Finance

Morocco, Israel and the new geography of agricultural power

Water availability, international investment and EU rules on the origin of products: the normalisation of relations between Rabat and Tel Aviv is helping to reshape the economic balance in the Mediterranean. For Europe, the issue concerns the security of supply chains, industrial competition and trade sovereignty

by 24Ore NextMed

Aggiungi Il Sole 24 Ore
ai preferiti su Google
Raccolta di pomodori Imagoeconomica

5' min read

Translated by AI
Versione italiana

5' min read

Translated by AI
Versione italiana

The growing agricultural integration between Morocco and Israel presents Europe with a contradiction: whilst Brussels is tightening its rules on product origin and corporate accountability, a growing proportion of Mediterranean agricultural competitiveness depends on resources, technologies and contracts managed through companies based in different jurisdictions. The problem lies in the disconnect between the geographical origin of a crop and the economic control over its production.

The resumption of diplomatic relations between Morocco and Israel in December 2020 opened up new avenues for economic, technological and institutional cooperation. In January 2021, the two governments discussed the establishment of working groups dedicated, amongst other sectors, to investment, water and the environment. This was followed in June 2023 by ministerial-level discussions on water management, desalination and environmental innovation. The process has fostered an environment in which businesses and institutions can develop commercial relationships that go beyond the traditional buying and selling of agricultural products. One example is the agreement on the transfer of plant material published by the Israeli Agricultural Research Organisation on 15 November 2023 for the evaluation of three varieties of strawberries in Morocco, with the contract period running until November 2025. The document reveals the potential depth of the cooperation.

Loading...

A 62-billion business

The European figures highlight the industrial scale of the relationship. In 2025, the European Union exported goods worth 36.7 billion euros to Morocco and imported goods worth 25.5 billion, recording a surplus of approximately 11.2 billion. Of the goods purchased from the Moroccan market, 12.9 billion fell into the machinery and transport equipment category, whilst 3.7 billion related to agricultural products. Morocco is part of a Mediterranean production system in which manufacturing, agriculture, logistics and investment feed into one another.

However, the report reveals a marked imbalance. In 2025, 33.2 per cent of Morocco’s exports of goods were destined for the European Union, whilst Morocco accounted for around 1.2 per cent of the EU’s total foreign trade. The European market therefore exerts considerable influence on incentives for Moroccan production, whilst not directly governing the allocation of natural resources.

And it is precisely water that makes this balance so fragile. According to the World Bank, Morocco’s per capita renewable water availability fell from around 2,560 cubic metres per year in 1960 to 620 in 2020. In December 2024, 60 per cent of the country was still affected by drought, compared with 96 per cent the previous year; reservoir levels had risen to just 27.8 per cent.

In 2025, the Moroccan agriculture, forestry and fisheries sector lost 41,000 jobs, whilst the national underemployment rate reached 10.9 per cent. The World Bank regards water scarcity as a structural threat to growth and the resilience of rural communities. The expansion of commercially more profitable production can therefore go hand in hand with an increasingly unequal distribution of economic opportunities.

France stands up for its producers

France represents the most complex case in Europe. In 2025, bilateral trade with Morocco reached 15.1 billion euros, comprising 7.7 billion in French exports and 7.4 billion in imports. Paris also plays a central role in investment: according to the Directorate-General of the Treasury, France accounts for around 27 per cent of the stock of foreign direct investment in Morocco. The approximately 1,159 French subsidiaries employ a total of 152,000 people. France is keen to ensure the competitiveness of its own farmers, but is at the same time one of the main financial and industrial beneficiaries of Morocco’s development. Protecting domestic production and supporting the modernisation of the Moroccan economy are not compatible objectives.

In 2024, France recorded imports from Morocco of approximately 471,829 tonnes of fresh tomatoes, worth 919 million dollars. Some of these goods may subsequently be distributed to other European markets; the customs figures do not necessarily correspond to final consumption in France. Nevertheless, this represents a considerable commercial exposure, particularly for producers competing in the same seasonal segments.

France was also the place where a dispute began that went on to reshape European commercial law. On 4 October 2024, in the case Confédération paysanne, the Court of Justice of the European Union addressed the labelling of tomatoes and melons harvested in Western Sahara, distinguishing their territorial origin from that of Morocco. France needs continuity of investment, the protection of its supply chains and the correct application of European rules. Any solution that prioritises just one of these objectives inevitably shifts the costs onto the others.

Italian technology

For Italia, the picture is somewhat different, with agricultural competition coexisting with a significant industrial advantage. Up to November 2025, Italian exports to Morocco totalled approximately 2.707 billion euros, compared with imports of 1.617 billion, generating a trade surplus of around 1.09 billion. The composition of trade is even more significant. Italia exported machinery and equipment worth 452.2 million euros, compared with imports in the same category of around 6.6 million. During the same period, it imported processed food products worth 375.2 million euros, whilst exporting 155.5 million worth. In the food sector under consideration, the balance is therefore negative by approximately 219.7 million, whilst that for machinery remains strongly positive.

Loading...

More efficient Moroccan production may also increase competitive pressure on certain sectors of Italian Mediterranean agriculture.

It would be incorrect to equate the entire 452.2 million in machinery exports with agricultural technology: this category encompasses a wide range of industrial activities. The figure nevertheless demonstrates the strength of Italy’s manufacturing sector, upon which to build a less defensive and more selective economic policy.

In Brussels, the issue is also a legal one. The judgements of the Court of Justice of 4 October 2024 have necessitated a reassessment of the agreements concerning Western Sahara. In October 2025, the European Union and Morocco introduced a new trade framework applied on a provisional basis, followed by EU Delegated Regulation 2025/2652 on the indication of the region of harvest for the products concerned.

On 31 October 2025, the Security Council of the United Nations adopted Resolution 2797, identifying the Moroccan proposal for autonomy as the basis for negotiations and retaining the reference to a solution that guarantees the self-determination of the people of Western Sahara. The territorial issue has not been definitively resolved, whilst traders continue to require applicable rules and reliable documentation.

Developments in Israel

One question remains unanswered: the Israeli influence on Moroccan agriculture. What will be the implications and the economic links between natural resources, businesses and European markets? A proportion of Moroccan production could be controlled by Israeli companies. And how might relations between the EU and Israel develop?

Copyright reserved ©
Loading...

Brand connect

Loading...

Newsletter

Notizie e approfondimenti sugli avvenimenti politici, economici e finanziari.

Iscriviti