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II. TRADE AND INVESTMENT REGIMES
(1) INSTITUTIONAL FRAMEWORK
1. The constitutional reform, put to a referendum on 13 September 19961, introduced
innovations that responded to the need to adapt to the new political and administrative and
socio-economic context.  This meant reforming the representational system and extending
parliamentary prerogatives.  The new constitutional provisions of a socio-economic nature include theaffirmation of freedom to do business;  introduction of the concept of a "development plan" instead of
an "economic programme" (it is intended that the State should become less involved in economic
matters);  and putting the Court of Audit on a constitutional footing.  The regions are now considered
to be local authorities.
2  The new Constitution has also introduced a bicameral system.3
2. According to the Constitution, the King is the Head of State.  He appoints the Prime Minister
and, on the latter's proposal, he also appoints the other members of the Government.  The King signs
and ratifies treaties and chairs the Supreme Council of the Judiciary.4  The King has given full
authority to negotiate and sign treaties to the Minister for Foreign Affairs and Cooperation (MAEC),
who may in turn give authority to ministers to sign international agreements within their respective
areas of competence;  for example, the Minister for Trade may sign trade agreements.  At the politicallevel, the MAEC coordinates negotiations on Moro cco's external commitments in the economic, trade,
financial, social, cultural and technical spheres.
5
3. The King and the Government hold executive power, while the bicameral Parliament,
consisting of the Chamber of Representatives and the Chamber of Counsellors, holds legislative
power.  It oversees Government action, notably by adopting the laws on finance and budgetary
control.6  The King and the two Chambers are responsible for proposing revisions to the Constitution.7
4. The Chamber of Representatives is composed of 325 members elected by direct universal
suffrage for a five-year term.  Of these 325 members, 295 are elected from constituencies and 30 seats
(reserved for women) are based on national lists.
5. The 270 members of the Chamber of Counsellors are elected on the basis of a list with
proportional representation.  Three-fifths of the members are elected in the regions by electoral
colleges (one per region) composed of representati ves of local authorities and the remaining two-fifths
by electoral colleges composed of persons elected by professional Chambers and members elected at
the national level by an electoral college composed of representatives of wage-earners.  Members of
                                                     
1 The Constitution was enacted through Dahir No. 1-96-157 of 7 October 1996.
2 Local authorities consist of regions, prefectures, communes, and any entity deemed to be such
according to the law.  They elect assemblies responsible for administering their affairs and settling, through
deliberation, administrative and economic matters affecting their particular territory.  Provincial or prefectoral
assemblies are composed of representatives of professional associations and elected members.
3 Up until then, the Parliament was composed of a single chamber (the Chamber of Representatives)
with 333 members.
4 Treaties that affect the State's finances cannot be ratified without prior approval by Parliament.
5 The MAEC also conducts negotiations on treaties, conventions, agreements, protocols and other
international legal instruments of a political or diplomatic nature.
6 The law on budgetary control records annual financial performance and makes it possible to verify
whether the budget has been implemented in accordance w ith the approval given and to see whether there any
differences between the estimates and the final figures.
7 Article 103 of the 1996 Constitution.Kingdom of Morocco WT/TPR/S/116
Page 13
the Chamber of Counsellors are elected for a nine-year term;  one-third of the Chamber is renewed
every three years.8  The last parliamentary elections in Morocco were held on 27 September 2002.
6. A Constitutional Council has been set up to verify the legitimacy of parliamentary elections
and referendums, as well as the constitutionality of all legislation, especially basic laws, and the
regulations of each Chamber.  Legislation may be submitted to the Constitutional Council before it is
enacted.  The Council is composed of 12 members (six appointed by the King, three by the Presidentof the Chamber of Representatives, and three by the President of the Chamber of Counsellors)
appointed for a term of nine years.  One third of each category of members is renewed every
three years.  The President of the Constitutional Council is appointed by the King from among the
Council's members.
9
7. The judicial structure comprises ordinary law courts (837 communal courts, 68 courts of first
instance with 183 centres with resident judges, 21 courts of appeal, and the Supreme Court10;  special
courts (seven administrative tribunals, eight commercial courts11, three commercial courts of appeal,
and the High Court);  and special jurisdiction (the Special Court of Justice12).
8. Commercial courts were set up in 1997 and have been in operation since May 1998.13  They
have responsibility for hearing all commercial disputes, including those relating to intellectualproperty.  They consist of regular commercial courts, on the one hand, and commercial courts of
appeal, on the other.  Commercial courts are responsible for hearing:  cases relating to commercial
contracts;  cases between business persons relating to their commercial activities;  cases relating to the
effects of trade;  disputes between partners in a commercial company;  and disputes relating to a
business.
9. Articles 204 to 306 of the Customs and Indi rect Taxation Code contain provisions on
disputes, allowing for the possibility of taking cases to the courts.  The Court of Audit, responsible foroverseeing the implementation of finance laws and evaluating the management of entities under its
control, has had constitutional status since 1996.  The new Constitution also provides for the creation
of regional audit courts in order to strengthen decentralization.
(2) T
RADE POLICY FORMULATION AND IMPLEMENTATION
10. All policies (economic, including commercial) are formulated and implemented by means of
legislation.  The initiative of legislation lies with the Government and Parliament and draft laws are
put before the bureau of one of the two Chambers.14  After it has been adopted by one Chamber, a
draft law must be transmitted to the other Chamber.  A joint committee may be set up if there is any
                                                     
8 A draft law on the composition of the Chamber of Counsellors is currently being prepared.
9 The Constitution also provides for an Economic and Social Council, but it is not yet functioning.
10 The Supreme Court is the highest judicial authority.  It has six chambers (civil;  personal and
inheritance matters;  commercial;  administrative;  social;  and criminal).  Its role is, however, limited strictly toquestions of law.
