U.S. goods and services trade with Morocco totaled an estimated $6.6 billion in 2019. Please update this article to reflect recent events or newly available information. Nothing marked results in bilateral cooperation such as in traditional fields like fisheries, agriculture, health and engineering projects. Moroccans’ knowledge of French has also led French banking and call-centre firms to set up service operations in Morocco. The top imports of Morocco are Refined Petroleum ($4.53B), Cars ($2.24B), Petroleum Gas ($1.5B), Vehicle Parts ($1.23B), and Coal Briquettes ($1.19B). The EU's imports from Morocco are dominated by machinery and transport equipment (€6,0 billion, 40,4%), agricultural products (€3,4 billion, 23,0%), and textiles and clothing (€2,9 billion, 19,3%). Moroccan trade is still dominated by its main import and export partner France, although France's share in Moroccan trade is declining, in favour of the US, the Persian Gulf region and China. The EU's exports to Morocco are dominated by machinery and transport equipment (€8,4 billion, 37,7%), followed by fuels, metals and minerals (€5,2 billion, 23,4%), textiles and clothing (€1,8 billion, 8,1%), and agricultural products (€1,6 billion, 7,3%). However, according to UNCTAD's World Investment Report 2020, FDI flows to Morocco decreased by 55% to USD 1,6 billion in 2019. Morocco’s Free Trade Agreement (FTA) with the United States entered into force in 2006. This was facilitated thanks to opening by Morocco's carrier, Royal Air Maroc, of 27 links serving the continent's major cities as well as the existence in Africa of a number of Moroccan operators, especially Royal Air Maroc, mobile operator Maroc Telecom and Attijariwafa Bank. Morocco's trade with the African countries has jumped from $533 million in 1998 to around $3 billion in 2008, up 460%. The pan-Euro-Mediterranean system allows for diagonal cumulation (i.e. a 1.5 billion dollar increases and recently accelerated with a 13% growth in trade with sub-Saharan Africa in 2014. The European Union is Morocco’s primary trading partner, accounting for about 60% of Morocco’s agricultural exports. In 2006, Moroccan-US trade was up 44% over 2005. Morocco mainly trades with those African countries that are members of AGADIR and PAFTA or the countries with which FTAs are in place. Indeed, Morocco’s trade with Africa has increased by 20% in recent years, i.e. Cars spearheaded exports in 2018 (12.2%), followed by enamelled or anodised wire, fertilizers, suits, travel, transportation and business services. However, its competitiveness in basic manufactured goods, such as textiles, is hampered by low labour productivity and high wages. Know the main economic sectors in Morocco: the place of agriculture, industry and services in the GDP. cumulation between two or more countries) between the EU, EFTA States, Turkey, the Western Balkans, the Faroe Islands, and any countries which signed the Barcelona Declaration of 1995. In October 2007, French President Nicolas Sarkozy travelled to Morocco on an official state visit to King Mohammed VI. The EU is Morocco's largest trading partner, accounting for 59,4% of its trade in 2017. Cars spearheaded exports in 2018 (12.2%), followed by enamelled or anodised wire, fertilizers, suits, travel, transportation and business services. Industrial Goods. Mezouar pointed out that Moroccan clothing exports to the USA had increased by 122% in 2006 while perfume sales had grown by 41%, also noting that US investment in Morocco exceeded $1.5 billion, mainly in tourism and clothing. Since its entry into force, Moroccan exports to the United States have more than doubled, and U.S. exports to Morocco have more than quadrupled. More information on EU support is available on the site of the Directorate General for Neighbourhood and Enlargement Negotiations: tariff-free two-way trade of industrial products, together with a selective liberalisation of trade in agricultural, agro-food and fisheries products, rules and disciplines on non-tariff based trade measures, a general right to establish businesses and provide services in the other territory, common rules on competition and intellectual property, Rules and requirements for trading with Morocco. The system was originally based on a network of Free Trade Agreements having identical origin protocols. The Morocco Free Trade Agreement (MAFTA) went into effect on January 1, 2006. The minister added that he expects to see a reversal of the imbalance by 2010.