Saturday, May 10, 2025

China Increases Manufacturing in Morocco to Take Advantage of Free Trade Agreements

 The New York Times published on 7 May 2025 an article titled "Why China Is Investing So Much Money in Moroccan Factories" by Patricia Cohen. 

China has been investing in a major way in the electric vehicle and battery production sector in Morocco.  The reason is simple.  Morocco has a free trade agreement with the EU, and this is a way to avoid high tariffs.  Morocco also has a free trade agreement with the United States, but the Trump administration has just placed a 10 percent tariff on goods from Morocco.  Nevertheless, this is a lower tariff than will likely be the case with most countries.