Latest news with #AgadirAgreement
Ya Biladi
13-05-2025
- Automotive
- Ya Biladi
Moroccan government pledges to boost car exports to Egypt
The Moroccan government has pledged to significantly boost its exports to Egypt in the coming months. «They are expected to rise from the current 755 million dirhams to 5 billion dirhams by 2027», said Omar Hjira, Secretary of State in charge of Foreign Trade, during an oral questions session at the House of Representatives on Monday, May 12. Hjira also highlighted the growth of Moroccan car exports to the Egyptian market: «After exporting 400 vehicles per year, we are now at 3,000. We plan to reach 5,000 by the end of the year and 8,000 by 2026», he stated in response to a question from the RNI parliamentary group. He recalled that Minister of Trade and Industry Ryad Mezzour recently led a major Moroccan economic mission to Egypt in early May. The delegation, which included ministry officials and around forty investors, aimed to evaluate the free trade agreement signed with Cairo in 2004 under the Agadir Agreement. Hjira acknowledged that Moroccan exports to Egypt have declined in recent years, dropping from 2.6 billion dirhams in 2016 to just 755 million dirhams in 2024. In contrast, Egyptian exports to Morocco rose from 4 billion dirhams to 12.5 billion dirhams over the same period. This growing disparity has resulted in a significant trade deficit for Morocco. The 2004 Agadir Agreement seeks to establish a free trade zone among Arab countries, bringing together Egypt, Jordan, Lebanon, Morocco, Palestine, and Tunisia.
Ya Biladi
13-05-2025
- Automotive
- Ya Biladi
Moroccan government pledges to boost car exports to Egypt
The Moroccan government has pledged to significantly boost its exports to Egypt in the coming months. «They are expected to rise from the current 755 million dirhams to 5 billion dirhams by 2027», said Omar Hjira, Secretary of State in charge of Foreign Trade, during an oral questions session at the House of Representatives on Monday, May 12. Hjira also highlighted the growth of Moroccan car exports to the Egyptian market: «After exporting 400 vehicles per year, we are now at 3,000. We plan to reach 5,000 by the end of the year and 8,000 by 2026», he stated in response to a question from the RNI parliamentary group. He recalled that Minister of Trade and Industry Ryad Mezzour recently led a major Moroccan economic mission to Egypt in early May. The delegation, which included ministry officials and around forty investors, aimed to evaluate the free trade agreement signed with Cairo in 2004 under the Agadir Agreement. Hjira acknowledged that Moroccan exports to Egypt have declined in recent years, dropping from 2.6 billion dirhams in 2016 to just 755 million dirhams in 2024. In contrast, Egyptian exports to Morocco rose from 4 billion dirhams to 12.5 billion dirhams over the same period. This growing disparity has resulted in a significant trade deficit for Morocco. The 2004 Agadir Agreement seeks to establish a free trade zone among Arab countries, bringing together Egypt, Jordan, Lebanon, Morocco, Palestine, and Tunisia.
