Minister of Trade says Egypt, Morocco free trade differences are over

Ryad Mezzour, Moroccan Minister of Industry and Trade, revealed that the negotiations that Morocco conducted with the Arab Republic of Egypt on the difficulties facing the free trade agreement between the two countries ended with a positive consensus.

According to the minister, both countries have reached an agreement on the entry of Renault cars produced in Tangiers to the Egyptian market, with complete exemption from customs duties. This was a major point of contention between Egypt and Morocco, which the minister says has now been resolved.

The Minister’s statement was in response to a written question sent on Friday, January 7, from Rachid Hamouni, head of the Progress and Socialism Team in the House of Representatives.

The Minister of Industry and Trade also clarified that the Egyptian government agreed to accredit the Moroccan Institute for Standardisation, as a governmental body accredited by Moroccan authorities, to grant a certificate proving that Moroccan factories and companies have a quality control system in place.

Mezzour stated that free trade agreements concluded by Morocco with a number of countries gave “new dynamism to foreign investments,” which have witnessed a qualitative leap in the last 20 years.

These agreements contributed to raising the pace of exports, which during the last 10 years reached an annual growth rate of about 16% with the United States of America, and 13% with Arab states, within the framework of the Agreement to Facilitate and Develop Trade Exchange among the Member States of the Arab League.

An additional 16% increase came from the free trade Agadir agreement, 12% with the United Arab Emirates, 30% with Turkey, and 6% with the European Union, according to the recent data provided by the National Changes Office, and confirmed by the minister in his response statement.

The government official indicated that the Ministry of Industry and Trade is “regularly evaluating the results of free trade agreements and their effects, and taking appropriate measures and measures to address any imbalances that may harm the national economy.”

Amendments had occurred in the case of the Morocco and Turkey free trade agreement, back in August, 2020. This agreement provided for the inclusion of a negative list of more than 1,200 products falling under 630 customs tariffs covering several sectors, as they were excluded from customs concessions.

Morocco also required Turkish retailer “BIM” to review its sold product, requiring it to achieve acceptable balance between Moroccan and Turkish products on its shelves.
As a result of Morocco’s multiple trade agreement, total foreign investments (FDIs) in the country have gone from MAD 77.5 billion between 1991 and 2000 to MAD 249 billion between 2001 and 2010, then MAD 351.5 billion between 2011 and 2020.