The Agadir Agreement is open to all Arab countries that are members of the Arab League and the Greater Saudi Free Trade Area and linked to the EU through an association agreement or a free trade agreement. Its aim is to facilitate integration between Arab states and the EU within the wider Mediterranean process, but it also has other consequences. Rabat – The volume of trade between Egypt and Morocco amounted to $681 million in 2019, which has continued to increase steadily in recent years. In 1999, Egypt renewed its support for Morocco`s territorial integrity. “Egypt has always supported Morocco`s efforts to improve its territorial integrity,” Egyptian Deputy Foreign Minister Jamal-Eddine Bayoumi told Moroccan daily Al-Mounaataf, referring to Morocco`s recapture of Western Sahara. Bayoumi also stressed the need for Morocco and Egypt to strengthen trade relations between Arab states. [Citation required] Al Tazy also called for the promotion of economic relations and the promotion of partnerships between the Moroccan and Egyptian private sectors in order to create promising investment opportunities in both countries. Egypt is a signatory to several multilateral trade agreements: Morocco`s ambassador has expressed the country`s interest in improving its economic relations with Egypt, given the deep-seated historical and political relations between the two countries. In 2016, the agreement was revived after six years of inactivity. In April, Lebanon and Palestine joined the trade pact. Five protocols and two memorandums were also signed. In November 2008, the members of the Agadir Agreement signed a protocol on textile trade.

Overall, however, the impact of the agreement on the economy and policymakers remained “below expectations.” Egypt is the main beneficiary of trade relations and has reached $540 million in exports to Morocco in 2019. Relations between Morocco and Egypt focus on bilateral relations between the Kingdom of Morocco and the Arab Republic of Egypt. Since independence, the two nations have enjoyed warm relations. Both countries are members of the Arab League, the GAFTA, the WTO, the Non-Aligned Development Movement, the Organization of Islamic Cooperation, the Arab Economic Unity Council and the United Nations. In addition, Egypt has signed several bilateral agreements with Arab countries: Jordan (December 1999), Lebanon (March 1999), Libya (January 1991), Morocco (April 1999), Syria (December 1991) and Tunisia (March 1999). In addition, Egypt and China entered into a trade agreement in 1995. Egypt has also signed an economic treaty with Russia. In June 2001, Egypt signed an Association Agreement with the European Union (EU), which came into force on 1 June 2004.

The agreement provided for immediate duty-free access of Egyptian products to EU markets, while duty-free access for EU products was phased in over a 12-year period. In 2010, Egypt and the EU concluded an agricultural annex to their free trade agreement and liberalized trade in more than 90% of agricultural goods. An important feature of the Agadir agreement is that it uses EU rules of origin. These are at odds with US rules of origin, making it more difficult for the countries of the Mediterranean and the Middle East to apply both in their trade relations with the two competing power blocs. The EU allows its partners in the Free Trade Agreement in the Mediterranean to accumulate added value. This means that it turns a blind eye to where value added has been added for preferential tariffs as long as it is in a country that is a partner of the free trade agreement.