The North African Post | 28 February 2025

Morocco, Egypt review trade agreement

Morocco and Egypt are reviewing their free trade deals after Egyptian authorities-imposed restrictions on Morocco’s car exports.

The news was confirmed by spokesman for the government Mustapha Baitas who said relations between the two countries were excellent but their trade agreement was being reviewed by trade officials.

News outlets from the two countries mentioned that Morocco responded by blocking entry of Egyptian goods after Egypt’s unjustified move against Moroccan cars. Authorities did not confirm the news.

Morocco is Africa’s largest automotive exporter with $15.7 billion, including cars from Renault factories in Tangier and Casablanca, and Stellantis cars made in Kenitra.

Jordan and Tunisia are also parties to Morocco’s trade deal with Egypt, known as Agadir Free Trade.

Citing trade ties with Egypt, a Moroccan official told Al Ahdath newspaper “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.”

Moroccan cars have been blocked from entering the Egyptian market on the grounds that they do not meet certain ‘criteria.’ However, these same cars are among the best sellers in Europe which has stricter norms.

Morocco’s trade deficit with Egypt widened from $47.5 million in 2023 to 80.4 million in 2024.