11 It is planned to establish two additional commercial courts.
12 The Special Court of Justice is responsible for punishing crimes committed by civil servants,
including magistrates, such as misappropriation of public funds, corruption, peddling of influence,
misappropriation of public or private monies, involving an amount of DH 25,000 or more.  It also punishes the
acquisition of shares in certain enterprises by civil servants.  Ministry of Justice (2002).
13 They were created under Law No. 53-95 of 6 January 1997, enacted by Dahir No. 1-97-65 of
12 February 1997.
14 Draft laws by the Prime Minister must first be discussed in the Council of Ministers.WT/TPR/S/116 Trade Policy Review
Page 14
disagreement.15  A final decision is taken by the Chamber of Representatives, which may adopt the
text definitively by a vote by absolute majority of its members.  Likewise, the Government's
programme must be put before both Chambers, but only the Chamber of Representatives votes on it,
while the Chamber of Counsellors simply discusses it.
11. Depending on the importance of the matters voted on by Parliament, the required majority
may vary;  two-thirds of the members of both Chambers for proposed revisions to the Constitution; anabsolute majority for a motion of censure or a vote of confidence by the Chamber of Representatives;
an absolute majority and a two-thirds majority of the Chamber of Counsellors for a warning or motion
of censure of the Government
16;  and an absolute majority of the members of both Chambers for all
draft and proposed laws.
12. Draft laws are enacted within 30 days following their transmission to the Government.  They
enter into effect when they are published in the Official Journal, unless another date is specified in the
law itself.
13. The Prime Minister has regulatory authority over all matters other than those within the
domain of the law.17  An enabling law may authorize the Government to take measures that are
usually within the domain of the law by means of a decree, but for a limited period and for a definedpurpose.  Decrees enter into force upon publication, but within the period fixed in the enabling law
they must be submitted to Parliament for ratification.  The enabling law becomes null and void if at
least one of the Chambers of Parliament is dissolved.
14. The Ministry responsible for foreign trade formulates Government policy in this sphere.
Depending upon the subject, it coordinates policy with the other ministries concerned.  Changes to the
customs tariff are made in the form of a law;  they may be implemented by decree, on a proposal by
the Government, but they must then be endorsed in the finance law for the year following their
adoption and, consequently, approved by the two Chambers a posteriori .
15. Before any draft foreign trade law is drawn up, the private sector is consulted through
professional associations.  The National Foreign Trade Council (CNCE), created in 1993 and put in
place in July 1996, is composed of representatives of the Government and economic operators.  Its
task is to provide advice on any matters relating to  foreign trade relations and to make suggestions
with a view to improving the competitiveness of Moroccan products and services.
18  The Council
provides its advisory services either at the request of the Government or on its own initiative.
                                                     
15 Where a draft law or a proposed law has not been adopted after two readings by each Chamber, or in
cases of emergency, the Government may convene a meeting of a joint committee to propose a text on theprovisions that are still at issue.  The text prepared by the commission may be submitted to the two Chambers bythe Government.  No amendment may be accepted, unless the Government agrees.  If the joint commission is
unable to adopt an agreed text or if the latter is not adopted by the Chambers, the Government may submit the
draft or proposed law to the Chamber of Representatives, as amended where applicable during parliamentary
debates and then resubmitted by the Government.
16 The Chamber of Representatives may oblige a Government to resign by refusing a vote of
confidence or by adopting a motion of censure.  The Chamber of Counsellors may adopt a motion on a warningor censure, and the latter also results in the collective resignation of the Government.
17 The domain of the law includes, inter alia , the system of commercial and civil obligations, the
creation of public establishments, the nationalization of en terprises and the transfer of enterprises from the State
to the private sector (Article 46 of the Constitution).
18 The CNCE currently has 65 members:  16 members of the Government, the Governor of the
Al-Maghrib Bank, and the Director General of the Customs and Indirect Taxation Authority (or theirrepresentatives);  14 Directors of State boards or establishments;  15 representatives of federations of chambersKingdom of Morocco WT/TPR/S/116
Page 15
16. An Advisory Commission on Imports (CCI) was set up in 1993 under the Minister
responsible for foreign trade in goods.  It provides advice on all matters relating to requests for tariff
protection or the adoption of contingency trad e measures.  The Commission is chaired by a
representative of the Minister responsible for foreign trade and is composed of representatives of
several ministries (including a representative of the Customs and Indirect Taxation Authority), a
representative of each of the professional associations considered to be those most concerned, and arepresentative of the Federation of Chambers of Commerce, Industry and Services, the Federation of
Chambers of Agriculture, and the Federation of Ch ambers of Handicrafts.  The President of the CCI
may call on any person whose advice could prove useful.
17. Each year, several ministries responsible for financial matters, foreign investment, foreign
trade, and other economic matters, together with the Al-Maghrib Bank, undertake an evaluation ofMorocco's economy, under the supervision of the Prime Minister.  Study days and seminars are
regularly organized in order to exchange views among the authorities, university bodies (research
institutes and centres), and associations of economists specializing in trade issues.
18. Morocco also consults its trade partners on trade-related issues through joint commissions,
established under bilateral agreements, as well as regional and multilateral forums such as the WTO,the Euro-Mediterranean process, the League of Arab States, the UNCTAD, and the Group of 77 and
China.  In principle, these agreements provide for consultation procedures.
(3) M
AIN TRADE LAWS AND REGULATIONS
19. The overriding principle governing Moroccan la w is the prevalence of international legal
instruments, including the WTO Agreements, over domestic law.  Treaties liable to affect
constitutional provisions may be signed subject to the necessary constitutional amendments, which
must be adopted prior to their ratification.
