Morocco will examine the trade agreement with Turkey due to the growing deficit, according to sources
Morocco intends to reassess its trade agreement with Turkey and advocate for increased Turkish investment to counterbalance a growing trade deficit primarily caused by imports of Turkish fabrics, according to two sources who spoke to Reuters.
Omar Hjira, the Moroccan cabinet member responsible for trade, is set to visit Turkey, which ranks as Morocco’s sixth-largest trading partner. This visit aims to address strategies to reduce the $3 billion deficit, according to sources who participated in a meeting with Hjira on Tuesday.
They requested anonymity because of the delicate nature of the issue.
The trade and industry ministry of Morocco has yet to respond to a request for comment from Reuters.
Signed in 2004, Morocco and Turkey made amendments to their free trade agreement five years ago, which included a 90% tariff on Turkish textile and clothing imports to safeguard Moroccan manufacturers and jobs.
Moroccan companies continue to import significant quantities of Turkish fabric to satisfy the demands of the nation’s apparel sector.
According to official data, Morocco’s overall trade deficit expanded by 22.8% to reach 109 billion dirhams ($12 billion) in the first four months of this year.
The deficit grew by 7% to reach 306 billion dirhams last year, with Morocco’s deficit with Turkey ranking as its third largest, following those with the U.S. and China.
