the beginning of UN efforts to resolve the status of the territory that Morocco claims is part of its kingdom. While Rabat has offered broad autonomy to the region under its sovereignty, the Polisario Front and its backer, Algeria, are demanding a referendum that the UN Security Council dropped from its agenda in 2007 after multiple failed attempts at compiling a mutually agreed voter list stymied any credibility for that option.

      So far, 16 African countries, the UAE and Jordan have opened consulates in the region, providing Morocco with crucial international support for its territorial claims. As per Al Jazeera, “The strategy has been effective: Out of 84 countries that previously recognized the Polisario, 44 recently rescinded their support and recognition.”

      Tension Builds

      Morocco described the blocking of the road by Polisario supporters, allegedly backed by armed fighters, as a breach of the ceasefire. The Polisario said the Moroccan army’s entry into the buffer zone had fatally undermined the ceasefire. And so the tension builds. Behind it are lingering questions of why (and why now), of what the end game is, and of why Algeria and the Polisario are of one mind on this latest conflict?

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      The UN is now on alert despite the lack of a special envoy to monitor the crisis after the previous representative resigned last year due to health issues. The African Union has also indicated its concern, although it has not proposed a concrete intervention. Among the Arab states, only Algeria condemned Morocco’s reaction to the blockade. The war of words continues.

      For years, supporters on both sides have indicated displeasure at the lack of formal and realistic negotiations between the parties. Morocco has garnered broad international support for its autonomy proposal, which has been called “serious and credible” by the US and many others. While in the Polisario camp, its youth are becoming increasingly restive at the lack of more aggressive action by the leadership to change the status quo and push for independence or something more acceptable than the present doldrums.

      To some analysts, this is what lies at the core of the current tension — actions by a small group of unhappy camp-dwellers, fed up with the cronyism and corruption of the leadership. The Polisario Front and Algeria had no option but to follow behind this tiny minority as neither has a better alternative other than engaging in negotiations. The status quo has many benefits regionally and internationally. First of all, Algeria, which is in a serious domestic crisis with its own people and competing leadership cadres, sees this as a way to help relieve some of the dissonance at home. However, this does not seem to be working as there have been no public expressions of support for the Polisario’s announced withdrawal from the ceasefire.

      Similarly, the Polisario elite, who have refined their autocratic leadership and kleptomania for more than four decades, cannot allow the dissidents to draw them into a war that they are neither prepared for nor capable of carrying out effectively. Morocco benefits from the perception that the Polisario — and, by inference, Algeria — are more interested in fomenting instability in a critical region where terrorism in the neighboring Sahel is of concern rather than in engaging in formal negotiations to resolve the conflict.

      The UN, the United States and France, the major international players at the scene, would be happy with the former status quo as it relieved parties of using diplomatic leverage to move the combatants to proactively engage in peaceful steps for conflict resolution. It has become increasingly obvious that the modus operandi here goes along the lines that if no crisis exists, there is no point in starting something that no one wants to intervene in. In his statement, UN Secretary-General António Guterres voiced “grave concerns” surrounding the most recent developments in Western Sahara, warning against “violations of the ceasefire and the serious consequences of any changes to the status quo.”

      No Simple Way

      There is no simple way forward or return to the status quo without Algeria facing up to its role in sponsoring the Polisario Front for over 40 years and enabling some kind of diplomatic movement. In the words of the Organization for World Peace, “As the Polisario’s main backer, Algeria has a responsibility to prevent this situation from escalating or being manipulated by other organizations. Working with Morocco, both sides should encourage a peaceful de-escalation of the current violent rhetoric in order to prevent the conflict from reigniting.”

      Similarly, Morocco should take no action beyond its setting up a military outpost in the buffer zone until the Polisario Front returns to the ceasefire agreement. It should also work with the UN to restart formal and comprehensive negotiations on its autonomy proposal. Algeria cannot, for its own domestic reasons, escalate military threats that destabilize the area. It should work to calm the situation so that it can more effectively mediate its own Hirak movement going on now for more than a year.

      Finally, the incoming Biden administration in Washington — quite familiar with the Western Sahara as it is comprised of many members of the Obama administration, which was a strong supporter of delaying any proactive US push to resolve the conflict — should understand the larger potential disaster if regional destabilization accelerates, terrorist cells expand from ungoverned spaces, and other players agitate for their own interests in the area. This is not the best scenario for starting out the new US administration’s North Africa strategy.

