Morocco trade deficit with Turkey worsened by 5.8 billion DH in 2021, standing at 23.2 billion, following a 31.8% jump in Moroccan imports of Turkish origin. Those falling within the framework of the Free Trade Agreement reached a record level of 22.5 billion DH, after the slight drop recorded in 2020.
Will the entry into force of the new version of the Free Trade Agreement (FTA) between Morocco and Turkey last May help alleviate the imbalance in bilateral trade? The future will tell. In the meantime, the figures for last year show that this imbalance is going crescendo. Indeed, the Annual Report of Morocco’s Foreign Trade for 2021 published by the Foreign Exchange Office shows that Morocco’s trade deficit with Turkey stood overall at 23.2 billion DH, ie a deterioration of 5.8 billion compared to the previous year. And this following a jump in Moroccan imports of Turkish origin which increased by 31.8% in 2021, standing at 30.4 billion DH, when exports barely reached 7.19 billion. DH, up 25.9%. This rise is also observed in Moroccan imports from Turkey, which fall within the framework of the free trade agreement between the two countries. They reach, in fact, a record level of 22.5 billion DH, after the slight drop recorded in 2020. They are up 22.7% compared to the previous year and represent 74% of total Moroccan imports. originating from Turkey.
This performance places the agreement with Turkey in second place with 13.1% of total imports made under FTAs. By product group, it is the raw products of mineral origin which come first, an increase of 40.5% to 111 million DH. They are followed by finished consumer products (+35.5% to 8.91 billion DH) and food, beverages and tobacco (+33.3% to 24 million DH), in particular. With regard to the most imported products, household appliances, in particular refrigerators, dishwashers and other household products, are gaining ground with an increase of 51%, last year, to 722 million DH. The Top 3 is completed by bandages and tires (+42.7% to 752 million DH) and semi-finished products in iron or non-alloy steel (+40.2% to 1.93 billion DH).
It should also be noted that the Morocco Turkey FTA has been amended. This update, which came into effect on May 2, 2022, provides for two lists of goods. The first relates to a customs duty equivalent to 90% of the MFN (Most Favored Nation) tariff, upon entry into force. The second is also subject to a customs duty, equivalent to 90% of the MFN tariff, on the expiry dates of the safeguard measures concerning them. In addition, more generally, imports made under FTAs increased by 22.3% in 2021. However, their contribution to total imports recorded a slight decline from 33.2% in 2020 to 32.6 % Last year. These imports remain, all the same, dominated by the Agreement with the European Union, with a share of 69.9% at 120.3 billion DH.
