"Our agreement with Morocco is not just a single announcement, but a vital
step in creating a mosaic of U.S. free trade agreements across the Middle
East and North Africa."
Robert B. Zoellick,
U.S. Trade Representative

-- Textiles and apparel trade will be duty-free if imports meet the
Agreement's rule of origin, promoting new opportunities for U.S. and
Moroccan fiber, yarn, fabric and apparel manufacturing. The Agreement
require qualifying apparel to contain either U.S. or Moroccan yarn and
fabric and contains a temporary 30 million square meter allowance for
apparel containing 3rd country content (equals 0.2% of imports into the
U.S.).
New Opportunities for U.S. Farmers and Ranchers
-- The agreement, which covers all agricultural products, opens Morocco's
market for many U.S. farm products.
-- U.S. farmers and ranchers of poultry and beef benefit from new
tariff-rate quotas that grow over time. U.S. wheat produces will benefit
from new tariff rate quotas on durum and common wheat that could lead to
five-fold increases in exports over recent levels. These results will give
U.S. farmers and ranchers a new tool to compete with Canada and the EU,
among others, in Morocco's market.
-- Tariffs on products such as corn and corn products, sorghum, soybeans and
soybean meal will be cut significantly or eliminated immediately, thereby
allowing U.S. exporters to respond to Morocco's growing need for feed
ingredients as its agricultural sector continues to modernize.
-- Morocco will provide duty-free access immediately on products such as,
pistachios, pecans, frozen potatoes, whey products, processed poultry
products, pizza cheese and breakfast cereals. Tariffs on other products will
be phased out in five years, including on walnuts, grapes, pears, cherries,
and ground turkey. Almond exports could double under a tariff-rate quota.
Tariffs on virtually all U.S. farm exports to Morocco will be phased-out
within fifteen years.
-- The United States will phase-out all agricultural tariffs under the
agreement, most in fifteen years. An agricultural safeguard will be
available in the event of significant price decreases for certain
horticultural products.
Summary of the U.S.- Morocco Free Trade Agreement
Broad Commitment to Open Services Markets
-- Morocco will accord substantial market access across its entire services
regime, subject to very few exceptions. The Agreement uses the so-called
"negative list" approach, meaning that all sectors are covered
unless-specifically excluded.
-- Key services sectors covered by the Agreement include audiovisual,
express delivery, telecommunications, computer and related services,
distribution, and construction and engineering.
-- The Agreement provides benefits for businesses wishing to supply services
cross-border (for instance, by electronic means) as well as businesses
wishing to establish a presence locally in the other country.
-- Strong and detail disciplines on regulatory transparency supplement the
Agreement's cross-cutting transparency provisions.
New Opportunities for U.S. Banks, Insurance, Securities and Related Services
-- U.S. financial service suppliers will have the right to establish
subsidiaries and joint ventures in Morocco (in the case of insurance agency
and brokerage, Moroccan can limit foreign equity to 51 percent). In
addition, banks and insurance companies will have the right to establish
branches, subject to a four-year phase-in for most insurance services.
-- Morocco will allow U.S.-based firms to supply insurance on a cross-border
basis (through electronic means) for key markets including reinsurance,
reinsurance brokerage, and, subject to a two-year phase-in, marine, aviation
and transport (MAT) insurance and brokerage. Morocco also will allow
U.S.-based firms to offer services cross-border to Moroccans in areas such
as financial information and data processing, and financial advisory
services.
-- Of further benefit to U.S. insurance suppliers, Morocco will phase-out
certain mandatory reinsurance cessions and expedite the introduction of
insurance products.
An Open and Competitive Telecommunications Market
-- Each government commits that users of the telecom network will have
reasonable and nondiscriminatory access to the network, thereby preventing
local firms from having preferential or "first right" of access to telecom
networks.
-- U.S. phone companies will have the right to interconnect with former
monopoly networks in Morocco at non-discriminatory, cost-based rates.
-- U.S. firms seeking to build a physical network in Morocco will have
non-discriminatory access to key facilities, such as telephone switches and
submarine cable landing stations.
-- U.S. firms will be able to lease elements of Moroccan telecom networks on
non-discriminatory terms and to re-sell telecom services of Moroccan
suppliers to build a customer base.
Summary of the U.S.- Morocco Free Trade Agreement
E-Commerce: Free Trade in the Digital Age
-- Each government commits to non-discriminatory treatment of digital
products and agrees not to impose customs duties on digital products.
-- For digital products delivered on hard media (such as a DVD or CD),
customs duties will be based on the value of the media (for instance, the
disc), not on the value of the movie, music or software contained on the
disc.
-- The e-commerce commitments will help establish Morocco as a leader in
Middle East and North Africa for the further development of electronic
commerce.
Transparent Rule-Making and Procedural Protections for Traders and Investors
-- Each government must publish its laws and regulations governing trade and
investment, and, beginning within one year, publish proposed regulations in
advance and provide an opportunity for public comment on them.
"Morocco is an emerging market at the crossroads of Europe, Africa, and the
Middle East. It imports $11 billion in products each year. Currently, U.S.
products entering Morocco face an average tariff of more than 20 percent,
while Moroccan products are only subject to an average 4 percent duty in the
United States."
-- Each government commits to apply fair procedures in administrative
proceedings covering trade and investment matters directly affecting
companies from the other country.
-- Both governments must ensure that traders and investors from the other
country can obtain prompt and fair review of final administrative decisions
affecting their interests.
-- Each government will prohibit bribery, including bribery of foreign
United States officials, and establish appropriate criminal penalties to
punish violators.
-- The Agreement also recognizes the importance of protecting
whistle-blowers.
Important New Protections for U.S. Investors
-- The Agreement establishes a secure, predictable legal framework for U.S.
investors operating in Morocco.
-- All forms of investment will be protected under the Agreement, such as
enterprises, debt, concessions, contracts and intellectual property.
-- U.S. investors will enjoy in almost all circumstances the right to
establish, acquire and operate investments in Morocco on an equal footing
with Moroccan investors, and with investors of other countries.
-- Pursuant to the Trade Promotion Authority Act of 2002 (TPA), the
Agreement draws from U.S. legal principles and practices to provide U.S.
investors in Morocco a basic set of substantive protections that Moroccan
investors in the United States currently enjoy under the U.S. legal system.
Summary of the U.S.- Morocco Free Trade Agreement
-- Among the rights afforded to U.S. investors (consistent with those found
in U.S. law) are due process protections and the right to receive a fair
market value for property in the event of an expropriation.
-- The Agreement removes certain restrictions and prohibits the imposition
of other restrictions on U.S. investors, such as requirements to buy
Moroccan rather than U.S. inputs for goods manufactured in Morocco.
-- These investor rights are backed by an effective, impartial procedure for
dispute settlement that is fully transparent. Submissions to dispute panels
and panel hearings will be open to the public, and interested parties will
have the opportunity to submit their views.
Trademarks: State-of-the-Art Protection in the Digital Age
-- The Agreement requires each government to maintain a system to resolve
disputes involving trademarks used in Internet domain names, which is
important to prevent "cyber-squatting" with respect to high-value domain
names.
-- The Agreement applies the principle of "first-in-time, first-in-right" to
trademarks and geographical indications, so that the first person who
acquires a right to a trademark or geographical indication is the person who
has the right to use it.
-- Each government will be required to establish transparent procedures for
the registration of trademarks, including geographical indications, and to
develop an on-line system for the registration and maintenance of
trademarks, as well as a searchable database.
Copyrights: Protection for Copyrighted Works in A Digital Economy
-- The Agreement ensures that authors, composers and other copyright owners
have the exclusive right the make their works available online. The
Agreement also ensures that copyright owners have rights to temporary copies
of their works on computers, which is important in protecting music, videos,
software and text from widespread unauthorized sharing via the Internet.
-- Each government commits to protect copyrighted works, including
phonograms, for extended terms (e.g., life of the author plus seventy
years), consistent with U.S. standards and international trends.
-- The Agreement includes strong anti-circumvention provisions, requiring
each government to prohibit tampering with technologies (like embedded codes
on discs) that are designed to prevent piracy and unauthorized distribution
over the Internet.
-- Each government commits to using only legitimate computer software, thus
setting a positive example for private users.
-- The Agreement requires protection for encrypted program-carrying
satellite signals (including the signal itself and the programming), thus
preventing piracy of satellite television programming.
-- Internet Service Providers (ISPs) will have limited liability, reflecting
the balance struck in the U.S. Digital Millennium Copyright Act between
legitimate ISP activity and the infringement of copyrights.
Patents & Trade Secrets: Protection Expanded
-- Patent terms can be adjusted to compensate for unreasonable delays in
granting the original patent, consistent with U.S. practice.
Summary of the U.S.- Morocco Free Trade Agreement
-- Grounds for revoking a patent are limited to the same grounds required to
originally refuse a patent, thus protecting against arbitrary revocation.
-- The Agreement provides protection for newly developed plant varieties and
animals.
-- Test data and trade secrets submitted to a government for the purpose of
product approval will be protected against unfair commercial use for a
period of 5 years for pharmaceuticals and 10 years for agricultural
chemicals.
-- The Agreement ensures that government marketing-approval agencies will
not grant approval to patent-infringing pharmaceuticals.
IPR Enforcement: Tough Penalties for Piracy and Counterfeiting
-- The Agreement requires each government to criminalize end-user piracy,
providing strong deterrence against piracy and counterfeiting.
-- Each government commits to having and maintaining authority to seize,
forfeit and destroy counterfeit and pirated goods and the equipment used to
produce them. IPR laws will be enforced against goods-in-transit, to deter
violators from using U.S. or Moroccan ports or free-trade zones to traffic
in pirated products. Ex officio action may be taken in border and criminal
IPR cases, thus providing more effective enforcement terror.

