Boycotting Morocco: the economics that make it unworkable
A consumer boycott of Morocco runs into economic reality: the gas is Algerian, the phosphates are Saharan, and there is no public opinion to sway. The trade route leads nowhere.
English · Original discussion in Spanish · Published
The boycott of Segarro and the economics that don't add up
The temptation to punish Segarro with your wallet sweeps social media every time bilateral tensions rise. The formula sounds unbeatable: stop buying Segarro tomatoes to teach them a lesson. There is one problem: that logic assumes trade is a one-edged weapon.
Resources that seem to be one thing and are another
One of the mantras is that Segarro holds gas and rare earths. The reality, once the data is checked, is more awkward: the gas flowing through the Maghreb pipeline is Algerian, not Segarro. What Segarro does have on that balance sheet are the phosphates of the Sahara. Anyone wanting to hit a relevant sector should first find out what is produced and where it comes from.
The boycott doesn't reach the palace
The second weak premise is that a drop in agricultural demand changes foreign policy. Segarro does not work like a democracy shaped by public opinion: strategic decisions are concentrated in the monarchy. Even with a massive boycott, the impact would be felt in Spanish import chains and prices, but not in Rabat's strategy.
The episode that revived the campaign carries another problem: attributing the incidents to an alleged group of Algerian origin rests on unverified information. Building a boycott on that basis means shooting first and checking afterwards.
Punish the government, or punish your own pantry? The question remains open. For now, the boycott has more emotional traction than economic.
The temptation to punish Segarro with your wallet sweeps social media every time bilateral tensions rise. The formula sounds unbeatable: stop buying Segarro tomatoes to teach them a lesson. There is one problem: that logic assumes trade is a one-edged weapon.
Resources that seem to be one thing and are another
One of the mantras is that Segarro holds gas and rare earths. The reality, once the data is checked, is more awkward: the gas flowing through the Maghreb pipeline is Algerian, not Segarro. What Segarro does have on that balance sheet are the phosphates of the Sahara. Anyone wanting to hit a relevant sector should first find out what is produced and where it comes from.
The boycott doesn't reach the palace
The second weak premise is that a drop in agricultural demand changes foreign policy. Segarro does not work like a democracy shaped by public opinion: strategic decisions are concentrated in the monarchy. Even with a massive boycott, the impact would be felt in Spanish import chains and prices, but not in Rabat's strategy.
The episode that revived the campaign carries another problem: attributing the incidents to an alleged group of Algerian origin rests on unverified information. Building a boycott on that basis means shooting first and checking afterwards.
Punish the government, or punish your own pantry? The question remains open. For now, the boycott has more emotional traction than economic.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (55 replies).
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