Morocco Struggles with $1.8 Billion Trade Deficit from Turkey Agreement

The deficit of the Free Trade Agreement signed with Turkey has reached 18 billion dirhams, according to l’Économiste which recalls that, within the framework of foreign investments, this country represents less than 1%, while it invests massively in other countries such as Algeria (5.4 billion dirhams).

The newspaper specifies that it is the textile sector that is very affected and generates job losses that are counted in tens of thousands. For example, in 2017, 44,000 people found themselves unemployed, according to official statistics. The Ministry of Commerce had to intervene three years ago to limit the arrival of goods from Turkey.

After several complaints from Morocco, Ankara finally agreed to review its FTA with the kingdom in order to find a better formula to balance the situation. But since then, the meeting has been difficult to hold. Turkey has even postponed the agreed date, without taking Morocco’s opinion, which finds itself with its back to the wall, with this trade imbalance between the two countries.

In addition to the light shed on the situation with Turkey, this oral question session will have allowed the deputies to learn that the deficit with the EU had reached 75 billion dirhams per year.

According to the newspaper, the second important FTA where Morocco is in deficit concerns the one with the United States (20 billion dirhams, including 15 billion dirhams for hydrocarbons and 3.5 billion dirhams for the purchase of Boeing aircraft). But unlike Turkey, the USA represents 6% in terms of foreign investment.