Indo-Moroccan cultural and trade ties, which date back to the 14th century, have been witnessing significant growth over the last few years. The Dollar Business caught up with H.E. Mohamed Maliki, Ambassador of the Kingdom of Morocco to India, to understand what makes these two nations ideal trading partners and how they can further strengthen bilateral engagements to boost trade flows.

Interview By Kanchi Batra | July 2017 Issue | The Dollar Business

TDB: Congratulations on taking charge as Ambassador of Morocco. What would be your priorities when it comes to India-Morocco trade ties?

H.E. Mohamed Maliki (MM): Thank you. It is a great honour to be appointed as the Ambassador of His Majesty the King of Morocco to the great and friendly country of the Republic of India. I hope to further strengthen the existing relationship between the two countries in all areas of mutual interest. My endeavour will be to build on what has already been achieved by working hand-in-hand with  Indian authorities to further enhance and consolidate relations between the two countries.

Also, the visit by His Majesty King Mohammed VI to India in October 2015 and the warm and lengthy meeting with Indian Prime Minister Modi on the sidelines of the third India-Africa Summit gave a real impetus to our relationship by setting up an implementation roadmap. Especially since both nations have agreed to elevate the relationship to the level of a strategic partnership, we envisage a rapid strengthening of bilateral ties. The role of both governments will be to bring this vision into concrete action for the benefit of people of our countries.

TDB: How important was Indian Vice President Hamid Ansari’s visit to Morocco for improving bilateral ties?

MM: Vice President Hamid Ansari’s visit to Morocco was indeed an important one because he met the head of the government and many senior Moroccan officials and discussed ways to strengthen the cooperation between India and Morocco. During the visit, two agreements were also signed – an MoU between the Moroccan Academy for Diplomatic Studies and the Indian Foreign Service Institute (FSI), and a pact for cultural exchange for the period between 2016 and 2019. In addition, the India-Morocco Chamber of Commerce was set up, which I am sure will help in bringing the business communities of both the countries even closer.

TDB: Morocco’s exports to India majorly comprises phosphates. Even India depends on imports from Morocco to fulfil its domestic demand for the product. Are there any plans to diversify the bilateral trade basket?

MM: Food security is one of the most crucial areas of cooperation between Morocco and India, and hence both countries are committed to reinforcing the existing strong relations in the phosphate and fertliser sector. Despite the importance of diversifying the economic and trade relationship between the two countries, this sector remains at the heart of our cooperation and has been the most attractive, in terms of joint investment. However, our collaboration goes beyond phosphates because India is the largest receiver of Moroccan investments in the whole of Asia. And, I must add that it is indeed joyful to witness that investments in other sectors such as solar energy, infrastructure and construction are now slowly taking place.

"Both Nations have agreed to Elevate the relationship to a Strategic Partnership"

TDB: Both Morocco and India boasts of a robust ecosystem for MSMEs. Are you engaging with Indian MSMEs in any way to help boost bilateral trade?

MM: Undoubtedly, MSMEs account for a majority of exports from both the countries. As far as Morocco is concerned, special incentives are being provided to MSMEs – such as access to easy financing options. Also, the Moroccan embassy in India is helping Indian MSMEs connect with their Moroccan counterparts and is facilitating visa issuance for them. MSMEs generate the highest number of jobs in both Morocco and India, and they need to be incentivised and encouraged by our governments so that they can become more competitive in the global market.

TDB: Morocco and India have signed several agreements and MoUs in the past. Are you satisfied with the current level of engagement between the two?

MM: As far as trading and legal framework between Morocco and India is concerned, more than 40 agreements have been signed covering different areas of interest till date. However, I must admit that the current agreements aren’t sufficient if you weigh them against the potential that both countries have. It is our view that the agreements should have, by now, resulted in more trade. Nonetheless, it is also important to appreciate the efforts and achievements of the past. Following up on the past efforts will result in better bilateral relationship.

TDB: Morocco has free trade agreements (FTAs) with 55 countries. Do you foresee an FTA with India as well?