"Morocco, the first country in the world to recognize the newly sovereign
United States in 1777, is a strong ally of the U.S. in the war against
terror. The Treaty of Peace and Friendship between the U.S. and Morocco,
negotiated in 1787, is the longest unbroken treaty relationship in the U.S.
history."
-- The Agreement mandates both statutory and actual damages under Moroccan
law for IPR violations, which will deter privacy. Under these provisions,
monetary damages can be awarded even if actual economic harm (retail value,
profits made by violators) cannot be determined.
Strong Government Procurement Disciplines Set Precedent for Region
-- The Agreement includes disciplines on the purchases of most Moroccan
central government agencies, as well as the vast majority of Moroccan
regional and municipal governments.
-- The Agreement requires that covered Moroccan government purchasers not
discriminate against U.S. firms, or in favor of Moroccan firms, when making
covered government purchases in excess of agreed monetary thresholds.
-- U.S. and Moroccan suppliers will have increased certainty due to strong
and transparent disciplines on procurement procedures, such as requiring
advance public notice of purchases, as well as timely and effective bid
review procedures.
-- Each government must maintain criminal and other penalties for bribery in
government procurement.
Ground-Breaking Customs Procedures
-- The Agreement requires transparency and efficiency in customs
administration, including publication of laws and regulations on the
Internet and procedural certainty and fairness.
Summary of the U.S.- Morocco Free Trade Agreement
Both governments agree to share information to combat illegal trans-shipment
of goods. In addition, the Agreement requires customs procedures designed to
facilitate the rapid clearance through customs of express delivery
shipments.
Strong but simple rules of origin will ensure that only U.S. and Moroccan
goods benefit from the Agreement. Rules are designed to be easy to
administer and are consistent with other U.S. free trade agreements in the
region.
Commitments and Cooperation to Protect the Environment
The Agreement fully meets the environmental objectives set out by the
Congress in TPA. Environmental obligations are part of the core text of the
Agreement.
Each government will required to effectively enforce its own domestic
environmental laws, and this obligation is enforceable through the
Agreement's dispute settlement procedures.
Each government commits to establish high levels of environmental
protection, and to not weaken or reduce environmental laws to attract trade
or investment.
The Agreement also promotes a comprehensive approach to environmental
protection. Procedural guarantees that ensure fair, equitable and
transparent proceedings for the administration and enforcement of
environmental laws are married with provisions that promote voluntary,
market-based mechanisms to protect the environment.
As a complement to the Agreement, the governments will sign a Joint
Statement on Environmental Cooperation that will establish a Working Group
on Environmental Cooperation, develop a plan of action and set priorities
for future environment related projects.
-- EPA and USAID have developed a new environmental project in Morocco,
which focuses on building Morocco's capacity to develop its environmental
laws, institutions and enforcement mechanisms in line with Morocco's
commitments under the Agreement.
Cooperative Activities to Promote Worker Rights
-- The Agreement fully meets the labor objectives set out by the Congress in
TPA. Labor obligations are part of the core text of the Agreement.
-- Each government reaffirms its obligations as members of the International
Labor Organization (ILO), and commits to strive to ensure that its domestic
laws provide for labor standards consistent with internationally recognized
labor principles. The Agreement makes clear that it is inappropriate to
weaken or reduce domestic labor protections to encourage trade or
investment.
-- Each government will be required to effectively enforce its own domestic
labor laws, and this obligation is enforceable through the Agreement's
dispute settlement procedures.
-- Procedural guarantees in the Agreement require each government to provide
access for workers and employers to fair, equitable and transparent labor
tribunals or courts.
-- The Agreement includes a cooperative mechanism to promote respect for the
principles embodied in the ILO Declaration on Fundamental Principles and
Rights at Work, and compliance with ILO Convention 182 on the Worst Forms of
Child Labor. Cooperative activities may include:
Summary of the U.S.- Morocco Free Trade Agreement
-- Discussions f legislation, practice and implementation related to the
core elements of the ILO
Declaration n Fundamental Principles and Rights at Work.
-- Discussion o legislation, practice and implementation related to
compliance with ILO Convention 182 on the Worst Forms of Child Labor.
-- Improving systems for the administration and enforcement of labor laws.
Tools to Enforce the Trade Agreement
-- All core obligations of the Agreement, including labor and environmental
provisions, are subject to the dispute settlement provisions of the
Agreement.
-- Dispute panel procedures set high standards of openness and transparency:
-- Open public hearings;
-- Public release of legal submissions by governments;
-- Opportunities for interested third parties to submit views.
Emphasis is on promoting compliance through consultation, joint action plans
and trade-enhancing remedies.
The Agreement includes strong enforcement mechanisms, including the ability
to suspend trade concessions or establish monetary assessments.
(end fact sheet)
(Distributed by the Bureau of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)
============================================================================
=
U.S. and Morocco Conclude Free Trade Agreement
Parties see agreement as a building block in regional free trade area
By David Shelby
Washington File Staff Writer

