Tomato trade dispute heats up between Morocco and Spain

MOROCCO – Tensions between Morocco and Spain over tomato exports have escalated, as Spanish farmers accuse Morocco of surpassing duty-free import limits and causing significant financial strain on local producers.

The Coordination of Spanish Farmers’ and Breeders’ Organisations (COAG) recently announced plans to pursue legal action against Moroccan tomato importers for alleged “tax fraud.”

According to COAG representative Andrés Góngora, Moroccan exporters have exceeded the annual duty-free import quota of 285,000 tonnes, as stipulated by the EU-Morocco trade agreement covering the years 2019 to 2024.

“Based on our calculations, importers of Moroccan tomatoes should have paid €71.7 million in import duties over the past five years for exceeding the agreed limits,” Góngora stated.

This legal move, if realized, could exacerbate trade friction between Morocco and EU countries, where protests against Moroccan imports have already intensified.

Tomatoes remain Morocco’s most lucrative horticultural export, outranking red fruits and citrus in revenue. In the fiscal year ending September 2024, Morocco shipped 528,773 tonnes of tomatoes to the EU, representing a slight 2% decrease from the previous year, according to Eurostat.

France emerged as the top importer within the EU, receiving 427,000 tonnes of Moroccan tomatoes over the same period.

However, the rising dominance of Moroccan tomatoes in EU markets has triggered complaints from Spanish, French, Portuguese, and Italian producers, who argue that the imports undercut local produce prices.

The dispute is further complicated by Morocco’s ability to command higher prices for its exports. In the first half of 2024, Morocco increased the cost of fruit exports to Spain by 30% compared to the same period in 2023, despite delivering 23.8 million kilograms less produce.

Spain imported 125.5 million kilograms of Moroccan fruit for €434.1 million (USD 451.464 million) in the first six months of 2024, with the price per kilogram rising from €2.7 (USD 2.8) to €3.46 (USD 3.6).

While this increase brought an additional €28.5 million (USD 29.6 million) to Morocco, it fueled dissatisfaction among Spanish farmers, who struggle to compete.

Óscar Moret, head of fruit at COAG in Aragón, described the situation as dire. “We calculate that nectarines or paraguayas cannot be sold below 45 cents because we are already close to the cost price. Well, we have seen those prices, in addition to seeing the same fruit at 57 cents,” Moret said.

He warned that persistent financial losses could force small family-owned farms out of business, leaving the industry vulnerable to corporate takeovers.

Morocco’s agricultural exports to Spain accounted for 24% of Spain’s total fresh produce imports between January and July 2024, valued at USD 755 million.

The Spanish Federation of Associations and Producers and Exporters of Fruits, Vegetables, Flowers, and Live Plants (FEPEX) reported a 10% increase in Moroccan exports compared to 2023, solidifying Morocco as Spain’s top supplier of fresh produce.

A market analyst highlighted the broader implications of Morocco’s agricultural strength: “Morocco’s rise in this market speaks volumes about the strength of its agriculture sector and its growing role in feeding Europe.”

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