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Morocco

Morocco

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.

Trade picture

  • 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

Trade in goods 2014-2016, € billions
Year EU imports EU exports Balance
2014 11.1 18.2 7.1
2015 12.5 18.1 5.7
2016 13.8 20.8 7.0

EU-Morocco: Trade in services

Trade in services 2013-2015, € billions
Year EU imports EU exports Balance
2013 4.5 3.1 -1.4
2014 5.2 3.4 -1.8
2015 5.0 3.6 -1.3

EU-Morocco: Foreign direct investment

Foreign direct investment 2015, € billions
Year Inward stocks Outward stocks Balance
2015 0.7 15.2 14.6

Date of retrieval: 15/02/2017

More statistics on Morocco

EU and Morocco

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.

More information on the Euro-Mediterranean partnership

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.

More information on the Agadir Agreement

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.

More information on Mediterranean preferential Rules of Origin

Trading with Morocco