Morocco and Egypt Review Trade Agreement Amid Rising Tensions
Morocco and Egypt are reviewing their trade agreements after Egypt restricted Moroccan car exports. In retaliation, Morocco is blocking Egyptian goods. Despite strong diplomatic relations, Morocco faces a growing trade deficit with Egypt, rising from $47.5 million in 2023 to $80.4 million in 2024. Moroccan vehicles, although successful in Europe, are being denied entry into Egypt due to regulatory claims.
Morocco and Egypt are currently reassessing their free trade agreements following the imposition of restrictions by Egyptian authorities on Moroccan car exports. Government spokesman Mustapha Baitas confirmed the review of their trade relations, stating that while diplomatic relations remain robust, trade officials are actively addressing the situation. In retaliation, Morocco has reportedly blocked the entry of Egyptian goods, although this information remains unverified by authorities.
As Africa’s leading automotive exporter, Morocco boasts an impressive export value of $15.7 billion, which includes vehicles manufactured by Renault in Tangier and Casablanca, as well as Stellantis models from Kenitra. Jordan and Tunisia are also participants in Morocco’s trade arrangement with Egypt, known as the Agadir Free Trade Agreement. A Moroccan representative mentioned to Al Ahdath newspaper the trade deficit Morocco experiences with Egypt, acknowledging that despite existing obstacles, efforts are being made to manage the circumstances positively within the context of strong bilateral ties.
Moroccan vehicles were barred from the Egyptian market based on claims that they did not meet specific regulations. However, these vehicles have achieved considerable success in the European marketplace, which is known for implementing stricter automotive standards. Notably, Morocco’s trade deficit with Egypt has seen a significant increase from $47.5 million in 2023 to $80.4 million in 2024, highlighting the growing economic imbalance between the two nations.
The review of the trade agreement between Morocco and Egypt underscores the complexities of their commercial relationship, particularly in light of recent trade restrictions. While both nations maintain strong diplomatic ties, trade deficits and the imposition of barriers indicate a need for effective dialogue and negotiation. As Morocco continues to excel in automotive exports, it will be essential for both countries to work collaboratively to resolve these issues and enhance their economic partnership.
Original Source: northafricapost.com
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