Egyptian exports to Morocco have faced unexpected disruption after the Moroccan authorities suspended their entry into local ports. The sudden move has caused significant confusion among Egyptian exporters, particularly in the agricultural and food industries where products have a limited shelf life and cannot withstand long delays.
Several Egyptian exporters expressed their surprise and frustration over the decision to Al-Ahram Weekly, adding that it came without prior warning or justification. Meanwhile, Egypt continues to import Moroccan cars, particularly Renault models, under the bilateral trade agreements signed between the two countries.
According to Walid Gamaleddin, a board member of the Export Council for Building Materials, Refractory, and Metallurgy Industries, this is not the first time that Moroccan authorities have placed restrictions on certain Egyptian products.
However, he said that the present situation is different, as all Egyptian shipments have been blocked without prior notice.
Egyptian exports to Morocco include ceramics, food products, vegetables, fruit, iron, cement, coke, agricultural commodities, and electrical appliances. The sudden suspension of these goods has raised concerns about its potential economic impact on Egyptian exporters and the future of trade relations between the two countries.
In an attempt to resolve the crisis, an Egyptian delegation travelled to Morocco to hold talks on Saturday with Moroccan officials. The goal is to find a swift solution and ensure that Egyptian exports can resume their flow into the Moroccan market.
Gamaleddin stressed that the suspension violates the trade agreements between the two nations, including the Agadir Agreement. The latter, which includes Egypt, Jordan, Morocco, and Tunisia, allows duty-free trade between member countries, provided that at least 40 per cent of a product’s components are locally manufactured.
While no official reason has been given for the suspension, industry experts suspect that the trade imbalance between Egypt and Morocco could be a key factor. In 2024, Egyptian exports to Morocco reached approximately $1 billion, whereas Egypt’s imports from Morocco, mainly cars, amounted to just $80 million.
Gamaleddin believes that this trade gap has put pressure on Moroccan industries, which are struggling to compete with Egyptian products that offer higher quality at lower prices. Egyptian goods are estimated to be 20 to 30 per cent cheaper than their Moroccan or European counterparts.
The higher cost of production in Morocco, due to a shortage of skilled labour, rising wages, and a lack of an integrated industrial base, further exacerbates the situation, making it difficult for Moroccan businesses to compete, according to Gamaleddin.
The dispute comes just weeks after Nizar Abu Ismail, chairman of the Egyptian-Moroccan Business Council, announced plans for four major Egyptian industrial projects in Morocco.
Set to launch in 2025 with a total investment of $200 million, the projects focus on the food and beverage sector, industrial zones, and oil and gas production.
Ali Eissa, chairman of the Egyptian Businessmen’s Association (EBA), has called for an urgent political intervention to resolve the crisis. He said that Morocco is a key export destination for Egypt, particularly in the agricultural sector, and the ongoing suspension could severely impact Egyptian exporters.
Eissa pointed out that agricultural exports are more vulnerable to delays than industrial products. Perishable goods like strawberries can spoil quickly, while onions and potatoes have a longer shelf life but still risk significant financial losses if the situation is not resolved soon.
Faced with uncertainty, Egyptian businesses are evaluating alternative options. One possibility is to return shipments to Egypt, though this would entail significant financial losses. Another option is to redirect goods to alternative markets, such as Spain, to minimise the impact of the Moroccan suspension.
Egyptian-Spanish relations are expected to gain significant momentum across various sectors, particularly in the economic and political spheres, following Egyptian President Abdel-Fattah Al-Sisi’s visit to Spain last week.
Amr Abu Freikha, a board member of the Export Council for Engineering Industries, voiced concerns over the recent actions taken by the Moroccan authorities regarding Egyptian exports. They come despite Egypt’s commitment to strengthening bilateral trade in line with existing agreements, he noted.
He added that Egypt’s exporters are closely monitoring the situation, as uncertainty looms over Morocco’s stance and is sparking speculation. He noted that competition remains the key factor in any market, given that Moroccan products often compete with similar Egyptian imports and vice versa.
* A version of this article appears in print in the 27 February, 2025 edition of Al-Ahram Weekly
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