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The U.S.—Morocco Free Trade Agreement (FTA)

General Information

As a result of the U.S.-Morocco Free Trade Agreement (FTA), 95% of U.S. consumer and industrial goods exported to Morocco no longer need to pay a tariff. Tariffs on U.S. goods export to Morocco will be phased out entirely by 2024.

The FTA also expands the significant protections already afforded U.S. investors under a Bilateral Investment Treaty (BIT) signed in 1985. All forms of investment are protected under the FTA, including 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. U.S. investment in Morocco stood at $233 million in 2009.

Adding to the benefits provided by the FTA, Morocco’s economy has been steadily growing at an increasing rate over the past ten years. With a stable exchange rate, low inflation, and moderate unemployment, in 2010, the Moroccan economy had a growth rate of 4 percent. Since the agreement entered into force on January 1, 2006, the value of U.S. exports have risen from $481 million in 2005 to $1.95 billion in 2010. This translated into a trade surplus with Morocco of $1.26 billion in 2010, a 3,505% increase over the $35 million trade surplus of 2005.

By Sector

U.S. exports to Morocco grew 19% in 2010, with the sectors of waste and scrap, apparel manufactures, food manufactures, electrical equipment and appliances, and nonmetallic mineral products growing the fastest. Overall, the principal U.S. exports to Morocco in 2010 are in the sectors of mineral fuel and oil, aircraft and spacecraft, fats and oils, food waste, and cereals.

Additional Information