Morocco and Egypt Review Trade Relations Amid Export Restrictions

Morocco and Egypt are evaluating their free trade agreements after Egypt restricted Moroccan car exports, prompting Morocco to block Egyptian goods in return. While the relationship remains strong, trade officials are engaged in discussions to resolve these issues. Morocco, Africa’s largest car exporter, has seen its trade deficit with Egypt grow significantly, necessitating a reassessment of trade dynamics.

Morocco and Egypt are currently reassessing their free trade agreements following Egypt’s imposition of restrictions on Moroccan car exports. Mustapha Baitas, a government spokesperson, confirmed that while the bilateral relations remain strong, trade officials are in discussions regarding the trade framework.

In response to Egypt’s actions, Morocco has reportedly blocked the import of Egyptian goods. This countermeasure comes after Moroccan authorities deemed Egypt’s restrictions on their automotive exports unjustified, although official confirmation of this action is pending.

Morocco stands as Africa’s leading automobile exporter, with exports valued at $15.7 billion, predominantly from Renault factories in Tangier and Casablanca, alongside Stellantis vehicles produced in Kenitra. Additionally, Jordan and Tunisia are included in the Agadir Free Trade Agreement between Morocco and Egypt.

A Moroccan official disclosed to Al Ahdath newspaper, “It is true that Morocco has a trade deficit with Egypt and that there are obstacles to our exports… But we are currently managing the situation within the framework of the distinguished relations that unite the two countries.” Despite being blocked from entering Egypt, the cars in question are noted for their success in European markets, which encounter stricter regulatory standards.

The trade deficit that Morocco experiences with Egypt has noticeably increased, rising from $47.5 million in 2023 to $80.4 million in 2024. This growing imbalance highlights the need for both nations to address the challenges within their trade relationship.

The review of the trade agreement between Morocco and Egypt underscores the importance of navigating trade relations amid imposed restrictions and evolving market conditions. While both nations maintain a commitment to strong bilateral ties, the recent actions concerning automotive exports and trade deficits necessitate reevaluation and strategic adjustments to foster mutual economic benefits.

Original Source: northafricapost.com