Turkish Exports to Morocco Reach New Heights
Recent data released by the Turkish Exporters Assembly (TİM), as reported by the Anadolu Agency, highlights a significant rise in Turkish exports to Morocco, which reached over $1.026 billion by the end of the first quarter of this year. This figure marks an impressive annual growth rate of approximately 15.8% compared to the same period last year. Consequently, Morocco has climbed from being the 17th largest importer from Turkey to the 14th position on the list of countries importing from Ankara. The leading exports include chemical products, which accounted for over $312 million, followed by automotive products exceeding $163 million, as well as steel, textiles, furniture, paper, and electronic goods. Notably, the total value of Turkish exports to Morocco surpassed $3.9 billion by the end of the previous year.
Free Trade Agreement Under Scrutiny
This surge in exports has reignited discussions regarding the benefits of the free trade agreement between Rabat and Ankara, which came into effect in 2006. Despite the increasing trade volume, Morocco continues to experience a trade deficit in its exchanges with Turkey. This situation raises serious concerns among economic experts about the efficacy of this agreement and other similar accords, which they believe contain "unfavorable terms" for Morocco. Rashid Sari, an expert in international economic affairs and head of the African Center for Strategic Studies and Digitalization, expressed significant doubts about the nature of Turkish exports to Morocco, particularly questioning how Morocco exports 90% of its automotive production to the European Union while simultaneously importing vehicles from Turkey. He pointed out that many commodities, such as steel and clothing, seem to indicate that Morocco does not produce textiles or ready-made garments.
Sari emphasized that the existing terms of various free trade agreements, not only with Turkey but also with other countries, warrant a thorough review, as they may be disproportionately unfavorable to Morocco. Furthermore, the notable increase in Turkish exports exceeding the billion-dollar mark in the first three months of this year is not surprising; however, the types of goods being imported by Morocco raise eyebrows. It is evident that Morocco faces a trade deficit with nearly all countries with which it has free trade agreements, including Egypt and the United States.
Economic expert Abdel Khalek Tehami elaborated on the competitive challenges faced by Morocco, attributing the significant trade deficit with Turkey to the pronounced competitive advantage that Turkish companies enjoy over their Moroccan counterparts. Turkish firms are keen on capturing additional market shares in Morocco, while Moroccan companies struggle to compete due to their limited competitiveness. Tehami noted that the proposed solutions to date, which involve marginal revisions to the free trade agreement between the two countries, remain largely ineffective and lack practical application. He warned that a complete cancellation of the agreement would completely shut Turkish markets to Moroccan exports, a decision that carries substantial economic responsibilities. The solution, he posited, lies in enhancing the competitiveness of Moroccan firms exporting to Turkey, as rectifying the trade balance necessitates a broader examination of the production system, labor market issues, energy costs, and the integration of production structures. Without addressing these structural challenges, the trade balance will continue to favor the more competitive party.
As reported by hespress.com.
