Morocco and Egypt Review Trade Agreement Amid Export Tensions

Morocco and Egypt are reviewing their free trade agreement due to imposed restrictions on Moroccan car exports by Egypt. While Morocco retaliated with restrictions on Egyptian goods, the two countries maintain a positive relationship. Concerns over a widening trade deficit have surfaced, emphasizing the need for collaboration to resolve these trade tensions.

Morocco and Egypt are currently reassessing their free trade agreement following the imposition of restrictions by Egyptian authorities on Moroccan car exports. Government spokesman Mustapha Baitas confirmed the review, asserting that relations between the countries remain positive. However, news reports indicate that Morocco has initiated retaliatory measures by restricting the entry of Egyptian goods into its market due to Egypt’s recent actions against Moroccan automotive exports.

As the largest automotive exporter in Africa, Morocco reported $15.7 billion in auto exports, which include vehicles produced by Renault in Tangier and Casablanca, as well as Stellantis automobiles manufactured in Kenitra. Additionally, Jordan and Tunisia are also involved in the Agadir Free Trade Agreement, which governs trade relations with Egypt.

A Moroccan official commented on the trade dynamics, stating, “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.” Notably, Moroccan vehicles facing trade barriers in Egypt have successfully entered European markets, which adhere to stricter standards.

The trade imbalance is notable, as Morocco’s deficit with Egypt escalated from $47.5 million in 2023 to $80.4 million in 2024. The ongoing review of the trade agreement highlights the complexities of their economic relationship, necessitating collaboration for resolution while safeguarding national interests.

In summary, Morocco and Egypt are reevaluating their trade agreements following the imposition of export restrictions. Despite the diplomatic ties that bind them, the rising trade deficit and obstacles to Moroccan car exports have led to increased tensions. Continued dialogue and collaboration will be essential for both nations to resolve these issues amicably.

Original Source: northafricapost.com