20. Since the last review of its trade policy in 1996, Morocco has revised or amended some of its
trade-related legislation.  In order to adapt Law No. 13-89 on foreign trade to the provisions of the
WTO Agreements, particularly the Agreement on Agriculture and the Agreement on Safeguards, it
was amended by Law No. 3-96 (enacted on 12 February 1997) establishing the protection of
agricultural commodities through tariff equivalents and the possibility of imposing safeguardmeasures when imports cause or threaten to cause serious injury to the domestic production of like or
directly competitive goods.
21. Dahir No. 1-96-83 of 1 August 1996, enacting  Law No. 15-95 containing the Commercial
Code, lists the activities that bestow the status of trader on any person who exercises them on a
regular and professional basis, and defines the resulting obligations.  It also covers the organization ofthe commercial register, particularly the declaration relating to entries in the register, which must
indicate, inter alia , the patents worked and the trademarks or service marks filed by the trader.
22. The 1996 revision of the Constitution enshrines the principle of freedom to do business,
which served as the basis for Law No. 06-99 on pricing freedom and competition (which came into
effect on 6 July 2001), and its implementing Decree No. 2-00-854 of 17 September 2001.  This Lawreplaces Law No. 008-71 and outlines a new legal framework for the economic regulation of markets.
Its aim is to ensure "healthy and fair" competition in economic relations and to protect consumers.
                                                                                                                                                                    
of commerce, industry and services, agriculture, and handicrafts;  and 20 representatives of economic operators
or professional associations concerned, appointed by the ministry responsible.  CNCE (undated).WT/TPR/S/116 Trade Policy Review
Page 16
23. The Dahir containing Law No. 1-77-339 of 9 October 1977, endorsing the Customs and
Indirect Taxation Code, has been amended and su pplemented, notably by Law No. 02-99, enacted by
Dahir No. 1-00-222 of 5 June 2000 (and the implemen ting texts for the Customs and Indirect Taxation
Code).  The Code and its implementing texts govern the competence of the Customs and Taxation
Authority at the border as regards imports and exports.  Since 1998, the Code has also incorporated
the provisions of the WTO Customs Valuation Agreement.
24. Laws and regulations have been adopted to improve governance and combat corruption.19
Government procurement legislation was accordingly revised, institutions have been set up (for
example, the National Ethics Commission and the Competition Council), the holding of several public
posts concurrently is prohibited, and campaigns have been undertaken to raise awareness, with the
assistance of development partners such as th e World Bank.  The Customs and Indirect Taxation
Authority has also implemented a strategy to combat corruption with the aim, inter alia , of limiting
contacts between those filing customs declarations and the customs authority by making intensive use
of computerization and automation, simplifying procedures, and reinforcing the disciplinary system
applicable to customs officials.
25. Table II.1 below shows the main Moroccan trade-related legislative texts in force.
Table II.1
Main Moroccan trade-related legislative texts in force, March 2003
Area Legislative text Date of entry into force
Import and export
of goodsLaw No. 13-89 on foreign trade
Implementing decrees for Law No. 13-89 on foreign trade1992, amended in 1997
1993, 2000
Customs
regulationsCustoms and Indirect Taxation Code
Seven implementing decrees for the Customs CodeFinance Law (simplification of customs clearance procedures)Decree determining the procedures for implementing the new free industrial
warehouse customs regime established under the Finance Law
Two Dahirs determining the rate of the customs tariff on imports and the
amount of import duty;  Decree amending the amount of duty imposed onthe import of certain goods
Decree suspending import duties and value added tax on the import of
certain types of barley
16 Decrees amending the amount of customs duty imposed on the import of
certain products
Two Decrees suspending import duties and value added tax on the import
of certain products
Law No. 30-85 on value added tax (establishment of value added tax)10 Decrees implementing Law No. 30-85 on value added tax1977, amended in 2000
1977, 1996, 1998, 1999, 2000,
2002
1995
1995
1957, 1961, 1998
2002
1997, 1998, 1999,, 2000, 200120011985
1986, 1992, 1994, 1996, 1999,
2000, 2001, 2002
Table II.1 (cont'd)
                                                     
19 According to the 2002 Corruption Perceptions Index drawn up by Transparency International,
Morocco occupies the 52nd place, with 3.7 points out of 10 (10 points if there is no corruption) in a list of
102 countries.Kingdom of Morocco WT/TPR/S/116
Page 17
Area Legislative text Date of entry into force
Parafiscal import
taxDecree establishing the parafiscal import tax for economic financing and
the inspection of exports at a rate of 0.25 per cent ad valorem
Decree determining the products exempt from the parafiscal tax1994
1995
Veterinary
sanitary inspection
upon import andexportDecree determining the rate of veterinary sanitary inspection fees for the
import of animals, animal foodstuffs, freshwater and marine products1996
"Industrial" fish Dahir establishing the special tax on "industrial" fish 1952
Dried beet pulp
Commercial Code Law No. 15-95 containing the Commercial Code 1996
Pricing and
competitionLaw No. 06-99 on pricing freedom and competition and its implementing
decree2001
Free export zones Law No. 19-94 on free export zones and its implementing decree
Decrees Nos. 2-96-511 and 2-96-512 on the creation of the Tangiers and
Nador free export zones
Decree No. 2-98-99 granting the concession for the development and
management of the Tangiers free export zone to the "Tanger Free Zone"
company
Decree-Law No. 2-02-644 creating the Tanger-Méditerranée Special
Development Zone1995
19971998
2002
Government
procurementDecree on government procurement 1999
Commercial
courtsLaw establishing the commercial courts 1997
SPS Law No. 24-89 laying down veterinary sanitary control measures for the
import of animals, animal foodstuffs, products, products of animal origin,
animal reproduction products, freshwater and marine products, and itsimplementing decree determining veterinary sanitary control measures for
the import of animals
Decree No. 2-94-74 fixing the fees for veterinary sanitary inspection for the
import of animals, animal foodstuffs, products of animal origin, animal
reproduction products, freshwater and marine products
Decree No. 2-94-729 on the suspension of duties and taxes on the import of
pure-bred live breeding animals of the camelidae species1993
1996
1994
New varieties of
plantsLaw No. 9-94 on the protection of new varieties of plants and its
implementing texts
Decree No. 2-01-2324 implementing Law No. 9-94 on the protection of
new varieties of plants
Dahir No. 1-73-439 enacting the International Plant Protection Convention
done at Rome in 1951
Four Dahirs regulating the sanitary inspection of plants
Law No. 1-76-472 amending Dahir No. 1-69-69 (1969) regulating the
production and marketing of seeds and seedlings
Law No. 42-95 on the control and organization of trade in pesticides for
agricultural use
Dahir on the import of cotton seeds and the growing of cotton1997
200219741927, 1949, 1950, 1954
1969, 1977
19971939
Table II.1 (cont'd)WT/TPR/S/116 Trade Policy Review
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Area Legislative text Date of entry into force
Decree No. 2-63-369 banning the import and transit of all plants or parts
thereof belonging to the eucalyptus genus Herit, Myrtacea family
Decree No. 2-97-512 on security for the proper conduct of import
operations for cereals and pulses.
