One of the most important highways in Morocco will be named after Donald J. Trump. It is not just any road: it crosses almost the entire Western Sahara, more than 1,000 km separating the cities of Tiznit and Dakhla. King Mohammed VI announced this week that he would rename the highway in gratitude to the President of the United States, who in 2020 recognized Moroccan sovereignty over this disputed autonomous region.
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The relationship between the two countries is historic. In 1777 Morocco was the first country to recognize the independence of the U.S. Much has changed since then but now the ties between Washington and Rabat are closer than ever. “Trump wants to counter China’s influence on the African continent by increasing its presence in Morocco,” says Rosa Cañadas, president of the Tanja foundation and doctor in Financial Techniques and Markets.
The country will rename a Western Sahara highway after Donald J. Trump
Beyond geopolitics, the economic interest of the United States in Morocco lies in the phosphate industry. The African country is one of the largest producers in the world and exports these fertilizers in large quantities. Although it is true that Rabat is not exempt from Washington’s tariffs – a general base of 12.5% – phosphates have been expressly exempted.
The relations go much further and are based on a free trade agreement from 2004 enacted by George W. Bush. Since then, the U.S. trade surplus in goods with Morocco has increased to 3.4 billion dollars in 2024, compared to 35 million in 2005, according to data from the Office of the United States Trade Representative. Phosphates are an important source of export value but so are automotive products. On the import side, notable purchases include fuels, aerospace industry materials, and defense.
With all this commercial activity, the United States was Morocco’s seventh largest export market (with 3.2% of the total) while it was the fourth largest in terms of imports, with 9% of the total. In both cases, Spain was the top trading partner.
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If trade enjoys a lot of dynamism between Washington and Rabat, direct investment from the United States in the Alawite kingdom still has much room for growth. According to official data from the Exchange Office for 2023, the government ranking is led by France, with 28% of the total, followed by the United Arab Emirates, with 19%, Spain (9%), the United Kingdom (6%), and Italy (5%).
For also historical reasons, France continues to have great influence. “After several years of distancing between the two countries, this year Paris and Rabat are working on a bilateral agreement that commits significant investments, as well as promoting the use of the French language, which has recently declined in favor of English,” notes Cañadas.
Despite growing American interest, France and Spain maintain a much larger investment presence. Paris remains the top foreign investor, with 28% of foreign capital shares at the end of 2023, according to the Exchange Office. Spain held the third position, with 9%. The most recent French data also place the stock of direct investment at 8.991 billion euros in 2024. The Spanish presence is smaller, although Morocco has consolidated as the main destination in Africa, with a stock of 2 billion in 2024.
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