Recent Tensions in Morocco-Egypt Trade Relations
The commercial relationship between Morocco and Egypt has experienced a series of tensions in recent years, particularly under the Agadir Agreement, which came into effect in March 2007. This agreement, signed in 2004 by both countries alongside Jordan and Tunisia, aimed to establish an Arab free trade zone linked to the Euro-Mediterranean area. However, in practice, it has predominantly benefited Egypt regarding trade flows. According to the statements made by Morocco's Secretary of State for Foreign Trade, Omar Hjira, before the House of Representatives in May 2025, Moroccan exports to Egypt plummeted from 2.6 billion dirhams in 2016 to just 755 million dirhams in 2024. During the same period, imports from Egypt surged from 4 billion to 12.5 billion dirhams. This structural imbalance has pushed Morocco's trade deficit beyond one billion dollars annually, prompting a significant reaction from Rabat.
For Moroccan authorities, the situation became untenable. Not only was Morocco absorbing a substantial amount of Egyptian products, but its own exports faced increasing barriers in the Cairo market, notably concerning automotive goods. In March 2021, Egyptian customs authorities blocked vehicles assembled by Renault in Tangier, citing the free zone status of the plant to exclude them from the tariff preferences outlined in the Agadir Agreement. A senior official from Morocco's Ministry of Industry succinctly summarized the situation to L’Économiste, stating, "Our car exports produced in Morocco are blocked under the pretext that they are made in Tangier, a free zone, rather than in the Somaca plant in Casablanca."
The dispute led to several months of bilateral technical commissions, during which Morocco argued that the Tangier plant no longer held free zone status and that the cumulative rules stipulated by the Agadir Agreement permit using inputs from member countries to establish national origin. Ultimately, the ban was lifted in early 2022; however, the recovery was only partial, with Egypt importing only 400 vehicles produced in Morocco by 2024. It was not until the ministerial meetings in February 2025 in Rabat that Cairo committed to increasing imports to 5,000 vehicles in 2025 and 8,000 in 2026. During a mission by the CFCIM, the head of the Egyptian commercial office in Rabat, Al-Moataz Bellah Ali, confirmed that Moroccan exports to Egypt doubled in 2025, reaching 123 million dollars, of which 49 million dollars were from the automotive sector.
Morocco's Response and Strategic Collaboration
In parallel with the situation concerning vehicles assembled in Tangier, Morocco gradually activated its trade defense instruments against Egyptian products. In December 2024, the Ministry of Industry and Commerce imposed a definitive anti-dumping duty of 29.93% on imports of canned tomatoes from Egypt following a complaint from the National Federation of Moroccan Food Industries (FNIAM), which denounced market saturation. By November 2025, definitive anti-dumping duties were extended to Egyptian PVC, and in December of the same year, provisional measures were established on galvanized steel wires imported from Egypt, with dumping margins set at 50.67% for certain exporters, according to data from the Moroccan Ministry of Industry.
In retaliation, Egypt suspended health inspections on food exports to Morocco in February 2025, officially protesting against customs clearance delays at Moroccan ports. A circular from the president of the National Food Safety Authority (NFSA), Ashraf Mohamed Sami, ordered the "immediate suspension of all inspections and health controls applied to food exports to Morocco,” affecting both perishable goods and agri-industrial products. In this tense context, an official Egyptian delegation led by the Minister of Investment and Foreign Trade, Hassan El-Khatib, visited Rabat on February 27, 2025. Both parties agreed to increase Moroccan exports to Egypt, especially in the automotive sector, prepare for a mixed trade commission, and organize a bilateral business forum (B2B) in Cairo in April 2025.
By September 2025, during the 17th session of the Council of Ministers of the African Continental Free Trade Area (AfCFTA), Hassan El-Khatib reiterated the "need for a balanced trade relationship between Morocco and Egypt." In December 2025, the Mixed Trade Commission convened in Rabat, and in April 2026, a bilateral committee met in Cairo after the postponement of the High Joint Commission initially scheduled for February. This dialogue now includes the private sector, with a mission from the French Chamber of Commerce and Industry in Morocco (CFCIM). This second edition, following one in 2023, brought together Egyptian companies operating in agri-food, packaging, and printing industries. Egypt's ambassador to Morocco, Ahmed Nad Abdelatif, described the bilateral relationship as "strong because it is built on several generations," emphasizing that Morocco's GDP had tripled over 20 years, rising from 40 to 140 billion dollars. He noted that this growth "opens up avenues for economic cooperation and significant opportunities."
This visit comes as Egypt seeks to enhance the attractiveness and competitiveness of its industrial fabric. According to the African Development Bank's 2025 Industrialization Index, Morocco has become the leading industrial economy on the continent, scoring 0.8415, ahead of South Africa (0.8396) and Egypt (0.7827). This marks the first time since the index's inception in 2010 that Morocco has claimed the top spot, attributed to "sustained modernization of its production system, increasing diversification of its exports, and effective implementation of its industrial policy." Meanwhile, Egypt remains the second-largest economy on the continent in nominal GDP terms, estimated at 365 billion dollars in 2025, surpassing Algeria and Nigeria. Its production structure continues to rely on often uncertain rents, such as from the Suez Canal, whose revenues have been affected by tensions in the Red Sea related to the Gaza conflict, as well as tourism.
At the beginning of 2026, the Egyptian government outlined an industrial strategy centered around seven sectors: textiles and apparel, agri-food industries, automotive, electrical equipment and engineering, electronics assembly, and pharmaceutical industries. The stated goal is to elevate non-oil exports to 100 billion dollars by 2030, according to the Egyptian Ministry of Industry. The selection criterion set by Egyptian authorities focuses on export competitiveness, added value, industrial complexity, and the capacity to attract foreign investment. This strategic reorientation positions Morocco in a unique role: as a model that Egypt can, according to its representatives, draw inspiration from for its own industrial framework. Tarek El Houby, president of the Egyptian National Food Safety Authority (NFSA), expressed during the CFCIM mission the ambition to move "beyond exports and imports, towards partnership and even integration."
While both countries aim to transform their commercial relationship, the Agadir Agreement remains the primary available legal framework. Al-Moataz Bellah Ali, head of the Egyptian commercial office in Rabat, reiterated its central mechanism during the mission: the cumulation of rules of origin. "If part of the product or certain inputs are manufactured in Egypt, we can finalize the industrial process in Morocco and then export it to European markets," he explained. In practical terms, the agri-food industries account for the majority of current flows, with the Moroccan sector generating a revenue of 131 billion dirhams, employing over 211,000 people, and covering 77% of national market needs, according to data provided by the Moroccan Ministry of Industry's agri-food industries department during the CFCIM mission. Eighty percent of the sector's capital is of Moroccan origin, reflecting an advanced level of local industrial integration. On the Egyptian side, data from the National Office of Food Safety (ONSSA) illustrate the extent of imports from Egypt: 17,930 import files processed between 2020 and 2026 represent nearly 1.6 million tons of goods. Egypt ranks first among supplier countries to the port of Casablanca, both in terms of the number of files and volume, particularly for food products and fertilizers. The acceptance rate for files stands at 99.23%, with an average customs clearance time for Egyptian containers of three days. This data provided by ONSSA during the mission serves as both a positive signal regarding the actual fluidity of exchanges and an argument to downplay potential accusations of port blockage. Egypt exports massively and smoothly to Morocco.
The two countries have committed to several objectives: 8,000 Moroccan cars imported by Egypt in 2026, a total trade volume increased to 500 million dollars in the immediate future, and intensification of institutional meetings.
As reported by fr.le360.ma.