[6]. Trade with Morocco from 1 January 2021 Continuing the UK's trade relationship with Morocco: parliamentary report UK-Palestinian Authority political, trade and partnership agreement Rules of origin are the technical criteria which determine whether a specific product qualifies for duty free or other preferential access under a given trade agreement. The European Neighbourhood Policy provides for political and financial assistance to Morocco. [5] The United States-Morocco FTA is a comprehensive agreement that supports the significant economic and political reforms that are underway in Morocco and provides for improved commercial opportunities for U.S. exports to Morocco by reducing and eliminating trade barriers. However, questions surrounding fair trade prompted Moroccan exporters to call for a review of the Morocco-US free trade agreement, signed in … "Sino-Moroccan relations have all along developed soundly and stably with friendly cooperation deepening continuously in all fields, thanks to the joint efforts by the leaders and peoples of the 2 countries, no matter how international situation changes,"Wu Bangguo, chairman of the Standing Committee of the Chinese National People's Congress, said during his meeting with Abdeloughed Radi, president of Morocco's Chamber of Representatives, in 2005. France is Morocco’s largest trading partner for both imports and exports, controlling more than 60% of foreign direct investment in Morocco. The UK-Morocco agreement covers: 1. trade in goods and services, including provisions on rules of origin, preferential tariffs and quotas 2. intellectual property 3. sanitary and phytosanitary measures 4. government procurement It replicates wider elements of the EU-Morocco agreement such as provisions on political dialogue and ot… Morocco is one of the partners of the Euro-Mediterranean Partnership (Euromed). These individual origin protocols are being progressively replaced by a reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention), which was established in 2011 to provide a more unified framework for origin protocols. Morocco's trade imbalance rose from $86 billion to $118 billion dirhams between 2006 and 2007 – a 26.6% increase bringing the total amount to 17% of GDP. Morocco is the EU’s 22nd trading partner representing 1,0% of the EU’s total trade with the world. Financial assistance is provided by the European Neighbourhood Instrument (ENI), which provides funds for neighbouring countries based on mutually agreed policy objectives and priorities. All WTO members are subject to review, with the frequency of review depending on the country's size. Morocco Trade Statistics. The heads of the parliaments of China and Morocco vowed in Rabat in 2005 to work for the further development of bilateral ties in all fields, including trade. Other imports include dates, petroleum oils (not crude), cobalt ores and concentrates and coffee. Moroccan-US trade has risen to $2.3 billion in 2007 from the $1.4 billion since the enforcement of the free trade agreement signed between the 2 countries in 2006, former Moroccan Minister of Trade and Economy Salaheddine Mezouar said in 2007. http://www.economist.com/countries/Morocco/profile.cfm?folder=Profile-FactSheet, http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/newsbriefs/general/2007/05/16/newsbrief-01, http://www.fmprc.gov.cn/zflt/eng/zxxx/t210622.htm, http://memrieconomicblog.org/bin/content.cgi?article=190, http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/features/2008/09/22/feature-02, https://en.wikipedia.org/w/index.php?title=Trade_in_Morocco&oldid=939449990, Wikipedia articles in need of updating from August 2018, All Wikipedia articles in need of updating, Creative Commons Attribution-ShareAlike License, This page was last edited on 6 February 2020, at 15:15. They have subsequently developed the FTA further through an agreement on trade in agricultural, agro-food and fisheries products and a protocol establishing a bilateral dispute settlement mechanism both of which entered into force in 2012. Total trade in goods between the EU and Morocco in 2017 amounted to €37,4 billion. Trade: The top exports of Morocco are Cars ($4.92B), Insulated Wire ($3.53B), Mixed Mineral or Chemical Fertilizers ($2.86B), Phosphoric Acid ($1.48B), and Non-Knit Women's Suits ($1.38B). Morocco exported Ignition wiring sets&oth wiring sets of a kind, worth US$ 1,916,019.26 million. Morocco's foreign trade represents 88% of its GDP (World Bank, 2018). Oil products accounted for the largest share of imports, followed by automobile, gas, cable and wires, tractors, transportation and travel. Morocco’s main trade is importing and exporting. Morocco imports crude