Morocco and Egypt are reviewing their trade agreements due to Egyptian restrictions on Moroccan car exports. Morocco has responded by blocking Egyptian goods. The trade deficit between the two countries increased significantly from 2023 to 2024. Despite the challenges, both nations aim to manage their relations positively.
Morocco and Egypt are presently reassessing their trade agreements following Egypt’s implementation of restrictions on Moroccan automobile exports. Mustapha Baitas, a government spokesman, confirmed that the two nations maintain positive relations while trade officials are evaluating the trade pact. In retaliation, Morocco has restricted the import of Egyptian goods due to these actions, although the Moroccan authorities have not officially acknowledged this development.
Morocco holds the position of Africa’s largest automotive exporter, with exports valued at $15.7 billion, primarily from Renault’s facilities in Tangier and Casablanca, as well as Stellantis vehicles manufactured in Kenitra. Both Jordan and Tunisia are also participants in the Agadir Free Trade agreement with Egypt, which includes Morocco.
A Moroccan official highlighted the existing trade imbalance, 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.” Despite the blockage of Moroccan vehicles from the Egyptian market, these models are recognized as bestsellers within Europe, where regulatory standards are more stringent.
The trade deficit between Morocco and Egypt has significantly increased, growing from $47.5 million in 2023 to $80.4 million in 2024. It underscores the challenges faced in their trading relationship and the urgency of addressing these disparities effectively.
The reassessment of Morocco and Egypt’s trade agreements reflects ongoing tensions, particularly regarding the restrictions imposed on Moroccan vehicle exports. While both nations emphasize their strong relations, the increased trade deficit signals the need for a resolution to facilitate smoother commerce. As both countries navigate these obstacles, the future of their trade relationship remains pivotal for the regional economy.
Original Source: northafricapost.com
