EU-Morocco food products agreement
06/14/2010
EU-Morocco food products agreement
After four years of intensive negotiations between the European Union and Morocco, the agreement on trade in food products has been initialed. It still needs to be concluded after adoption by the European Council of Ministers and the European Parliament. And yet, this initiative is not receiving unanimous support.
Nadia Ben Slam – Rabat, Eurojar
“Balanced and beneficial for Morocco”: with these words, Moroccan authorities describe the agreement concluded with the EU on the trade in agro-food products and fisheries in December 2009. This achievement was possible after 4 years of negotiations. While Europeans, for their part, speak about “a positive compromise”.
Since the beginning, this agreement sparks debate on economic benefits that both parties should be expecting and on clauses related to trade in fruits and vegetables, agro-industrial products and fisheries. Until today, it did not enter into force, waiting for its ratification by European Parliament and European Council of Ministers.
Agreement content
Added to the “advanced status” granted to Morocco by the EU in 2008, the agreement highlights Morocco’s status of privileged commercial EU partner within the framework of the European Neighborhood Policy. Consequently, relations between both parties were reinforced after being governed by the Association Agreement (2000) and the Action Plan (2005). Regarding the opening of markets to farm products, the agreement eliminates 55% of custom fees on Morocco’s exports to the EU, and liberalizes instantly 45% of EU exports to Morocco. It also liberalizes 67% of Moroccan farm products exports over a ten year period, and 98% of agro-food industrial products.
Once the EU-Morocco agreement enters into force, Morocco should realize a tax benefit of about 1.7 billion Moroccan Dirham, and 700 million Dirham thanks to some new privileges granted to Moroccan exports. Moroccan agricultural products will benefit from immediate liberalization, except for 7 products considered delicate by Europeans: tomatoes, strawberries, Clementine, garlic, cucumber, zucchini and sugar: all these products are subjected to an import schedule (except for the sugar, entirely left out from the liberalization process), giving that they compete with European production. The authorized quantity of tomato for export will progressively increase. According to the agreement, other Moroccan farm products will not be subjected to quota restrictions or to a schedule, except for few products such as orange, peach, apricot, grapes and artichoke.
On another hand, the Moroccan market will be gradually opened to European products up to 70% over a ten years period, except for some products that are considered socially and economically delicate by Morocco; this is the reason why they’re left out from the liberalization process and subjected to a particular treatment (19 products, notably cereals, pastas, pasteurized milk and meat). Morocco has granted its European partner limited privileges regarding quantity, in order to reinforce concerned sectors and their competitiveness. The European party, for its part, will benefit thanks to the agreement from a freedom to access Moroccan markets for the agro-industrial products, knowing that a complete liberalization is expected within ten years, except for pastas that will remain subjected to quantity limitations.
Reactions to the agreement
Morocco argues that negotiations which preceded the conclusion of the agreement allowed reinforcing the position of its farm products inside European markets and helped adapting its clauses to “Morocco’s Green Plan” for the development of its agricultural and food production.
This is the reason why the Ministry of Agriculture has described the agreement as “globally balanced and beneficial for Morocco.” For their part, Europeans consider it “a positive compromise” that will help support European exporters, notably exporters of transformed products. The agreement is currently at technical phase, waiting for the political phase during which it should be ratified by European Parliament and European Council of Ministers.
Moroccan exporters have a different opinion. Younes Zrikem is the President of the Moroccan Association of Fruits and Vegetables’ Producers and Exporters (Apefel). According to him, the agreement does not constitute a breakthrough. It should be rather considered disappointing, considering the initial expectations.” Why? “Because it maintained the quota restrictions system for farm products, which, after all, constitute the heart of Morocco’s export potential”. Zrikem says the agreement will not enter into force before the end of next year, “and yet, it is still an unconfirmed deadline”, explaining that Morocco could have negotiated a privileged treatment on the basis of “transitory conventions along with limited time frames but applicable immediately”, notably concerning the main Moroccan exports, such as tomatoes.
More optimistic, President of Morocco’s Farmers Confederation (Comader) Ahmed Ouayach says he is satisfied with the agreement. According to him, Morocco has succeeded in gaining benefits for its farm sector and protecting its farm products and small farmers, paving the way to “Morocco’s Green Plan” for the development of the country’s agricultural and food production.”
It must be noted that negotiators had to deal with serious obstacles during the discussion phase. For example, Europeans, notably French and Spanish negotiators, were reluctant towards Morocco’s farm products saying that they threaten European common markets balance. This controversy hanged over the summit held for the first time in Grenada, bringing together the European Union and a Southern Mediterranean partner who enjoys “advanced status”. During the summit, Morocco expressed its “dissatisfaction with the delay to the entry into force of the agreement” and called for accelerating the ratification process, while thousands of Spanish protesters were marching outside in the streets to denounce the agreement.
