Morocco recently approved an amendment of the Morocco-Turkey Free Trade Agreement (FTA), raising customs duties by up to 90 per cent on 1,200 Turkish goods for a five-year period. The amendment falls under Bill No 54.20, which both signed on August 24 after reviewing their FTA. It aims to reduce $1.2 billion trade deficit with Turkey and fix trade imbalances.
The north African country’s trade balance with Turkey has largely experienced a deficit since 2006. In January, Morocco’s minister of industry Moulay Hafid Elalamy said the country loses $2 billion annually through its trade deal with Turkey. He added that the Turkish textile industry cost Morocco 44,000 jobs in 2017.Morocco recently approved an amendment of the Morocco-Turkey Free Trade Agreement (FTA), raising customs duties by up to 90 per cent on 1,200 Turkish goods for a five-year period. The amendment falls under Bill No 54.20, which both signed on August 24 after reviewing their FTA. It aims to reduce $1.2 billion trade deficit with Turkey and fix trade imbalances#
The hike in Moroccan tax will apply primarily to textiles and clothing, leather, automotive, metallurgy, wood and electricity imported from Turkey, according to media reports from north Africa.
Rabat had requested a review of some clauses of the FTA signed with Ankara in 2004 after its domestic industries and businesses suffered a loss following entry into force of the accord in 2006.
Moroccan authorities also complained about lack of Turkish investments in the country compared with other trade partners like the European Union and the United States.
While EU investments account for over 71 per cent of the volume of foreign investments in Morocco and US investments reached 6 per cent of the total foreign investments there, Turkish investments in Morocco represent less than 1 per cent.
Fibre2Fashion News Desk (DS)
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