Morocco and Egypt Reassess Trade Agreement Amid Export Restrictions

Morocco and Egypt are reviewing their trade agreement due to Egyptian restrictions on Moroccan car exports. Morocco has responded by blocking Egyptian goods, and despite the challenges, officials emphasize the importance of maintaining strong bilateral relations. The trade deficit between the two countries has notably increased, signaling ongoing complexities in their trade dynamics.

Morocco and Egypt are currently reassessing their trade agreements following recent restrictions imposed by Egyptian authorities on Moroccan car exports. Mustapha Baitas, a government spokesman, confirmed that despite the excellent bilateral relations, the trade agreement is under review by trade officials of both nations. In response to Egypt’s actions, Morocco has reportedly blocked the entry of certain Egyptian goods, although Egyptian authorities have yet to officially verify this report.

Morocco stands as Africa’s leading automotive exporter, with exports valued at $15.7 billion, featuring vehicles manufactured by Renault and Stellantis. Both Jordan and Tunisia are also involved in the Agadir Free Trade agreement alongside Morocco and Egypt. A Moroccan official acknowledged the existing trade deficit with Egypt, indicating difficulties in exports but reiterated that the relationship between the two nations remains positive despite the challenges.

The restrictions on Moroccan cars entering Egypt have been attributed to purported non-compliance with specific criteria, despite the fact that these vehicles are popular in Europe, which maintains more stringent regulations. Morocco’s trade deficit with Egypt has significantly increased, rising from $47.5 million in 2023 to $80.4 million in 2024, highlighting ongoing trade complexities between the two countries.

In summary, Morocco and Egypt are reevaluating their trade relations in light of recent trade barriers affecting Moroccan car exports. Despite the trade tensions, officials are striving to maintain strong diplomatic ties. The growing trade deficit underscores the challenges within their trade agreement, necessitating further dialogue to resolve these issues.

Original Source: northafricapost.com