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Morocco Week in Review 
July 3 2004

Washington welcomes as "significant" improvements in Morocco's new labor code
WASHINGTON, June 24

"The new Moroccan labor law is a significant improvement over existing laws and regulations", said the US trade representative office in a fact sheet on the Morocco-US free trade agreement signed on June 15. "The Morocc ans have democratized their political structures, recently made historic reforms to improve women's rights, and codified new labor rights and protections based on key International Labor Organization conventions...", Zoelick's office writes quoting former US trade representative Mickey Kantor who stresses "Congress can make an important contribution by approving the agreement this year."

Another former U.S.T.R says of the Morocco-US FTA "this is a sound agreement that promotes our commercial interests and contains important provisions on agriculture, labor and intellectual property. Beneficial economic engagement with allies under mutual threat is one issue that should transcend today's political rancor and should unite all political parties and persuasions."

The fact sheet further recalls that Morocco, which has ratified seven of the eight ILO core conventions, and is currently considering ratification of the final one, has raised the minimum employment age (from 12 to 15) to combat child labor, reduced work week from 48 to 44 hours with overtime rates payable for additional hours and will be conducting a periodic review of the minimum wage, with the wage to be increased by 10%, starting on July 1, 2004.

The new law also improves worker health and safety regulations, addresses gender equity in the workplace, and promotes employment of the disabled. It also guarantees rights of association and collective bargaining and prohibits employers from taking actions against workers because they are union members.

The document further notes that the Moroccan constitution guarantees the right to strike and this right is exercised regularly and recall that the U.S. government, through the Department of Labor, has a significant assistance program (nearly $9.5 million) designed to improve industrial relations, activities to combat child labor, and enforcement of the new labor code.
MAP 2004 http://www.map.co.ma/mapeng/home_dep/h_dep25-12.htm
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New labor law in Morocco hailed
Jun 27, 2004 (Al-Bawaba via COMTEX)

The U.S.-Morocco Free Trade Agreement is generating positive changes in Moroccan labor laws, according to a fact sheet issued recently by the U.S. Trade Representative. A comprehensive new labor law went into effect on June 8, 2004.
Like all U.S. free trade agreements, the U.S.-Morocco FTA contains provisions requiring the effective enforcement of domestic labor and environmental laws, and cooperative efforts to upgrade labor and environmental standards.
The new Moroccan labor law is a significant improvement over existing laws and regulations. The law: -- Raises the minimum employment age (from 12 to 15) to combat child labor.
-- Reduces work week from 48 to 44 hours with overtime rates payable for additional hours.
-- Calls for periodic review of the Moroccan minimum wage. Effective July 1, 2004, the minimum wage will increase by ten percent.
-- Improves worker health and safety regulations, addresses gender equity in the workplace, and promotes employment of the disabled.
-- Guarantees rights of association and collective bargaining and prohibits employers from taking actions against workers because they are union members.
The U.S. government, through the Department of Labor, has a significant assistance program (nearly $9.5 million) designed to improve industrial relations, activities to combat child labor, and enforcement of the new labor code.
Morocco has ratified seven of the eight ILO core conventions, and is currently considering ratification of the final one. The Moroccan constitution guarantees the right to strike and this right is exercised regularly. (Albawaba.com) By Mena Report Reporters (C) 2004 Albawaba.com, All rights reserved.
http://www.zawya.com/Story.cfm?id=179w4879&section=Countries&page=Morocco&channel=All%20Morocco%20News&objectid=22403786-8F1A-11D4-867000D0B74A0D7C
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Gnaoua, world music festival kicks off in Essaouira
ESSAOUIRA (South of Rabat) June 25

The 7th edition of the Gnaoua and World Music Festival was opened, here Thursday, by HRH Prince Moulay Rachid, (brother of HM King Mohammed VI of Morocco). The festival, to last until June 27, is attended by several Moroccan and international artists including eminent Cuban pianist Omar Sosa, and Joe Zawinul, founder of the famous group Weather Report.

Essaouira festival is currently one of the most important cultural rendezvous both at the national and international levels, said Culture Minister, Mohamed Al Achaari, in a speech he read out on this occasion. He added that the festival helped develop the city of Essaouira and preserve its heritage in such a way as it has become a heritage of humanity.

