This decision amounts to a direct attack on one of the pillars of Morocco’s industrial policy: targeted support for productive investment in strategic sectors, which lies at the heart of the new development model and the royal vision for economic emergence.

An unjustified decision, politically heavy and legally questionable

Behind the text’s apparent technicality lies a serious precedent. The Commission claims that Morocco granted “unfair” subsidies to two producers operating in industrial acceleration zones, through tax incentives and logistical support… in other words, exactly what all emerging countries do — with the encouragement of international institutions themselves.

The targeted mechanisms — VAT and customs duty exemptions in industrial zones, vocational training, investment aid via the Hassan II Fund or the FDII — are perfectly legitimate and essential for the territory’s attractiveness. They are the same instruments the European Union promotes through its regional development agencies, from Poland to Portugal.

Worse still, the EU dares to invoke WTO rules that it interprets as it sees fit, while trampling on the Morocco-EU Association Agreement, which guarantees the free movement of industrial products without new customs duties. The unilateral imposition of countervailing duties runs counter to both the spirit and the letter of that agreement, particularly Articles 8 and 9.

A disastrous signal for investors and international partners

Morocco has made the strategic choice to become an African industrial platform that is euro-compatible and focused on productive investment. By targeting companies established in Moroccan industrial zones, the European Commission is undermining the very foundations of the Kingdom’s attractiveness strategy.

How can new investors be drawn in if, tomorrow, a company based in Morocco sees its exports to Europe penalized simply for having received public support? And how much trust can be placed in our so-called strategic partnerships if, at the first sign of Moroccan industrial success, the European Union chooses sanctions over cooperation?

A double-standard policy: what Europe allows itself at home, it condemns elsewhere

It’s hard not to see this decision as an unbearable double standard. Europe finances industrial subsidies in its member states through regional funds. It massively subsidizes its strategic sectors through the Green Deal and post-COVID recovery plans. And it spends billions of euros in public aid to bring its industries back home.

But when Morocco, rightfully, supports the development of its industrial fabric to create jobs, strengthen its exports, and offer prospects to its youth, it is accused of distorting competition. This cynicism is not only shocking; it is dangerous for the stability of the Euro-Moroccan partnership.

A diplomatic and strategic response is necessary

In the face of such injustice, silence is no longer an option. Morocco must bring this case to the highest political, diplomatic, and multilateral levels. First, it must challenge the legality of this measure before the dispute resolution bodies provided for both in the Morocco-EU Association Agreement and within the World Trade Organization. Next, it should mobilize investors based in Morocco — particularly those from European countries — so they speak out and raise the alarm about the harmful effects this decision could have on their competitiveness and confidence in Morocco’s incentive framework.

At the same time, it is essential to strengthen the legal due diligence framework around investment support policies, to better prevent any external challenges. But above all, Morocco must reaffirm clearly and firmly that its right to development is inalienable, and that its strategic choices in industrial and economic matters must not be obstructed by unilateral and defensive interpretations of international trade law.

Morocco does not back down: it moves forward, while Europe drifts away from its own logic

This affair cannot be reduced to a simple trade dispute. It marks a major strategic shift: Morocco is no longer just a passive recipient of European exports, but an emerging industrial power, increasingly integrated into global value chains and capable of competing in demanding markets. This progress, instead of being celebrated as a shared success, has triggered a form of protectionist tension.

And this is not just any country. Morocco is a historic partner of the European Union, a stable and reliable neighbor, and a natural bridge between Europe and Africa. While instability spreads across many regions, the Kingdom remains a pillar of stability, openness, and cooperation. In this context, the EU would do well to strengthen this strategic relationship, deepen it, and support it, rather than hinder it through shortsighted technocratic decisions.

Revisiting such measures would not be a retreat, but an act of clarity and responsibility. For what must prevail between the two shores of the Mediterranean is a shared vision of development, co-investment, and economic co-sovereignty. Africa will not develop against Europe, and Europe will only maintain its place in the world by forming intelligent alliances with its southern neighbors.

It is therefore the voice of reason, mutual respect, and long-term vision that must be heard today. History will judge not only the choices of emerging nations, but also the ability of major economic powers to support — rather than obstruct — those who take their future into their own hands.

Written in French by Mohammed Abdi, edited in English by Eric Nielson