Dahir fixing the fee for sanitary inspection of imports and exports of plants,
parts thereof, or plant products
Dahir on the control of exports of fruit and early fruit and vegetables of
Moroccan origin1963
199719331932
Labelling Decree fixing the labelling requirements for foodstuffs 2002
Intellectual
propertyDahir on industrial property rights
Law No. 17-97 on industrial property protection, enacted in 2000Law No. 13-99 establishing the Moroccan Office for Industrial and
Commercial Property (OMPIC)
Law No. 2-00 on copyright and related rights
Decree No. 2-64-406 creating the Moroccan Copyright Bureau1916
Not yet in force2000
2000
1965
Investment Framework Law No. 18-95 constituting the Investment Charter
Decree No. 2-00-895 implementing Articles 17 and 19 of Framework Law
No. 18-95
Decree No. 2-02-350 approving the single form for the creation of
enterprises1995
2001
2002
Agricultural
investmentDahir No. 1-69-25, as amended and supplemented by Dahir No. 1-97-171
and Dahir No. 1-01-55 constituting the Agricultural Investment Code
Decree No. 2-98-365 establishing a premium for certain agricultural
investment
Decree No. 2-98-366 establishing a premium for the upgrading of citrus
fruit products
Decree No. 2-98-367 supplementing Decree No. 2-85-891 determining the
procedure for distribution of the financial support granted by the State in
order to intensify agricultural production
Decree No. 2-85-891, as subsequently amended
Decree No. 2-69-313, as amended and supplemented by Decree
No. 2-01-1966 regulating State incentives for the purchase of agricultural
equipment1969, 1997, 2001
199919991999
1985, 2002
2002
Special
regulations:
Handicrafts Law No. 1-73-653 on technical control of the manufacture, packaging and
export of Moroccan handicrafts1975
Cereals and pulses Dahir No. 1-95-8 enacting Law No. 12-94 on the organization of the
National Interprofessional Cereals and Pulses Board and the organization of
the market for cereals and pulses
Dahir No. 1-96-101 enacting Law No. 17-96 supplementing Law No. 12-94
Decree No. 2-97-512, as amended by Decree No. 2-02-327 fixing the
amount of security for the proper conduct of important operations for
cereals and pulses
Convention on Trade in Cereals1995
1996
1997, 2002
1995
Table II.1 (cont'd)Kingdom of Morocco WT/TPR/S/116
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Area Legislative text Date of entry into force
Pharmaceuticals Dahir No. 1-59-367 of 19 February 1960 regulating the exercise of the
profession of physician, pharmacist, dental surgeon, herbalist, and midwife
Decree No. 2-76-266 of 6 May 1977 on approval of authorization for the
sale of pharmaceutical specialities and advertising of special medicines indispensaries and of pharmaceutical specialities1960
1977
Hydrocarbons Dahir No. 1-95-141 enacting Law No. 4-95 amending and supplementing
Law No. 1-72-255
Decree No. 2-72-513 implementing Law No. 1-72-255
Decree No. 2-95-6991995
1973
1996
Dahir No. 1-99-340 enacting Law No. 27-99 amending and supplementing
Law No. 21-90 on prospecting and exploiting hydrocarbon deposits
Decree No. 2-99-210 amending and supplementing Decree No. 2-93-786
implementing Law No. 21-90 on prospecting and exploiting hydrocarbon
deposits2000
2000
Source :  Trade and Industry Department of the Ministry of Industry, Trade and Telecommunications (undated).
(4) TRADE POLICY OBJECTIVES20
26. Since the last review of its trade policy in 1996, Morocco has pursued its economic reform so
as to become better integrated in the global economy.   It has continued to liberalize its trade regime,
signing new trade agreements (section (4)(iii)), and dismantling its tariffs.21  It has also continued to
upgrade industrial enterprises with a view to the entry into force of trade agreements.  Together witheconomic policy, of which it forms part, trade policy's long-term objectives are poverty reduction and
sustainable human development, and in the short and medium terms to achieve strong economic
growth that creates jobs by boosting the economy, promoting investment, developing rural areas, and
bridging the gaps between regions.
27. The authorities consider that the achievement of the planned economic and social objectives
by 2004, in particular reducing unemployment and improving social well-being, will need sustained
annual growth of 5 per cent.  Exports are consid ered to be the motor for development and economic
activity in general and are thus the subject of special attention by the Government.
28. In order to achieve the growth objectives, a programme has been elaborated incorporating
measures that focus on the following:  expo rt incentives and promoting Morocco abroad;
infrastructure;  competitiveness of enterprises;  business climate;  and investment incentives.
