----- Original Message -----
From: David E. Lewis
To: undisclosed-recipients:
Sent: Wednesday, March 03, 2004 6:41 PM
Subject: US-MOROCCO FTA COMPLETED - MARCH 2, 2004
U.S. and Morocco Conclude Free Trade Agreement: Morocco Joins Jordan as Second Muslim Nation With U.S. FTA; Another Step Toward Middle East Free Trade
http://www.ustr.gov - March 2, 2004
FOR IMMEDIATE RELEASE:
CONTACT: RICHARD MILLS/NEENA MOORJANI
MARCH 2, 2004 (202) 395-3230
WASHINGTON - The United States and Morocco reached agreement today on a comprehensive and groundbreaking Free Trade Agreement (FTA) designed to strip away barriers and facilitate trade and investment between both countries. U.S. Trade Representative Robert B. Zoellick and Moroccan Minister-delegate of Foreign Affairs and Cooperation Taib Fassi-Fihri made the joint announcement.
The U.S.-Morocco FTA is an integral part of President Bush's strategy to create a Middle East Free Trade
Area by 2013. The United States currently has free trade agreements with Israel and Jordan, and launched
negotiations with Bahrain early this year.
"This agreement cuts tariffs and opens markets for American workers, farmers, investors and consumers. It's a
ground-breaking FTA that not only slashes tariffs, but sets a new high standard for the protection of
intellectual property rights, opens markets for services, ensures government transparency and provides
effective labor and environmental enforcement," said Zoellick. "Morocco is a good friend of the United
States, and this FTA sends a powerful signal that the United States is firmly committed to supporting tolerant,
open and more prosperous Muslim societies. I hope other nations in the Middle East and North Africa will
closely study the terms of this agreement, and will view it as a model to advance their economic relationships
with the United States."
"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. Morocco will become part of an expanding network
of U.S. free trade relationships. In addition to our six current FTA partners, Morocco joins Australia, and five
Central American countries as nations with which we have completed negotiations in recent months. 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. He added that it was especially fitting to conclude an FTA
with Morocco, the first country in the world to recognize the newly sovereign United States in 1777, and 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 U.S. history
American workers, consumers, investors and farmers will enjoy preferential access to Morocco's $11 billion
import market, lying at the crossroads of North Africa, Europe and the Middle East. The Moroccan
government has launched a comprehensive economic reform program that is aimed at reducing inflation,
developing the tourism sector, eliminating barriers to investment, and liberalizing key services sectors such as
telecommunications. The free trade agreement with the United States, with its emphasis on transparency and
the rule of law will enhance and solidify those reforms.
"I want to thank my Moroccan counterpart, Minister Taib Fassi-Fihri, for his leadership and commitment to
open markets. I also want to thank the U.S. lead negotiator, Catherine Novelli, our agriculture negotiator,
Ambassador Allen Johnson, Under Secretary of State and former U.S. ambassador to Morocco, Margaret
Tutwiler, and the entire hardworking negotiating teams of both countries for their dedication and success,"
said Zoellick.
Under the Trade Act of 2002, the Administration must notify Congress at least 90 days before signing the
agreement. The Administration will continue to consult with the Congress on the agreement and will soon
send a formal notification of its intent to sign the U.S.-Morocco FTA to Capitol Hill.
Background:
Morocco is an emerging market at the crossroads of Europe, Africa, and the Middle East that imports $11
billion worth of goods each year. The United States currently exports an average $475 million worth of
products to Morocco each year. Leading exports include aircraft, corn, and machinery. Recently, exports of
fabrics and pharmaceuticals have increased significantly. Currently, U.S. products entering Morocco face an
average tariff of over 20 percent, while Moroccan products are subject to an average tariff of 4 percent as they
enter the United States.
The President announced his intention to negotiate an FTA with Morocco in April, 2002, during a meeting
with King Mohammed VI at the White House. A formal notice to Congress was sent on October 1, 2002,
following passage of Trade Promotion Authority. After a 90-day period for consultations between the
Administration and the Congress, the United States and Morocco launched bilateral negotiations in
Washington on January 21, 2003. A total of eight negotiating rounds were held, with teams of negotiators and
specialists meeting in Washington, Rabat, Geneva, and via digital videoconference.
