Trade relations between Morocco and Egypt are going through a rough patch. According to the Egyptian newspaper Al-Shorouk, Rabat has imposed an unofficial embargo on Egyptian products in response to Cairo’s trade restrictions on Moroccan exports, particularly in the automobile sector. This escalating dispute raises questions about the effectiveness of the Agadir Agreement, which was meant to facilitate trade between the two nations.
Signed in 2004 and implemented in 2007, the Agadir Agreement was designed to create a free trade zone between Morocco, Egypt, Tunisia, and Jordan, making it easier for these economies to integrate into the European market. However, Egypt’s failure to uphold its commitments under the agreement is now at the center of the current conflict.
Trade figures highlight a significant imbalance. Moroccan imports from Egypt stand at $827 million, while Moroccan exports to Egypt struggle to exceed $52 million. This disparity, according to Morocco’s former Minister of Industry Moulay Hafid Elalamy, results in a $600 million loss for Morocco due to Egyptian restrictions.
In response, Morocco has taken protectionist measures. The Ministry of Industry and Trade has imposed anti-dumping duties on certain Egyptian products, including a 29.93% tariff on canned tomatoes and a 35.33% duty on carpets and textile coverings. These retaliatory actions have sparked concern among Egyptian businesses, which now fear further restrictions.
Egypt, on the other hand, justifies its import restrictions as part of a “foreign currency governance policy.” Cairo argues that its priority is to allocate foreign currency for essential goods, pharmaceuticals, and raw materials, making trade with Morocco more complicated.
This growing standoff threatens the Agadir Agreement, which was originally aimed at strengthening regional economic cooperation. If no resolution is found, the dispute could not only strain relations between Rabat and Cairo but also undermine trade ties across the entire Agadir Agreement region.
