Australian-Morocco relations are on a “fantastic” trajectory, with bilateral ties gaining significant traction in recent years, Michael Cutts, Australian Ambassador to Morocco, told Barlaman Today on Thursday.
As his mandate in Morocco comes to an end, Michael Cutts shared his vision for the future of Morocco-Australia relations, highlighting the mutual interests and shared ambitions of both countries.
“In three years’ time, we’ll be celebrating 50 years of our diplomatic relations, and that’ll be an exciting time to really focus on that,” Cutts said.
Reflecting on his tenure, he noted that the cooperation between the two countries has expanded across various dimensions, beyond business to cultural exchanges.
Economic and Trade Growth
Morocco and Australia have been strengthening their economic ties, with notable advancements in trade and investment. The bilateral trade has seen a remarkable increase, with Cutts pointing out: “I’ve been pleased to see over the last few years, the increasing trade. It’s gone from 60 million to 100 million to 300 million [Australian dollars].”
Morocco’s exports to Australia have risen at an annualized rate of 35.9% between 2017 and 2022, climbing from USD 10.4 million to USD 48.2 million. Meanwhile, Australian exports to Morocco amounted to USD 43.6 million in 2022.
Establishing the Australian-Moroccan Business Network (AMBN) marks a significant milestone in this trajectory. Inaugurated on July 31 in Adelaide, South Australia, AMBN is the first organization dedicated to promoting bilateral trade between Australia and Morocco.
The initiative aims to bridge gaps, foster business collaborations, and streamline trade processes, thereby boosting economic engagement between the two countries.
Strategic Sectors: Energy, Agriculture, and Mining
Australian businesses have made notable inroads into Morocco’s energy, agriculture, and mining sectors. The energy sector, in particular, has seen fruitful collaborations.
In 2019, Australian engineering services company Worley entered a joint venture with Morocco’s phosphate giant OCP Group to develop a green hydrogen production facility in Western Morocco.
“It’s fantastic to see Australia having such a prominent place in Morocco’s energy transition,” Cutts noted. The collaboration around green energy and hydrogen production reflects both countries’ commitment to sustainable development and innovation.
“The fact that we have these relationships now around green energy, around hydrogen production in water as well, I think it really bodes well for the future,” he added.
In agriculture, Australian technology is making a difference. Australian agricultural technology companies are introducing advanced solutions like drone technology for precise fertilization and irrigation. The innovations contribute to more efficient farming practices, addressing both cost and environmental concerns.
Challenges and Opportunities
Despite the positive trajectory, Australian businesses face challenges when investing in Morocco. Cutts highlighted that tariff barriers are a significant obstacle.
“The main challenge is the fact that Morocco has free trade agreements with the US, with Europe, and the UK. And so that means practically on commodity trade, Australian exports will be facing a 40% tariff compared to a 2-3.5% tariff with the US,” he explained.
The high tariffs on Australian exports, such as farber beans, compared to tariff-free commodities from other countries, can impact competitiveness. However, Cutts remains optimistic about the future, noting that the Australian-Moroccan Business Network and other trade promotion efforts are working to mitigate these barriers and enhance trade opportunities.
Cultural and Educational Exchanges
Beyond the economic and trade aspects, Cutts noted the importance of cultural and educational exchanges in strengthening bilateral ties.
The Australian Embassy has actively engaged in various cultural initiatives, including leadership events and joint presentations with international organizations. Their efforts are aimed at building personal connections and fostering a deeper understanding between the two nations.
Looking ahead, Cutts is optimistic about the future of Australia-Morocco relations. He highlighted the shared ambitions in green energy and water management as areas with significant potential for collaboration. “Australia and Morocco share many challenges when it comes to water usage. There’s an Australian company called “Rubicon” that’s developed innovative solutions for irrigation, and they’ve been working closely with Moroccan authorities,” he explained.
He also hopes for increased Moroccan investment in Australia, pointing out recent developments such as Moroccan finance solutions companies expanding into the Australian market. The potential for more collaborative ventures, especially in sectors like agribusiness and tourism, is promising.