European Industrial Policy: A Shifting Landscape for the Maghreb Automotive Sector

A proposed European regulation, the Industrial Accelerator Act, has sparked concerns in Morocco regarding the future of foreign investment. Moroccan Industry Minister Ryad Mezzour warned that the EU's drive to bolster its own manufacturing capabilities could divert capital away from Moroccan facilities. While the proposal is not yet law, it aims to favor products manufactured within the Union, potentially threatening the competitive edge of Moroccan-based exporters. Meanwhile, Algeria remains in a different position. Its automotive industry, headlined by the Stellantis plant in Oran, is currently focused on fulfilling domestic demand. Because Algeria has not yet integrated into European supply chains to the same extent as Morocco, it faces fewer immediate risks from Brussels' new industrial strategy, although the country may encounter similar regulatory hurdles if it eventually pursues an export-oriented model for European markets.