Morocco and Egypt could teach the US a thing or two on how to solve a trade imbalance dispute — without plunging your economy in the process. Egypt is preparing to receive a Moroccan government delegation in the coming weeks to continue talks on resolving a trade imbalance between the two countries, two government sources told EnterpriseAM.

The talks come after Morocco raised objections earlier this year to a widening trade deficit in Egypt’s favor, which resulted in new restrictions holding up some 150 containers loaded with ceramics, food products, and insulation materials at Moroccan ports, according to a government official who previously spoke with EnterpriseAM. Investment Minister Hassan El Khatib was soon dispatched to Rabat and agreed with his Moroccan counterpart to establish a “direct line of communication” to address any trade issues that arise, the fast tracking of Moroccan exports into Egypt, and increasing efforts to promote Egyptian imports of Moroccan-made goods — especially for automobiles.

The latest round of talks will build on agreements made during El Khatib’s February visit, one source said. This includes plans to set up a joint investment forum between the two countries and the nitty-gritty of how they will address the trade balance between them.

Fixing the trade imbalance will be no easy task, with Egyptian exports to Morocco reaching some USD 1 bn last year, while Egypt imported less than USD 50 mn worth of goods from Morocco, according to data from state statistics agency Capmas seen by EnterpriseAM. However, this hasn’t always been the case, with the trade imbalance between the two having been in the opposite direction until 2016.

Rabat already has import restrictions and anti-dumping measures on some Egyptian goods — and more could be on their way: Our North African neighbor already has restrictions on Egyptian air conditioning units due to a lack of local components, a 35% anti-dumping duty on Egyptian carpets, and a five-year 35% anti-dumping duty on canned tomatoes exported from Egypt.

More anti-dumping duties on Egyptian exports to come? Moroccan authorities recently launched an anti-dumping investigation into imports of galvanized wire from Egypt and the UAE, following a complaint by four Moroccan companies — Somatref, Sicotrem, GalvaFil, and Sodefer. The companies claimed that Egyptian and Emirati imports of galvanized wire are being dumped into the Moroccan market at unfair prices compared to their domestic counterparts.

Egypt and the UAE have until 17 April to submit written comments, and Morocco has extended direct invitations to producers in both countries to participate in the probe. Chamber of Metallurgical Industries head Mohamed Hanafy told EnterpriseAM that the chamber has yet to receive formal notice about the probe but plans to reach out to Moroccan authorities for clarity.

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