In May 2003, the President announced his initiative to create a Middle East Free Trade Area by 2013. The
initiative is designed to deepen U.S. trade relationships with all countries of the region, through steps tailored
to individual countries' level of development. For some countries - such as Saudi Arabia, Lebanon, Algeria
and Yemen - the initiative involves working with them to join the World Trade Organization. To help move
along the path of reform through stronger bilateral ties, the United States will sign Trade and Investment
Framework Agreements (TIFAs), as it recently did with Kuwait and Yemen, and as it already has in place
with Saudi Arabia, Egypt and Tunisia. The United States hopes to sign a TIFA with Qatar. And for nations
ready to do so, the United States will negotiate comprehensive free trade agreements, such as the one
announced today with Morocco and another under negotiation with Bahrain.
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 integrate the Dominican Republic into
a recent FTA with Central American nations. The Administration has announced its intention to begin FTA
negotiations with Thailand, Colombia, Peru, Ecuador, Bolivia, and Panama.
Some of the key provisions of the FTA are:
New Opportunities for U.S. Workers and Manufacturers: More than 95% of bilateral trade in consumer
and industrial products becomes tariff-free immediately, with all remaining tariffs eliminated within nine
years. Key U.S. export sectors benefit, such as information technology products, construction equipment,
machinery, chemicals, and many more. This is the best market access package negotiated yet with a
developing country in a U.S. bilateral free trade agreement.
Expanded markets for U.S. Farmers and Ranchers: The agreement covers all agricultural products and
will open Morocco's market to U.S. farm products. U.S. poultry, beef and wheat will benefit from greater
access under tariff-rate quotas, giving U.S. farmers and ranchers a new tool to compete against Canada and
the EU in Morocco's market. Tariffs on corn, sorghum, and soybeans will be cut significantly or eliminated
immediately, allowing U.S. exporters to respond to Morocco's growing need for feed ingredients. And
processed foods, nuts, and horticultural products will gain significant new market access.
Access to Services: The agreement offers new access for U.S. banks, insurance companies,
telecommunications companies, audiovisual services, computer and related services, express delivery
companies, distribution services and construction and engineering services.
A Trade Agreement for the Digital Age: State-of-the-art protections and non-discriminatory treatment are
provided for digital products such as U.S. software, music, text, and videos. Protections for U.S. patents,
trademarks, copyrights, and trade secrets follow the high standards of U.S. bilateral free trade agreements.
Strong Protections for U.S. Investors: The Agreement establishes a secure, predictable legal framework for
U.S. investors in Morocco.
Open and Fair Government Procurement: The agreement provides for ground-breaking anti-corruption
measures in government contracting. U.S. firms are guaranteed a fair and transparent process to sell goods
and services to a wide range of Moroccan government entities.
Strong Protections for Labor and Environment: Both parties commit to effectively enforce their domestic
labor and environmental laws, and the agreement includes a cooperative mechanism in both labor and
environmental areas. Already, for example, the U.S. Environmental Protection Agency and the U.S. Agency
for International Development have developed a new environmental project in Morocco focusing on that
country's capacity to develop its environmental laws, institutions, and enforcement. A cooperative mechanism
on labor will promote respect for the principles embodies in the International Labor Organization (ILO)
Declaration on Fundamental Principles and Rights at Work, and compliance with ILO Convention 182 on the
Worst Forms of Child Labor.
==================================================================================
U.S. and Morocco Conclude Free Trade Agreement: Parties see agreement as a building block in regional free trade area
By David Shelby
http://usinfo.state.gov - March 2, 2004
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."
US, Morocco Reach FTA
http://www.WashingtonTradeDaily.com - March 3, 2004
The United States and Morocco yesterday concluded an "over-time" free trade agreement that both sides suggested would become a model for additional pacts in North Africa and the Middle East (WTD, 2/18/04).