29. In order to boost exports, Morocco is considering, inter alia , extending fiscal benefits to
"indirect exporters" and preparing a study on the export potential of services in order to draw up an
action plan to promote this sector.  It is also planned to reform the institutional framework for
Morocco's economic promotion abroad.  This will consist of the creation of a Moroccan Foreign
Economic Promotion Agency (AMPE).  Combating unfair trade practices will also be strengthened.
Morocco is determined to pursue the progra mme to simplify foreign trade procedures.
                                                     
20 This section is mainly based on:  Trade and Industry Department of the Ministry of Industry, Trade,
Energy and Mining (undated).
21 A further tariff reform is planned.WT/TPR/S/116 Trade Policy Review
Page 20
30. Morocco recognizes the role played by the in frastructure in achieving its economic growth
objectives.  It intends to improve its technological infrastructure, and its investment and trade support
facilities.  As regards investment facilities, a programme has been implemented, inter alia , to provide
investors with industrial land and high-quality services for the efficient conduct of their activities.
Concerning the technological infrastructure, a series of projects has been initiated, including technical
centres, promotion of quality, the reinforcement of quality control structures by establishing aMoroccan Standardization Institute, and updating the relevant legislative framework.  Action is also
planned to develop the physical infrastructure in support of trade, for example, by revising texts on
the wholesale marketing of fruit and vegetables, improving the marketing channels for meat and fish,
and establishing commissions on commercial equipment and infrastructure.
31. The action envisaged to improve the competitiveness of enterprises involves, inter alia , the
establishment of a strategy to encourage innovation within enterprises;  the diversification of
financing sources and the promotion of information technology;  and environmentally sustainable
industrial development.
32. The action to be taken to improve the business climate involves not only simplification of
foreign trade procedures but also the strengthening of the support structures for enterprises,particularly chambers of commerce, industry and services (CCIS) and professional associations;  and
the promotion of advisory and engineering services.
33. Revision of the incentive regime for investment is also planned;  it will include reforming
fiscality, lowering the cost of production factors, and accelerating the establishment of the National
Investment Promotion Agency.
(5) T
RADE AGREEMENTS AND ARRANGEMENTS
34. Since the last review of its trade policy, Morocco has continued to liberalize its trade through
new bilateral and regional trade agreements.  Since 1996, the following have entered into force:  the
Free-trade Agreement with the EFTA, the Association Agreement with the EU, the Free-Trade
Agreement between members of the Arab League (Arab Free-trade Area), as well as several other
bilateral agreements.  Negotiations are taking place on a free-trade agreement with the United States.
Morocco also plays an active role in the WTO's activities.
35. At March 2003, Morocco had not been directly involved either as a complainant or defendant
in any trade dispute settlement procedure.
(i) World Trade Organization (WTO)
36. Morocco is an original Member of the WTO and grants all its trading partners at least MFN
treatment.  It is not party to any of the plurilateral agreements concluded under WTO auspices.Morocco's notifications to the WTO are listed in Table AII.1.
37. At the Doha Ministerial Conference, Morocco reaffirmed its attachment to the multilateral
trading system and to trade liberalization, which it considers beneficial for growth, development, and
the well-being of peoples.  It emphasized, nonetheless, that it was urgently necessary for the benefits
to be equitably distributed amongst all countries.
22  Morocco endorsed the Doha Development Agenda
adopted in November 2001.  It regretted that the issue of the implementation of certain agreements did
                                                     
22 Statement by H.E. Mr. Mustapha Mansouri, Minister for Industry, Trade, Energy and Mining, at the
Doha Ministerial Conference, 9-13 November 2001.  WTO document WT/MIN(01)/ST/21 of10 November 2001.Kingdom of Morocco WT/TPR/S/116
Page 21
not meet with an adequate response in the draft decision on implementation issues and concerns, but it
nevertheless accepted the global approach proposed in the draft.  In addition, Morocco underscored
the need to regulate the trade liberalization process to make it more orderly and well-considered, but
above all more diversified and flexible, so that the various economies, whether developed or
developing, could find adequate responses to their national concerns.  It underlined the importance of
special and differential treatment which, in its view, should be considered a fundamental componentof negotiations.
38. Morocco considered that the negotiations should  allow the shortcomings still affecting world
trade in agricultural products to be corrected.  It therefore supported all proposals aimed at
substantially reducing escalating tariffs, a reduction and eventual elimination of domestic support
measures, and the removal of export subsidies within a reasonable lapse of time.  Morocco supportedthe elimination of subsidies that led to the over-exploitation of fisheries resources and proposed the
creation of a working party on subsidies accorded in the fishing industry.  Morocco was also in favour
of including market access for non-agricultural products in the negotiations.
39. Regarding trade in services, Morocco emphasized the need to further liberalize the movement
of natural persons.  In regard to intellectual pr operty, it considered that, in order to limit unfair
practices, it was necessary to launch negotiations aimed at extending the additional protection given
by geographical indications for wines and spirits to other products.  In addition, Morocco welcomed
the initiative on a separate Ministerial Declaration on Intellectual Property and Public Health (access
to medicines), and considered that Members should have reasonable and sufficient leeway for
adopting appropriate measures such as compulsory licensing for the purposes of national health
objectives.
40. Regarding the Singapore topics, more specifically investment and competition, Morocco
wished to see a compromise solution that would clarify the interaction between trade, on the one
hand, and investment and competition policy, on the other, and allow well-informed decisions to be
adopted by consensus.  Concerning the environment, Morocco was in favour of maintaining the work
programme under the current mandate of the Committee on Trade and Environment.
41. Morocco noted with satisfaction the strengthening of the provisions in the draft ministerial
declaration on technical cooperation and capacity building, special and differential treatment, and
measures in favour of LDCs.  It underlined the need to revise the way in which the procedures
currently functioned in order to make them more effective and operational.