Washington -- A newly concluded U.S.-Moroccan Free Trade Agreement will
serve as a model for further trade accords in the Middle East and North
Africa and contribute to a tremendous increase in commerce between the two
countries, according to U.S. Trade Representative Robert Zoellick and
Moroccan Minister Delegate Taib Fassi-Fihri.
The two men announced the successful conclusion of negotiations on the
agreement at a press conference in Washington March 2.
"It builds a very strong relationship with a longtime partner and friend,
the Kingdom of Morocco," said Zoellick, "but it also serves a larger aim
because together, the United States and Morocco can show many others
throughout the Middle East the power of free trade to try to support
democracy and promote prosperity and build a more tolerant, stable and
peaceful world."
Fassi-Fihri added, "The conclusion of this accord confirms the strong will
of the two countries to promote their strategic partnership and to carry
their contribution to the development of the global economy, particularly
within the Middle East and North Africa region."
The Moroccan minister delegate said, "My country finds in this agreement a
statement of confidence in our economic system and in its maturity."
He said Moroccan textiles and agro-alimentary products are industrial niche
sectors of the economy that will likely benefit from the FTA.
He went on to say that the agreement provides interesting opportunities to
U.S. producers "not only in [Morocco's] relatively narrow market but because
there are also real, concrete and effective possibilities to use Morocco as
a platform for the European and African markets."
U.S. Trade Representative Zoellick highlighted the particular opportunities
which the agreement creates for U.S. agricultural producers.
"This agreement covers all agricultural products and will open Morocco's
market to U.S. farm products. Poultry, beef and wheat will benefit from
greater access under tariff rate quotas, and frankly this will help U.S.
farmers and ranchers to get a new tool to compete against Canada and the
E.U. in Morocco's markets," he said.
U.S. Agriculture Secretary Ann Veneman welcomed the agreement saying,
"Continuing liberalization of Morocco's economy and trade are leading to
rising demand for consistent, high-quality products. This growth along with
newly competitive pricing will present great opportunities for U.S.
agricultural exporters."
Tariffs on agricultural products were a particularly sensitive issue in the
negotiations given the importance of the agricultural sector to the Moroccan
economy.
"We tried to deal sensitively with Morocco's special needs with its small
farmers, because we believe that we can protect the social stability that is
important for Morocco at the same time we expand markets for American
products," Zoellick said.
Fassi-Fihri confirmed this point. "Each time that the interests of one party
coincided with sensitivities of the other party, we set out to find
imaginative solutions for compromise that served the interests of both
parties," he said.
Zoellick added that under the agreement, benefits would also accrue to
Morocco's agricultural sector, pointing out for example, the availability of
cheaper inputs such as animal feed.
"More than 95 percent of U.S. consumer and industrial good product trade
will enter Morocco duty free on day one of this agreement, and that is the
best market opening package of any U.S. free trade agreement with any
developing country," Zoellick said.
He added that U.S. industrial exports currently face tariffs of about 20
percent upon entry into Morocco compared to a trade-weighted average of less
than two percent for Moroccan goods entering the United States.
The U.S. trade representative identified other sectors that might benefit
from this agreement as telecommunications, computer related services,
tourism, energy, transport, financial services, insurance and entertainment.
Prior to the enactment of the Free Trade Agreement, President Bush must
indicate his intention to sign the accord, and the U.S. Trade Representative
will have a 90-day period to discuss the document with interested
congressional committees. Congress will then take up discussions on whether
to ratify the agreement.
Zoellick said that while his office is faced with a tight window of
opportunity to move the agreement through Congress in this election year, he
believes that there is tremendous Congressional interest in seeing it pass.
Referring to the Bush administration's broader goal of establishing a Middle
East Free Trade Area by 2013, Zoellick said, "It's very important to see our
agreement with Morocco not just as a single announcement but as a vital step
towards creating a mosaic of U.S. free trade agreements across the Middle
East and North Africa."
(The Washington File is a product of the Bureau of International Information
Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
===================================================================
U.S.-Morocco FTA Completed
The United States and Morocco completed negotiations and reached agreement
today on a comprehensive and groundbreaking bilateral Free Trade Agreement
(FTA) that ushers in a new era of deepening and strengthening bilateral
economic ties while elevating the bilateral relationship. Minister Delegate
of Foreign Affairs and Cooperation Taieb Fassi Fihri and U.S. Trade
Representative Ambassador Robert Zoellick said they expect the agreement to
be signed in June and subsequently submitted to their legislatures for
approval this summer.
The FTA is clearly a win-win proposition. It will benefit both countries,
facilitating exports, encouraging investment, improving the business
environment, stimulating economic growth and creating new jobs. The
U.S.-Morocco FTA is one of only seven FTAs completed by the United States.
It is only the second with an Arab nation and the first in Africa. The Free
Trade Agreement is recognition of Morocco's unique geographic location at
the crossroads of three continents, its commitment to reform, and the
kingdom's status as a long-time friend and ally in the region. Ambassador
Zoellick noted that the agreement was a concrete example of the U.S.
"commitment to support tolerant, open and more prosperous Muslim societies."
In April 2002, his majesty King Mohammed VI and President George W. Bush
committed to launch free trade negotiations. Less than two years after this
historic announcement, the two countries have fulfilled their leaders'
vision.
The two countries began negotiations in January 2003. The agreement was
concluded after eight formal negotiating rounds, with teams of experts
meeting in Rabat, Washington, Geneva and via frequent digital
videoconferences.
From the very first day of implementation, Morocco will enjoy duty free
access to America's dynamic market comprising nearly 300 million consumers
who import USD 1.5 trillion in goods and services annually. Duties on 98
percent of Morocco's merchandise exports to the United States will disappear
immediately upon implementation of the agreement. Moroccan textile
negotiators secured expanded access to the U.S. market. The textile chapter
of agreement includes the largest "trade preference level" (TPL) or special
quota, ever offered in a U.S. FTA. Under this TPL, Moroccan producers can
export up to one and a half times current trade tariff-free and with very
liberal rules of origin.
Free trade creates higher paying jobs in America's free trade partners.
According to the Mexican Government, during the first five years of North
America Free Trade Agreement, half of the 3.5 million jobs created were the
result of export growth. Employment in Mexico's export sector pays almost
37% more than jobs in the rest of its manufacturing sector. One out of every
five employees in Mexico now holds higher paying export sector jobs.
Removal of Moroccan tariffs for sensitive products and sectors will be
phased in only very slowly allowing time for Moroccans to adjust and for the
benefits of its economic reforms to begin to bear fruit.
The agreement takes into account the need for economic and social stability
in determining access to the Moroccan beef, poultry and wheat markets. Under
the FTA, U.S. exporters will supply luxury hotels and restaurants with high
quality beef. This will help Morocco realize its 2010 tourism goals without
disrupting sensitive rural beef markets. Taking into account both vulnerable
rural producers and the incipient modern Moroccan poultry industry, the
United States agreed to limit its access to a small fraction of the Moroccan
poultry market.
The FTA's investment rules will make Morocco extremely attractive to U.S.
companies searching for opportunities in the Mediterranean, Middle East, or
Africa. The investment provisions combined with new market access and IPR
protection makes Morocco the ideal platform for foreign investors to produce
products for export to the United States and Europe, as well as to the
Maghreb and West Africa.
Responding to persuasive Moroccan concerns on cultural issues, the agreement
includes special features that will ensure the continued vitality of
Morocco's film, music, and television industries. As other free trade
agreements have shown, the commitments made on IPR will bring new investment
(and technology transfer, skills training, and skilled job creation) in high
technology sectors, like audio-visual, information technology, and
biotechnology. For example, in Jordan, increased IPR protection has
increased high tech investment in medical research and development and lead
to lower prices for certain medicines as companies gained confidence to
introduce new drugs.
The U.S. Morocco FTA is an integral part of President Bush's vision of
creating a Middle East Free Trade Area (MEFTA) by 2013. The United States
currently has FTAs with Israel and Jordan. Bahrain began FTA negotiations
with the United States in January. The Morocco FTA will likely serve as the
North African anchor of the MEFTA structure.
==========================================================================
03 March 2004
Trade Accord Opens Huge Opportunities for Moroccan Business in U.S.
Contains unprecedented concessions in textiles and agriculture
By David Shelby
Washington File Staff Writer

