Free Trade Agreement Between Turkey and Morocco: A Boost in Bilateral Trade
In today`s global economy, bilateral trade agreements have become an integral part of economic growth and cooperation between nations. One such agreement that is worth mentioning is the Free Trade Agreement (FTA) between Turkey and Morocco. The agreement has been in force since 2006 and has opened up a plethora of opportunities for businesses in both countries.
The FTA between Turkey and Morocco has played a vital role in strengthening economic ties between the two nations. It has significantly increased bilateral trade between the two countries, which was worth around $2 billion in 2020. The agreement has helped eliminate most of the bilateral trade barriers that were hindering trade between the two nations. Consequently, businesses in both countries have been able to access new markets, tap into new consumer bases, and increase their revenue.
Under the FTA, Turkey and Morocco have eliminated tariffs on most of the traded goods. This has effectively reduced the cost of trading, making it more affordable for businesses on both sides. The elimination of tariffs has also helped in promoting the export of products that were not traded between the two nations before, such as textiles, chemicals, and machinery.
The FTA has also created a conducive environment for businesses to invest in each other`s country. This has brought about an increase in foreign direct investment (FDI) between Turkey and Morocco. Businesses in Turkey have invested in various sectors in Morocco, including agriculture, chemicals, textiles, construction, and tourism. Similarly, Moroccan companies have invested in Turkey`s construction, banking, energy, and tourism sectors.
Moreover, the FTA has encouraged the exchange of knowledge, technology, and expertise between the two countries. Businesses have been able to share skills and best practices, creating opportunities for innovation and growth. This has led to the transfer of technology, which has led to the creation of new products and new markets.
In conclusion, the Free Trade Agreement between Turkey and Morocco has undoubtedly had a positive impact on bilateral trade between the two nations. The agreement has created significant opportunities for increased trade, investment, and technological exchange. With the ongoing efforts to improve the FTA, businesses in Turkey and Morocco can undoubtedly look forward to continued growth and expansion.