by Loubna Flah
by Loubna Flah
Morocco World News
Casablanca- Oct 12, 2012
The Moroccan Economic and Social Council (ESC) revealed in its latest report that supporting the production and consumption of Moroccan made commodities is susceptible to reduce trade deficit which has shrunk considerably national foreign currency reserves.
In the report submitted to the king Mohammed VI, Mr. Chakib Benmoussa, president of the Economic and Social Council lays emphasis on the necessity to strike a balance between the reduction of customs duties and the protection of national interests as far as trade in concerned.
He pinpoints that public policies should be issued in consultation with major stakeholders both in the public and private sector adding that these policies should align with national interests in the first place.
The ESC report considers the trade deficit as a harbinger of the lack of competitiveness ascribed mainly to the inability of national companies to create a competitive environment prices and quality wise.
Benmoussa exhorts both decision makers and investors to lay the foundations of a solid and diverse economic production empowered by sophisticated technology and investment in research and innovation.
The report reveals that despite the reforms aiming at establishing a supportive investment climate, Morocco is still ranked in the 94th position in the World Bank Report for Business Enterprises, a study that surveys the performance of 183 countries in Business.
The Social and Economic Council report attributes the trade deficit mainly to the colossal cost of energy imports and the steady decrease in tourism revenues and remittances.
The report suggests a set of measures to bring down the deficit including the capitalization on national exports, diversification of trade agreements, more flexibility in administrative procedures in addition to the implementation of efficient policies to protect consumers.
The report draws attention on the repercussions of economic volatility on Morocco’s major trade partners. Indeed, the financial crisis and staggering unemployment in Europe pushed many countries to put forward more conservative policies and to reduce their import capacity.
The Economic and Social Council is a consultative institution founded in 2011 by a Royal Decree. It is entrusted with conducting studies on social and economic issues and submitting recommendations to both legislative houses, the House of Representatives and the House of Counselors.