According to organizers, since its inception in 1998 the festival of Essaouira has become a major cultural event as evidenced by the increasing number of spectators which rose from 20,000 in 1998, to 200,000 last year. The festival has also drawn over 10,000 visitors from abroad.

The festival provides a platform for exchanges and a meeting point of music and dialogue between foreign artists and the mystical musicians of the Atlantic city of Essaouira. In this extraordinary melting-pot of musical fusion the master Gnawa invite players of jazz, pop, rock and contemporary World music to explore new avenues.

Gnawa are the descendents of slaves originating from Black Africa who established brotherhoods throughout Morocco. They are made up of master musicians (maâlem), metal castanet players, clairvoyants, mediums and their followers. They are at the same time musicians, initiators and healers, blending African and Arabo-Berber customs. Despite being Muslims, the Gnawa base their ritual on djinn (spirits) straight from the African cult of possession.
http://www.map.co.ma/mapeng/home_dep/h_dep21604.htm
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IFC Trains Managers to Maximize Growth Potential of Small Businesses in Morocco.
RABAT/WASHINGTON, D.C., June, 29, 2004

The North Africa Enterprise Development (NAED), a regional small and medium enterprise business development facility managed by the International Finance Corporation, ended a half-day training program on June 24 in Casablanca, Morocco, "Practical Solutions to Effective SME Management." Helping local management training and business consultancy firms develop new products and services that meet SME needs is a core focus of NAED.

Some 230 representatives of SMEs, training & consulting firms, business membership organizations, the Moroccan government, and donors organizations attended the forum.

The training program was held in conjunction with Confederation Generale des Entreprises du Maroc, the Employers Federation of Morocco. It marks the roll-out in Morocco of "Business Edge", the global management training and support services product range of IFC, the private sector arm of the World Bank Group. The "Practical Solutions to Effective SME Management" program also heralds the first stage of the implementation of Business Edge products and services in the French-speaking countries - Algeria being the other - covered by NAED.

The forum included discussions on the key findings of a SME Management Training market assessment in Morocco, conducted by NAED. The study showed that Moroccan management training companies are not very interested in reaching out to small businesses, manly because they saw local SME entrepreneurs as being skeptical about the value-added that management training would bring to their operations. Conversely, the survey showed that SME entrepreneurs, felt that local management training companies did not offer the right product mix, failing to offer to an integrated package of products and services that would address all of their needs in practical areas - especially in management training.

NAED (www.ifc.org/sme) is the first small business development facility in the Middle East and North Africa region and is managed from IFC's headquarters in Cairo, with IFC offices in Algiers and Rabat as well. It is a five-year $20 million technical assistance program for small businesses, cofunded by IFC and donor countries, including Belgium, France, Italy, and Switzerland. NAED's key objective is to foster job creation in Egypt, Algeria, and Morocco by supporting the development of small businesses -- the bedrock of all those countries' economies.

The mission of IFC (www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.

In Washington:
Ahmed Badawi-Malik
Phone: +1 (202) 458-7148
Fax: +1 (202) 974-4384
Email: Abadawi@ifc.org

In Rabat:
Joumana Cobein
Phone: + (212) 3765-2479
Fax: + (212) 3765-2893
Email: jcobein@ifc.org
© Press Release 2004
http://www.zawya.com/Story.cfm?id=ZAWYA20040629151644&section=Countries&page=Morocco&channel=Press%20Releases&objectid=C549C1E8-8A4E-11D5-867E00D0B74A0D7C
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Morocco Free Trade Deal
Jun 29, 2004 (LiquidAfrica via COMTEX)

