Morocco and Egypt Reassess Trade Agreements Amid Export Concerns

Morocco and Egypt are evaluating their trade agreements due to Egypt’s restrictions on Moroccan car imports. Government spokesperson Mustapha Baitas confirmed the review amid a strengthening of relations. In response, Morocco has restricted Egyptian goods. The trade imbalance between the two countries has deepened, prompting discussions on obstacles to trade.

Morocco and Egypt are currently reassessing their free trade agreements following Egypt’s recent restrictions on the import of Moroccan cars. Mustapha Baitas, a government spokesperson, confirmed that while relations between the nations remain strong, trade officials are engaged in a review of their trade deal. In retaliation to Egypt’s actions, Morocco has limited the entry of Egyptian goods, although official confirmation of these measures has not been provided.

As the largest automotive exporter in Africa, Morocco boasts significant exports valued at $15.7 billion, including vehicles produced by Renault in Tangier and Casablanca, as well as Stellantis vehicles manufactured in Kenitra. The trade agreement, known as the Agadir Free Trade Agreement, also includes Jordan and Tunisia as participants, emphasizing the broader context of regional trade relations.

A Moroccan official speaking to Al Ahdath newspaper acknowledged the existing trade deficit with Egypt, which has expanded from $47.5 million in 2023 to $80.4 million in 2024. “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,” noted the official.

The restrictions imposed by Egypt on Moroccan automobiles are reportedly based on allegations that these vehicles do not fulfill certain unspecified criteria. Nonetheless, these same vehicles have demonstrated their compliance with Europe’s stringent automotive regulations, where they are popular best-sellers.

In conclusion, the ongoing review of trade agreements between Morocco and Egypt stems from tensions related to restrictions on Moroccan car exports. While both nations have affirmed their strong bilateral relations, the widening trade deficit highlights ongoing challenges. As the situation unfolds, it remains critical for both countries to navigate these challenges collaboratively to sustain regional trade dynamics.

Original Source: northafricapost.com