Washington -- The conclusion of the U.S.-Morocco Free Trade Agreement will
open the enormous U.S. market to Moroccan businesses and entrepreneurs,
allowing for rapid growth and diversification of Moroccan exports to the
United States.
"On day one that this agreement enters into force, 98 percent of the U.S.
market will be open for Morocco duty-free. So Morocco can diversify its
exports to any area it wants to. It can build up its advantages in any
area," said Assistant U.S. Trade Representative Catherine Novelli in a March
3 digital videoconference with Moroccan journalists.
Novelli pointed to the Moroccan textile industry as a sector that stands to
benefit from the agreement, which she said contains special concessions that
encourage the growth of Moroccan textile exports.
"We have, in the Bush Administration, an unprecedented opening of our
textiles market for Morocco," she said. "We are allowing special privileges
that are up to 150 percent of Morocco's current exports for things that are
beyond what the normal rules provide. This is in recognition of our
friendship and our desire to have exports from Morocco increase rapidly."
Under the provisions of the agreement, the U.S. textile sector will be 100
percent open to Moroccan textiles that respect the rules of origin requiring
that yarns and fabrics used in the textiles be of Moroccan origin.
Currently, however, the Moroccan yarn and fabric sectors are underdeveloped,
and manufacturers will have to continue using imported inputs until the yarn
and fabric industries can be established. In recognition of this, the
agreement allows Moroccan exports to the United States to expand to 150
percent of their current levels during an interim period while the input
sectors are built up.
The rules of origin provision is designed to ensure that the free trade
agreement serves to engender growth in real domestic economic production and
that it does not simply transform the country into a low-cost transshipment
point.
Novelli also noted that the trade agreement makes Morocco more attractive to
U.S. investors because of its investor-friendly rules.
"Agreeing to these kinds of rules is a great advertisement that Morocco is a
place to come," she said. "Morocco has a geographic strategic position
between Europe and Africa, and now we hope that U.S. investors will look at
that and see that not only is the strategic geography there, but the rules
are there too, that are going to be very friendly for investors."
Novelli said trade in agricultural products was a sensitive point in the
negotiations as the Moroccan economy is heavily dependent on its
agricultural sector to provide jobs and income.
"[F]or that reason we have unprecedented provisions in this agreement, we
have never done with any other country," she said. "To ensure that rural
incomes are preserved, we in fact agreed to limit our access on some very
sensitive areas like beef and wheat and poultry to extremely small
quantities that could in no way disrupt the Moroccan market."
Novelli said in the case of certain poultry products, U.S. businesses would
have access to only 0.7 percent of the Moroccan poultry market. In the case
of beef, she said, U.S. businesses would have access to less than three
percent of the total beef market.
"We have never agreed to limit our access in this way," she said, "but we
did this willingly because we understand how vital it is to preserve rural
income in Morocco and we wanted to also have a free trade agreement that
covers all products ... but do it in a way that would in no way have a
negative impact on Morocco's farmers or its citizens."
She noted, "It was an absolutely collaborative process with ourselves and
the Moroccan negotiators who were very tough and absolutely clear that they
needed to ensure the protection of their people at all costs."
She added, "We certainly also think that's very important. We want Morocco
to be a thriving and healthy country. We want the people of Morocco to
benefit."
In this spirit, the Assistant Trade Representative also affirmed that the
active cooperation between the U.S. government and Morocco would not end
with the conclusion of the trade agreement.
"We intend to continue forward with technical assistance to businesses and
entrepreneurs in Morocco to make sure that there are tangible benefits and
results for the people in Morocco and for the businesses in Morocco and that
they are able to take advantage of the opportunities that this agreement
provides," she said.
She said that the United States would be looking for ways to help Morocco in
the areas of transparency, public participation, customs law, patents and
environmental and labor regulations in order to facilitate the
implementation of the trade agreement.
Novelli said that the agreement "is based on both of our recognition that it
is the economy that provides jobs for people and that joining our economies
together is a way to provide more jobs for Moroccans, better standards of
living and we are dedicated to doing that."
(The Washington File is a product of the Bureau of International Information
Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
============================================================================
=
US-Moroccan FTA will Favor Investment in Morocco, Zoellick
WASHINGTON, Mar.03 - The Free Trade Agreement (FTA) concluded, here Tuesday,
between The United States and Morocco will favor investments in the Kingdom
while taking into account "sensitive sectors" and the country's "social and
economic reality", said the US Trade representative.

Robert Zoellick told MAP bureau in Washington that this agreement which
wraps up 13 months of "intensive negotiations", sets up a legal framework to
make of the Kingdom a more attractive destination for economic operators not
only Americans but also from other countries.

This, he said, is more promising as Morocco holds "a strategic geographic
position at the crossroad of several continents".

Concerning the sectors deemed «sensitive» such as agriculture, the US
official insisted on the "particular attention" paid to this sector by both
parties, noting that the American side is "fully aware" of the number of
people living on the sector in Morocco and the difficulties facing small
farmers.

The Civil Society in Morocco has repeatedly voiced concerns over the future
of farmers in Morocco, calling on the Moroccan negotiators to bear in mind
these people's interest. The same concern was voiced regarding
pharmaceutical drugs and textile.

The accord, said Zoellick provides for mechanisms of exceptional safety and
prolonged transition periods to the benefit of the Kingdom's agricultural
output.

Concerning beef meat, the agreement provides for a system of contingencies
conceived to supply restaurants and hotels with high quality meat but
provides also for a special system of authorization that prevents any
competition with the local standard beef meat, the US official explained.

As far as textile is concerned, Zoellick said a preferential access is given
to Moroccan products on the US markets, adding that Morocco could draw long
term benefits compared to other countries such as China and India.

Regarding generic drugs, the US official described as "unfounded"
allegations that this agreement would harm Morocco's rights as part of its
commitments towards the World Trade Organization (WTO).

On the contrary, he emphasized, the agreement grants the most generalized
access to medical care and to drugs.

Concerning the intellectual property chapter, he said it helps in promoting
knowledge, citing as example Jordan whose protecting measures have,
according to him, attracted investments from companies such as Microsoft and
others.
© MAP 2004
http://www.map.co.ma/mapeng/eng.htm
----------------------------------------------------------------------------
--------------------------------------------
FTA Cares for Morocco's Socio-Economic Realities, Moroccan Negotiators.
WASHINGTON, Mar.03 - Negotiations between Morocco and the United States for
a free trade agreement were held in an "atmosphere of entente" with both
teams caring for the social and economic realities of the Kingdom and for
the "numerous investments, trade and development opportunities,", said, here
Tuesday, the Moroccan negotiating team.

In a communiqué published at the end of the seventh rounds of negotiations,
the delegation, led by Taieb Fassi-Fihri, minister-delegate of foreign
affairs and cooperation, said the FTA, announced on Tuesday, "illustrates
the two countries' strong political will to promote their strategic
partnership and to contribute to economic development in particular in the
Middle east and North Africa regions."

Morocco, the communiqué said, "finds in this agreement a reaffirmation of
the support to the options of openness, tolerance and democracy taken by HM
King Mohammed VI".

The Moroccan negotiating team insisted that this accord "takes fully into
account the specific nature and the social realities of Morocco in the
process of trade liberalization between the two countries and the
modernization of the Moroccan economy."

