Free Trade Agreement - the United States of America: A potential market for Moroccan exporters!

The conclusion of a free trade agreement with the United States of America is part of the overall strategy of the opening of the Moroccan economy in the world market. With an exclusively economic and free trade. The agreement of free trade with the United States aims to organize the development of free trade in goods and services between the two countries. It also helps to consolidate the reform process and economic modernization undertaken by Morocco for several years.

Negotiating the free trade agreement (FTA) between Morocco and the United States is the consecration of a bilateral process marked by a series of economic agreements between the two countries: the Agreement on Double Taxation of 1977 investment agreement in 1985 and finally the Trade and Investment Framework Agreement (TIFA) signed in 1995. The TIFA is a preliminary step to the conclusion of an agreement of free trade. Launched in January 2003, the FTA negotiations have been seven rounds and ended in March 2004. Coordinated by the Ministry of Foreign Affairs and Cooperation. Meetings were held with various government departments and representatives of various professional associations and federations. This approach based on consultation and dialogue between national economic actors was to get the most out of this agreement and to agree on a common and consistent Moroccan position.

Opportunities for Morocco:

 Free trade between Morocco and the United States are low. The United States is the sixth customer of Morocco and its ninth provider. Morocco meanwhile ranks only 73rd largest trading partner of the United States. Economists argue that the FTA with the United States is great importance for Morocco.Moroccan exporters to give it a more open U.S. market and importers of Morocco a more competitive level of supply sources. In addition, the free trade agreement presents a significant potential for growth in U.S. investment flows. It aims to develop the attractiveness of Morocco as well for U.S. investors wishing to settle in Morocco and exported to the United States, Europe, Africa or the Arab world, as for other companies countries wanting to enter the U.S. market on preferential terms. In short the opportunities in Morocco by the conclusion of the FTA with the United States-United are as follows: a real opportunity to significantly increase exports to the United States - USA, improving the competitiveness of Morocco  of attractiveness of the investment. Enhancement of Morocco as a platform for production and export.

1. Exports to the United States represents 2.9% of total Moroccan exports or MDH 2793. 

2. Exports to Morocco are 0, 08% of total U.S. exports.

3. Imports from the United States represent 3.4% of total Moroccan imports, or MDH 4382.

4. Imports from the United States from Morocco represent 0.03% of U.S. total imports.

Market Access Moroccan and American

In terms of market access a tariff schedule has been set to five baskets and will be applied upon the entry into force of the Agreement. Morocco has been able to get free trade access to almost all of the industrial and Moroccan fisheries in the U.S. market. Or an exemption from 99.73% of Moroccan exports upon entry into force of the Agreement. The dismantling of import duties on goods of U.S.  

origin to Morocco has been set as follows:

• products manufactured in Morocco are in the basket and one will be dismantled over a period of 9 years (to 0% in 2013 if the agreement comes into force in 2005) 

• products not manufactured locally were distributed among the baskets 1, 2 and 3 and will be completely exonerated of 5 years

• used products are placed in the basket and will be 5 then dismantled over 10 years. Different sectors are affected by the FTA with the United States: food industry, textile, clothing and leather industries, telecommunications and e-commerce, intellectual property, etc..

Testimonials food industry professionals

The conclusion of the FTA with the United States has pushed operators of food to explore the potential of this "mega-market" and to equate the conditions of access. Among the associations and federations in the sector who were involved in this agreement. We are the Federation of Agri-Food (FENAGRI). The Federation of canned products (FICOPAM). The association of exporters fruit and vegetables (the APEFEL). The National Federation of mills, semolina Morocco and the national association of red meat. The Director General of the establishment of autonomous control and coordination of exports (EACCE) argues that the U.S. market with very high consumption potential in fact consists of a multitude of highly segmented markets according to regional criteria, demographic , ethnic, etc. The exporter is required to identify a market niche in which it has a competitive advantage. He added that "if the standards of distribution, delivery times and commercial guidelines are met the relationship between the two parties can be sustainable." For its part the Director of Industrial Production, Ministry of Industry, Trade and upgrade of the economy, see the standards and sanitary conditions of free trade access are not really impassable. "They are certainly very strict but clear and precise. If the procedures are strictly adhered to market access takes place without much difficulty "says he Professionals in the field are expected to pool their efforts to seize the opportunities that are offered by the FTA with the United States. Access to the U.S. market will probably diversifying markets for Moroccan industrial exports.

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Free trade agreements

                                                                         

"A free trade agreement will support the bold economic reforms undertaken by Morocco, will create economic opportunities for our two peoples and strengthen our relationships with a key partner."

- Robert B. Zoellick, U.S. Representative for International Trade

"I interpret the U.S. decision to negotiate a free trade agreement with Morocco as encouragement to significant political and economic reforms undertaken by the Kingdom and a powerful tool for development of bilateral relations."

