Turkish clothes will now be very expensive for all in Morocco!
All companies purchasing imported apparels and textiles from Turkey to sell in Morocco will have to pay a tax of 27 per cent, effective since 1 January 2020.
And this is despite both the countries having signed free trade agreement (FTA) back in 2004. Ever since the FTA was implemented, the textile trade relations between both the countries have been on rise.
In 2018, sales of textiles from Turkey to Morocco, reportedly, clocked an impressive US $ 1 billion. However, lately, there have been reports of Turkey creating hurdles in Moroccan imports.
The situation has been so alarming that Moulay Hafid Elalamy, Morocco’s Minister of Trade, threatened to take Morocco out of the FTA with Turkey.
The 2020 Finance Bill increased the tariffs on items taxed at 25 to 30 per cent. As the rate on Turkish textiles was set to 90 per cent of the tariff rate, it jumped from 22.5 per cent to 27 per cent.