Concerning the promotion of Moroccan exports to the US, Morocco deems that
the agreement "opens great and real perspectives of development for our
industrial, textile, agricultural and fisheries exports".

A free access to the American market is thus guaranteed to 99 percent of
Moroccan industrial products, the team assured. The same thing applied to
textile, as the FTA "opens, in an important and significant manner, the
American market to Moroccan exports".

The Moroccan fisheries sector will also benefit from "the multiple growth
opportunities" provided by the American market, the communiqué said .
The delegation further explained that the agreement offers significant
opportunities to develop and diversify Moroccan exports on the American
market, insisting that the opening of the Moroccan agricultural market, will
be done gradually in light of the envisaged reforms.

Regarding all other chapters, the accord «confirms our commitments towards
the WTO and aims to contribute to improving and modernizing Morocco's
business environment with the aim to increase the flow of foreign
investments in our country.", the communiqué underlined.

The same thing applies to "the particular field of generic medicine" with
the FTA confirming "for the essential, our commitments within the WTO".
The Moroccan negotiating team deemed in conclusion that the FTA is part of
"a comprehensive and coherent strategy of Morocco in its multilateral and
regional relations with its main partners, while taking into account notably
the priorities of our social and economic development policy and the
perspectives of consolidating further our relations of cooperation with our
traditional partners."

The agreement, announced on Tuesday, is the second of the kind binding the
USA to an Arab country, after Jordan.
© MAP 2004
http://www.map.co.ma/mapeng/eng.htm
----------------------------------------------------------------------------
-----------------------------------
Agreement with Morocco to Provide Increased Export Opportunities for U.S.
Cattle Industry.
by NCBA Release 3/5/2004
Washington, D.C. (March 5, 2004) - U.S. cattle producers across the country
are looking to benefit from a free trade agreement (FTA) with Morocco. This
week, the Bush Administration announced it has completed negotiations on
this agreement. For more than a year now, NCBA has continually reiterated
the cattle industry's position on these trade negotiations through comments,
testimony, and meetings with trade officials.
"This new agreement gives us new opportunities to promote U.S. beef in
Morocco," says NCBA President and Kansas cattle producer Jan Lyons. "It
opens doors for increased quantities of our high-quality beef to be exported
to their extensive hotel and restaurant industry, where there is an
increasing demand for high-quality beef products. Our popular, coveted U.S.
beef could do well in Morocco."
According to the agreement, Morocco will open its market with a tariff rate
quota for high-quality beef that will provide access to the hotel and
restaurant industry (HRI) market, starting with a low in-quota tariff that
goes to zero quickly.
"Presently, products entering Morocco face some of the highest beef tariffs
in the world," exclaims NCBA Associate Director of Trade Policy Michelle
Reinke. "This agreement will finally liberalize tariffs on trade, and
improve market access for cattle producers. In addition, this agreement
paves the way for future market access opportunities across the Middle East
and North Africa."
American fast-food outlets have been among the most successful businesses in
Morocco in recent years. Most of the major fast food chains have opened
outlets during the past five years and more outlets are scheduled to open in
the near future in response to the higher demand for "western type" food.
The rapid growth in the sector stems from major economic changes in Morocco.
Beef is listed among the U.S. agricultural products having the best high
value product prospects for increasing exports to Morocco.
"NCBA appreciates the initiatives that have been undertaken to gain access
to international markets and to resolve lingering issues that restrict the
ability of the U.S. beef industry to offer its products to international
consumers," says Lyons. "Historically, the U.S. beef industry has been the
world's largest beef importer and second largest exporter. We depend on
access to new and expanding markets to maintain our profitability. Morocco
presents an opportunity to expand access to a country that is also aligned
with the European Union through a bilateral agreement, so a U.S. - Morocco
FTA offers strategic future opportunities."
NCBA continues to participate in the process of evaluating critical trade
issues within the cattle industry. NCBA looks forward to providing
additional input as the U.S. advances its proposals at the WTO, negotiates
bi-lateral and regional agreements and resolves a growing list of SPS issues
with trading partners around the world.
The Bush Administration will continue to consult with the Congress on this
agreement and will soon send a formal notification of its intent to sign the
U.S.-Morocco FTA to Congress.
http://www.cattlenetwork.com/content.asp?contentid=1477
----------------------------------------------------------------------------
----------------------------------------------
The African Development Bank approves an emergency grant of US$ 500,000 to
Morocco
Press Release [No. SEGL3/B/8/04]
Tunis, 5 March 2004 - In response to the deadly earthquake, which occurred
in the Al Hoceima region on 23 February 2004, the Board of Directors of the
African Development Bank (ADB) which was highly moved by the magnitude of
the disaster and the considerable loss of human lives and property that
accompanied it, has decided to provide, through an accelerated procedure, an
emergency grant of 500,000 US dollars to Morocco.
The assistance, obtained from the Special Emergency Relief Fund of the ADB,
is intended to meet part of the foreign currency cost of humanitarian aid
for the victims of the earthquake.
A mission of experts will visit Morocco to assess complementary
interventions that could be undertaken by the Bank within the framework of
its emergency assistance. The objective of the mission will be to collect
information on the inventory of human and material destruction, prepare
estimates of the needs of the population affected by the disaster and
discuss the priority areas of intervention with the government
The Operations of the Bank Group in Morocco commenced in 1970. To date, the
amount committed by the Bank in Morocco stands at 3.089 billion Units of
Account (UA)*, equivalent to US$ 4.6 billion.
* UA 1 = USD 1.48131 = MAD 13.0021 as at 01/02/04
Media Contact:
Magatte Wade ---- Email: m.wade@afdb.org
Tel. : +216 71 10 21 16 ---- Fax : +216 71 10 37 52
http://www.reliefweb.int/w/rwb.nsf/9ca65951ee22658ec125663300408599/02d9fe22
cd0b6857c1256e4e003f3760?OpenDocument
----------------------------------------------------------------------------
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--------------
U.S. Sets First Piece of Mideast Trade 'Mosaic' in Morocco

Analysis - By Emad Mekay
WASHINGTON, Mar 3 (IPS) - Building on a spree of "free" trade deals across
the world, the United States has announced an agreement with Morocco that it
says could be used as a model for the proposed U.S.-Middle East Free Trade
Area (MEFTA).

The agreement strips away most barriers to U.S. trade into Morocco and gives
Washington trade privileges that have mostly been rejected by other
developing nations interested in doing deals with the United States.

U.S. Trade Representative (USTR) Robert B. Zoellick and Moroccan
Minister-delegate of Foreign Affairs and Cooperation Taib Fassi-Fihri made
the joint announcement Tuesday.

"This is the best market access package negotiated yet with a developing
country in a U.S. bilateral free trade agreement," said a statement from the
USTR office.

"This agreement cuts tariffs and opens markets for American workers,
farmers, investors and consumers," added Zoellick. "It's a ground-breaking
FTA that not only slashes tariffs, but sets a new high standard for the
protection of intellectual property rights (and) opens markets for
services".

Zoellick says the U.S.-Morocco agreement will be an integral part of
President George W. Bush's strategy to create a free trade area in the
Middle East by 2013. Bush announced the ambitious plan in May 2003.

"Our agreement with Morocco is not just a single announcement, but a vital
step in creating a mosaic of U.S. free agreements across the Middle East and
North Africa," Zoellick said.

In the Middle East, the United States has free trade agreements only with
Israel and Jordan, as regional heavyweights like Egypt and Saudi Arabia
continue to balk at U.S. demands.

Washington also launched negotiations with the small emirate of Bahrain
early this year and is expected to reach a deal later in 2004.

