Morocco and Egypt Reassess Trade Agreements Amid Export Restrictions

Morocco and Egypt are reevaluating their trade agreements following restrictions on Moroccan car exports imposed by Egypt. Morocco responded by blocking Egyptian goods, and both nations’ authorities are examining the situation. Morocco’s trade deficit with Egypt has widened significantly, despite strong diplomatic relations. The Moroccan automotive sector remains robust, exporting vehicles that comply with stricter European standards.

Morocco and Egypt are currently reassessing their free trade agreements due to recent restrictions imposed by Egyptian authorities on Morocco’s car exports. Mustapha Baitas, the spokesman for the Moroccan government, affirmed that while relations between the two nations are strong, the trade arrangements are under review by officials from both sides.

In response to Egypt’s actions, Morocco has initiated measures to prevent Egyptian goods from entering its market, although these actions have not yet been officially confirmed by the authorities. Morocco, recognized as Africa’s leading automotive exporter, boasts an impressive $15.7 billion in car exports, primarily featuring vehicles produced by Renault and Stellantis in its factories.

The trade agreement under scrutiny, known as the Agadir Free Trade, includes Jordan and Tunisia as participants. A Moroccan official noted to Al Ahdath newspaper that despite Morocco’s ongoing trade deficit with Egypt, which increased from $47.5 million in 2023 to $80.4 million in 2024, they are addressing current trade challenges within the context of their close bilateral relations.

Egypt has justified the denial of entry for Moroccan cars by claiming they do not meet specific criteria. However, it is noteworthy that these vehicles are highly successful in European markets, where compliance with stricter regulations is required.

In summary, Morocco and Egypt’s trade relations are under reevaluation following Egypt’s restrictive measures on Moroccan car exports. Despite the trade imbalance, both nations are focusing on maintaining their amicable diplomatic ties while addressing the ongoing trade disputes. The situation reflects broader challenges in the context of international trade agreements involving multiple parties.

Original Source: northafricapost.com