The agreement was expected to be finished at the end of last year, but prolonged discussion on agricultural access kept the talks going - almost continuously - until early yesterday, US Trade Representative Robert Zoellick said.
Mr. Zoellick and chief Moroccan negotiator - and designated trade minister - Taib Fassi-Fihri spoke to the press yesterday. The bilateral trade agreement follows one negotiated in 1999 with Jordan. Mr. Fassi-Fihri said he hoped the agreement will bring immediate results for his country's textile and food production sectors.
More than 95 percent of bilateral trade in consumer and industrial products will become duty-free immediately upon entry into force of the agreement, 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, commented USTR Zoellick. Although less ambitious, agricultural tariffs and quotas will fall as well but over an average 15 years in both countries.
USTR Zoellick said the United States recognized the "special needs" especially of Morocco's small farmers - who grow chiefly wheat. Agricultural market access talks took up most of last week and the weekend to resolve.
Immediate Duty-Free Access
Some key US export sectors gain immediate duty-free access to Morocco, such as information technologies, machinery, construction equipment and chemicals. Textiles and apparel trade will be duty-free if imports meet the agreement's rule of origin, promoting new opportunities for US and Moroccan fiber, yarn, fabric and apparel manufacturing, USTR stated. The agreement requires qualifying apparel to contain either US or Moroccan yarn and fabric and contains a temporary 30 million square meter allowance for apparel containing third-country content. Increased access to the US market will equal only 0.2 percent of total textile imports.
The agreement, which covers all agricultural products, opens Morocco's market for many US farm products for the first time. US farmers and ranchers of poultry and beef benefit from new tariff-rate quotas that grow over time. For beef, Morocco's tariff-rate quota will provide for 4,000 tons - mostly for high-quality US beef. In-quota tariffs will drop to nil in five year; over-quota tariffs will diminish to zero over 18 years. Morocco currently maintains a prohibitive 275 percent duty on beef imports.
The agreement carves up poultry trade into whole birds, quarters and leg portions. TRQs for all three, however, will be phased out in three five-year increments. Morocco has provided US whole bird producers with a 1,250 tons quota, eliminating tariffs altogether over 19 years. Leg quarters will start with a 4,000-ton quota with tariffs eliminated over 25 years. In-quota tariffs, however, will be eliminated over a 10-year time-frame. Poultry imports currently are subject to a 124 percent duty.
US wheat producers will benefit from new TRQs on durum and common wheat that could lead to five-fold increases in exports over current levels. TRQ changes will resemble the system already in place between Morocco and the EU, explained one US trade official. If wheat production in Morocco reaches three million tons or more, the EU is allowed under its preferential trade agreement to ship no more than 400,000 tons. On the other end, should Moroccan production fall to 2.1 million, the EU is allowed shipments up to 1 million tons. The agreement will put US farmers on general par with that arrangement. The agreement - over 10 years - will provide US market access from the low-end of 280,000 tons to 700,000 tons on the high side. Morocco's existing tariff for wheat is 135 percent.
Similar TRQ's for durum wheat - which Europe does not export - ranges from 10,000 tons in the first year to 250,000 tons over 15 years. A formula for non-durum wheat would drop Morocco's tariffs by 38 percent. Durum wheat duties in Morocco currently are 75 percent ad valorem.
Tariffs on products such as corn and corn products, sorghum, soybeans and soybean meal will be cut significantly or eliminated immediately - responding to Morocco's growing need for feed ingredients as its agricultural sector continues to modernize, USTR pointed out in a fact sheet. Soybean tariffs will be cut by half in the first year of the agreement, followed by 10 percent reductions yearly until they finally reach zero.
Pistachios, Pecans, Frozen Potatoes
Morocco will provide duty-free access immediately to US 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 new tariff-rate quota, USTR stated. Tariffs on virtually all US farm exports to Morocco will be phased out within 15 years.
The United States will phase out all agricultural tariffs under the agreement - most in 15 years. An agricultural safeguard will be available in the event of significant price decreases for certain horticultural products.
Other key provisions of the agreement include -
- Services - Morocco will accord substantial market access across its entire services regime, subject to 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, construction and engineering.
