Casablanca – Trade relations between Morocco and Egypt have been strained in recent weeks due to growing tensions over the export of Egyptian goods to Morocco. While no official government statements have been issued yet, sources indicate that Morocco has imposed restrictions on Egyptian exports, a move that could impact the bilateral trade volume between the two countries.

Root causes of the trade disputes

The tensions appear to be linked to the Agadir Agreement, a trade pact signed in 2004 between Morocco, Egypt, Tunisia, and Jordan, designed to facilitate free trade within the region. Under the agreement, the four countries were meant to encourage the flow of goods between them and with the European Union. However, both nations have accused each other of failing to fully implement certain provisions of the agreement, leading to disputes.

Morocco’s perspective
Moroccan authorities have expressed frustration with what they see as Egypt’s failure to adhere to some of the terms of the agreement, particularly regarding the trade facilitation measures. The lack of full compliance has reportedly caused bottlenecks in trade, and Moroccan officials have raised concerns about Egypt’s policies, including restrictions on the import of Moroccan cars.

Egypt’s concerns
On the other hand, Egypt has cited the suspension of its car exports to Morocco as a significant source of tension. Although specific reasons for Morocco’s actions remain unclear, sources suggest that this may be tied to Egypt’s policies, including prioritizing the import of essential goods over luxury items like cars. Additionally, Egyptian exporters have claimed that Moroccan authorities sometimes block shipments on the grounds of alleged quality control issues, including the rejection of goods like textiles and electronics due to concerns over conformity to Moroccan standards.

Efforts to resolve the crisis

In response to the growing trade tension, Egypt has sent a delegation to Morocco, consisting of officials from the Ministries of Finance, Industry, Investment, and Foreign Trade. The delegation is tasked with investigating the root causes of the crisis and seeking a resolution that would allow Egyptian goods to flow freely once again into Morocco’s markets.

The delegation’s primary focus is to address the reasons behind the suspension of Egyptian exports and to facilitate a resolution in line with the trade exchange system established between the two countries.

The impact on bilateral trade

Despite the current trade disruptions, the overall economic relationship between Morocco and Egypt remains significant. The trade exchange between the two countries was valued at approximately $1.3 billion in 2024, underscoring the importance of their commercial ties. Key Egyptian exports to Morocco include ceramics, agricultural products, iron, cement, and electronics. In return, Egypt imports cars, car parts, and some raw materials, such as phosphates, from Morocco.

Trade in building materials is particularly prominent, with Egypt exporting more than $100 million worth of products to Morocco annually. However, inspection delays and additional quality checks have led to some products being blocked at Moroccan ports, creating obstacles for Egyptian companies.

Prospects for future cooperation

While the current dispute has caused some unease, there are signs of optimism regarding the resolution of the issue. Both nations are committed to resolving the crisis, and Egypt has already reached out to Moroccan business organizations to address the trade obstacles and ensure that goods are cleared from ports promptly.

The Agadir Agreement remains a cornerstone of trade relations, and there is hope that the dispute will be settled in a manner that respects both countries’ interests and commitments under the agreement. Business representatives in both nations have emphasized the importance of maintaining smooth trade relations, particularly in light of the broader economic benefits for the region.

As negotiations continue, stakeholders from both sides are hopeful that the tensions will soon be eased, allowing for the restoration of normal trade flows and the continuation of the economic cooperation that has benefited both countries for years.