Read more on the attractiveness of Morocco for Foreign Direct Investment
Morocco and California
First King of Independent Morocco with Walt Disney at the Magic Kingdom of Disneyland California
California exported $111 million worth of goods to Morocco in 2016. The key exported product categories were computer and electronic products, agricultural products, chemicals, and non-electrical machinery. Out of those categories, the largest was computer and electronic products, which had a value of $43 million and made up 38.8% of total exports. Out of the states, California is the third largest importer of Moroccan goods. In 2016, California imported $92 million of various goods from Morocco. 51.1% of those goods were computer and electronic products with a value of $47 million. Some of the other major imports were apparel manufacturing products and food manufactures; both making up about 18% of total imports.
Morocco and United States Trade Relations
Morocco is located in Northwestern Africa and is slightly geographically larger than California. The capital of Morocco is Rabat, which is bordered by the Atlantic Ocean. Morocco has a population of 34.37 million people and a gross domestic product (GDP) of $100.6 billion. Due to its proximity to Europe, Morocco has created strong trade relationships and promotes an open market economy. In 2015, the US had $304 million in foreign direct investment (FDI) in Morocco.
The United States is the fourth largest importer of Moroccan goods. In 2016, the US imported roughly $1 billion worth of goods from Morocco. The largest category of imported goods was chemicals, which made up 36.8% or $375 million of the total. Other imports from Morocco included food manufactures, apparel manufacturing products, and transportation equipment. In the same year, the United States exported $1.86 billion worth of goods to Morocco, which was an increase from the previous year. The main exports to Morocco were transportation equipment, agricultural products, and petroleum and coal products, composing around 31.6%, 15%, and 8.7%, respectively, of the total.
Export data pulled from the International Trade Administration (ITA) shows that average US exports to Morocco have more than tripled since the US-Morocco Free Trade Agreement (FTA) went into effect just over a decade ago. President George W. Bush signed the FTA, the first US free trade agreement with an African country, exactly twelve years ago today; and the agreement went into effect on January 1, 2006.
In the three years before the FTA (2003-2005), US exports to Morocco averaged $482 million; in the past three years (2013-2015), they increased 328 percent to $2.1 billion.
At the state level, Texas claims the spot as the top exporter to Morocco, both in 2015 and on average over the past three years, exporting $510 and $710 million worth of goods, respectively. Other top state exporters when looking at three-year averages include Louisiana, West Virginia, Washington, and California in descending order; considering only 2015, Washington, Louisiana, Virginia and California rounded out the top five following Texas.
When looking at sheer growth in exports since before the FTA, other states emerge as winners. Nevada experienced the biggest boost in exports at a nearly 13,000% increase; Idaho’s exports increased by nearly 11,000%; Montana’s by just over 10,000%; New Mexico by nearly 4,500%; and West Virginia by just under 4,000%.
Morocco has been doing everything right to strengthen and diversify its economy,” said former US Ambassador to Morocco Edward M. Gabriel. “Choosing Morocco as the US’s first FTA beneficiary in Africa was a smart move, and I believe the US will continue benefiting from this strong relationship for years to come.”
Morocco Free Trade Agreement (MAFTA)
Information for U.S. Exporters is available through the Department of Commerce with the following PDF format listed here below:
The Morocco Free Trade Agreement (MAFTA) went into effect on January 1, 2006. Under the agreement most Moroccan goods enter the United States duty free and virtually all will enter free by the time it is fully implemented on January 1, 2023. The Morocco FTA does NOT provide a merchandise processing fee (MPF) exemption. To learn more about how to claim preference on these goods, select the following:
Can My Good Benefit From Morocco – USA Free Trade Agreement?
Yes, your goods can benefit from the U.S.-Morocco Free Trade Agreement (FTA) if they are “originating” (grown, made, or processed with sufficient U.S./Moroccan content) and meet specific rules, allowing for reduced or eliminated tariffs, particularly in sectors like agricultural products (e.g., grains, dairy), textiles, IT, automotive parts, and machinery, though you must properly document origin for U.S. Customs (CBP) to claim benefits.
Key Steps to Determine if Your Goods Qualify:
- Check the Harmonized Tariff Schedule (HTS) Number: Find the HTS code for your product to see if duty-free treatment applies.
- Verify Origin: Your good must be wholly grown, produced, or manufactured in the U.S. or Morocco, or meet specific content/processing rules (e.g., “yarn forward” for textiles).
