Cairo and Rabat– Trade relations between Egypt and Morocco witnessed an important development after the visit of the Egyptian commercial delegation to Rabat last week, which was established for a new stage aimed at reducing the gap in which the trade balance tends in favor of Egyptian exports.
This visit came after the suspension of Egyptian goods to the Moroccan ports for weeks, which raised the concerns of investors and businessmen in the two countries.
Commercial differences and their causes
The head of the Moroccan Confederation of Sources, Hassan Al -Santisi, explained that Egypt has not committed to the provisions of the Agadir Agreement, as it exported non -local products to Morocco, which is inconsistent with the spirit of the agreement that provides for the export of local -made products.
He also pointed out that Morocco faced difficulties in exporting its goods to Egypt, where it was still being held in the Egyptian customs for a period of up to 6 months without clear reasons.
The Agadir Agreement, which was signed in 2004 and entered into force in 2007, aims to establish a free exchange area between the four Arab Mediterranean countries: Morocco, Egypt, Tunisia and Jordan, with the aim of enhancing trade cooperation between these countries and with the European Union.
The agreement provides for the exemption of goods of local origin from customs duties and the removal of non -customs obstacles such as quantitative, monetary, administrative and technical restrictions imposed on import, and the products exported between countries are homemade and not just imported goods that are re -exported.
Although the agreement aims to support the integration of the local industries of the signed countries, Morocco considered that Egypt did not fully adhere to its provisions, as it exported non -local goods, and also obstructed the entry of Moroccan products to its markets by accumulating more than 840 Moroccan containers in Egyptian ports, which prompted Rabat to take counter -economic measures, by suspending the entry of 150 Egyptian containers to Morocco.
The trade balance between the two countries
According to a recent report issued by the foreign trade sector in the Central Agency for Public Mobilization and Egyptian Statistics, Egyptian exports to Morocco recorded a growth of 22.5%, to reach 896.5 million dollars during the first 11 months of 2024, while Egyptian imports from Morocco increased by 91% to reach 41.9 million dollars.
For his part, the Moroccan exchange office revealed the exacerbation of the trade deficit in favor of Egypt, as Egyptian imports rose to 804 million dirhams (80.4 million dollars) in November 2024, while Moroccan exports fell to 11 million dirhams (1.1 million dollars), compared to 17 million dirhams (1.7 million dollars) in the previous year.
The food industries topped the list of the most prominent Egyptian export sectors to Morocco, at a value of 209 million dollars, achieving 68%growth. Egyptian exports also include iron, cement, ceramic, agricultural crops, electrical appliances, paper, fertilizers and polyvinyl chloride fabrics.
On the other hand, Morocco imposes dumping and protection fees on some Egyptian products, as the fees on the Egyptian carpet reaches 35%, on the fabric and canned tomatoes to 30%, in an attempt to reduce the trade deficit and control the internal market.
Initiatives for solution and commercial balance
The visit of the Egyptian delegation last Thursday to Morocco, led by the Minister of Investment and Foreign Trade, Hassan Al -Khatib, came, where his Moroccan counterpart, Riyad Mazeer and the state writer in charge of foreign trade Omar Hajira.
The statement issued by the Egyptian Ministry of Investment did not address the crisis of detention of goods, but stressed the need to maximize the movement of the inter -trade between the two countries and facilitate trade exchange, with a focus on increasing Moroccan exports to the Egyptian market.
The head of the Export Council for Engineering Industries in Egypt, Sharif Al -Sayyad, pointed out that the Moroccan move aims to restore balance in the trade balance between the two countries, as the cuff tends greatly in favor of Egypt. He stressed that Egyptian products are gaining great importance in the Moroccan market, while the Egyptian market is a vital outlet for Moroccan products.
Future agreements and procedures
During the ministerial meeting, the two sides agreed to take concrete steps to restore the trade balance between the two countries, which included:
- Establishing a direct communication line between the competent authorities in the two countries to track commercial obstacles and find solutions to them.
- Raising the volume of Moroccan exports to Egypt, with a focus on local -made cars and products.
- Allocating a quick path from the Egyptian side to facilitate the entry of Moroccan products to the Egyptian market.
- Organizing a forum for economic business and partnership in Cairo next April to enhance the private sector cooperation in the two countries.
- Activate the Joint Business Council and prepare for the convening of the Joint Commercial Committee soon.
The Egyptian Minister of Investment and Foreign Trade, Hassan Al -Khatib, stressed that the meeting that he gathered with Moroccan officials aimed to bring the views and organize the inter -trade operations, while his Moroccan counterpart, Omar Hajira, stressed the need to overcome the trade deficit and achieve integration between the two countries.
It was also agreed to organize a visit to Moroccan exporters to Cairo after the month of Ramadan, to enhance cooperation and expand the scope of Moroccan exports, especially in the auto sector.
Towards a balanced partnership
According to observers, these steps are the beginning of a new stage in the trade relations between Egypt and Morocco, where the two parties seek to achieve a more balanced partnership based on mutual respect and commitment to the terms of joint agreements.
With these measures, observers expect the trade movement to return to normal, while enhancing the opportunities for Moroccan exports in the Egyptian market and alleviating obstacles to Egyptian goods in Morocco.
