Agadir Agreement Egypt

The Agadir Agreement is a free trade agreement between Egypt, Jordan, Morocco and Tunisia. Named after the Moroccan city of Agadir, where the process of creating the pact was launched in May 2001, it was signed in Rabat in February 2004 and came into force in March 2007. 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. Just two weeks after it came into force, conflicts erupted between the Agadir agreement and the free trade agreement between the United States and Morocco. As part of the E FREI trade agreement in the United States, Morocco has agreed not to reduce tariffs on certain agricultural imports from third countries that are not net exporters of these products. The Arab countries that, under the Agadir agreement, expected that agricultural products would be sold to Morocco will inevitably be passed on. 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. The United States, with the exception of special regimes such as those for export processing areas, considers only domestic value added in the country exporting to the United States. These conflicting regimes give the EU an advantage in competition with Washington to secure a Euro-Mediterranean free trade agreement as a counter-power to the free trade agreement between the US and the Middle East.