Countries and regions
Negotiations for a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Morocco were launched on 1 March 2013. Four negotiating rounds have taken place so far, the most recent in April 2014. The DCFTA will build on the existing EU-Morocco Association Agreement which entered into force in 2000 and created a Free Trade Area between the EU and Morocco.
The overall goal of the negotiations is to create new trade and investment opportunities and ensure a better integration of Morocco's economy into the EU single market. The DCFTA also aims at supporting ongoing economic reforms in Morocco and at bringing the Moroccan legislation closer to that of the EU in trade-related areas.
A Sustainability Impact Assessment on a DCFTA was carried out by an independent contractor in 2013.
- The EU is Morocco's largest trading partner, accounting for 55.7% of its trade in 2015. 61,3% of Morocco's exports went to the EU, and 52,5% of Morocco's imports came from the EU. Morocco is the EU’s 23rd trading partner representing 1,0% of the EU’s total trade with the world.
- Total trade in goods between the EU and Morocco in 2016 amounted to €34,6 billion. The EU's imports from Morocco are dominated by machinery and transport equipment (€5,5 billion, 40,4%), agricultural products (€3,1 billion, 23,0%), and textiles and clothing (€2,7 billion, 20,3%). The EU's exports to Morocco are dominated by machinery and transport equipment (€8,3 billion, 40,4%), followed by fuels, metals and minerals (€2,5 billion, 12,4%), agricultural products (€2,0 billion, 10,0%), and textiles and clothing (€1,7 billion, 8,2%).
- Two-way trade in services amounted to €8,6 billion in 2015 with EU imports of services representing €5,0 billion and exports €3,6 billion.
EU-Morocco: Trade in goods
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EU-Morocco: Trade in services
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EU-Morocco: Foreign direct investment
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EU and Morocco
- The European Neighbourhood Policy provides for political and financial assistance to Morocco. Financial assistance is provided by the European Neighbourhood Instrument (ENI), which provides funds for neighbouring countries based on mutually agreed policy objectives and priorities.
- Morocco is the largest recipient of EU funds in the framework of the European Neighbourhood Policy. More information on EU support is available on the site of the Directorate General for Neighbourhood and Enlargement Negotiations: EU co-operation programmes for Morocco 2014 - 2017
Under their Association Agreement which entered into force in March 2000, the EU and Morocco established a Free Trade Area liberalising two-way trade in goods. They have subsequently developed the FTA further through an agreement on trade in agricultural, agro-food and fisheries products and a protocol establishing a bilateral dispute settlement mechanism both of which entered into force in 2012.
The Free Trade Area established under the EU-Morocco Association Agreement provides for:
- tariff-free two-way trade of industrial products, together with a selective liberalisation of trade in agricultural, agro-food and fisheries products
- rules and disciplines on non-tariff based trade measures
- a general right to establish businesses and provide services in the other territory
- current payments and capital movements
- common rules on competition and intellectual property
The EU and Morocco concluded negotiations for an Agreement on Geographical Indications in January 2015: respective procedures for adopting this Agreement are now underway.
Morocco in Euromed
Morocco is one of the partners of the Euro-Mediterranean Partnership (Euromed).
Euromed is one of the key initiatives of the European Neighbourhood Policy, through which the EU offers its neighbours a privileged relationship, building upon a mutual commitment to common values (including democracy and human rights, rule of law, good governance, market economy principles and sustainable development).
Euromed is an essential component in the pursuit of greater economic integration in the Mediterranean region, including among Mediterranean partners themselves.
In 2004, Morocco signed the Agadir Agreement with Jordan, Egypt, and Tunisia. This committed all parties to removing all tariffs on trade between them and to harmonizing their legislation with regard to standards and customs procedures. The Agadir Agreement entered into force in July 2006 and the implementation is ensured by the Agadir Technical Unit in Amman.
The pan-Euro-Mediterranean cumulation and the PEM Convention on rules of origin
The pan-Euro-Mediterranean cumulation system of origin was created in 2005. It brings together the EU, Morocco, and other partners in Europe and the Mediterranean to support regional integration by creating a common system of rules of origin. Rules of origin are the technical criteria which determine whether a specific product qualifies for duty free or other preferential access under a given trade agreement.
Cumulation of origin means a product coming from one partner country can be processed or added to a product of a second partner country and still be considered an “originating product” of that second partner country for the purposes of a particular trade agreement.
The pan-Euro-Mediterranean system allows for diagonal cumulation (i.e. cumulation between two or more countries) between the EU, EFTA States, Turkey, the Western Balkans, the Faroe Islands, and any countries which signed the Barcelona Declaration of 1995. The system was originally based on a network of Free Trade Agreements having identical origin protocols.
These individual origin protocols are being progressively replaced by a reference to the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention), which was established in 2011 to provide a more unified framework for origin protocols. Morocco acceded to the Regional Convention on 18 April 2012.
Trading with Morocco
- Rules and requirements for trading with Morocco
- The EU is present on the ground in Morocco.
- Trade relations are part of the EU's overall political and economic relations with Morocco.
- Morocco is a member of the World Trade Organisation.
- More information about EU co-operation programmes for Morocco
- Sustainable Impact Assessment on a Deep and Comprehensive Free Trade Area (DCFTA) with Morocco