European Commission Directorate-General for Trade

Morocco

Morocco signed an Association Agreement with the EU in the framework of the Euromed process in February 1996, which entered into force in March 2000. Morocco is an active participant in this process, which aims to create a Euro-Mediterranean Free Trade Area by 2010, and pursues a close economic relationship with the EU that is "more than association, but less than accession".

The EU is Morocco's first trading partner which amounts to approximately €18.5 billion in 2009 (60% of Morocco's total trade), the bulk of which is textiles and agricultural goods. EU-Morocco trade is growing fast. Between 1995 and 2008, trade volumes grew by over 80% amounting to €22.8 billion (EU exports: €14.4bn, EU imports: €8.4bn). In 2009 trade flows however contracted by 20% in account of the impact of the global crisis on European demand. The main impact was on EU imports from Morocco, which fell by 22.6%, particularly phosphate based products, tourism, remittances and inward investment; EU exports to Morocco also fell by 17.6%. In the first half of 2010 the trend has started to recover and EU imports to Morocco have increased by 16.6%, while exports to Morocco have increased by 8.9%

EU-Morocco trade is growing fast. Between 1995 and 2007, trade volumes grew by over 80%

Trade in goods

• EU exports of goods to Morocco 2009: €11 billion
• EU imports of goods from Morocco 2009: €6.5 billion

Morocco's economy is still relatively dependant on trade in textile articles (29.9%) and on agricultural products (28.3%), which together account for 58.2% of total Moroccan exports to the EU in 2009. Morocco mainly imports from the EU machinery and transport equipment (38.1%), chemicals (9.8%) and fuels (9.7%).

Trade in services

• EU exports of services to Morocco 2009: €3.3 billion
• EU imports of services from Morocco 2009: €4.2 billion

EU exports of services to Morocco consist mainly of business services (€1.9 bn) while the EU mainly imports travel services (€2.1 bn).

Foreign Direct Investment

In 2009 EU direct investment in Morocco (stocks) amounted to €14 billion representing an increase of 13% compared to 2007 (€12.4 bn) and almost the 60% of the EU total share of investments (stocks) in the Maghreb area (€21 bn) in 2008.

Source: Eurostat (Cronos)

More statistics on Morocco

The European neighbourhood policy and financial assistance

EU-Morocco co-operation is an important part of the European Neighbourhood Policy (ENP). The ENP supports political and economic cooperation between Morocco and the EU and is the framework for financial assistance from the EU to Morocco. The European Neighbourhood Policy Instrument - ENPI - is endowed with €11.9 billion for the period 2007-2013. The 2011-2013 National Indicative Programme (NIP) allocated €580.5 million to Morocco to support the following five priorities identified for financial cooperation: 1. the development of social policies; 2. economic modernisation; 3. institutional support; 4. good governance and human rights; and 5. environmental protection. In the framework of the ENP the EU-Morocco Action Plan was approved in July 2005 for a period of five years. Morocco was among the first countries to sign a Neighbourhood Action Plan with the EU.

South-South integration

Moroccan trade with the Maghreb and the Mediterranean countries is limited and accounts for just 1% and 5% respectively of its total trade. Reversing the low level of intra-regional trade is therefore one of the key goals of the EU-Morocco trade relationship. On 25 February 2004, Morocco signed the Agadir Agreement (AA) with Egypt, Jordan and Tunisia which entered into force in July 2006. All parties to the AA committed to removing substantially all tariffs between them and to harmonising their legislation with regard to standards and customs procedures. The effective implementation of the AA started in April 2007 with the creation of the Agadir Technical Unit in Amman. The results of the AA are so far modest, despite a small increase in trade flows among AA members.

Morocco is the first Mediterranean country to have adopted the new Pan-Euro-Mediterranean system of cumulation of origin, in December 2005. The system - which makes it simpler to import products manufactured in more than one country throughout the Mediterranean basin is generating new opportunities for economic operators, notably in the textile sector. It is also an important spur for further regional economic integration.

WTO

Morocco has been a member of WTO since its creation, from 1st January 1995.