Morocco, US consider renewing free trade deal

During the eighth session of the Free Trade Agreement (FTA) Committee held in Washington DC, the two countries focused their discussions on trade relations in the textile, agriculture and automobile sectors.

The visit, led by the Moroccan Minister of Industry and Trade, Ryad Mezzourin the presence of the Moroccan ambassador to the United States, Youssef Al-Amraniwith other Moroccan diplomats. On the United States side, the deputy American trade representative for Europe and the Middle East, Bryan’s Tip.

The understanding is mutual. The Moroccan position at the negotiating table was to keep the textile and automobile negotiations at the center. Among the common commitments, according to Bryan Trick, are overcoming obstacles to economic growth and maintaining bilateral relations between the two states.

In turn, Mezzour clarified that the entry of the United States into Morocco “involves maintaining a special link in building resilient supply chains with the rest of the continent.” For his part, Moroccan Ambassador Youssef Al-Amrani said that relations were good and said Morocco’s position was “deepening and promoting investment.”

Since the entry into force of the Morocco-United States Free Trade Agreement, also known as the United States-Morocco Free Trade Agreement (USMCA) in 2006, economic and trade relations have grown exponentially.

The signing of the agreement brought increased regulatory challenges, but at the same time, new opportunities for cooperation. This is partly due to Morocco’s strategic position and agreements with the EU and powers like Israel.

The benefits that Morocco draws from the agreement are mainly threefold: the reduction of customs tariffs on its products, the attraction of foreign investments (where Morocco is making great efforts, like the new Investment Charter), and the protection of intellectual property.

For the American economy, it is also a breakthrough into new markets. Relations with Morocco have favored the African vision of the United States, which is investing more and more on the continent, partly because of competition from China, which is already the leading investor in Africa.

Partial or total reduction of customs tariffs on Moroccan products in the United States is the key to renewal. Currently, a large part of Moroccan products, particularly agricultural products, cannot enter the American market because of the barriers imposed on poultry, vegetables and fruits. In the textile sector, the main objective of the search for agreements was to compete with the Asian market.

The conclusion of these agreements will encourage private investment and promote equitable growth among the twelve regions of the country. The breakthrough in trade relations is undoubtedly due to the Investment Charter. This document laid the foundations for unique growth in Morocco. The establishment of a clear framework for investment has attracted and encouraged a large part of current trade. But most importantly, investment protection was achieved through a significant reduction in risk and simplification of bureaucracy.

The establishment of American multinationals on Alawite soil has been a constant in recent years. Regardless of the sector, American companies are seeing how, since the approval of the Investment Charter, opportunities in the North African market are multiplying; for example, in the aviation sector, we have the involvement of Boeing, which, due to its results since 2023, grants licenses to other companies, particularly Moroccan ones, so that they can manufacture official Boeing products.

Relations between Morocco and the United States are not only commercial. As a “reliable partner” of the Americans, Morocco is a major political partner, through decisions such as the recognition of the Moroccan status of Western Sahara. In addition, on the military level, they collaborate in joint maneuvers such as African Lion, where both armies carry out exercises and test their military arsenal.

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