[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]. Determine the main products exported and imported by Morocco. Morocco's foreign trade represents 88% of its GDP (World Bank, 2018). Significant developments that may have an impact on the global trading system are also monitored. Morocco Trade Statistics. 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. 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. 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. In October 2007, French President Nicolas Sarkozy travelled to Morocco on an official state visit to King Mohammed VI. Cars spearheaded exports in 2018 (12.2%), followed by enamelled or anodised wire, fertilizers, suits, travel, transportation and business services. Financial assistance is provided by the European Neighbourhood Instrument (ENI), which provides funds for neighbouring countries based on mutually agreed policy objectives and priorities. In 2006, Morocco entered into a free-trade agreement (FTA) with the United States. 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. However, questions surrounding fair trade prompted Moroccan exporters to call for a review of the Morocco-US free trade agreement, signed in … 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. Morocco signed in 1996 an agreement of association with the European Union which came into effect in 2000. 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. Morocco mainly trades with those African countries that are members of AGADIR and PAFTA or the countries with which FTAs are in place. U.S. goods and services trade with Morocco totaled an estimated $6.6 billion in 2019. However, Morocco does not wish to position itself … In 2004, Morocco signed the Agadir Agreement with Jordan, Egypt, and Tunisia. Morocco’s main trade is importing and exporting. Morocco Trade Last Previous Highest Lowest Unit; Balance of Trade -8582.00-8570.00 … Saving face is important to Moroccans and they respond much better to the soft sell with indirect communications. France is Morocco’s largest trading partner for both imports and exports, controlling more than 60% of foreign direct investment in Morocco. a 1.5 billion dollar increases and recently accelerated with a 13% growth in trade with sub-Saharan Africa in 2014. Morocco is a member of the World Trade Organization (WTO) since 1995. However the quality of the arts and crafts has worsened over the centuries and has been corrupted by modern techniques and chemical dyes. Oil products accounted for the largest share of imports, followed by automobile, gas, cable and wires, tractors, transportation and travel. The Agadir Agreement entered into force in July 2006 and the implementation is ensured by the Agadir Technical Unit in Amman. A Sustainability Impact Assessment on a DCFTA was carried out by an independent contractor in 2013. 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). 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. [5] 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. Nothing marked results in bilateral cooperation such as in traditional fields like fisheries, agriculture, health and engineering projects. The Agreement entered into force on January 1, 2006. 64,6 % of Morocco's exports went to the EU, and 56,5% of Morocco's imports came from the EU. Trade . 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. Other imports include dates, petroleum oils (not crude), cobalt ores and concentrates and coffee. 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. 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. 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%). 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 Please update this article to reflect recent events or newly available information. 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]. The European Neighbourhood Policy provides for political and financial assistance to Morocco. 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%). 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. Duty Free Access to One Billion Consumers . 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. 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. The Morocco FTA does NOT provide a merchandise processing fee (MPF) exemption. 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. Morocco imports crude petroleum, textile fabric, telecommunications equipment, wheat, gas and electricity, … The United States and Morocco signed an FTA on June 15, 2004. 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. More information on the Agadir Agreement. If seen as a single entity, the EU is by far Morocco's largest trading partner. 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. Morocco’s Free Trade Agreement (FTA) with the United States entered into force in 2006. Moroccans’ knowledge of French has also led French banking and call-centre firms to set up service operations in Morocco. Morocco is the largest recipient of EU funds in the framework of the European Neighbourhood Policy. The European Union is Morocco’s primary trading partner, accounting for about 60% of Morocco’s agricultural exports. FDI stock reached USD 66 billion in 2019, a rise of more than USD 20 billion when compared to 2010 level. 64,6 % of Morocco's exports went to the EU, and 56,5% of Morocco's imports came from the EU. More information on the Euro-Mediterranean partnership. Morocco is the EU’s 22nd trading partner representing 1,0% of the EU’s total trade with the world. 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). Morocco was the 2nd African country to establish diplomatic ties with China since the founding of the People's Republic in 1949. 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. Four negotiating rounds have taken place so far, the most recent in April 2014. 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. 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. Trade in Goods. Oil products accounted for the largest share of imports, followed by automobile, gas, cable and wires, tractors, transportation and travel. Economic growth relies excessively on this sector. 