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US-Morocco

In early 2003, the Bush administration — on the verge of unleashing its war against Iraq — proposed a bilateral free trade agreement to the kingdom of Morocco. Morocco accepted. Talks formally start in early 2003 and ended about a year later. In July 2004, the text was approved by the US Congress. In January 2005, it was similarly approved by the Moroccan parliament. Despite the US and Moroccan governments having opposing views on whether or not the treaty shall apply in Western Sahara, it came into force on 1 January 2006.

The US-Morocco FTA has been a controversial and important one for several reasons.

First, despite its name, the whole initiative has little to do with trade. The main objective of the US was and is a political one: to pull a friendly North African kingdom deeper into its sphere of influence (read: control) and in so doing, create a wedge vis-a-vis the Arab world. The Morocco deal was proudly advertised by Washington as its first step towards a full-blown Middle East Free Trade Agreement. Any such regional deal would clearly pull together the major strands of US policy in the Middle East: to "democratise" governance of Arab countries, open them up to US penetration and eventually neutralise all hostility toward the state of Israel. Morocco is now a willing partner in this process.

Second, the projected social and economic implications of the deal for Morocco were downright dim. A number of studies showed that the impact of the FTA on Morocco would be marginal at best and detrimental — increasing poverty — at worst. A whole range of sensitive issues were on the table: the opening of Morocco’s market to US wheat, rules of origin in the US on Morocco’s textile-related exports, drug prices and so on. While the Moroccan negotiators did secure some temporary safety nets on the wheat and rules of origin threats, the underlying message was that without a significant influx of additional US foreign assistance (aid money), the kingdom would not be able to do good on its new commitments without major social setbacks. In sum, the cost:benefit ratio was way out of kilter.

Third, there was important opposition to the negotiations at home. Various social, political, artistic, farming, scientific and even industrial groups mobilised against a range of problems that the proposed FTA threw open. One was on access to medicines, jeopardised by the treaty’s intellectual property rules. Another was on the loss of cultural pluralism, the impending transfer of control over Moroccan media and cultural sectors to Walt Disney, Voice of America and CNN. Another more general problem was the administration’s unending impermeability to calls for consultation, debate, questioning, listening and participation — whether it came from the streets (protests by AIDS activists and film producers were violently repressed), the Parliament (opposition parties had to organise their own hearings on the draft treaty with NGOs) or the corporate sector (national pharameutical manufacturers were upset that they were excluded from the process). The only people happy about the whole thing, in Morocco, seemed to be the select few in the negotiating team.

After two years under the FTA, the US trade balance with Morocco had skyrocketed from US$85 million in 2005 to nearly $735 million in 2007. More recently, the secretary-general of Morocco’s ministry for industry trade and new technologies said that the deal had not met expectations and that Moroccan exports to the US remained weak, partly because the US had not facilitated entry for some agricultural products..

last update: May 2012


Morocco free trade agreement benefits US grain industry
The agreement eliminates tariffs on US sorghum immediately and phases out duties on US corn over five years.
Morocco becomes 1st MENA country to have free trade with US
Morocco became the first country in the Middle East and North Africa (MENA) to have free trade with the United States after the two countries’ free trade agreement came into effect on Sunday.
Bush moves to implement US-Morocco free-trade pact
In anticipation of the January 1, 2006, entry into force of the U.S.-Morocco Free Trade Agreement, President Bush issued a proclamation December 22 on adjusting tariffs on imports from Morocco and authorizing the commerce secretary to take actions to support the implementation of the pact.
Statement of National Corn Growers Association on US-Morocco FTA
The Morocco FTA cuts the tariff on US corn initially in half and then proceeds to zero by year six. This provides a significant advantage to US exporters and could potentially allow them to capture near 100 percent of the Moroccan market.
FTA to allow Morocco export non-Moroccan textile products to USA
The free trade agreement signed between Morocco and the USA will grant Morocco a waiver from the normal rules of origin and allow the kingdom export textile products from less developed African Sub-Saharan countries.
Foreign Trade Council: accompanying measures are crucial for Morocco-US FTA success
Although the Morocco-US Free Trade Agreement (FTA) offers considerable opportunities to Moroccan textile exporters and an outlet to some agricultural produces, accompanying measures are crucial to benefit the most of the accord, believes Mohamed Benayad, head of the National Council for Foreign Trade.
Moroccan officials tout free trade agreement
It’s been deemed the “best market access package of any U.S. free trade agreement with a developing country to date” by the Office of the US Trade Representative. So can the new trade agreement between the United States and Morocco actually live up to such spectacular billing?
Moroccan Ambassador meets with businesses to discuss US-Morocco FTA
Ambassador Mekouar’s stop in Los Angeles is part of an aggressive effort to inform US businesses about the Free Trade Agreement.
US-Middle East Free Trade Coalition congratulates Moroccan Parliament
As an important lynchpin between Europe, Africa and the Middle East, access to the Moroccan market is essential for the U.S. banking, insurance and telecommunications industries.
Morocco’s parliament approves FTA with US
Morocco’s parliament approved a free-trade accord (FTA) with the United States, paving the way for its implementation in two months and bringing Washington closer to its goal of sealing a free trade agreement covering most of the Middle East and North Africa by 2013.