(ii) Regional agreements
(a) Arab Maghreb Union (UMA)
42. The UMA was created on 17 February 1989 at a meeting of the Heads of State of Algeria,
Libyan Arab Jamahiriya, Mauritania, Morocco, and Tunisia, held in Marrakesh.  The UMA's
institutions comprise the Council of Heads of State,  the Council of Foreign Ministers, the Follow-up
Committee, the Court of Justice, composed of ten members (two per country), with responsibility for
hearing disputes between citizens of member countries, an Advisory Chamber composed of30 delegates from each country, and four Expert Ministerial Commissions. It does not have a
permanent Secretariat and for the moment it is presided by a different Head of State each year.
43. The UMA's objectives are the free movement of goods and persons and the revision of
customs regulations with a view to establishing a free-trade area.  To date, around 20 conventions and
agreements have been signed within the UMA framework.  Future projects include the introduction of
an accounting unit to be used for intra-Maghreb trade, the establishment of a Maghreb investment andWT/TPR/S/116 Trade Policy Review
Page 22
international trade bank to finance joint projects in the agricultural and industrial spheres, the
upgrading of the rail network, and the crea tion of a motorway linking member countries.23
44. In practice, the UMA does not appear to be functioning, despite the recent efforts made to
revive it.  The UMA's share of Moroccan trade is low.  In 2000, its share of Morocco's total imports
and exports was 2.5 and 1.9 per cent respectively.  A number of external factors such as the
international embargo imposed on the Libyan Arab Jamahiriya up until 1999, Algeria's domesticcrisis, and certain disagreements among member countries concerning the Western Sahara issue have
halted the integration process.
(b) Arab free-trade area
45. This is a programme of 19 February 1997 intended to implement the Agreement on
Facilitation and Development of Trade among Arab Countries
24, and it entered into force on
1 January 1998.  It encompasses all the members of the Arab League25 and its aim is to create a vast
Arab free-trade area within ten years by dismantling customs tariffs by 10 per cent annually over a
decade.  The principal entity responsible for implementing the programme is the Economic and Social
Council of the Arab League.  Currently, 17 me mbers are implementing the programme (Bahrain,
Egypt, Iraq, Jordan, Kuwait, Lebanon, Libyan Arab Jamahiriya, Morocco, Oman, PalestinianAuthority, Qatar, Saudi Arabia, Sudan, Syrian Arab  Republic, Tunisia, United Arab Emirates, and
Yemen).
(iii) Bilateral agreements and arrangements
46. Since the last review of its trade policy, Morocco has signed bilateral agreements with
regional groups and other trade partners.
(a) Regional groups
Morocco-EFTA Free-trade Agreement
47. The Morocco-EFTA Free-trade Agreement was signed on 19 June 1997 and entered into
force on 1 December 1999.
26  It covers industrial products in Chapters 25 to 97 of the Harmonized
System (HS), fish and other marine products (Chapters 3, 15 and 23 of the HS) and processed
agricultural products (Protocol A).27  The agricultural component consists of bilateral arrangements
between contracting parties.
48. Upon entry into force of the Agreement, the EFTA States eliminated all customs tariffs on
imports and all charges having equivalent effect on industrial products from Morocco.28  Morocco
must eliminate import tariffs and charges having equivalent effect on industrial products from EFTA
countries, according to the terms fixed in the Agreement.  The Agreement provides that Morocco shall
                                                     
23 European Institute for Research on Mediterranean and Euro-Arab Cooperation (1999).
24 This Agreement dates from 27 February 1981.
25 The 22 members are:  Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon,
Libyan Arab Jamahiriya, Mauritania, Morocco, Oman, Palestinian Authority, Qatar, Saudi Arabia, Somalia,Sudan, Syrian Arab Republic, Tunisia, United Arab Emirates, and Yemen.
26 Because of the different agricultural policies in the EFTA countries, bilateral arrangements have
been made with each of them (Iceland, Norway, Switzerland, and Liechtenstein).  These arrangements form part
of the provisions establishing the free-trade area.
27 For agro-industrial products, it is planned to separate the agricultural and industrial components.
28 Switzerland and Liechtenstein may maintain customs tariffs and taxes having an equivalent effect on
imports of certain fish fats and oils for human  consumption and certain prepared animal feeds.Kingdom of Morocco WT/TPR/S/116
Page 23
benefit from a transitional period not exceeding 12 years for the elimination of duties and other
restrictions on trade in certain products.29
49. The Agreement also provides that no new quantitative restrictions on imports or exports and
no measure having equivalent effect shall be introduced in trade between the parties.  The EFTA
countries abolished such measures upon entry into force of the Agreement.  Morocco is allowed to
maintain quantitative restrictions on a limited number of products, but it must not introduce any newtrade restriction or increase the levels of those already applied.
50. The Agreement defines rules of origin and allows the cumulation (bilateral) of origin between
parties so materials originating in one party are deem ed to originate in the other party when they are
incorporated into a product originating in the latter.  Origin in one of the parties is applied to products
wholly obtained from or containing materials that have not been wholly obtained provided that they
have been sufficiently worked or processed in an EFTA country or Morocco.  As a general rule,
working or processing is deemed sufficient if the product obtained is classified in a heading other than
that in which all the non-originating materials used in its manufacture are classified.  For several
products, however, special criteria on working and processing are defined in the Agreement (Annex II
to Protocol B).
51. The rules of origin for agricultural products are defined in the bilateral arrangements.
Products that are wholly obtained or have undergone the sufficient working or processing defined in
the arrangements in EFTA countries or in Morocco are deemed to be originating products.  In the
majority of cases, it is compulsory to use raw materials wholly obtained in the country concerned.