petroleum, textile fabric, telecommunications equipment, wheat, gas and electricity, … Determine the main products exported and imported by Morocco. France is Morocco's largest trading partner, followed by Spain. The Agadir Agreement entered into force in July 2006 and the implementation is ensured by the Agadir Technical Unit in Amman. Morocco is the largest recipient of EU funds in the framework of the European Neighbourhood Policy. Trade in Goods. Grains, fruits and vegetables are the country's main crops. More information on Mediterranean preferential Rules of Origin, More information about accessibility options, EU co-operation programmes for Morocco 2014 - 2017, Regional Convention on pan-Euro-Mediterranean preferential rules of origin, Trade defence measures in force in Morocco, the EU's overall political and economic relations with Morocco, Sustainable Impact Assessment on a Deep and Comprehensive Free Trade Area (DCFTA) with Morocco. The DCFTA also aims at supporting ongoing economic reforms in Morocco and at bringing the Moroccan legislation closer to that of the EU in trade-related areas. Morocco signed in 1996 an agreement of association with the European Union which came into effect in 2000. Trade . In addition, Morocco is a member of various regional trade agreements such as the Arab Maghreb Union (AMU), the Greater Arab Free Trade Area (GAFTA), and the Arab-Mediterranean Free Trade Agreement known as the Agadir Agreement. The Agreement entered into force on January 1, 2006. In 2018, Morocco major trading partner countries for exports were Spain, France, United States, Italy and India and for imports they were Spain, France, China, United States and Italy. Morocco has highly negative net exports and therefore deep international trade deficits under the mineral fuels including oil category notably for refined petroleum oils, petroleum gas, coal then petroleum coke including other residues from petroleum oil. More information on the Agadir Agreement. Morocco is a net importer of agricultural and related products, which generally consist of imports of bulk commodities and exports of high-value, consumer-oriented products. Exports were $4.3 billion; imports were $2.3 billion. Euromed is an essential component in the pursuit of greater economic integration in the Mediterranean region, including among Mediterranean partners themselves. Morocco in world trade. Know the distribution of economic activity by sector in Morocco: Employment by sector (% of total employment); Value added (% of GDP); Value added (% of annual growth). Although there are local arts and crafts found on every corner of the street, most of the locally produced arts and crafts are being exported to neighboring countries. FDI stock reached USD 66 billion in 2019, a rise of more than USD 20 billion when compared to 2010 level. Meanwhile, Moroccan imports from Spain include fuel and lubricants (13.9 percent), auto parts (13.3 percent) and clothing fabrics (9.9 percent). The Caisse de dépôt et de gestion forecasts that if imports continue to rise faster than exports, the disparity could reach 21% of GDP. If seen as a single entity, the EU is by far Morocco's largest trading partner. More information on the Euro-Mediterranean partnership. It brings together the EU, Morocco, and other partners in Europe and the Mediterranean to support regional integration by creating a common system of rules of origin. Foreign Trade Minister Abdellatif Maâzouz said earlier in September that members of the government have agreed to a plan focused on four major areas: a concerted export development strategy, the regulation of imports, market and economic monitoring, and the adaptation of regulations and working practices. Saving face is important to Moroccans and they respond much better to the soft sell with indirect communications. Overview About International Trade in Morocco. Trade with the latter accounted for 56.7% and 15.3%, respectively, of Morocco's total trade in 2015, compared to only 3.4% with sub-Saharan Africa. The United States and Morocco signed an FTA on June 15, 2004. Textiles and leather items come in second place, followed by fish and fish products. The pan-Euro-Mediterranean cumulation system of origin was created in 2005. economic operators. 