MM: Currently, Morocco and India are not negotiating any free trade agreement (FTA). The reason we are not discussing one is that there are differences in opinion between the governments and the business communities – businesses always want to evaluate existing FTAs and protect their interests before embarking on new FTAs. But that being said, Morocco and India signed their first trade agreement in 1960, which was followed by an agreement to avoid double taxation. There have been several other commercial negotiations. There is a significant amount of trade, especially in the phosphates and fertilisers sectors. And, India being an important partner for Morocco, I am sure there will be a time when the two countries will consider an FTA. But for the time being, a preferential trade agreement (PTA) could be a very encouraging and positive step for both the countries.

TDB: What are your thoughts on the Indian government’s flagship ‘Make in India’ initiative? Do you think the programme has the capability to attract Moroccan investors?

MM: The programme reflects the farsightedness of the Indian leadership. And, indeed, Prime Minister Modi has correctly judged that the manufacturing sector could be a key tool for the socio-economic development of India.

I would want to emphasise that Morocco is amongst the few African developing countries that are investing in India. The OCP Group of Morocco – a world leader in phosphates and fertilisers – is investing in India through a 50-50 joint venture (JV) with Kribhco of India. The MoU was signed in October 2016 and the JV will set up a Rs.1,500 crore ($230 million) fertiliser unit in Andhra Pradesh. There are many other such Moroccan investments taking place in India, especially in the pharmaceuticals sector, under ‘Make in India’. And, because the Indian economy is growing rapidly, I am certain that India will continue to attract more Moroccan investments.

TDB: In the recent years, Morocco has emerged as one of the most attractive FDI destinations in Africa. What has been behind the rising popularity?

MM: The country offers several facilities – such as access to land, financing, training of employees, capital repatriation, well-developed infrastructure with world-class ports, integrated and seamless connectivity, etc. – to investors. It also has in place several strategic sector-based schemes that ensure strong and sustainable economic growth – mostly catering to agriculture, fisheries, mining, renewable energy, logistics, automobiles and services sectors. Morocco has adopted an innovative approach to public-private partnership, which encourages investors to contribute to the nation’s growth by enabling them with incentives and preferences. Foreign investors can also use Morocco as a base to manufacture and export to more than a billion consumers free of taxes by leveraging the country’s FTAs.

TDB: Many Indian firms have been operational in Morocco for long. What makes Morocco a lucrative investment destination for Indian companies?

MM: There are several factors that are worth mentioning. But, of them all, the stable and healthy macroeconomic environment of Morocco is the main attraction for investors – and that has been possible because of the political and social stability in Morocco. The country has been growing at a steady pace despite global uncertainty. This has been possible because of the numerous reforms the country had introduced in the 1990s, which includes liberalisation of the economy and some progressive amendments to the Constitution.

The geostrategic location of Morocco, at the crossroads of America, Europe, Africa and the Arab world, is yet another factor that entices a lot of Indian companies to set up base in Morocco. And this locational advantage is complemented by the several free trade agreements  that Morocco has with other countries across the globe. I would also like to emphasise that the incentives offered by Morocco to foreign investors are huge.

"Moroccan firms are increasingly investing in a variety of sectors in India"

TDB: Despite growing bilateral trade, there is no direct flight between India and Morocco. What are your thoughts?

MM: Morocco and India have an air services agreement since 2004. However, airlines set up direct flights whenever there are enough passengers to make the flight route cost-effective. So, it’s a business decision that airlines have to make. Both countries have a lot to offer in terms of tourism and business and I hope that with our bilateral relations growing stronger we will soon have direct air connectivity.

TDB: Do you think Morocco is a lucrative market for Bollywood films?

MM: Indeed, Morocco is one of the most lucrative markets in the African continent for the Indian film industry. Indian films are well received in Morocco and Indian film stars have a lot of fans in Morocco – in fact, there are cinema halls in Morocco that screen only Indian films.

Of late, many Bollywood stars are being invited to various prestigious International Film festivals in Morocco. Also, many Indian films are being shot in Morocco. One of the important tasks of the embassy is to bridge the gap between the film communities of the two countries for the benefit of the businesses and more importantly for enhancing cultural and people-to-people ties.