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. The pan-Euro-Mediterranean cumulation system of origin was created in 2005. The system was originally based on a network of Free Trade Agreements having identical origin protocols. Other exports items include electric components, inorganic chemicals, transistors, citrus fruits, vegetables, fish. The Kingdom has signed bilateral Free Trade Agreements with regional groupings such as … Cars spearheaded exports in 2018 (12.2%), followed by enamelled or anodised wire, fertilizers, suits, travel, transportation and business services. Total trade in goods between the EU and Morocco in 2017 amounted to €37,4 billion. Morocco's foreign trade represents 88% of its GDP (World Bank, 2018). The minister added that he expects to see a reversal of the imbalance by 2010.[6]. Morocco main exports partners are European Union countries with Spain, France and Italy being the most important. Unless otherwise mentioned “EU” concerns for all indicated years the current European Union of 27 Member States. In 2006, Moroccan-US trade was up 44% over 2005. The EU is Morocco's largest trading partner, accounting for 59,4% of its trade in 2017. 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. By Sector. Euromed is an essential component in the pursuit of greater economic integration in the Mediterranean region, including among Mediterranean partners themselves. 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. All WTO members are subject to review, with the frequency of review depending on the country's size. Morocco is one of the partners of the Euro-Mediterranean Partnership (Euromed). 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. Two-way trade in services amounted to €8,8 billion in 2016 with EU imports of services representing €5,2 billion and exports €3,6 billion. 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. 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). Textiles and leather items come in second place, followed by fish and fish products. This agreement is the only U.S. FTA on the continent of Africa. Morocco's trade imbalance rose from $86 billion to $118 billion dirhams between 2006 and 2007 – a 26.6% increase bringing the total amount to 17% of GDP. The DCFTA will build on the existing EU-Morocco Association Agreement which entered into force in 2000 and created a Free Trade Area between the EU and Morocco. Negotiations for a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Morocco were launched on 1 March 2013. The UK-Morocco agreement covers: 1. trade in goods and services, including provisions on rules of origin, preferential tariffs and quotas 2. intellectual property 3. sanitary and phytosanitary measures 4. government procurement It replicates wider elements of the EU-Morocco agreement such as provisions on political dialogue and ot… economic operators. Indeed, Morocco’s trade with Africa has increased by 20% in recent years, i.e. Foreign Trade Minister Abdellatif Maâzouz said earlier in September that members of the government have agreed to a plan focused on four major areas: a concerted export development strategy, the regulation of imports, market and economic monitoring, and the adaptation of regulations and working practices. Industrial Goods. Morocco exported Ignition wiring sets&oth wiring sets of a kind, worth US$ 1,916,019.26 million. 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 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. If seen as a single entity, the EU is by far Morocco's largest trading partner. Meanwhile, Moroccan imports from Spain include fuel and lubricants (13.9 percent), auto parts (13.3 percent) and clothing fabrics (9.9 percent). Morocco is looking to expand its textile markets outside the EU due to strong competition after the EU abolished quotas for Asian textiles in January 2005. Exports were $4.3 billion; imports were $2.3 billion. 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. Morocco's trade with the African countries has jumped from $533 million in 1998 to around $3 billion in 2008, up 460%. 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. 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 - 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. In 2008, Morocco exported $15 billion of goods and services while … U.S. exports to Morocco grew 19% in 2010, with the sectors of waste and scrap, apparel manufactures, food manufactures, electrical equipment and appliances, and nonmetallic mineral products growing the fastest. The EU is Morocco's largest trading partner, accounting for 59,4% of its trade in 2017. Grains, fruits and vegetables are the country's main crops. As the kingdom's primary trade partner, France benefits from Morocco's lack of energy reserves and food security—which create a constant dependency on foreign trade and a permanent trade deficit in Morocco. The plan, Maâzouz said, "will enable us to redress the external trade situation and to reduce Morocco’s trade deficit." Overview About International Trade in Morocco. Know the main economic sectors in Morocco: the place of agriculture, industry and services in the GDP. Morocco is dependent on imported fuel and its food import requirement can rise substantially in drought years, as in 2007. It brings together the EU, Morocco, and other partners in Europe and the Mediterranean to support regional integration by creating a common system of rules of origin. [2] Moroccan exports to the US rose by 25% in 2007, and noted that trade has been facilitated and promoted by the FTA between the 2 countries. Morocco in world trade. The U.S. - Morocco FTA is comprehensive and includes chapters detailing commitment on intellectual property rights, labor, and environmental protection. The top five exported HS 6 digit level products to world by Morocco along with trade value are: Morocco exported Automobiles with reciprocating piston engine di, worth US$ 2,108,423.52 million. 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 Caisse de dépôt et de gestion forecasts that if imports continue to rise faster than exports, the disparity could reach 21% of GDP. The pan-Euro-Mediterranean system allows for diagonal cumulation (i.e. It replaces the EU-Morocco agreement. 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