The signing of the US-Moroccan free trade agreement last week is celebrated by the North American agricultural industry. Subsidised US grain producers are looking forward to strongly increase their exports to Morocco.
For Moroccans, this will mean cheaper feed grains but also fiercer competition for non-subsidised Moroccan farmers.The US Grains Council (USGC) a grouping of American farmers and agribusiness organisations today applauded the signing of the US-Morocco Free Trade Agreement on Thursday, 17 June, by US Trade Representative Robert Zoellick and Moroccan Minister-Delegate of Foreign Affairs and Cooperation, Taib Fass-Fihri.
The Council urged the US Congress to "promptly pass the Free Trade Agreement this summer," so that it turns into effect.
Once approved, the US-Morocco Free Trade Agreement will immediately eliminate tariffs on 95 percent of bilateral trade in consumer and industrial products, with all remaining tariffs to be eliminated within nine years the best market access package of any US Free Trade Agreement with a developing country signed to date, according to the USTR.
The US Grains Council has been actively building markets in Morocco for US maize, sorghum and barley for many years, said USGC Chairman Terry Wolf.
"The completion of a free trade agreement between the United States and Morocco will further benefit US feed grain exports," Mr Wolf added.
Morocco's expanding poultry sector is driving the country's demand for feed grains. While poultry is the fastest growing meat production sector in Morocco, the cost of chicken meat production is one of the highest when compared to other middle-income countries.
"Costs to the Moroccan poultry producers will be significantly reduced through lower feed grain prices as a result of this agreement," USCG holds.
The reduction and elimination of tariffs on US maize, sorghum and barley not only provides for a further expansion of the Moroccan market for feed grains, but also will allow the United States to capture a larger portion of that important growth market.
In 2002, the United States accounted for approximately 60 percent of Morocco's total corn imports. However, due to stiff competition from Latin America, the US share decreased to only about 10 percent of the over 1 million metric tons Morocco imported last year.
As the heavily subsidised US producers now also get the most favourable import tariffs, Latin American farmers will find it difficult to compete on the Moroccan market in the future.
While Moroccan poultry producers may look forward to lowered feeding costs, national farmers however have reason to fear the new prices on US imports.
The Moroccan government cannot afford to subsidise its agribusiness and farmers in the same way and subsidised US imports may come at lower prices than Moroccan producers can compete with. Alternatively, the mostly impoverished Moroccan cultivators will need to lower their revenues.
(C) 2004 Press Release A Za, Redistributed by LiquidAfrica.com, All Rights Reserved http://www.zawya.com/Story.cfm?id=181i9166&section=Countries&page=Morocco&channel=All%20Morocco%20News&objectid=22403786-8F1A-11D4-867000D0B74A0D7C
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HM King Mohammed VI of Morocco calls for African conference on environment
DAKAR, June 29

HM King Mohammed VI of Morocco has proposed the holding of an African conference on environment during the talks held with the heads of States during an African tour that took him from June 15-29 to Benin, Cameroon, Gabon and Senegal. The sovereign, who winded up his Senegal visit and African tour Tuesday afternoon, has called for convening a conference to draft a program to protect environment that must fit in any African plan for sustainable development.

The heads of State of the five African countries have all praised the relevance and timeliness of the suggestion, given that among the lurid threats posed to African countries is environment degradation, which has insidious social and economic consequences. The call to convene the conference at the African level is meant to make future generations more aware of the necessity to integrate ecology among their daily concerns.

The ecological situation in the continent needs a new impetus and mobilization of extra material and human resources in the framework of south-south partnership and world action and consultations. The royal suggestion is also about measures to intensify the fight against water pollution, forest devastation, desertification and global warming, as well as extinction of some species of the African fauna and all irreversible causes of natural disasters.
http://www.map.co.ma/mapeng/home_dep/h_dep31604.htm
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Pedestrians, riders account for 50 percent of road casualties in Morocco, Official
RABAT, June 30

Pedestrians and motorcycles riders account for 50 percent of road accidents casualties in Morocco, according to the Minister of Equipment and Transport. Karim Ghellab revealed this figure at a press conference, here Tuesday, to mark the official launch of a new awareness campaign conducted nationwide by the National Committee of Road Accidents Prevention (CNPAC) that will target this time pedestrians and motorcycle riders.

Recent official figures revealed that an average of ten people die everyday in road accidents in Morocco, with 3,761 people killed in 2002, and annual losses valued at 11 billion DH (over US$ 1.1 billion), that is 2.5 percent of the country's GDP. Ghellab pointed out recently that human errors account for about 84 to 89 percent of road accidents in the country, while roads conditions and other circumstances are only responsible for 2 to 3 percent of the total number of accidents. The minister said his department has drawn up a three-year emergency plan to reduce the number of road accidents and intends to adopt a new project on road safety this year.
http://www.map.co.ma/mapeng/eng.htm
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Tangier to host international music, arts festival
RABAT, June 29

The northern city of Tangier will host from July 23 to August 15 the international music and arts festival to be held under the theme "creativity and communication". This international event will feature plays, plastic arts exhibitions and concerts with the participation of national and foreign artists. In addition to meetings and conferences, organizers also scheduled to pay tribute to figures of the world of arts and literature.
http://www.map.co.ma/mapeng/eng.htm
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Over US$ 6 million earmarked for 2004 Summer Camps operation
RABAT, June 29

