Egypt and Morocco Engage in Quiet Economic War Over Trade Restrictions

Cairo, Egypt & Rabat, Morocco – February 23, 2025

A discreet economic conflict has erupted between North African powerhouses Egypt and Morocco, threatening billions of dollars in bilateral trade. The tension stems from Egypt’s alleged suspension of Moroccan car imports, prompting Morocco to retaliate by blocking Egyptian goods from transiting through the critical Tanger Med port. This escalating trade dispute, highlighted in a February 21, 2025, X post by @larevueafrique, could disrupt regional commerce and strain diplomatic ties unless resolved swiftly.

Background of the Trade Dispute

Egypt and Morocco, key players in North African and African Union economies, have long collaborated under regional trade agreements like the Agadir Agreement (2004), which fosters a free trade zone with Tunisia and Jordan, linking to European markets (EU trade relations with Egypt). In 2023, Egyptian exports to Morocco reached $953 million, primarily consisting of video displays, polymers, and tropical fruits, while Moroccan exports to Egypt totaled $44.2 million, led by cars, insulated wire, and coffee extracts (Egypt (EGY) and Morocco (MAR) Trade | The Observatory of Economic Complexity). However, recent moves suggest underlying tensions over trade imbalances and national economic priorities.

Egypt’s Alleged Suspension of Moroccan Car Imports

According to a report by the Moroccan media outlet @Moroccolitik, cited in @larevueafrique’s X post, Egypt has suspended imports of Moroccan cars, a decision not officially confirmed by Egyptian authorities in available data. This move may stem from Egypt’s efforts to manage foreign currency reserves and protect its domestic automotive industry, which has faced challenges due to political instability and import restrictions since 2011 (Egypt’s import restrictions are a double-edged sword - The Africa Report). Historical precedents, such as Egypt’s temporary 2022 ban on Moroccan Renault Tanger vehicles—later resolved—suggest a pattern of occasional trade barriers (Export-Automobile: L’Egypte met fin à l’interdiction d’importer des voitures particulières produites au Maroc | le360.ma).

Morocco’s Retaliatory Measures at Tanger Med

In response, Morocco has restricted Egyptian goods from passing through Tanger Med, a strategic port 45 km northeast of Tangier with a capacity of 9 million containers annually, serving as a vital hub for trade with Europe and Africa (Tanger Med - Wikipedia). Reports from FinTech Gate and Al-Intifada indicate that this measure, implemented since January 2025, blocks key Egyptian exports like ceramics, fruits, vegetables, iron, cement, and electrical appliances (Sources reveal full story of Morocco’s decision to ban Egyptian goods entry.. Is Egypt preparing a countermeasure? | FinTech Gate, Morocco takes this decision against Egypt – Al-Intifada). Over 100 Egyptian containers are reportedly stranded in Casablanca, prompting some companies to suspend exports or reroute via Europe, increasing costs and delaying deliveries.

Underlying Causes: Trade Imbalances and Economic Policies

Unofficial sources, including FinTech Gate, attribute Morocco’s actions to a significant trade imbalance, with Egypt holding an $800 million export surplus in 2023 compared to Morocco’s $40 million in exports (Egypt (EGY) and Morocco (MAR) Trade | The Observatory of Economic Complexity). Morocco may be leveraging these restrictions to pressure Egypt into fully honoring the Agadir Agreement, ensuring market access for Moroccan goods, including cars. Additionally, Egypt has occasionally imposed technical restrictions on Moroccan exports for quality concerns, further straining relations (Morocco takes this decision against Egypt – Al-Intifada).

Economic and Logistical Impacts

The Tanger Med blockade disrupts Egyptian supply chains, affecting industries critical to its economy. Egyptian businesses face higher transportation costs and delays, with some exploring costlier European routes, potentially reducing competitiveness (Sources reveal full story of Morocco’s decision to ban Egyptian goods entry.. Is Egypt preparing a countermeasure? | FinTech Gate). For Morocco, prolonged restrictions could damage Tanger Med’s reputation as a reliable logistics hub, potentially affecting its role in regional trade networks.

Future Outlook and Challenges

Egypt denies officially suspending Moroccan car imports, suggesting a possible misunderstanding or unpublicized measure, which could prompt diplomatic talks to clarify positions (Sources reveal full story of Morocco’s decision to ban Egyptian goods entry.. Is Egypt preparing a countermeasure? | FinTech Gate). Resolving this conflict will require negotiations to reassess trade agreements, ensure compliance with the AfCFTA (African Continental Free Trade Area), and prevent further escalation, preserving the economic ties critical for both nations’ growth.

Summary of Actions and Impacts

Conclusion

This economic standoff highlights the challenges of regional trade cooperation, where trade imbalances and national priorities can lead to protectionist measures. As Egypt and Morocco are pivotal to Africa’s economic landscape, swift resolution is crucial to maintain their partnership and support regio