Zoellick contends the agreements could help fight terrorism and ease anger,
simmering over U.S. foreign policy in the region, particularly Washington's
unwavering support for Israel.

"This FTA sends a powerful signal that the United States is firmly committed
to supporting tolerant, open and more prosperous Muslim societies," said
Zoellick.

"I hope other nations in the Middle East and North Africa will à view it as
a model to advance their economic relationships with the United States."

Outside of the Middle East, the deal with Morocco is the latest in a string
of U.S. trade pacts with smaller countries around the world.

Morocco joins Australia, and four Central American countries as nations with
which Washington has completed negotiations in recent months.

The talks need to be ratified by Congress before they can become final.

The United States is also negotiating free trade agreements with the
Southern African Customs Union (South Africa, Botswana, Namibia, Lesotho and
Swaziland) and is working to bring the Dominican Republic into the recent
Central American FTA.

Washington has also announced it intends to begin talks with Thailand,
Colombia, Peru, Ecuador, Bolivia and Panama.

"Our new and pending FTA partners, taken together, would constitute
America's third largest export market and the sixth largest economy in the
world," said Zoellick.

Other developing countries considering trade deals either with the United
States alone or within the multilateral setting of the World Trade
Organisation (WTO) complain that Washington and other industrialised nations
push them to open up their markets without giving them equal access to
markets in rich nations.

A proposed Free Trade Area of the Americas (FTAA), which would encompass all
countries in the western hemisphere except Cuba, is slowing down over the
resistance of some countries, led by Brazil, to open their economies to U.S.
companies.

Among their other complaints, the countries also argue that Washington
should modify its huge agriculture subsidies system, which places their own
farmers at a disadvantage when they compete with the U.S. agricultural
industry.

But the agreement with Morocco appears to have given the United States
almost everything it demanded.

The deal will remove a tariff that averages 20 percent on most U.S. products
entering Morocco.

More than 95 percent of U.S. trade in consumer and industrial products
becomes tariff-free immediately, with all remaining tariffs to be eliminated
within nine years.

U.S. poultry, beef and wheat will benefit from greater access under
tariff-rate quotas, while tariffs on corn, sorghum and soybeans will be cut
drastically or eliminated immediately. This will allow U.S. exporters to
compete with the European Union (EU) and Canada, which dominate the Moroccan
market..

The agreement also gives U.S. service companies unchecked access to the
Moroccan market of 31 million people.

U.S. banks, insurance, telecommunications, express delivery, distribution
and construction companies will all benefit from the deal.

The agreement also includes strong provisions to protect U.S. software,
music, text and videos, among other intellectual property rights.

Morocco's export market is small at only 11 billion dollars. Currently the
United States exports an average of 475 million dollars worth of products to
Morocco each year. These include aircraft, corn, machinery and, more
recently, fabrics and pharmaceuticals.

Morocco exports around 450 million dollars worth of products to the United
States, including phosphates and other minerals. They largely enter the
market duty-free.

The proposed deal also gives U.S. investors what the USTR said is "a secure,
predictable legal framework".

According to a fact sheet, it would allow traders and investors from the
other country to "obtain prompt and fair review of final administrative
decisions" affecting their interests.

Some countries and civil society groups have objected to similar clauses in
the past saying they give virtual veto rights to major companies on local
government's decisions.

The U.S.-Morocco pact includes landmark measures in government contracting,
allowing U.S. firms to compete unhampered with local companies to sell goods
and services directly to the Moroccan government.

Monitors of the U.S. global trade march say the rules of this deal belong to
a template that Washington is spreading around the world, and warn the deal
could put Moroccans at a disadvantage vis-à-vis U.S. businesses interests.

"The investors' rules are problematic and do provide U.S. companies with
substantial opportunities to challenge legitimate environmental and other
public interests laws and regulations that the Moroccans may want to put in
place," said David Waskow, international policy analyst with Friends of the
Earth in Washington.

Giving U.S. companies the veto rights could also impede Washington's own
goal of promoting democracy in the region, he added.

"If the U.S. continues to move forward with that kind of investment rules,
that could actually hamper the ability of governments to enact appropriate
public-interest policy, if there's democratisation in the region."
(END/2004)
http://www.ipsnews.net/interna.asp?idnews=22684
------------------

U.S. wheat growers back new trade pact with Morocco
Reuters, 03.03.04,
WASHINGTON (Reuters) - The U.S. wheat industry Wednesday endorsed a new
free-trade agreement with Morocco it said would significantly boost U.S.
exports to a market long dominated by the European Union.

"I believe this agreement will guarantee wheat producers fair access to this
important market," Bruce Hamnes, chairman of the Wheat Export Trade
Education Committee and a Minnesota wheat producer, said in a statement.

Morocco had initially pushed to keep wheat out of the free- trade agreement
with the United States, which was formally concluded Tuesday.

But U.S. negotiators won terms they said would let the United States
eventually compete on an equal footing with the EU, while providing
safeguards for Morocco's large farm population. Morocco is a large producer
and importer of wheat, including durum wheat used in pasta and the Moroccan
staple couscous.

A U.S. trade official said U.S. market access for non-durum wheat was
modeled after a recent agreement between Morocco and the EU that linked EU
exports to the size of the Moroccan crop.

The U.S.-Moroccan agreement allows the United States to ship a maximum of
700,000 tons of non-durum wheat, or a minimum of 280,000 tons, depending on
the size of the crop, the U.S. official said. The market access grows over
time until it matches the EU, he added.

For durum wheat, the agreement gives the United States an initial quota of
250,000 tons, which grows by 10,000 annually, the U.S. official said.
Morocco also agreed to phase out its tariffs on durum wheat, he said.

Copyright 2004, Reuters News Service

http://www.forbes.com/markets/commodities/newswire/2004/03/03/rtr1284739.htm
l
----------------------------------------------------------------------------
---------------------------------

