Trade agreement between Morocco and EU initialized

The agreement on trade in food products between the European Union and Morocco has finally been initialized after four years of intensive negotiations. The agreement still has to be concluded by the European Parliament.

Right from the start this agreement has caused debate as to what the economic benefits would be for the fruit and vegetable trade. It was described by the Moroccan authorities as "Balanced and beneficial for Morocco", while the Europeans called it "a positive compromise".

Agreement content
Added to the "advanced status" granted to Morocco by the EU in 2008, the agreement highlights Morocco's status of privileged commercial EU partner within the framework of the European Neighborhood Policy. Consequently, relations between both parties were reinforced after being governed by the Association Agreement (2000) and the Action Plan (2005). Regarding the opening of markets to farm products, the agreement eliminates 55% of custom fees on Morocco's exports to the EU, and liberalizes instantly 45% of EU exports to Morocco. It also liberalizes 67% of Moroccan farm products exports over a ten year period, and 98% of agro-food industrial products. This according to the Global Arab Network today.

Some Moroccan agricultural products are subject to a seasonal import schedule because they compete with European production they are tomatoes, strawberries, Clementine, garlic, cucumber, zucchini. The rest have been totally liberalized with the exception of sugar. Only a few products such as orange, peach, apricot, grapes and artichoke will be subjected to quota restrictions or to a schedule and tomato export will gradually increase. The Moroccans should see a tax benefit of 1.7 Dirham and 700 million Dirham due to new export privileges.

On another hand, the Moroccan market will be gradually opened to European products up to 70% over a ten years period, except for some products that are considered socially and economically delicate by Morocco; this is the reason why they're left out from the liberalization process and subjected to a particular treatment (19 products, notably cereals, pastas, pasteurized milk and meat). Morocco has granted its European partner limited privileges regarding quantity, in order to reinforce concerned sectors and their competitiveness. The European party, for its part, will benefit thanks to the agreement from a freedom to access Moroccan markets for the agro-industrial products, knowing that a complete liberalization is expected within ten years, except for pastas that will remain subjected to quantity limitations.