Trading Partner Portal: Morocco
Morocco is slightly geographically larger than California. It is in between the Western Sahara and Algeria in North Africa. 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. World Bank, BEA
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. US Department of Commerce
US Exports to Morocco More Than Triple in Ten Years Since US-Morocco Free Trade Agreement
Moroccan American Center for Policy, August 17, 2016
Morocco -California Trade
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. US Department of Commerce
Morocco has sustained a substantial level of economic growth annually. The report mentions that the FTA with the United States has opened up the market access for Moroccan non-agricultural products, excluding textiles and clothes. The majority of agricultural products are traded free of duty and some enjoy tariff preferences. The report also mentions the open strategic dialogue between the two countries to further and improve the economic relationship.
Trade Agreements and Issues
The United States- Morocco Free Trade Agreement
The United States- Morocco Free Trade Agreement was signed in June of 2004. Its implementation began in the beginning of 2006. It was economically beneficial for both sides with the elimination and reduction of trade barriers. 95% of tariffs of bilateral trade between Morocco and the United States were eliminated with the agreement. All tariffs were to be phased out after nine years. Five years after the FTA’s implementation, the US exported $2.8 billion worth of goods to Morocco and the trade surplus with Morocco was $1.8 billion, which was a dramatic increase from the $79 million the year before the FTA was enacted.