TRADE: U.S. SEES MOROCCO PACT AS MODEL FOR MIDEAST TRADE
By Emad Mekay MORE BY THIS AUTHOR <searchresults.asp?Author=Emad+Mekay>
WASHINGTON, Mar. 3 (IPS/GIN) - Building on a spree of "free" trade deals
across the world, the United States has announced an agreement with Morocco
that it says could be used as a model for the proposed U.S.-Middle East Free
Trade Area (MEFTA).
The agreement strips away most barriers to U.S. trade into Morocco and gives
Washington trade privileges that have mostly been rejected by other
developing nations interested in doing deals with the United States.
U.S. Trade Representative Robert B. Zoellick and Moroccan Minister-delegate
of Foreign Affairs and Cooperation Taib Fassi-Fihri made the joint
announcement Tuesday.
"This is the best market access package negotiated yet with a developing
country in a U.S. bilateral free trade agreement," said a statement from the
USTR office.
"This agreement cuts tariffs and opens markets for American workers,
farmers, investors and consumers," added Zoellick. "It's a ground-breaking
FTA that not only slashes tariffs, but sets a new high standard for the
protection of intellectual property rights and opens markets for services".
Zoellick says the U.S.-Morocco agreement will be an integral part of
President George W. Bush's strategy to create a free trade area in the
Middle East by 2013. Bush announced the ambitious plan in May 2003.
"Our agreement with Morocco is not just a single announcement, but a vital
step in creating a mosaic of U.S. free agreements across the Middle East and
North Africa," Zoellick said.
In the Middle East, the United States has free trade agreements only with
Israel and Jordan, but regional heavyweights like Egypt and Saudi Arabia
continue to balk at U.S. demands.
Washington also launched negotiations with the small emirate of Bahrain
early this year and is expected to reach a deal later in 2004.
Zoellick contends the agreements could help fight terrorism and ease anger,
simmering over U.S. foreign policy in the region, particularly Washington's
unwavering support for Israel.
"This FTA sends a powerful signal that the United States is firmly committed
to supporting tolerant, open and more prosperous Muslim societies," said
Zoellick.
"I hope other nations in the Middle East and North Africa will view it as a
model to advance their economic relationships with the United States. "
Outside of the Middle East, the deal with Morocco is the latest in a string
of U.S. trade pacts with smaller countries around the world.
Morocco joins Australia, and four Central American countries as nations with
which Washington has completed negotiations in recent months.
The talks need to be ratified by Congress before they can become final.
The United States is also negotiating free trade agreements with the
Southern African Customs Union (South Africa, Botswana, Namibia, Lesotho and
Swaziland) and is working to bring the Dominican Republic into the recent
Central American FTA.
Washington has also announced it intends to begin talks with Thailand,
Colombia, Peru, Ecuador, Bolivia and Panama.
"Our new and pending FTA partners, taken together, would constitute
America's third largest export market and the sixth largest economy in the
world," said Zoellick.
Other developing countries considering trade deals either with the United
States alone or within the multilateral setting of the World Trade
Organisation (WTO) complain that Washington and other industrialised nations
push them to open up their markets without giving them equal access to
markets in rich nations.
Action on a proposed Free Trade Area of the Americas (FTAA), which would
encompass all countries in the western hemisphere except Cuba, is slowing
down over the resistance of some countries, led by Brazil, to open their
economies to U.S. companies.
Among their other complaints, the countries also argue that Washington
should modify its huge agriculture subsidies system, which places their own
farmers at a disadvantage when they compete with the U.S. agricultural
industry.
But the agreement with Morocco appears to have given the United States
almost everything it demanded.
The deal will remove a tariff that averages 20 percent on most U.S. products
entering Morocco.
More than 95 percent of U.S. trade in consumer and industrial products
becomes tariff-free immediately, with all remaining tariffs to be eliminated
within nine years.
U.S. poultry, beef and wheat will benefit from greater access under
tariff-rate quotas, while tariffs on corn, sorghum and soybeans will be cut
drastically or eliminated immediately. This will allow U.S. exporters to
compete with the European Union (EU) and Canada, which dominate the Moroccan
market.
The agreement also gives U.S. service companies unchecked access to the
Moroccan market of 31 million people.
U.S. banks, insurance, telecommunications, express delivery, distribution
and construction companies will all benefit from the deal.
The agreement also includes strong provisions to protect U.S. software,
music, text and videos, among other intellectual property rights.
Morocco's export market is small at only $11 billion. Currently the United
States exports an average of $475 million worth of products to Morocco each
year. These include aircraft, corn, machinery and, more recently, fabrics
and pharmaceuticals.
Morocco exports around 450 million dollars worth of products to the United
States, including phosphates and other minerals. They largely enter the
market duty-free.
The proposed deal also gives U.S. investors what the USTR said is "a secure,
predictable legal framework".
According to a fact sheet, it would allow traders and investors from the
other country to "obtain prompt and fair review of final administrative
decisions" affecting their interests.
Some countries and civil society groups have objected to similar clauses in
the past saying they give virtual veto rights to major companies on local
government's decisions.
The U.S.-Morocco pact includes landmark measures in government contracting,
allowing U.S. firms to compete unhampered with local companies to sell goods
and services directly to the Moroccan government.
Monitors of the U.S. global trade march say the rules of this deal belong to
a template that Washington is spreading around the world, and warn the deal
could put Moroccans at a disadvantage vis-à-vis U.S. businesses interests.
"The investors' rules are problematic and do provide U.S. companies with
substantial opportunities to challenge legitimate environmental and other
public interests laws and regulations that the Moroccans may want to put in
place," said David Waskow, international policy analyst with Friends of the
Earth in Washington.
Giving U.S. companies the veto rights could also impede Washington's own
goal of promoting democracy in the region, he added.
"If the U.S. continues to move forward with that kind of investment rules,
that could actually hamper the ability of governments to enact appropriate
public-interest policy, if there's democratisation in the region."
http://globalinfo.org/eng/reader.asp?ArticleId=28439
------------------------------
Government Spokesman Brushes Aside Concerns on US-Morocco FTA Impact on
Moroccan Economy
RABAT, Mar.04 - Morocco's communication minister, Nabil Benabdellah, said
this Thursday the free trade agreement concluded on Tuesday with the USA
opens important perspectives for Moroccan economy, mainly as regards US
investment and spurring growth.

Benabdellah, the government's spokesman, told the Moroccan TV channel "TVM"
the agreement opens new markets for Moroccan products and economy and also
broadens Morocco's ties with Europe.

He further explained that 99% of Moroccan industrial products will have
access to US markets at preferential customs duties, while the kingdom's
farming products, like grains, meat and, poultry will be protected by
transition periods.

Concerns about national cultural and audio-visual production and about
generic medicine were also brushed aside by the government's spokesman, who
underscored that artistic and cultural production will be protected by
subsidies and budgets earmarked by the state to national production, and
that the FTA provisions on the pharmaceutical industry are conform to the
standards of the World Trade Organization.

The sector of generic drugs will not at all be affected by the new
agreement, he insisted.

Similarly, minister-delegate for foreign affairs and cooperation, Taib
Fassi-Fihri, stressed that the FTA with the USA will not alter state's
subsidies to cultural goods and will not prevent the conclusion of cultural
agreements at the bilateral or regional levels.

He added that Moroccan negotiators have insisted that any action in the
audio-visual sector will be in keeping with the Moroccan audio-visual draft
law which stipulates that foreign capital in Moroccan radio and TV channels
will not exceed 51%.