Egypt Today
28-04-2025
- Business
- Egypt Today
Egypt among 6 Arab countries vulnerable to US tariff fallout: ESCWA
Cairo – April 28, 2025: A recent policy brief by the United Nations Economic and Social Commission for Western Asia (ESCWA) warns that Egypt is one of six Arab nations likely to be notably affected if U.S. President Donald Trump's proposed tariff plans are enacted in full. In the report titled United States Tariff Shockwaves: Impacts on the Arab Region, ESCWA classifies a 'significant' effect as one where at least 5% of a country's total exports are destined for the United States. Besides Egypt, the countries identified as most at risk include Jordan, Lebanon, Bahrain, Tunisia, and Morocco. Jordan stands out as the most exposed, with almost 25% of its exports tied to the U.S. market. Despite the projected disruption, the outlook for overall export performance remains relatively resilient—especially among members of the Agadir Agreement (Egypt, Morocco, Tunisia, and Jordan). ESCWA estimates that global exports from these countries will contract only modestly, declining by 0.3% year-on-year in 2025. Meanwhile, the broader Arab region is forecast to see virtually flat export growth, with a slight -0.01% change, buoyed in part by a projected 0.1% rise in exports from Gulf Cooperation Council (GCC) countries. However, US imports to Agadir countries are set to take a sharper hit, with a 24.7% decline expected in 2025 due to rising costs. In response, ESCWA anticipates a pivot toward other major trade partners. Imports from China to these four countries are forecast to rise by 8%, while imports from the European Union are expected to increase by 3.1%. Intra-Arab trade—especially among Agadir signatories—is also projected to grow as countries adapt to new trade dynamics. Still, the greater threat may lie in indirect effects. ESCWA warns that global economic spillovers from the tariff regime could slow overall demand, particularly in the EU and China, which together absorb nearly one-third of Arab exports. The EU accounts for 17% of Arab export demand, while China receives 15%, including 22% of GCC oil and chemical shipments. Trade flows between the US and the Arab world have already been in decline. US imports from the region dropped from $91 billion in 2013 to $48 billion in 2023, largely due to reduced American dependence on foreign crude as domestic production increased. Since 2015, the US has maintained a trade surplus with the region, which reached $20 billion in 2024. Although Arab non-oil exports to the US have risen—from $14 billion in 2013 to $22 billion in 2024—it is precisely these goods that now face increased exposure to the proposed tariffs. Nevertheless, ESCWA suggests there may be a silver lining. Countries like Egypt and Morocco, whose exports face comparatively lower tariff rates, may find new openings in the US market. 'Potential opportunities may arise for Arab exporting countries,' the brief noted, highlighting that tariffs recently imposed by the US on goods from China, India, and the EU could make Arab products more price-competitive. For Egypt, this could mean expanding its footprint in less tariff-sensitive segments, turning a potential setback into an opportunity for strategic trade realignment.
Arab News
20-04-2025
- Business
- Arab News
US tariff escalation puts $22bn of Arab exports at risk, says ESCWA report
RIYADH: Arab countries could see up to $22 billion in non-oil exports affected by sweeping new US tariffs, with six economies facing the most direct disruption, according to a new analysis. A report by the UN Economic and Social Commission for Western Asia said the measures, imposed on April 2, include a blanket 10 percent tariff on nearly all imports, with rates climbing as high as 42 percent for countries with trade surpluses. While oil remains exempt, the duties now cover a broad range of industrial goods such as textiles, fertilizers, aluminium and electronics, effectively nullifying trade preferences previously granted to Bahrain, Jordan, Morocco and Oman. ESCWA said that exports from Bahrain, Egypt, Jordan, Lebanon, Morocco and Tunisia are expected to be 'significantly affected by the new tariff hikes,' with Jordan facing the highest exposure due to its reliance on the US market. 'A country having a higher share of non-oil exports to the United States is expected to be directly impacted,' the report stated. 'The direct impact is particularly high for countries where exports to the United States constitute a major share of their total global exports.' While some Arab countries like Egypt and Morocco initially appeared well-positioned to benefit from trade diversion away from heavily tariffed economies like China and India, that potential has faded following a policy shift by Washington. 