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.
A Sustainability Impact Assessment on a DCFTA was carried out by an independent contractor in 2013.
The DCFTA will build on the existing Free Trade Area created under the EU-Morocco Association Agreement which entered into force in 2000. It will bring in issues not presently covered such as trade in services and investment. The DCFTA will provide new trade and investment opportunities and support a closer integration of Morocco into the EU single market. It will also support economic reforms in Morocco and bring its legislation closer to that of the EU in trade-related areas.
- The EU is Morocco's largest trading partner, accounting for 55.7% of its trade in 2015. 61% of Morocco's exports went to the EU. Morocco is the EU’s 26th trading partner representing 0.9% of the EU’s total trade with the world.
- Total trade in goods between the EU and Morocco in 2015 amounted to €30.6 billion. The EU's imports from Morocco are dominated by machinery and transport equipment (35.7%), textiles and clothing (20.4%) and agricultural products (14.3%). The EU's exports to Morocco are dominated by machinery and transport equipment (36.9%), followed by fuels, metals and minerals (20.5%) and textiles and clothing (8.7%).
- Two-way trade in services amounted to €8.6 billion in 2014 with EU imports of services representing €5.1 billion and exports €3.5 billion.
EU-Morocco "trade in goods" statistics
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EU-Morocco "trade in services" statistics
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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 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 and Euromed
Morocco is a partner of the Euro-Mediterranean Partnership (Euromed). This initiative includes working towards improvements in trade and investment for the EU's partners in the Euromed region.
The EU's European Neighbourhood Policy offers its neighbours a privileged relationship, building upon a mutual commitment to common values including democracy, human rights, market economy principles and sustainable development.
Pan-Euro-Mediterranean cumulation and the PEM Convention
Morocco adopted the Pan-Euro-Mediterranean system of cumulation of origin in December 2005. This is based on a network of Free Trade Agreements (FTAs) across Europe and the Mediterranean and aims to promote regional integration through a common system of rules of origin.
Cumulation of origin means a product of one participant can be processed or added to a product of a second participant and still be considered an originating product for the purposes of a trade agreement.
Participants are now negotiating in the Regional Convention on pan-Euro-Mediterranean preferential rules of origin to update the rules of origin used in the PEM zone. Morocco signed the Regional Convention in April 2012: its domestic ratification procedures are still ongoing.
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