Falling phosphate exports from the disputed territory of Western Sahara

Moroccan phosphate exports have fallen to an eight-year low from the disputed territory of Western Sahara with exports in 2019 almost half of that in the previous year.

In 2018, the North African country exported $165 million worth of phosphate from the Western Saharan port of Laayoune, falling to only US$90 million worth in 2019.

Phosphate from the disputed region, which was seized by Moroccan forces in 1975, accounts for 8% of Morocco’s total phosphate extraction capability. Phosphate rock is one of the country’s top exports, with Morocco holding the largest proven reserves of the resource in the world. Its main use is in the production of fertilisers for commercial agriculture, allowing farmers all over the world to dramatically increase the productivity of their land.

The large reduction in exports has been mainly attributed to declining demand from North America, where annual sales were previously in the region of 900,000 tonnes. This would have a monetary value of around US$80 million. Falling demand around the world could also be due to certain countries questioning the legality of the exports, with some countries not willing to recognise Morocco’s claim over parts of Western Sahara.

THINK LIKE AN ECONOMIST!

Q1. Why is phosphate one of Morocco’s top exports?

Q2. Explain one reason why Moroccan exports of phosphate may have fallen in 2019.

Q3. Assess the impact that the falling phosphate exports from the Western Sahara is likely to have on the Moroccan current account.

Click here for the source article

TheCuriousEconomist

Recent Posts

Trump Slaps 25 percent Tariffs on Steel and Aluminum

President Donald Trump has reignited his trade war strategy, imposing sweeping 25% tariffs on all…

2 weeks ago

Round 2: China Hits Back with Retaliatory Tariffs and Economic Countermeasures

In a swift and strategic response to new U.S. tariffs, China has imposed its own…

2 weeks ago

UK to streamline Infrastructure Development in Push for Economic Growth

In a bold move to accelerate economic growth, the UK government has unveiled plans to…

4 weeks ago

Why Does Trump Want Greenland? The Economics below the Ice

Greenland might not seem like a typical focus for the United States, yet it became…

1 month ago

Nigeria Joins BRICS: What Does it Mean for the Global Economy?

BRICS, the bloc of major developing economies, has welcomed Nigeria as its newest partner country.…

1 month ago

China’s Economy Surges with Q4 GDP Growth of 5.4%

THINK LIKE AN ECONOMIST! Click here for the source article

1 month ago