Morocco's ambitious export growth to Egypt by 2026

Morocco is aiming to significantly increase its exports to Egypt by 2026, with a target of $500 million, up from just $75 million in 2024. This impressive growth is central to ongoing bilateral discussions as both Rabat and Cairo seek to address a concerning trade imbalance.

To achieve this goal, the Moroccan Association of Exporters (ASMEX) will lead an economic mission to Egypt in May, the first of its kind since the agreement signed between the two countries in February. This agreement aims to revitalize trade and encourage bilateral investment following several discussions held in Rabat.

Resolution of Trade Disputes

In 2024, trade relations were disrupted when Morocco suspended certain Egyptian imports in retaliation for Egypt's refusal to accept Moroccan vehicles. This dispute led to direct negotiations between Egypt's Minister of Investment and Foreign Trade, Hassan Al-Khatib, and Morocco's Minister of Foreign Trade, Omar Hejira. These talks resulted in a preliminary agreement to move past the issue and establish a new framework for commercial cooperation.

Persistent Trade Imbalance

In 2024, Moroccan exports to Egypt totaled $75 million, while imports from Egypt reached 12.5 billion dirhams ($1.25 billion). This structural imbalance has prompted both countries to reconsider their economic partnership to make it more balanced and mutually beneficial.

Towards a Win-Win Trade Relationship

According to Hassan Sentissi El Idrissi, President of ASMEX, the upcoming mission will aim to implement the February agreements and facilitate a gradual adjustment in trade flows. "We want to correct this imbalance and establish truly beneficial trade relations for both sides," he emphasized.

The mission will involve representatives from various Moroccan export sectors. It will also include a bilateral business council aimed at identifying high-potential areas for cooperation and fostering the creation of strategic partnerships, particularly under the African Continental Free Trade Area (AfCFTA).

Trade Framework under the Agadir Agreement

Trade relations between Morocco and Egypt are governed by several agreements, including the 2007 Agadir Agreement, which established a free trade zone between Morocco, Tunisia, Jordan, and Egypt. This agreement aims to stimulate intra-regional trade and encourage investment in the Mediterranean region.

Morocco imports various products from Egypt, including ammonia, tires, wood, cocoa, canned vegetables, dates, oilseeds, soybean oil, and glass. In return, Morocco exports to Egypt automobiles and parts, spices, phosphoric acid, fruits, sugar, electrical conductors, and canned fish.