Morocco Trading Partner Portal

Trading Partner Portal: Morocco

Overview

Trade Overview

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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 36 million people and a gross domestic product (GDP) of $1017.9 billion. Due to its proximity to Europe, Morocco has created strong trade relationships and promotes an open market economy. In 2017, the US had $412 million in foreign direct investment (FDI) in Morocco. World Bank, BEA 

The United States is one of the largest importers of Moroccan goods. In 2019, the US exported roughly $3.47 billion worth of goods to Morocco. The largest category of exported goods was transportation equipment, which made up 33.5% or $1.16 billion of the total. Other exports to Morocco to the U.S. included petroleum and coal products, oil and gas, and chemicals. In the same year, the United States imported $1.58 billion worth of goods from Morocco, which has been steadily increasing year after year. The main imports from Morocco were chemicals, food manufactures, and apparel manufacturing products composing around 52%, 10.9%, and 9.1%, respectively, of the total. US Department of Commerce 

Posting First Rise Since 2014, U.S. Exports to Arab World Grow 4 PErcent to $62.64 Billion in 2019
National U.S.-Arab Chamber of Commerce, February 9, 2020

U.S. Goods Exports to Arab Countries 2018 vs. 2019
National U.S.-Arab Chamber of Commerce, February 2020

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 $116.9 million worth of goods to Morocco in 2019. The key exported product categories were agricultural products, computer and electronic products, electrical components, and petroleum and coal products. Agricultural products, the largest, had a value of $51.6 million and made up 44.2% of total exports. Out of the states, California is the fourth largest importer of Moroccan goods. In 2019, California imported $118.2 million of various goods from Morocco. 31.5% of those goods were food manufactures with a value of $37 million. Some of the other major imports were food manufactures and apparel manufacturing products; making up about 28.7% and 24.9% of total imports, respectively. US Department of Commerce 

Current News

WTO Trade Policy Review: Morocco (02/02/2016-02/04/2016)

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.

U.S. Goods Exports to Arab Countries 2018 vs. 2019
National U.S.-Arab Chamber of Commerce, February 2020

Trade Agreements

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.

US Middle East Free Trade Initiative

USTR Morocco Free Trade Agreement