Disputes - international:
claims and administers Western Sahara whose sovereignty remains unresolved; Morocco protests Spain's control over the coastal enclaves of Ceuta, Melilla, and Penon de Velez de la Gomera, the islands of Penon de Alhucemas and Islas Chafarinas, and surrounding waters; both countries claim Isla Perejil (Leila Island); discussions have not progressed on a comprehensive maritime delimitation, setting limits on resource exploration and refugee interdiction, since Morocco's 2002 rejection of Spain's unilateral designation of a median line from the Canary Islands; Morocco serves as one of the primary launching areas of illegal migration into Spain from North Africa; Algeria's border with Morocco remains an irritant to bilateral relations, each nation accusing the other of harboring militants and arms smuggling; the National Liberation Front's assertions of a claim to Chirac Pastures in southeastern Morocco is a dormant dispute

Illicit drugs:
one of the world's largest producers of illicit hashish; shipments of hashish mostly directed to Western Europe; transit point for cocaine from South America destined for Western Europe; significant consumer of cannabis