64,6 % of Morocco's exports went to the EU, and 56,5% of Morocco's imports came from the EU. Trade between Morocco and sub-Saharan Africa has been on an upward trend since 2009, with an annual growth of 12.8% between 2000 and 2015.1 However, sub-Saharan Africa’s share of Morocco's external trade remains low in comparison with its other partners, such as the European Union, or to a lesser extent the MENA region. Thanks to the richness of Morocco's soil, the agricultural sector is dominant, employing almost half of the active population and contributing around 20% to the GDP. If seen as a single entity, the EU is by far Morocco's largest trading partner. Morocco is a member of the World Trade Organization (WTO) since 1995. Morocco's FTA with the EU, which was signed in 1996, entered into force in 2000 and is being incrementally implemented with the aim of creating an EU-Morocco free trade zone by 2012, noting that the abolition of tariffs on industrial goods has been a boom for Moroccan manufacturers as some 75% of Morocco's exports go to Europe. This agreement, which lies within the scope of the Barcelona Process (Euro-Mediterranean partnership) started in 1995 and envisages the progressive implementation of a free trade area planned for 2012. The EU is Morocco's largest trading partner, accounting for 59,4% of its trade in 2017. The Free Trade Area established under the EU-Morocco Association Agreement provides for: The EU and Morocco concluded negotiations for an Agreement on Geographical Indications in January 2015:  respective procedures for adopting this Agreement are now underway. In 2004, Morocco signed the Agadir Agreement with Jordan, Egypt, and Tunisia. The plan, Maâzouz said, "will enable us to redress the external trade situation and to reduce Morocco’s trade deficit." However the quality of the arts and crafts has worsened over the centuries and has been corrupted by modern techniques and chemical dyes. This agreement is the only U.S. FTA on the continent of Africa. [3], As part of its economic liberalization policy, Morocco has concluded free trade agreements with GCC countries, thereby lining Morocco with 1 of the largest free trade networks in the world and giving it duty-free access to a huge market.[4]. Under the agreement most Moroccan goods enter the United States duty free and virtually all will enter free by the time it is fully implemented on January 1, 2023. Morocco's merchandise exports comprise three main groups of products which account for about 80 per cent of the country's merchandise export earnings: agricultural produce and seafood, textiles and clothing, and phosphate and phosphate derivatives. The agreement establishes a political and economic association between the UK and Morocco, including a comprehensive free trade area. Morocco's foreign trade represents 88% of its GDP (World Bank, 2018). [2] Moroccan exports to the US rose by 25% in 2007, and noted that trade has been facilitated and promoted by the FTA between the 2 countries. The Agreement with Morocco has been conceived to take into account the different level of economic development by providing for an asymmetrical approach. The U.S. goods and services … Morocco is dependent on imported fuel and its food import requirement can rise substantially in drought years, as in 2007. Euromed is one of the key initiatives of the European Neighbourhood Policy, through which the EU offers its neighbours a privileged relationship, building upon a mutual commitment to common values (including democracy and human rights, rule of law, good governance, market economy principles and sustainable development). The overall goal of the negotiations is to create new trade and investment opportunities and ensure a better integration of Morocco's economy into the EU single market. It replaces the EU-Morocco agreement. Within the framework of its global openness and liberalization strategy, Morocco has set up during the last decade a legal framework conducive to developing its commercial relations with some of its potential partners, through the conclusion of free trade agreements either bilaterally or regionally. In trade and economic cooperation, the volume of bilateral trade has increased incessantly, reaching $1.16 billion US dollars in 2004,"Wu said. Phosphates and textiles are central to Morocco's export industry. Unless otherwise mentioned “EU” concerns for all indicated years the current European Union of 27 Member States. Significant developments that may have an impact on the global trading system are also monitored. By Sector. Cumulation of origin means a product coming from one partner country can be processed or added to a product of a second partner country and still be considered an “originating product” of that second partner country for the purposes of a particular trade agreement. Moroccan trade is still dominated by its main import and export partner France, although