US-Morocco Free Trade Agreement

The US-Morocco Free Trade Agreement (or Morocco FTA) is a bilateral trade agreement between the United States and Morocco. The agreement was signed on June 15, 2004, followed by U.S. President George W. Bush's signing of the USMFTA Implementation Act on August 17, 2004. The United States House of Representatives ratified the pact on July 22, 2004 by a 323–99 vote. The United States Senate passed the bill by unanimous consent on July 21, 2004. The Morocco FTA came into effect on January 1, 2006.

It is one of nine free trade agreements entered into by the U.S. since 1985. The agreement is aimed at increasing trade and creating new investment opportunities between the two countries. In relation to the huge U.S. economy, the free trade agreement is expected to have a positive, but small overall effect on the U.S. The Office of the U.S. Trade Representative (USTR) has said that the agreement with Morocco is the “best market access package to date of any U.S. free trade agreement signed with a developing country.” Passage of this bill strengthened Morocco – United States relations economically.

Morocco joins Israel and Jordan as the third nation state in North Africa/Middle East to sign a free trade agreement with the U.S. This agreement was a positive move towards President Bush’s Middle East Free Trade Initiative set forth in May 2003.

As of 2005, in terms of U.S. dollars, Morocco was ranked 89th among U.S. trading importers and 79th among U.S. exporters. This translates to U.S. trade with Morocco at less than .1% of its total imports and exports. As of 2003, Morocco exported approximately 2.9% of its total exports to the U.S., while it imported approximately 4.1% of its total imports from the U.S.. These numbers show that U.S. trade with Morocco is almost nil when compared with Moroccan trade with the U.S. Therefore, the USMFTA will potentially have a much larger effect on the Moroccan government.

The US - Middle East Free Trade Area (USMFTA) is expected to bring about new market access for U.S. consumer and industrial products; opportunities for farmers and ranchers; banks, insurance, securities; telecommunications; and e-commerce. The agreement also includes assurances for U.S. businesses in regards to corruption, intellectual property, trademarks, copyright, patents and trade secrets. In order to prevent exploitation by either party, there are also provisions regarding protection of the environment and workers rights. It also makes the legal framework in which disputes are to be settled more transparent to help reduce risk for U.S. businesses. Since the U.S., for the most part, has these mechanisms already in place, the bulk of the updating and reforming will be done by the Moroccan government. For example, just prior to the agreement (signed in 2004), a news release by the Office of the U.S. Trade Representative announced major revisions in Moroccan labor laws spurred by the proposed signing of the agreement.

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