The White House has classified Morocco as part of a commercial network that the United States considers to pose high risks in the realm of illegal transshipment. According to this classification, Morocco is placed in the third tier of a network comprising approximately 40 countries, alongside Kenya and several others. This categorization highlights the potential vulnerabilities associated with Moroccan trade practices, particularly in relation to goods linked to China.
A report released by the White House on August 13 outlines that the third tier includes smaller economies that exhibit lower volumes of illegal transshipment activities but possess factors that could make them targets for operations related to Chinese goods. These factors include low labor costs, free trade zones, access to ports, customs warehousing, and specialized aggregation capabilities. Specifically, Morocco and Kenya are identified as 'peripheral African hubs,' described as emerging stations for ports and free zones in connection with certain flows linked to China.
The report elaborates on the nature of illegal transshipment, which involves routing goods associated with China through a third country before they reach the United States. This process may include limited operations such as aggregation, finishing, relabeling, or document alteration, which can create the appearance of a new origin for the goods and allow for the evasion of certain tariffs. The White House ties the expansion of these practices to tariffs imposed by the United States on Chinese products, noting that some goods that previously moved directly from China to the American market have begun to transit through countries with lower tariffs.
Billions at Stake
The report estimates the potential annual flows associated with illegal transshipment to range between $40 billion and $303 billion, based on five different estimates prepared by governmental entities and private companies. The White House emphasizes that these figures do not represent a singular confirmed estimate, and the variation in data sources and methodologies makes it impossible to aggregate or directly compare them. It also clarifies that the highest estimate of $303 billion represents a broad limit of potential exposure and does not imply that the entire amount consists of verified illegal operations.
AI Border Investigator
In response to these practices, the report discusses the development of a system based on artificial intelligence, dubbed the 'Border Investigator' by U.S. authorities. This system aims to analyze trade and shipping data as well as container routes, comparing information regarding the origins of products with the actual capabilities of the manufacturing facilities. According to the document, this system will assist U.S. authorities in identifying unusual shipping patterns and pinpointing cases that require further scrutiny, distinguishing between genuine manufacturing in a third country and mere goods redirection or origin alteration.
Morocco's inclusion in this classification reflects Washington's intensified scrutiny over trade routes associated with China, particularly as the U.S. administration seeks to limit the use of third countries to evade tariffs imposed on Chinese products.
As reported by tanja7.com.