A budget of 55.58 million DH (around US$ 6 million) was earmarked for the summer 2004 "holidays for all" operation that consists in holding summer camps for children and teenagers, said secretary of state for youth, Mohamed El Gahs. The 2nd operation of the kind will be extended to 150,000 participants, marking a 50% increase as compares to summer 2003, El Gahs told a press conference. The budget will finance the construction of accommodation facilities, operating charges (food and camping equipment) and transport of participants, he explained. The "holidays for all" operation starts on July 2 and will close in the beginning of September. The official further insisted that a new pedagogical strategy based on creativity and quality activities and accommodation was devised by the department in conjunction with associations, other governmental departments and local authorities.
http://www.map.co.ma/mapeng/home_dep/h_deppar09.htm
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Germany allocates 110 million Euro for joint projects with Morocco
RABAT, June 29

Germany has allocated 110 million Euros for joint projects with Morocco for the 2004-2005 period, which raises the overall worth of Moroccan-German cooperation to 1.6 billion Euro, the German embassy in Rabat said. The two countries which held a meeting to review a set of cooperation projects, mainly in renewable energies, drinking water adduction and upgrade of the national economy also vowed to consolidate their cooperation in development realms. The German delegation was headed by director general of cooperation with Africa and the Middle East at Germany's department of economic cooperation and development while the Moroccan side was headed by director of European affairs at the ministry of foreign affairs and cooperation.
http://www.map.co.ma/mapeng/home_dep/h_depma17.htm
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Morocco to conduct census of handicapped persons
RABAT, June 29

Morocco will launch next Monday a nationwide census of its handicapped persons, in a bid to determine the rate of disability among Moroccans, identify various forms of disabilities, understand their causes and assess their impact. A statement of the Moroccan secretariat of state in charge of family, children and handicapped persons, says the census, to be supported by the European Union through its MEDA program, will also try to grasp exclusion factors among handicapped persons, define the needs of this population as regards rehabilitation and reintegration and know their needs. The operation will concern some 55,000 persons, 10,000 families, in various rural and urban regions in Morocco, as part of the census that will also target associations and state institutions active with disabled persons.
http://www.map.co.ma/mapeng/home_dep/h_depmay26.htm
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Morocco to invest US$ 10 billion in tourism by 2010
RABAT, June 29

Morocco plans to invest 90 billion DH (US$ 10 billion) in tourism by 2010, including 40 billion (US$ 4.4 billion) in hotel infrastructure to raise accommodation capacity nationwide to 230,000 beds, and in the training of at least 70,000 professionals, said here on Monday minister of tourism, handicraft and social economy, Adil Diouri. The minister told the productive sectors committee at the House of Representatives (lower parliament chamber), the Moroccan "Vision-2010" strategy, meant to attract 10 million tourists by 2010, evolves around 4 major components: training, air transport, marketing and institutional environment. He also informed the committee on projects to increase the budget of the Moroccan tourism office (ONMT).

Although the World Tourism Organization called 2003 "the worst year" for the sector, Douiri said hotel nights were almost stable and hardly dropped by 1% while the number of tourists increased by 6%. He explained that the sector managed to overcome effects of the terrorist attacks of May 2003. For Moroccan nationals, he explained that the ministry is trying to create a product that suits Moroccans who are looking for "a family vacation atmosphere" and need, therefore, accommodation different from hotels. The minister also stressed the need to adopt inciting infrastructures for rural tourism buffs, mainly roads and accommodation facilities.
http://www.map.co.ma/mapeng/eng.htm
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Second national program of rural roads to be launched in 2005

RABAT, June 28

Morocco's second rural roads program concerning some 15,000 km, will be launched in 2005, said here Monday minister of equipment and transport, Karim Ghellab. Speaking at a round table on financing of the program, Ghellab said the government ambitions to step up construction pace to 1500 km a year instead of 1000, using new financing mechanisms.

