Morocco Free Trade Agreement

The United States and Morocco signed an FTA on June 15, 2004. The Agreement entered into force on January 1, 2006. The United States-Morocco FTA is a comprehensive agreement that is an important part of the effort to promote a more open and prosperous society. The FTA supports the significant economic and political reforms that are underway in Morocco and provides for improved commercial and market opportunities for U.S. exports to Morocco by reducing and eliminating trade barriers.

Since the entry into force of the FTA, the U.S. goods trade surplus with Morocco has risen to $1.2 billion in 2009, up from $79 million in 2005 (the year prior to entry into force). U.S. goods exports in 2009 were $1.6 billion, up 12 percent from the previous year. Corresponding U.S. imports from Morocco were $461million, down 48 percent. Morocco is now the 62nd largest export market for U.S. goods.

The Joint Committee established by the FTA held its second meeting in November 2009. U.S. and Moroccan experts discussed FTA implementation issues including Morocco’s implementation of the tariff-rate quotas provided for under the FTA to afford U.S. wheat producers preferential access to the Moroccan market. The United States continues to have serious concerns about Morocco’s administration of these tariff-rate quotas. The Joint Committee also discussed regulatory matters relating to Moroccan exports of vegetables and Morocco’s chocolate standard. The Subcommittees on Agricultural Trade and

Sanitary and Phytosanitary Matters also met in 2009 and discussed concrete steps to monitor implementation of, and compliance with, the labor and environment chapters of the FTA. Both countries agreed to hold a number of discussions in the next few months between trade and environment experts and agreed to hold a Labor Subcommittee meeting in 2010. Morocco and the United States continued to work together to advance negotiations for an Anti-Counterfeiting Trade Agreement (ACTA), an agreement intended to raise the standard for intellectual property rights enforcement internationally.