'With the pause announced on 9 April for most countries, excluding China, the trade diversion effect in favor of most Arab countries is likely to disappear,' ESCWA noted. ESCWA noted that the impact will vary considerably across the region. Five other countries — Algeria, Oman, Qatar, Saudi Arabia, and the UAE — are likely to see smaller effects, while eleven Arab countries are projected to experience negligible exposure due to limited or no exports to the US. These include Iraq, Kuwait, and Libya, as well as several least developed countries such as Somalia, Sudan, and the Comoros. While direct trade impacts will be concentrated among a handful of countries, the broader Arab region may still suffer from indirect effects tied to global demand conditions. ESCWA warned that reduced consumption from key partners such as China and the EU — both major buyers of Arab goods — could negatively affect export performance across the board. The EU accounts for 72 percent of Tunisia's exports and 68 percent of Morocco's, while China purchases 22 percent of the GCC's oil and chemicals. Preliminary macroeconomic modeling for 2025 indicates moderate net impacts for the Agadir Agreement countries — Egypt, Jordan, Morocco and Tunisia. These nations are expected to see declines in gross domestic product, exports and investment, though some mitigation may occur through limited trade redirection. GCC economies, by contrast, are projected to experience a smaller aggregate effect, with real GDP declining slightly. However, the report suggests that losses in oil revenue, tied to falling prices and reduced global demand, could weigh more heavily on fiscal outcomes. The simulation assumes full implementation of the April 2 US tariffs and corresponding retaliatory measures from China announced on April 5. Based on this scenario, real GDP in the Agadir countries is projected to fall by 0.41 percent, exports by 1.41 percent, and total investment by 0.38 percent. The GCC region is expected to register a GDP loss of just 0.10 percent, reflecting lower exposure to US tariffs but higher vulnerability to oil market fluctuations. The fiscal dimension of the shock is also becoming more apparent. Rising global uncertainty has already driven up borrowing costs for many Arab economies. Between April 2 and April 9, 10-year bond yields increased by 36 basis points in Arab middle-income countries and by 32 basis points in the GCC. The impact is particularly acute in debt-heavy MICs. ESCWA estimates that Egypt will face an additional $56 million in interest payments in 2025, Morocco $39 million, Jordan $14 million, and Tunisia $5 million. These increases, while modest in dollar terms, represent a non-trivial strain on public finances. The Arab region's trade relationship with the US has already been weakening. Total exports from Arab countries to the US dropped from $91 billion in 2013 to $48 billion in 2024, primarily due to the decline in American crude oil imports. However, non-oil exports have grown steadily, from $14 billion in 2013 to $22 billion last year, underscoring the increasing relevance of industrial and value-added goods in Arab export profiles. In light of these developments, ESCWA is urging Arab governments to respond with coordinated policy actions. Recommended measures include accelerating regional economic integration, pursuing carve-outs under existing trade agreements, and recalibrating free trade arrangements to avoid preference erosion. The agency also emphasized the need for countries to strengthen fiscal buffers and diversify trade and investment partnerships. As the geopolitical and trade environment grows more uncertain, Arab economies are being advised to prepare for continued volatility. 'Arab countries must recognize the diverse, and sometimes contradictory effects of the United States tariff escalation,' ESCWA stated, warning that policy inaction could expose vulnerable economies to prolonged disruptions.
Egypt Today
05-03-2025
- Business
- Egypt Today
Egyptian, Moroccan FMs exchange views on issues of joint concern
CAIRO – 5 March 2025: Minister of Foreign Affairs and Immigration Badr Abdelatty received Tuesday his Moroccan counterpart, Nasser Burrita, to discuss bilateral relations, and Egyptian efforts aimed at the sustainability of the ceasefire in Gaza, acceleration of humanitarian aid delivery, and kickstarting early recovery and reconstruction. Minister Abdelatty reiterated rejection to the displacement of Palestinians from Gaza, and the necessity of establishing a Palestinian state on the borders of June 4, 1967 having as capital Eastern Jerusalem. The two ministers also exchanged views on matters and issues of joint interest. Secretary-General of the Exporters Division and Chairman of the African Affairs Committee at the General Union of the Chambers of Commerce Ahmed Zaki told Al Shorouk newspaper on February 20 that Morocco had suspended the entry of Egyptian goods a few weeks earlier as a response to not fully implementing Agadir Agreement by Egypt. The agreement – signed in 2004 - allows free trade among Egypt, Morocco, Tunisia, and Jordan. Morocco objects that Egypt does not import cars manufactured in the country. Further, Member of the Exporters and Importers Division at Giza Chamber of Commerce Sherif al-Barbary told the same newspaper that Egypt had often banned the entry of Moroccan imports for not meeting quality standards or being counterfeit of global brands. The size of annual trade exchange between Egypt and Morocco is $1.3 billion. Also, the Egyptian market houses 295 Moroccan enterprises investing around $230 million. The value of Egyptian exports to Morocco ranges between $800-900 million per annum, and they include ceramic, food, vegetables, fruits, iron, cement, coal, home appliances and electronics. Earlier this week, Egypt's Minister of Investment Hassan al-Khatib held a visit to Morocco to "confer over ways to bolster economic bilateral ties," as indicated in a press statement. The Moroccan foreign minister was present in Cairo to attend the Emergency Arab Summit on Gaza that took place Tuesday.