- Taib Fassi Fihri, Minister for Foreign Affairs and Cooperation, Kingdom of Morocco

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Free Trade the proliferation of agreements creates new opportunities

The current proliferation of free trade agreements, bilateral and regional trade is a new phenomenon

Everyone knows that the "development round". The Doha Round launched in November 2001 in the wake of the September 11 attacks to balance the economic and free trade relations between emerging and developed countries has since repeatedly interrupted and now seems stalled. The consequences of a failure of the WTO negotiations would certainly be disastrous for multilateral-ism in a tough economic climate in which art here and there a temptation of protectionism free trade

It is not clear that these consequences are too heavy for tariff reductions. Indeed since nature abhors a vacuum the bilateral or regional preferential agreements seem to have taken over from multilateral negotiations. Over a hundred agreements have been signed or renegotiated during the past 10 years whether unilateral as the Community GSP (generalized system of preferences was renewed late 2010) or reciprocal agreements such as free trade .

The "great" Asian Theater of these special agreements
The "great" Asia is going to Indonesia to Korea was the scene of special agreements. The desire for regional integration is at the origin of the free trade agreement - ACFTA (ASEAN-China Free Trade Area) - signed in 2004 between China and its partners in ASEAN (Association of Southeast Asian East). He joined in early 2010 a decisive phase by eliminating customs duties for more than 90% of revenue. This free trade area is now the first in the world by the number of inhabitants and the third by value of free  trading.
This agreement is far from isolated. ASEAN has signed other called to enter into force gradually over the next 15 years that between the ASEAN countries themselves (2010) with India (2021), Japan (2026) and Korea (2018). India has in turn signed February 2 current free trade agreements with Japan and Malaysia. For the latter the goal is to double free  trade in record time by 2015. The European Union is no exception, despite the failure of negotiations in July 2007 with seven of the 10 ASEAN countries and finally suspended in late 2009 because of difficulties related to the heterogeneity of the area. She preferred bilateral negotiations with Singapore and Malaysia which should result in 2011 in conjunction with the agreement with Canada. The agreement with South Korea approved February 17 with a safeguard clause shall enter into force in principle in July 2011. 

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Free trade is an opportunity

Since the mid-1990s Morocco has embarked on an ambitious process of opening its free trade borders. Many treaties and free trade are in force Agadir Agreement (Jordan, Tunisia, Egypt in 2007), USA (2006), Turkey (2006), and an association agreement with the European Union (EU) in 2000. Since then regular voices to denounce the consequences of these agreements on our economy. They are in general-although some of our partners are covered more than others-led to the deterioration of our free trade balance and the disappearance of a part of our productive system. Contrary to this view too simplistic it seems that the Moroccan exporters have much to gain from these agreements under certain conditions.

This is first of all ensure that the rules of international free trade particularly with regard to non-tariff barriers are respected by our partners. This commitment must be reciprocal and no exceptions. The difficulties encountered by a time our exports of cars on the Tunisian and Egyptian markets were eventually resolved, but with repeated political interference. Such situations should not happen again.

A joint effort of government and private operators should also be focused on strengthening the competitiveness of our exporting tool. Too little diversified, with added value and know-how limited our exports suffer from a lack of supply. National strategies undertaken in recent years (Emergence, Green Morocco , Morocco Export Plus ...) should help remedy this and to increase public and private investment in the productive fabric exporter. Infrastructure and logistics relay as the port of Tangier Med should in principle provide better access to markets of destination. Finally a proactive policy to promote and endowed with substantial resources is already beginning to produce results particularly in African markets.

Our relations with the European Union that we also deserve attention. By far the largest free trade economic partner of Morocco, it accounts for over half of our free trade. In October 2008, in a joint statement, the Europeans have given the advanced status  of free trade to Morocco. "More and better than the association and a little less than accession", it offers the prospect of Morocco converge to the EU acquires and participate in the single European market. However while engaging the regulatory and legal construction Morocco and the EU had previously concluded two agreements. One on agriculture and the other on services. The first is being ratified by the European Parliament the second remains to be negotiated.

From the perspective of Moroccan exporters we must confess our lack of understanding about the treatment inflicted on the agricultural agreement by some MEPs. Negotiating hard for almost three years, concluded in December 2009 and ratified by the Council of Ministers of the Member States in December 2010. It is blocked in the European Parliament and suffered criticism unfounded and highly aggressive. This while the food trade balance between Morocco and the EU is structurally favorable to the latter and that the concessions granted to Moroccan exports are minimal! This free trade agreement records and a delay in its implementation. We therefore ask that it be ratified as soon as possible by the European Parliament to be able to calmly deal with the negotiations on services and then to change the definition of the specific content of the advanced status. Thus we see the partnership between Morocco and the European Union free trade.

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