- Content & Processing:
- Wholly Originating: If made entirely from U.S./Moroccan materials/processes.
- Value-Content Rule: If made with some foreign materials, the value of U.S./Moroccan materials plus direct processing costs must be at least 35% of the good’s value.
- De Minimis: A small percentage (usually 7%) of non-originating materials might be allowed if they don’t meet other rules, especially for textiles.
- Document Origin: You (or the exporter/producer) must be able to provide documentation to CBP proving origin if requested.
Benefitting Sectors:
- Agriculture: Grains, dairy, fruits, vegetables, livestock.
- Textiles & Apparel: Yarn/fabric produced in U.S./Morocco.
- Industrial: Machinery, automotive parts (lighting, wipers), construction equipment, IT equipment, chemicals, energy products.
- Services: Opportunities in water treatment, tourism, engineering.
How to Get Started:
- Consult CBP: Visit the U.S. Customs and Border Protection website for specific guidance on the MAFTA.
- Check USTR: The U.S. Trade Representative provides official info.
This document provides the most relevant information in HTSUS General Notes 27 and 19 CFR Subpart M.
Data Elements for the Morocco FTA Certificate of Origin – Attachment A
This certification can be used by Moroccan producers and exporters, and US importers, when attesting that their goods meet the requirements of the Morocco FTA. Harmonized Tariff Schedule of the United States (HTSUS) – Morocco FTA General Notes 27
General note, including the General Rules of Origin, Definitions, Value (including Regional Value Content and De Minimis), Sets, Packing and Packaging Materials, Indirect Materials, Recordkeeping and the all-important Product Specific Rules of Origin NOTE: On the USITC link, select the “General Notes; General rules of Interpretation; General Statistical Notes,” link, followed by “General Notes 27”.
Morocco FTA Quotas The following Morocco FTA goods may be subject to a reduced tariff rate quota (TRQ): beef; dairy; dried onions; dried garlic; peanuts; tomato paste, puree and sauce; tobacco; cotton; fabric and apparel. Click here for an overview of quota. Go to the Commodity Graph Report for current fill levels. Go to the TPL Threshold to Fill List to see almost closed and closed quotas.
Reconciliation
The Reconciliation Prototype is unavailable for post-importation Morocco FTA claims because they are not administered under 19 USC 1520(d) but as Post Entry Amendments (PEAs), Post Summary Corrections (PSCs) or Protests (19 USC 1514, 19 CFR 174).
Additional Resources and Regulations:
U.S.-Morocco Free Trade Agreement Frequently Asked Questions (FAQ’s)
- Morocco FTA Text – Complete text of the agreement.
- Morocco FTA Regulations
- e-CFR website including: Import Requirements, Filing a Claim, Regional Value Content (RVC) Certification, Post-Importation Refunds, Rules of Origin, Origin Verifications, Transshipment, and Penalties.
- USITC Publication 3721
- Includes the modifications to the HTSUS, the Duty Phase-Out Schedule and other important information.
- Morocco FTA Implementation Act—House Report
- House Report 108-627, United States-Morocco Free Trade Agreement Implementation Act, 108th Congress, 2nd Session
- Presidential Proclamation 7971
- Enacts the Morocco FTA; Published in the Federal Register on December 27, 2005.
- Morocco FTA Summaries and Reports
- Made available by the United States Trade Representative (USTR).
Last published:
November 16, 2017
Tags:
Additional information is available at the US Department of Commerce, International Trade Administration and the Department of Justice in Washington, DC., Marketwired (August 17, 2016) and World Bank, BEA. – Attachment A: Morocco Data Elements for the Certificate of Origin
| Attachment | Ext. | Size | Date |
|---|---|---|---|
| Morocco Attachment A | 178.30 KB | 08/29/2017 |
- Trade – Last Modified: Aug 29, 2017
Editor: Said El Mansour Cherkaoui, Ph.D.
Dr. Said El Mansour Cherkaoui Advisor on International Trade, Business, Investment and Logistics of Supply Chain Management and Said El Mansour Cherkaoui by Dr. Said El Mansour Cherkaoui is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. Based on a work at http://africanaenterprise.com
The Morocco Free Trade Agreement (MAFTA) went into effect on January 1, 2006. Under the agreement most Moroccan goods enter the United States duty free and virtually all will enter free by the time it is fully implemented on January 1, 2023. The Morocco FTA does NOT provide a merchandise processing fee (MPF) exemption.