52. The Agreement also contains other cooperation and/or non-discrimination provisions relating,
inter alia , to technical regulations, standards, and conformity assessment, sanitary and phytosanitary
regulations, customs cooperation, protection of  intellectual property, State monopolies, and
liberalization of government procurement.  Article 18 of the Agreement provides that State subsidies
and aid that distort competition are incompatible with the proper functioning of the free-trade area.
The Agreement also provides a procedure for arbitrating disputes among the parties concerning its
interpretation.
30
Morocco-EU Association Agreement
53. The Euro-Mediterranean Agreement establishing an association between the European
Communities and their Member States and the Kingdom of Morocco was signed on 26 February 1996
and entered into force on 1 March 2000.  It provides for the establishment of a free-trade area within
12 years and covers all products (Chapters 1 to 97 of the HS).31  Quantitative restrictions and
measures having equivalent effect between Morocco and the EU were abolished when the Agreement
entered into force, except for Moroccan imports of used goods such as tyres, vehicles, domestic
                                                     
29 Morocco has been given transitional periods ranging from two to eight years and waivers for fish and
other marine products.  For some of these products (smoked salmon and fish meal), Morocco has set tariffquotas;  these products will be allowed outside the quotas and exempt from customs tariffs ten years after theAgreement's entry into force.
30 The Agreement contains provisions on the establishment and functioning of the arbitral tribunal.  If a
dispute has not been resolved within six months, the par ties may refer it to arbitration.  The arbitral tribunal
settles the dispute in accordance with the rules of international law, and its ruling is final and binding.
31 The purpose of the Association Agreement goes beyond the establishment of a free-trade area;  there
is also provision for a partnership to support Morocco's efforts to achieve sustainable economic and socialdevelopment.WT/TPR/S/116 Trade Policy Review
Page 24
appliances, bicycles, and motorized bicycles (Annex 6 to the Agreement), to which this requirement
will only apply after the end of the transitional period.
54. For industrial products originating in the EU, Morocco's dismantling of tariffs draws a
distinction between:  products exempt from customs tariffs and taxes having equivalent effect upon
the date the Agreement entered into force;  products for which tariffs will be phased out over three
years as of the entry into force of the Agreement at an annual rate of 25 per cent32;  and products for
which tariffs will be phased out at an annual rate of 10 per cent over 12 years, with a three-year grace
period, at an annual rate of 10 per cent.  The gradual elimination of customs tariffs and taxes having
equivalent effect does not apply to the used goods mentioned above.  The regime applicable to these
products will be reviewed by the Association Council three years after the entry into force of the
Agreement.
55. The Agreement also provides that Morocco shall dismantle the industrial component of duties
on food industry products at an annual rate of 25 per cent upon entry into force of the Agreement for
products listed in Annex 3;  or at an annual rate of 10 per cent for products in Annex 4, three years
after entry into force of the Agreement.
56. Moroccan industrial products exported to the EU are exempt from import duties.33
57. Moroccan imports of agricultural products of EU origin are subject to preferential tariff
quotas (with lower customs duties) covering 125 tariff lines.  Morocco applies MFN rates on fish,
crustaceans and molluscs of EU origin.
58. EU imports of agricultural products of Moroccan origin are subject to a tariff quota, with zero
or lower customs duty, with or without an export calendar and import price.  Customs duties are zero
or reduced on over 240 eight-digit tariff lines in the HS, including fruit and vegetables of Moroccan
origin.  For some products, customs duties are only zero within the limits of the quota.34
59. Fisheries products from Morocco (Chapter 03, and parts of positions 1604, 1605 and 1902 of
the HS) enjoy free access to the EU market, with the exception of sardine preparations, for which a
tariff quota has been set.
60. The Agreement specifies that the EU and Morocco shall gradually liberalize a greater share of
their trade in agricultural and fisheries products.  For this purpose, negotiations began on23 January 2002 and respective offers of concessions were submitted on 18 June 2002.
                                                     
32 A first reduction of 25 per cent upon entry into force of the Agreement, then an annual reduction of
25 per cent over three years.
33 The provisions on free movement of goods do not prevent the EU from maintaining an agricultural
component for the import of certain processed agricultur al products of Moroccan origin, for example:  dairy
products;  sweet corn;  margarine;  confectionery not containing cocoa;  chocolate and other food preparations
containing cocoa;  malt extracts;  food preparations of flour, semolina, starches;  edible pasta;  cereal-based
products;  bakery products or biscuits;  potato flour, semolina or flakes;  "muesli"-type preparations;  roastedcoffee substitutes;  ice cream;  non-alcoholic bevera ges;  and sorbitol (Annex 1).  Likewise, Morocco may
separate the agricultural component in the duties imposed on the import of certain agricultural products of EUorigin, for example:  confectionery not containing cocoa;  chocolate;  edible pasta;  bakery products or biscuits;ice cream;  malt beers;  sweet corn;  industrial monocarboxylic fatty acids;  acid refinery oils;  glycerine;
maltose;  malt extracts;  certain cereal-based products;   prepared vegetables;  "muesli"-type preparations
(Annex 2).  The agricultural component may be in the form of a fixed sum or an ad valorem  duty.
34 The agricultural component of the Agreement has been applied in advance, even before the
Agreement's entry into force, to certain sensitive products (tomatoes, oranges, zucchini, artichokes and
cucumbers).Kingdom of Morocco WT/TPR/S/116
Page 25
61. Title II of Protocol 4 defines "originating  products" and lays down rules on bilateral
cumulation, cumulation with materials originating in  Algeria or Tunisia, and cumulation of working
or processing in the EU, Algeria, Morocco, or Tunisia.35  Origin in one of the parties is applied to
products wholly obtained from or containing materials that have not been wholly obtained provided
that they have been sufficiently worked or processed in the EU or Morocco.  As a general rule,
working or processing is deemed sufficient if the product obtained is classified in a heading other thanthat in which all the non-originating materials used in its manufacture are classified.  Nevertheless, for
many products, special criteria on working or processing are defined in the Agreement (Annex II).
