Efforts to achieve “a more balanced trade relationship” between Egypt and Morocco 

Morocco has imposed temporary anti-dumping Tariff on Egyptian polyvinyl chloride imports, Moroccan news outlet Hespress reports, citing a circular from the country’s Customs and Indirect Tax Administration. The move will see duties on the material — known more commonly by its acronym PVC — of up to 92.2% imposed on shipments from Egypt for a four-month period starting last Friday. after its investigation found that they are illegally dumping its market, or exporting at below normal cost.

An announcement carried by the local media

In an announcement carried by the local media this week, the ministry said significant dumping by those exporters have damaged local producers, including lost market share, declining profitability and downward pressure on domestic prices. PVC – polyvinyl chloride – is a durable thermoplastic polymer used in applications such as pipes, window profiles, wire insulation, flooring and medical devices. 

Market probe results

The ministry said market probe results found that Egyptian PVC exporters were selling their products in the local market at prices lower than in Egypt’s market. “The investigation found a causal link between the surge in imports and serious damage to local producers. As a result, Morocco has decided to implement final anti-dumping duties on Egyptian PVC imports,” the ministry said.

A tariff of almost 75 percent

The measure applies a tariff of almost 75 percent to products from the Egyptian Petrochemicals Company, which cooperated with the investigation. Other non-cooperating Egyptian exporters will face a higher duty of more than 92 percent.“The ministry emphasises that the duties aim to protect the national PVC industry from unfair foreign competition while maintaining a fair trade environment,” the announcement said.

A free trade pact

Despite their geographic proximity and the existence of a free trade pact, ( The Agadir Agreement )  commercial relations between Egypt and Morocco have been tense over the past period because of those practices and Morocco’s large deficit in its trade with Egypt t according to Some Morocco Media

Narrow the trade imbalance between two countries

On the other hand, Egypt’s imports from Morocco plunged by 69 percent to $46 million from $149.2 million during the same period. During recent talks in Cairo, Egyptian minister of investment and foreign trade Hassan El-Khatib called for efforts to achieve “a more balanced trade relationship” between the two countries Omar Hejira, Moroccan secretary of state for foreign trade, said he discussed with El-Khatib “practical mechanisms to support Moroccan exports to Egypt to narrow the trade imbalance that has long characterised bilateral exchanges”.

 The Agadir Agreement

It is noteworthy that the Agadir Agreement is a free trade agreement between Egypt, Jordan, Morocco and Tunisia. Named after the Moroccan city of Agadir, where the process to set up the pact was launched in May 2001, it was signed in Rabat in February 2004 and came into force in March 2007.

The Agadir Agreement is open to further membership by all Arab countries that are members of the Arab League and the Greater Arab Free Trade Area, and linked to the EU through an Association Agreement or an FTA. Its purpose is to facilitate integration between Arab states and the EU under the broader EU-Mediterranean process, but it has other ramifications as well.

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Omar Hejira, Hassan El-Khatib ,Morocco ,anti-dumping tariff ,Egypt’s PVC exports , free trade pact,The Agadir Agreement