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      Will Morocco Normalize Relations With Israel?

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      Commentators from major news outlets have commented that Morocco will be among the first Arab countries to normalize relations with Israel and exchange ambassadors following the Israeli–Emirati agreement. As the former US ambassador to Morocco and having closely followed the policies and opinions of King Mohammed VI for the past 20 years, I am not so sure that Morocco will be next.

      There are two overriding issues to consider in this regard. King Mohammed VI has consistently and strongly supported a peace agreement between Israel and Palestine, and he may see a Moroccan agreement with Israel as damaging to such prospects. Also, the timing to act now, during an election year in the US, may be a deterrent for Morocco to move too hastily.

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      The king has made his viewpoint clear over the past two decades with regard to Palestine and used his position as chairman of the Al-Quds (Jerusalem) Committee of the Organization of Islamic Conference (OIC) to assert strong support for a Palestinian state. At the same time, he has expressed his support for warm and full relations with Israel and seems perfectly situated as the next peace partner with Israel, given the fact that Moroccans are the second largest ethnic group in Israel, after Russians.

      Such a move, however, will have to be balanced with the statements that King Mohammed VI has constantly committed to over the years in his support for Palestine. In November 2019, he warned that “the continuing Israeli practices in violation of international legitimacy and international humanitarian law in the occupied Palestinian territories fuel tension, violence, instability and sow the seeds of religious conflict and hatred,” The North Africa Post reports. Following the king’s comments, Moroccan diplomats reaffirmed Morocco’s steadfast and unwavering support for Palestine.

      In February of this year, a message from King Mohammed VI conveyed to the Palestinian leader, Mahmoud Abbas, by Moroccan Foreign Minister Nasser Bourita reaffirmed Morocco’s unwavering support to the Palestinian cause. The number of times the king has reiterated his support for Palestine during the past is too numerous to repeat here.

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      Since the days of King Hassan II — the reigning monarch’s father — Moroccans have been encouraged to give to the poor in Palestine and have inspired a Moroccan population deeply supportive of a Palestinian homeland. King Mohammed VI would have a hefty price to pay if he went back on his word and didn’t first extract meaningful concessions for the Palestinians before signing any agreement with Israel.

      Remember also that the king opposed Gulf countries’ pressure on Morocco to support their sanction of Qatar in 2017 and he suspended Morocco’s participation in the war in Yemen in 2019. Such stands took courage for a country so dependent on economic development from the Gulf. Analysts who predict that Morocco will be next to sign a peace accord with Israel may not understand the strength of King Mohammed’s moral compass.

      Partisanship

      The other consideration of Morocco to normalize relations with Israel is timing. There’s a joke in Morocco that says, “I’m not sure who the next US president will be, but I do know who the king’s best friend will be.” Morocco has always avoided partisan gestures during US election cycles dating back to the time when, in 1777, Sultan Mohammed III recognized the independence of the US. Morocco was the first country in the world to officially recognize the United States and was among the first countries to sign a treaty of peace and friendship between the two nations. Every monarch since has been careful to avoid the appearance of taking sides in US politics.

      Morocco understands that if it is not early to the peace party, the country will have less to gain from it. The king will have to balance that notion with his moral authority and long-held beliefs — and those of his citizens — to remain steadfast in support of a Palestinian state, as well as considering US election year timing.

      There are obvious reasons for Morocco to move quickly toward normalization given cultural and family ties with Israelis of Moroccan descent. For these and other reasons, many Morocco watchers believe that when the right concessions are made that include a serious negotiation between the parties that include a contiguous state of Palestine, based upon the 1967 borders, with Jerusalem as a capital of both Israel and Palestine — and when Morocco is not playing into election-year politics — the king will move swiftly to normalize relations.

      Many Moroccan and Israeli citizens already know through their cultural and family ties that when that day arrives, their new relationship will be a peaceful, warm and genuine one.

      *[This article was originally published by Morocco on the Move.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      Morocco Looks to a Future After COVID-19

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      Many countries are facing declining growth rates due to the coronavirus pandemic, and Morocco is no exception. Given lockdowns and flight restrictions implemented worldwide from March, the tourism and hospitality sectors — usually the third-largest component of GDP — have suffered enormous losses and almost collapsed during the first 90 days of the global response to COVID-19, the disease caused by the novel coronavirus.

