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Morocco flags widening trade deficit with Türkiye topping $3B, plans new curbs

Shipping containers and cranes are seen at a commercial port in Türkiye, accessed on June 20, 2025. (Adobe Stock Photo)
Shipping containers and cranes are seen at a commercial port in Türkiye, accessed on June 20, 2025. (Adobe Stock Photo)
June 20, 2025 05:07 PM GMT+03:00

Morocco is reportedly preparing to reassess its free trade agreement (FTA) with Türkiye to reduce a growing trade deficit that has reached approximately $3 billion, primarily driven by imports of Turkish fabric.

The trade agreement between Morocco and Türkiye, signed in 2004 and enforced in 2006, was amended five years ago following mounting concerns from Moroccan manufacturers. These changes included the imposition of a 90% tariff on Turkish textile and clothing imports, with the goal of protecting local producers and jobs in the textile sector.

Despite this safeguard, Moroccan companies continue to rely heavily on Turkish fabric. Industry representatives argue that local sourcing remains limited, forcing apparel manufacturers to import materials to meet domestic and international demand. This dependency has not only widened Morocco’s import bill but also placed pressure on its industrial base.

Trade Minister Hjira to hold talks in Türkiye over mounting deficit

The Moroccan Minister Delegate in charge of trade, Omar Hjira, is expected to visit Türkiye—Morocco’s sixth-largest trading partner—in the near future. During his trip, Hjira will hold meetings with Turkish officials to discuss measures aimed at rebalancing the trade relationship. Sources familiar with the matter said Moroccan authorities are increasingly concerned about the impact of the trade imbalance on domestic industries.

The Moroccan government also intends to encourage further Turkish investment in the country as part of this recalibration, according to sources cited by Reuters.

Exterior view of the Türkiye's Trade Ministry headquarters in Ankara, Türkiye, taken on Jan. 8, 2025. (AA Photo)
Exterior view of the Türkiye's Trade Ministry headquarters in Ankara, Türkiye, taken on Jan. 8, 2025. (AA Photo)

Deficit with Türkiye ranks third globally for Morocco

Official data show that Morocco’s overall trade deficit rose by 22.8% year-over-year, reaching 109 billion Moroccan dirham ($10.9 billion) in the first four months of 2025. In 2024, the trade gap stood at 306 billion Moroccan dirham. Türkiye is Morocco’s third-largest trade deficit partner, after the United States and China.

Beyond textiles, Moroccan officials have pointed to a noticeable increase in imports of Turkish white goods, furniture, and automotive components. They argue that this trend undermines Morocco’s industrialization goals and the competitiveness of local producers.

Three-pronged strategy to guide new negotiations

According to the sources, upcoming talks between Moroccan and Turkish officials will focus on three main priorities, Morocco World News reported. Morocco aims to secure greater market access for its exports to Türkiye, with a particular focus on the fishing and agro-industry sectors. It is also seeking to increase local sourcing by Turkish firms operating within the country. A recent partnership with Turkish retail chain BIM Maroc—committed to sourcing 80% of its agri-food products locally by 2025—may serve as a model for this approach.

Third, the parties will revisit the list of goods excluded from the FTA. Moroccan authorities are considering adjustments to items already targeted by trade defense measures. One example is Turkish electric ovens, which are currently subject to a five-year anti-dumping duty.

Morocco’s approach to the Türkiye FTA is part of a broader effort to revise its international trade agreements to better align with domestic industrial policy. Earlier this year, Rabat launched similar negotiations with Egypt, introducing a “Fast Track” mechanism designed to facilitate Moroccan exports, particularly in the automotive sector.

June 20, 2025 05:07 PM GMT+03:00
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