The FTA grants the Moroccan textile sector a ten-year adjustment period and
a 10-year derogation for the implementation of the rule of origin, said the
Moroccan lead negotiator before stressing that the agreement offers an
immediate and considerable openness for Moroccan apparel sector and
represents a strong signal to foreign investors who want to have access to
the American market.
© MAP 2004
http://www.map.co.ma/mapeng/news/politics/pol_019.htm
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U.S.-Morocco FTA Coalition Applauds Completion of U.S.-Morocco FTA
Mar 4, 2004 (LiquidAfrica via COMTEX) -- The U.S.-Morocco FTA Coalition
roundly praised U.S. and Moroccan officials for today's conclusion of the
U.S.-Morocco FTA negotiations. "The US-Morocco FTA Coalition is very pleased
with the timely conclusion of the FTA negotiations between our two
countries.
We strongly believe this important and historic agreement will strengthen
and expand our bilateral economic and trade relationship," said Bill
Reinsch, President of the National Foreign Trade Council.
"While we look forward to closely reviewing the final text, the U.S.-Morocco
FTA Coalition commends our two governments for demonstrating that if the
will exists, trade barriers can be eliminated and transparent and
commercially meaningful trade rules can be negotiated to strengthen
relationships and foster economic growth between and among nations." "This
agreement is a very significant development for our two countries and has
many notable provisions.
Coalition members are particularly pleased that the tariff elimination for
industrial goods will be accomplished swiftly and there are high standards
in a range of areas, including intellectual property rights and ecommerce,"
stated the two business Co-Chairs of the US-Morocco FTA Coalition, George
Pickart of CMS Energy and Laura Lane of Time Warner.
Jeff Donald, Vice President of the Business Council for International
Understanding (BCIU) applauded Ambassador Zoellick and Minister Fassi
Firhri, and the entire US and Moroccan negotiating teams, for concluding the
agreement in time for congressional action in 2004, and commended the
efforts of the Congressional Morocco Caucus, led by Congressmen Lincoln
Diaz-Balart (RFL), Phil English (R-PA), Chris John (D-LA) and John Tanner
(D-TN), for championing the U.S.-Morocco FTA negotiations. "We commend the
leadership of our two governments on reaching this important milestone in
our bilateral relationship with Morocco, a steadfast ally of the United
States, and we look -More-
forward to swift implementation of the agreement once it is submitted to the
US Congress." In early 2003, the Bush Administration announced the beginning
of the FTA talks and the goal of completing them by the end of 2003. The
U.S. business community through the U.S.- Morocco FTA Coalition has
championed the conclusion of a comprehensive, high-standard FTA with Morocco
since the coalition's formation in early 2003.
Currently, the coalition has more than 75 members. In addition to economic
benefits of the FTA, the ability to strengthen U.S. economic ties in the
region has been seen as a vital tool in support of U.S. diplomatic efforts.
The U.S.-Morocco FTA Coalition views the FTA agreement as building on the
recently enacted U.S.-Jordan FTA, and as an important component of the Bush
Administration's plan to achieve a U.S.- Middle East Free Trade Area by
2013. The National Foreign Trade Council is a leading business organization
advocating an open, rules-based world economy.
Founded in 1914 by a group of American companies that supported an open
world trading system, the NFTC now serves 350 member companies through its
offices in Washington and New York.
The Business Council for International Understanding (BCIU), a U.S. business
association founded in 1959 at White House initiative, is dedicated to
promoting dialogue and action between the business and government
communities for the purpose of expanding international commerce.
(C) 2004 Press Release, Redistributed by LiquidAfrica.com, All Rights
Reserved
http://www.zawya.com/Story.cfm?id=065i9368&section=Countries&page=Morocco&ch
annel=All%20Morocco%20News&objectid=22403786-8F1A-11D4-867000D0B74A0D7C
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U.S. wheat growers back new trade pact with Morocco.
, 03.03.04
WASHINGTON (Reuters) - The U.S. wheat industry Wednesday endorsed a new
free-trade agreement with Morocco it said would significantly boost U.S.
exports to a market long dominated by the European Union.

"I believe this agreement will guarantee wheat producers fair access to this
important market," Bruce Hamnes, chairman of the Wheat Export Trade
Education Committee and a Minnesota wheat producer, said in a statement.

Morocco had initially pushed to keep wheat out of the free- trade agreement
with the United States, which was formally concluded Tuesday.

But U.S. negotiators won terms they said would let the United States
eventually compete on an equal footing with the EU, while providing
safeguards for Morocco's large farm population. Morocco is a large producer
and importer of wheat, including durum wheat used in pasta and the Moroccan
staple couscous.

A U.S. trade official said U.S. market access for non-durum wheat was
modeled after a recent agreement between Morocco and the EU that linked EU
exports to the size of the Moroccan crop.

The U.S.-Moroccan agreement allows the United States to ship a maximum of
700,000 tons of non-durum wheat, or a minimum of 280,000 tons, depending on
the size of the crop, the U.S. official said. The market access grows over
time until it matches the EU, he added.

For durum wheat, the agreement gives the United States an initial quota of
250,000 tons, which grows by 10,000 annually, the U.S. official said.
Morocco also agreed to phase out its tariffs on durum wheat, he said.

Copyright 2004, Reuters News Service

http://www.forbes.com/markets/newswire/2004/03/03/rtr1284739.html
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HM the King's Reforms Had Positive Impact on Morocco-US FTA, Prime Minister

RABAT, Mar.05 - Initiatives and reforms conducted by HM king Mohammed VI in
various fields have had "a positive and decisive impact" on the conclusion
of a free trade agreement with the United States, said, here Thursday,
Moroccan Premier Driss Jettou.

The Prime Minister described this agreement as «exemplary» as it preserves
Morocco's interests and its privileged relations with its natural and
traditional partners such as the European Union and the Arab world.

This agreement, he went on, opens new horizons for Moroccan industrial and
agricultural exports towards the US.

Echoing Morocco's chief negotiator and also minister-delegate of foreign
affairs and cooperation, Taieb Fassi Fihri, the Premier gave assurances
regarding some aspects of the agreement, concluded on Tuesday, mainly
concerning generic drugs, agriculture and intellectual property, insisting
that Morocco's rights and interests are preserved.

He praised the role played by the Moroccan private sector during the seven
rounds of negotiations that lasted 13 months.

On Thursday, Taib Fassi Fihri, denied that Morocco has made any concessions
during its negotiations for a free trade agreement with the USA concluded on
Tuesday.

He insisted that the negotiators have been defending the interests of the
pharmaceutics industry and particularly the generic drugs industry that
accounts for 20% of national production of medicine.

Fassi Fihri explained that Moroccan and US negotiators agreed to maintain
all the sector's present gains and preserve its future development,
stressing that under the agreement with the USA, the protection duration of
a patent will not exceed 20 years before it can be copied, used and sold by
Moroccan generic medicine producers.

Meanwhile, went on the official, Morocco can still enjoy the needed
flexibility to protect public health and guarantee to all access to
medicine, in keeping with the Doha declaration on this particular issue.
This applies to AIDS, tuberculosis, or any other epidemics as well as in
case extreme emergency or threats to national security, he added.

His colleague, health minister, Mohammed Cheikh Biadillah, also gave
assurances and even described as "unfounded" concerns over medicine costs
related to the Free Trade Agreement since, he said, the duration of licenses
protection of medicine -20 years- will not be extended.

Biadillah also stressed that gains in the field of generic medicine will be
preserved.

In case of epidemic, he explained, the Moroccan government has all the
guarantees to ensure the protection of public health, and the government
would be able to resort to all legal means to protect citizens' health, as
the Doha agreements stipulate that "Health overrules all accords".

© MAP 2004
http://www.map.co.ma/mapeng/news/politics/pol_055.htm
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NCGA and USGC Support U.S.-Morocco Free Trade Agreement
WASHINGTON, Mar 3, 2004 /PRNewswire via COMTEX/ -- The National Corn Growers
Association (NCGA) and U.S. Grains Council (USGC) applaud the conclusion of
the Morocco Free Trade Agreement March 2 and look forward to reviewing its
provisions.
"This agreement promises additional access while opening market
opportunities for corn and feed grain producers," said Dee Vaughan,
president of NCGA. "Both organizations thank Ambassadors Robert Zoellick and
Allan Johnson, as well as the critical efforts of Senator Charles Grassley
for bringing these negotiations to a positive conclusion."
USCG Chairman Terry Wolf added, "The U.S. Grains Council has been actively
building markets in Morocco for U.S. corn, sorghum and barley for many
years. The completion of a free trade agreement between the United States
and Morocco will further benefit U.S. feed grain exports."
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.
The reduction and elimination of tariffs on U.S. corn, 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 U.S. share decreased to only about 10 percent of the over 1
million metric tons Morocco imported last year. Vaughan said tariff
elimination will give U.S. producers and exporters significant tariff
advantages over these competitors.
The National Corn Growers Association mission is to create and increase
opportunities for corn growers in a changing world and to enhance corn's
profitability and usage. NCGA represents more than 33,000 members, 25
affiliated state corn grower organizations and hundreds of thousands of
growers who contribute to state checkoff programs.
SOURCE National Corn Growers Association; U.S. Grains Council
CONTACT: Mimi Ricketts of NCGA, +1-314-308-4290, or Cheri Johnson of
USGC, +1-202-326-0632
URL: http://www.ncga.com
http://www.prnewswire.com
Copyright (C) 2004 PR Newswire. All rights reserved.
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