Morocco is set to review its free trade agreement with Turkey as the country grapples with a widening trade deficit that reached $3 billion in 2024. The decision reflects concerns within the Moroccan government over the growing imbalance in bilateral trade and its impact on domestic industries, particularly in the textile sector.
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Signed in 2004, the Morocco–Turkey free trade agreement significantly expanded commercial ties between the two countries. However, Moroccan officials now argue that the current structure of the deal disproportionately benefits Turkish exporters. According to sources close to the matter, Moroccan Trade Secretary Omar Hjira is preparing to travel to Ankara to discuss potential adjustments to the agreement.
Moroccan textile manufacturers have long voiced concern over competition from Turkish imports, especially in fabrics and ready-made garments. Although the government imposed tariffs of up to 90% on Turkish textile and clothing imports in April 2022 to protect local producers, trade volumes in these categories have remained high.
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Despite these measures, Turkish goods, particularly intermediate textiles continue to dominate supply chains for Morocco’s apparel industry. This dependence has complicated efforts to reduce the trade gap and promote domestic sourcing.
The broader trade context also plays a role. Morocco’s overall trade deficit grew by 22.8% in the first quarter of 2025, reaching nearly 109 billion dirhams (about $11 billion). Imports have surged across various sectors, including consumer goods and raw materials, while export growth has remained moderate.
Officials in Rabat are reportedly exploring options to balance trade through investment commitments from Turkish firms or by revising sector-specific terms within the agreement. The government is also reviewing similar deals with other countries, including Egypt, as part of a wider policy shift to safeguard Morocco’s industrial base and reduce reliance on foreign imports.
The reassessment of the Turkey agreement marks a broader shift in Morocco’s trade policy strategy, one increasingly focused on correcting structural imbalances and fostering greater economic resilience. Negotiations with Turkish counterparts are expected to begin in the coming weeks.
