Morocco and Egypt Reassess Trade Agreements Amid Export Disputes

Morocco and Egypt are evaluating their trade agreements in light of Egypt imposing restrictions on Moroccan car exports. Morocco retaliated by blocking Egyptian goods, leading to heightened tensions. The countries, despite these issues, acknowledge their strong diplomatic ties. Morocco’s trade deficit with Egypt has notably widened in recent times.

Morocco and Egypt are currently reassessing their free trade agreements following Egypt’s recent imposition of restrictions on Moroccan automotive exports. Spokesman Mustapha Baitas confirmed that while the bilateral relations remain strong, trade officials are actively reviewing the existing agreements due to these complications. In retaliation to Egypt’s measures, Morocco is reportedly blocking the import of Egyptian goods, although these reports have not been officially substantiated by authorities.
As Africa’s foremost automotive exporter, Morocco generates approximately $15.7 billion from car sales, including vehicles produced by Renault and Stellantis. The ongoing trade discussions also involve Jordan and Tunisia, as they are part of the Agadir Free Trade Agreement with Egypt. A Moroccan official acknowledged to Al Ahdath newspaper that although there exists a trade deficit with Egypt, efforts are being made to navigate the current challenges within the context of the established good relations.
The Egyptian authorities have cited that Moroccan cars do not meet specific criteria for import, despite these vehicles being successful sellers in European markets, which enforce even stricter regulations. Furthermore, Morocco’s trade deficit with Egypt has escalated from $47.5 million in 2023 to $80.4 million in 2024, underscoring the economic challenges facing both nations.

In summary, Morocco and Egypt are reviewing their trade agreements due to Egypt’s restrictions on Moroccan car exports. This development has triggered reciprocal actions, affecting trade relations. Despite the challenges, both nations intend to manage their economic ties based on their historically positive interactions. The growth of the trade deficit between the two countries further emphasizes the need for a constructive resolution to these trade disputes.

Original Source: northafricapost.com