France's share in Moroccan trade is declining, in favour of the US, the Persian Gulf region and China. Morocco main exports partners are European Union countries with Spain, France and Italy being the most important. Foreign Trade in Figures. In 2008, Morocco exported $15 billion of goods and services while … Moroccan exports to the US netted $521.2 million while American exports to Morocco reached $875.5 million, up 67% from 2005. Morocco exports and imports most of its goods from the European Union, with France being its largest trade partner, providing one-fifth of total imports and accounting for one-quarter of exports. The Kingdom has signed bilateral Free Trade Agreements with regional groupings such as … A Sustainability Impact Assessment on a DCFTA was carried out by an independent contractor in 2013. Four negotiating rounds have taken place so far, the most recent in April 2014. Trade Policy Reviews are an exercise, mandated in the WTO agreements, in which member countries' trade and related policies are examined and evaluated at regular intervals. The establishment of a direct merchant maritime line between Tangier and ports on the US East coast would be an essential step to taking trade to the next level. Morocco - Market Overview MOR - Market Overview Discusses key economic indicators and trade statistics, which countries are dominant in the market, the U.S. market share, the political situation if relevant, the top reasons why U.S. companies should consider exporting to this country, and other issues that affect trade, e.g., terrorism, currency devaluations, trade agreements. Morocco was the 2nd African country to establish diplomatic ties with China since the founding of the People's Republic in 1949. In 2006, Morocco entered into a free-trade agreement (FTA) with the United States. However, Morocco does not wish to position itself … The Morocco FTA does NOT provide a merchandise processing fee (MPF) exemption. As the kingdom's primary trade partner, France benefits from Morocco's lack of energy reserves and food security—which create a constant dependency on foreign trade and a permanent trade deficit in Morocco. Other exports items include electric components, inorganic chemicals, transistors, citrus fruits, vegetables, fish. Negotiations for a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Morocco were launched on 1 March 2013. Although Morocco runs a structural trade deficit, this is typically offset by substantial services earnings from tourism and large remittance inflows from the diaspora, and the country normally runs a small current-account surplus.[1]. Oil products accounted for the largest share of imports, followed by automobile, gas, cable and wires, tractors, transportation and travel. In recent years, Morocco has reduced its dependence on phosphate exports, emerging as an exporter of manufactured and agricultural products, and as a growing tourism destination. According to the FTA agreement, Morocco can export to the US a duty-free quota of 15 million square meters of finished goods and 500 tonnes of thread and materials made from fibres and cotton from less developed Sub-Saharan African countries. U.S. exports to Morocco grew 19% in 2010, with the sectors of waste and scrap, apparel manufactures, food manufactures, electrical equipment and appliances, and nonmetallic mineral products growing the fastest. This translated into a trade surplus with Morocco of $1.26 billion in 2010, a 3,505% increase over the $35 million trade surplus of 2005. Morocco Trade Last Previous Highest Lowest Unit; Balance of Trade -8582.00-8570.00 … Economic growth relies excessively on this sector. Main Industry Sectors. 64,6 % of Morocco's exports went to the EU, and 56,5% of Morocco's imports came from the EU. Accompanied by 70 top French business executives, Sarkozy confirmed several billion dollars' worth of contracts for French firms in Morocco. This committed all parties to removing all tariffs on trade between them and to harmonizing their legislation with regard to standards and customs procedures. Duty Free Access to One Billion Consumers . Under their Association Agreement which entered into force in March 2000, the EU and Morocco established a Free Trade Area liberalising two-way trade in goods. Morocco acceded to the Regional Convention on 18 April 2012. Morocco has emerged as a major cheap-labour platform for European manufacturers, as well as a commercial trans-shipment point for goods from all around the world passing through the Straits of Gibraltar. 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