Morocco-Egypt: the significant trade gap that weighs down a strategic partnership

On April 6, 2026, Egypt and Morocco convened the inaugural session of their Coordination and Monitoring Committee in Cairo. The two heads of government, Aziz Akhannouch and Mostafa Madbouly, oversaw a series of agreements spanning multiple sectors.

The atmosphere was positive. Yet the numbers tell a different story. The two parties pledged to ease customs procedures and facilitate the movement of goods and capital. If implemented, this commitment would mark a first, as the Egyptian market has long been one of the most difficult for Moroccan exporters to access.

A deficit of 10.7 billion MAD: the anomaly in the numbers

To gauge the scale of the anomaly: out of 11.4 billion MAD in trade in 2025, Morocco accounted for only 1.6% of exports. The trade deficit reached 10.7 billion MAD.

The GOEIC registry: Egypt’s administrative tool of protectionism

The most formidable mechanism is discreet, technocratic, and difficult to challenge directly. It is the registry system for factories and brands managed by the GOEIC, established under Egyptian Ministerial Decree 43 of 2016.

This decree stipulates that certain product categories can only clear customs if they originate from factories or brand owners registered in the system, subject to stringent documentation requirements and potential on‑site inspections.

The result is an administrative filter that, while not formally prohibiting market access, renders it complex and costly enough to discourage many foreign exporters. Behind the rhetoric of free trade, Egypt has over the years accumulated disputes related to dumping practices across various products, in addition to these administrative barriers.

A breakthrough in 2025, but still insufficient

Moroccan pressure began to yield results — and the numbers confirm it.

In an early 2025 meeting between the Industry Ministries of both countries, six points of agreement were reached, including two crucial ones:

- Committing to boost Moroccan exports, particularly automobiles;
- Establishing an Egyptian Fast Track to expedite access for Moroccan products.

The results are evident. Total exports to Egypt surged from 754.9 million MAD to 1.6 billion MAD, a 106.7% increase.

Automobile exports, a focal point of discussions, rose by 253.3% to reach 492.8 million MAD. However, it would be premature to claim victory. These 492.8 million MAD of automobiles exported to Egypt represent only 0.4% of Morocco’s total automotive exports.

Egypt, with its 118 million consumers, remains one of Africa's largest markets - with Morocco still being a marginal supplier. At the Egyptian-Moroccan Investment Forum in Cairo on May 4, 2025, Egyptian Minister Hassan El Khatib himself indicated that the current figures did not reflect the potential of Moroccan exports to Egypt. A diplomatically worded admission that speaks volumes.

A structural imbalance that one summit cannot fix

The Cairo session on April 6 laid the groundwork. However, no one should expect miracles overnight.

Part of the trade imbalance is structural: Egypt maintains a real cost advantage in several labor-intensive sectors, due to low wages, a significant devaluation of the pound, and substantial public support for exports.

Egypt's macroeconomic constraints also play a role. The IMF highlights that interest payments, partly in foreign currency, absorb about 73% of public revenues, severely limiting fiscal flexibility.

In this context, any increase in imports adds pressure on foreign exchange reserves closely monitored by Cairo - giving Egyptian protectionism a survival rationale, not just commercial opportunism.

The real test for this partnership will not be the number of agreements signed but Morocco's ability to establish, over time, symmetrical access to a market that has long played the game of one-way free trade.

REFERENCE: WHAT IS THE GOEIC?

The General Organization for Export and Import Control is the Egyptian body managing the registry of foreign factories and brands eligible to export to Egypt. Its official role is quality control; its practical effect is to act as a gatekeeper for imported products.