The program, to be launched after the end of the first, will rise rural populations accessibility to the road network to 54% in 2005, 60% in 2007, 70% in 2010 and 80% 2015, he said. According to the minister, 1500 km of roads costs around a billion DH (US$ 110,00). The first 10-year program, launched in 1995, has allowed for the construction of 8,500 km of roads. Over 80% of funds allocated to road construction will go to maintenance that will concern an annual 1,700 km, according to Ghellab.
http://www.map.co.ma/mapeng/eng.htm
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UNESCO inscribes three new cultural sites on World Heritage List.
SUZHOU, Jun 30, 2004 (Xinhua via COMTEX)

The World Heritage Committee of the United Nations Educational, Scientific and Cultural Organization (UNESCO) inscribed three new cultural sites on the World Heritage List at the committee's 28th session, according to a press release issued by the committee here Wednesday night.
Portuguese City of Mazagan (El Jadida) of Morocco. The Portuguese fortification of Mazagan, now part of the city of El Jadida, 90km southwest of Casablanca, was built as a fortified colony on the Atlantic coast in the early 16th century. It was taken over by the Moroccans in 1769. The fortification with its bastions and ramparts is an early example of Renaissance military design. The surviving Portuguese buildings include the cistern and the Church of the Assumption, built in the Manueline style of late Gothic architecture. The Portuguese City of Mazagan - one of the early settlements of the Portuguese explorers in West Africa on the route to India
- is an outstanding example of the interchange of influences between European and Moroccan cultures, well reflected in architecture, technology, and town planning.
http://www.zawya.com/Story.cfm?id=182h5646&section=Countries&page=Morocco&channel=All%20Morocco%20News&objectid=22403786-8F1A-11D4-867000D0B74A0D7C
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Premier calls for action plan to fight informal economy
Morocco, Economics, 7/1/2004

Moroccan Prime minister, Driss Jettou, called Wednesday for the elaboration of an action plan to fight informal economy that would necessarily involve public and private operators. Speaking at the opening of a seminar on "the national strategy against informal economy," Jettou said the action plan may focus on several axes, mainly creation of a watchdog to collect relevant data and conduct targeted investigations so as to list illegal activities and behavior, and the changes they undergo in time and place.

According to a national survey conducted in 1999-2000, informal economy contributes 20% to Morocco's employment, through independent activities, bringing 24% of households' income. It also makes 94 billion Dh (US$ 10.4 billion) to Morocco's national production, with 63.8 billions of added values. The informal sector also accounts for 15% of national supply and 17% of the GDP. According to the same survey, there are 1,233,300 informal units in the kingdom.

For the Prime minister, the plan necessitates coordinated actions between the concerned administrations, mainly customs and security services, to help reinforce control at Morocco's entry points. The plan's success hinges on standards and regulations such as labeling, and mobilization of the necessary human and material resources to follow-up their application, he said, adding that judicial action is also needed to repress economic fraud, especially counterfeiting. In the same drive, minister of economy, industry, trade and economy upgrade, Salaheddine Mezouar, said it is necessary to integrate the informal sector in the formal one, calling for more efforts to fight under-invoicing. He suggested that July be made month of under-invoicing fighting.
http://www.arabicnews.com/ansub/Daily/Day/040701/2004070119.html
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Power consumption hits record in Morocco
Tuesday CASABLANCA, June 30

Morocco's power consumption hit a record on Tuesday due to an unusual temperature rise, which had started end of last week. The National Electricity Office (ONE) said in a release power used Tuesday reached 55,877 Megawatt per hour (MWh), i.e. a 13% rise compared to the same day of 2003. The former record of 53,669 MWh had been set on June 24, the same source said. ONE said it was solicited to meet Spanish demand to which it exports power. Spain has witnessed record heat these days.
http://www.map.co.ma/mapeng/eng.htm
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Renal failure cases in constant increase in Morocco, minister
RABAT, July 01

Moroccan health minister, Mohamed Cheikh Biadillah, said Wednesday the prevalence of renal failure is constantly increasing in Morocco, reaching some 3,500 cases. Speaking at the weekly question time session of the House of Representatives (parliament lower chamber), on the insufficiency of Hemodialysis centers in many regions of the kingdom, Biadillah said chronic renal failure is increasing by 8% in the world and that there are 120 new cases for every one million inhabitants in Morocco.

"Morocco suffers an important deficit, either in Hemodialysis centers (112 centers nationwide only) or specialized human resources (105 Nephrologists and 30 specialized doctors in the public sector)," adding that his department has purchased over 2 billion DH ($200 million) worth of Nephrology equipment and earmarked 7 million Dh (some $750,000) to curb the disease.
http://www.map.co.ma/mapeng/eng.htm

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