Morocco reviews free trade agreement with Tunisia, excluding 18 product types from tax exemptions

Morocco revised its Free Trade Agreement (FTA) with Tunisia, excluding a list of 18 categories of products.

Tunisian operators called the measure an “unjustified protectionism,” and asked for the support of their government.

Morocco’s recent changes to the FTA exclude various Tunisian products from preferential trade tariffs, while some Tunisian products are now subject to a single tax of 17.5%.

The negative list covers several categories of products, including carpets, hand-woven tapestries, concrete iron, powders and explosives, and flammable materials.

Morocco has also introduced a new common list of products subject to a single tax of 17.5%. This list includes smoked fish, shellfish, margarine, cocoa powder, chocolate drinks, lemon juice, soft drinks, new tires, leather, and prepared hides, among others.

Representatives of Tunisian exporters are requesting a “political intervention” to launch consultations with the Moroccan government.

The trade balance between the two North African countries is tilted in Tunisia’s favor, with an export volume amounting to MAD 2.28 billion, compared to an estimated MAD 1.19 billion of Moroccan exports to the Maghreb republic.

Moroccan authorities have been determined to ensure “proper implementation” of free trade agreements with the country’s partners. Reviewing the Moroccan free trade agreements initially started with Turkey and Egypt.

In the case of Egypt, the negative list concerns barely six categories of products. These include powder and explosives and flammable materials excluding matches and lighters, tires, second-hand goods, and concrete iron as well as cars.

These measures are likely to protect local production against imported products in certain sectors, the aim being to ensure the sustainability of domestic industrial units and preserve potentially threatened jobs.