The countries were supposed to negotiate the FTA this week as the period that Morocco set out to review the agreement with Turkey expires today.
Rabat – Morocco’s government announced that Turkey wants an additional week before the upcoming meeting to decide on the fate of the Free Trade Agreement (FTA).
Earlier this month, Morocco’s Minister of Industry Moulay Hafid Elalamy said that the two countries have 15 days to find a mutually beneficial solution to save the FTA, or to dissolve it.
The decision comes in response to the negative impacts of the FTA with Turkey on Morocco’s economy.
The Spokesperson of the Government Hassan Abyaba announced the news at a press briefing after the Government Council.
“FTAs can be reviewed depends on the mutual benefits of exchanging goods and services. Morocco has all the right to review any agreement on this basis,” Abyaba said.
The statement echoes remarks made by Elalamy during the visit of Turkish Trade Minister Ruhsar Pekcan to Morocco on January 15.
During her talks with Elalamy, the two officials said they would meet again after 15 days to decide on the agreement.
If the two countries cannot reach a mutually beneficial solution within the specified period, Morocco will have no choice but to walk out of the agreement.
The decision is due to the losses that Morocco’s economy suffered due to the deal, the official said. In a previous statement, Elalamy stated that the country loses $2 billion annually due to its trade deal with Turkey.
Moroccan exports to Turkey have dropped by 3.5%, standing at only $690 million. Meanwhile, Turkish exports to Morocco have reached $2.3 billion annually.