Morocco to Review Free Trade Agreement with Turkiye as Trade Deficit Soars

Morocco is planning to review its free trade agreement (FTA) with Turkiye and push for more Turkish investment to offset an expanding trade deficit driven largely by Turkish fabric imports, Reuters reported, citing two sources who attended a meeting with Omar Hjira, the Moroccan minister delegate in charge of trade.

According toReuters, among other news outlets, Hjira is set to visit Turkiye-Morocco's sixth-biggest trading partner-in the near future to discuss measures aimed at mitigating the MAD 30 billion ($3 billion) deficit.

The sources, who asked to remain anonymous due to the sensitivity of the matter, revealed that the Moroccan government is keen on addressing the growing trade imbalance.

The Morocco-Turkiye FTA, initially signed in 2004 and entered into force in 2006, underwent amendments five years ago, including the introduction of a 90% tariff on Turkish textile and clothing imports to protect Moroccan manufacturers and jobs.

Despite these measures, Moroccan companies continue to import large volumes of Turkish fabric to meet the needs of the country's apparel sector, which caters to both the local market and exports.