- Banks, Insurance, Securities - US financial service suppliers will have the right to establish subsidiaries and joint ventures in Morocco - in the case of insurance agency and brokerage, Morocco 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 US-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 insurance and brokerage. Morocco also will allow US-based firms to offer services cross-border to Moroccans in areas such as financial information and data processing, and financial advisory services. Morocco also agreed to phase out certain mandatory reinsurance cessions and expedite the introduction of insurance products.
Telecom
Telecommunications - Each government commits that users of the telecom network will have reasonable and nondiscriminatory access, thereby preventing local firms from having preferential or "first right" of access. US phone companies will have the right to interconnect with former monopoly networks in Morocco at nondiscriminatory, cost-based rates. US firms seeking to build a physical network in Morocco will have nondiscriminatory access to key facilities, such as telephone switches and submarine cable landing stations. US firms will be able to lease elements of Moroccan telecom networks on nondiscriminatory terms and to re-sell telecom services of Moroccan suppliers to build a customer base.
Digital Communications - Each government commits to nondiscriminatory 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, not on the value of the movie, music or software contained on the disc.
Transparency - 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. 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.
Corruption - Each government will prohibit bribery, including bribery of foreign officials, and establish appropriate criminal penalties to punish violators.
Investment - All forms of investment will be protected under the agreement, such as enterprises, debt, concessions, contracts and intellectual property. US 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.
Trademarks - The agreement requires each government to maintain a system to resolve disputes involving trademarks used in Internet domain names and applies the principle of "first-in-time, first-in-right" to trademarks and geographical indications. 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
Copyrights - The agreement ensures that authors, composers and other copyright owners have the exclusive right to make their works available online. It also ensures that copyright owners have rights to temporary copies of their works on computers and both commit to protect copyrighted works, including phonograms, for extended terms (the life of the author plus 70 years).
Patents and Trade Secrets - Patent terms can be adjusted to compensate for unreasonable delays in granting the original patent.
Intellectual Property - 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.
Government Procurement - 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.
Customs - The agreement requires transparency and efficiency in customs administration, including publication of laws and regulations on the Internet and procedural certainty and fairness.
Environment - Each government will be required to effectively enforce its own domestic environmental laws - 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.
Worker Rights - Each government reaffirms its obligations as members of the International Labor Organization 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.
The Administration intends to formally notify Congress by the end of the month, which will start the Congressional review process going under the President's Trade Promotion Authority. The President cannot sign the agreement until Congress has an initial 90 days to review the pact - around the end of June.
==================================================================================
Trade Facts
http://www.ustr.gov - March 2, 2004
"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
Free Trade With Morocco: A Vital Step Toward Middle East Free Trade
New Market Access for U.S. Consumer and Industrial Products
· More than 95% of bilateral trade in consumer and industrial products will become duty-free immediately upon entry into force of the Agreement, with all remaining tariffs to be eliminated within nine years - the best market access package of any U.S. free trade agreement with a developing country.
· Key U.S. export sectors gain immediate duty-free access to Morocco, such as information technologies, machinery, construction equipment and chemicals.
· 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 requires 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 producers 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 Commitments 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.
o 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 detailed 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.
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.
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.
· 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.
Commitments to Combat Corruption
· Each government will prohibit bribery, including bribery of foreign 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.
· 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.
· 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.
· The Agreement mandates both statutory and actual damages under Moroccan law for IPR violations, which will deter piracy. 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.
· 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.
o 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:
o Discussions of legislation, practice and implementation related to the core elements of the ILO
Declaration on Fundamental Principles and Rights at Work.
o Discussion of legislation, practice and implementation related to compliance with ILO Convention
182 on the Worst Forms of Child Labor.
o 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:
o Open public hearings;
o Public release of legal submissions by governments;
o 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.
--
Dr. David E. Lewis
Vice President
Manchester Trade Ltd.
International Business Advisors
1710 Rhode Island Avenue, NW - Suite 300
Washington, DC 20036
Tel 202-331-9464
Fax 202-785-0376
Email: [log in to unmask]
http://www.ManchesterTrade.com
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