      In the latest World Bank report, “Morocco Economic Monitor,” it is projected that the Moroccan economy will contract in the next year, which would be the first severe recession since 1995. “Over the past two decades, Morocco has achieved significant social and economic progress due to the large public investments, structural reforms, along with measures to ensure macroeconomic stability,” the report notes.

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      The World Bank’s forecast indicates that Morocco’s real GDP is projected to contract by 4% in 2020, which is a sharp swing from the 3.6% positive growth rate that was predicted before the pandemic. Consequently, the bank expects Morocco’s fiscal deficit to widen to 7.5% of GDP in 2020, around 4% more than expected before the COVID-19 outbreak.

      Meanwhile, the country’s public and external debt is to set rise but still remains manageable. In assessing the government’s well-regarded response to the crisis, the World Bank puts an emphasis on moving from mitigation to adaptation, which is key “to ensuring a resilient, inclusive, and growing Moroccan economy.” It also points out that despite this year’s setbacks, Morocco can still “build a more sustainable and resilient economy by developing a strategy to adapt,” similar to what it has done to address issues of climate change and environmental challenges.

      A Strong Position

      When viewed in comparison to the rest of North Africa and the Middle East, let alone its sub-Saharan neighbors, Morocco is in a strong position to capitalize on global changes as companies rethink supply chains and vulnerabilities in logistics. Globally, and especially in Europe and the US, corporations are rethinking their reliance on China as a key supplier, and Morocco is poised to benefit, as I mentioned in a previous article on Fair Observer.

      The European Union, in particular, is already calling for “strategic autonomy” in sectors such as pharmaceuticals by focusing on more reliable and diversified supply chains. The new strategy is expected to entail tighter rules on human rights and environmental protection on imported goods, a move that experts say would boost local manufacturers, and Morocco is near the top of the list.

      Guillaume Van Der Loo, a researcher at the Center for European Policy Studies in Brussels, spoke to DW about the opportunities for Morocco. “If you look at Morocco, there are more favorable conditions there for specific areas in particular, in relation to renewable energy and environmental related sectors, [and] Morocco is quite a frontrunner and the EU tries to chip in on that,” he said. “The idea that the European Commission has already expressed about diversifying supply chains could be beneficial for Morocco and that could accelerate negotiations on the new trade agreement.”

      Morocco is one of few countries that have free-trade deals with both the United States and the European Union, and it is seen as an entry point for Western investment in Africa. As Alessandro Nicita, an economist at UN Conference on Trade and Development (UNCTAD), says, “Morocco is very well positioned because of its proximity [and] because it’s part of [the] EU’s regional trade agreements, its rules of origin are kind of integrated with those of the EU.”

      The Challenges

      Yet Morocco faces challenges in grabbing these economic opportunities, including restrictive capital controls and a paucity of high-skilled workers. Having been overhauled in the 1980s, the country’s education system “has failed to raise skill levels among the country’s youth, making them especially unsuitable for middle management roles,” DW reports.

      Another concern has been raised by the National Competitive Council in Morocco, which said that if the country was to move forward efficiently, it had to end monopolies in key sectors. These include fuel distribution, telecoms, banks, insurance companies and cement producers, which have created an oligopolistic situation in the country.

      The Oxford Business Group (OBG) has also released a study focusing on the success that Morocco is achieving in terms of combating the effects of COVID-19. “Morocco boasts a robust and diversified industrial base, developed through years of heavy investment, which enabled the country to take actions to control the pandemic and mitigate supply chain disruptions,” the OBG notes. The investment-friendly climate and robust infrastructure, with Africa’s fastest train network, will enhance the country’s attraction for manufacturers looking to relocate Asia-based production, as supply-chain disruptions due to distant and vulnerable suppliers have resulted in many companies pursuing a strategy of near-shoring, the report adds.

      So, Morocco’s future in manufacturing, agro-business and technology may well determine the country’s capacity to recover its positive GDP growth rate as it overcomes the COVID-19-induced recession. To do so, it will need a robust marketing campaign as a country for reliable and relatively inexpensive supply chains and a skilled workforce.

      *[An earlier version of this article was published by Morocco on the Move.]

      The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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      Morocco Sets Out a Post-Coronavirus Recovery Strategy

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      Morocco is committed to finding opportunities to restructure and redirect its economy to be better prepared for other potential calamities, such as the coronavirus pandemic. The economy is already facing a downturn due to drought, which may result in as much as a 42% decline in cereal production for 2019-20. However, given advances in the agricultural sector […] More