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U.S. and Morocco Conclude a Free Trade Agreement On March 2, the United States and Morocco reached an accord on a free trade agreement, after launching negotiations in January 2003. This is the United States' third such agreement concluded so far this year, following the U.S. free trade pacts with Australia and five Central American nations that have been announced in recent weeks. All three pacts must now be ratified by Congress. Once the deal is finalized, the Office of the U.S. Trade Representative (USTR) reports that Morocco would provide immediate duty-free access to its market for many agricultural products, including whey products and pizza cheese; other details on dairy have not yet been released."We applaud the Bush Administration for its continued commitment to creating new opportunities for American goods," commented Clay Hough, IDFA senior vice president and general counsel. "Once the details concerning dairy products have been released, we will examine them to assess the effect the deal has on our members." Currently, the United States exports very little dairy to Morocco annually — less than $100,000 in total products. In fact, total commerce between the U.S. and Morocco last year was reportedly valued at just $850 million, less than what the United States and Mexico trade in two days. However, the deal is a positive indicator of the Bush Administration's continued bilateral and regional efforts to open global markets for U.S. products. Specifically, USTR Robert Zoellick noted that the Moroccan deal was a key step toward the administration's goal of creating a Middle East Free Trade Area by 2013, an initiative announced by President Bush last May. In the Middle East, the United States already has agreements in place with Jordan and Israel and recently launched negotiations with Bahrain. In fact, trade officials from Bahrain are in Washington, D.C., this week to continue discussions. "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," said Ambassador Zoellick. According to a fact sheet from USTR, the deal covers all agricultural products. Tariffs on "virtually all" U.S. farm exports to Morocco would be phased out within 15 years. The United States will also take steps to scrap all agricultural tariffs on Moroccan goods, most of which will be removed within 15 years. For more information, contact Helen Medina, IDFA manager of international affairs, at hmedina@idfa.org, 202/220-3507.
Posted March 8, 2004
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