62. The Agreement does not allow the application of customs tariffs and quantitative restrictions
on exports by one of the parties (EU or Morocco) and declares that any State subsidies which distort
or threaten to distort competition are incompatible with the Agreement.
36  It also includes provisions
on standards, anti-dumping, countervailing and safeguard measures, State monopolies of a
commercial character, intellectual property rights, and procedures for the settlement of disputes.37
(b) Other trade partners
63. The three bilateral agreements with Egypt, Jo rdan and Tunisia entered into force in 1999.38
The agreements with Egypt and Jordan provide for the creation of a free-trade area over a period of
12 years.39  The agreements contain two lists of manufactures (one for each country) for which import
duties and charges having equivalent effect were abolished upon the agreement's entry into force.  For
other manufactures, there will be gradual dismantling over a period of five years to reach a figure of
0 per cent at the end of the fifth year for products whose import duty is less than 25 per cent, and a
figure of 25 per cent for those subject to an import duty exceeding 25 per cent;  the phasing-out will
take place over seven years as of the sixth year in which the agreements on 25 per cent of the
remaining import duties come into effect.  The agreements also contain a negative list ofmanufactures that are not covered by the dismantling.  Trade in agricultural products is not covered by
the agreements and will be considered subsequently.
64. The free-trade agreement with Tunisia establishes four different lists of Moroccan products
exported to Tunisia and three lists of Tunisian products imported into Morocco.  These lists are
divided into three groups:  products that can be traded freely (VAT is applicable);  products that canbe freely traded subject to payment of a single duty of 17.5 per cent;  and products subject to gradual
dismantling of customs tariffs and charges having equivalent effect, to arrive at a zero rate on
1 January 2008.  The agreement also contains a negative list of manufactures not covered and
agricultural products are not covered either.
65. Morocco's trade with countries such as Algeria, Libyan Arab Jamahiriya, Mauritania,
Republic of Guinea, and Saudi Arabia are covered by bilateral trade and tariffs agreements.  These
                                                     
35 Proof of the origin of products is given by the EUR1 certificate for the movement of goods.
36 For a period of five years as of the date of entry into force of the Agreement, Morocco is
exceptionally authorized  to grant State aid for the restructuring of the steel industry.
37 Each party may bring any dispute regarding application or interpretation of the Agreement before the
Council of Association.  The dispute may be settled by means of a decision.  If this is not possible, threearbitrators are appointed (one by each party and one by th e Council of Association).  The arbitrators' rulings are
adopted by majority.
38 The agreement with Egypt (signed on 27 May 1998) entered into force on 29 April 1999;  the
agreement with Jordan (signed on 16 June 1998) on 21 October 1999;  and that with Tunisia (signed on16 March 1999) on 16 March 1999.
39 The Additional Protocol of 23 May 2000 provides for total exemption from import duties on certain
products (list 7 for Egypt and list 8 for Morocco), but has not yet entered into force.WT/TPR/S/116 Trade Policy Review
Page 26
provide for exemption from duty, and sometimes from charges having equivalent effect.  Two of these
agreements have been signed since the last review of Morocco's trade policy, namely, those with Chad
and the Republic of Guinea (not yet in force), concluded in 1997.  The trade and tariff agreement with
Senegal is applied unilaterally by Morocco while awaiting the conclusion of an agreement with the
West African Economic and Monetary Union (WAEMU).
(iv) Other agreements and arrangements
66. Morocco benefits from the Generalized System of Preferences (GSP) on a non-reciprocal
basis from countries such as Australia, Belarus, Bulgaria, Canada, Czech Republic, Hungary, Japan,
New Zealand, Poland, Russian Federation, Slovakia, and the United States.  Moroccan exports of
products covered by the GSP are totally or partially exempt from customs tariffs in those countries.
67. Morocco was one of the first developing countries to sign the agreement on the Global
System of Trade Preferences among Developing Count ries (GSTP) in April 1988.  It only ratified the
agreement in 199340, however.  Products originating in 48 countries signatory to the agreement
receive tariff preferences on a reciprocal basis.  The agreement also provides for special treatment for
LDCs.
68. The framework agreement on the Trade Preferences System (TPS) among Islamic countries,
which covers products originating in member countries of the Organization of the Islamic Conference
(OIC), was signed in 1993 and entered into for ce in 2003 following its ratification by ten member
States.  The relevant bilateral negotiations will begin in mid-2003.
69. Morocco has also signed trade agreements based on the MFN principle with several countries
that are not members of the WTO, namely, Democratic People's Republic of Korea, Equatorial
Guinea, Iraq, Islamic Republic of Iran, Russian Federation, Seychelles, Sudan, and Yemen.
(6) INVESTMENT REGIME
70. The Government's aim is to promote foreign investment in order to boost Morocco's
economic growth and development.  Since the last review of its trade policy, Morocco has undertaken
reforms intended to attract foreign direct investment (FDI).  It has adopted a new Investment Charter
and several implementing texts to improve the investment climate and conditions.  These provisions
are supplemented by instruments to encourage investment in the form of contributions and benefitsgranted by the State to investors.
71. In 1996, a Foreign Investment Department was set up under the Ministry of the Economy,
Finance, Privatization and Tourism, in order to promote foreign investment in Morocco.  In 1998, the
Interministerial Investment Commission (CII), chaired by the Prime Minister, was established for thepurpose of appeals and arbitration.  It is responsible for ruling on obstacles to investment projects and
for implementing measures to enhance the investment climate.
41  Commercial courts were established
to deal with trade disputes and they have been functioning since May 1998.
                                                     
40 Morocco's list of accession to the GS TP came into effect on 16 March 1997.
41 At its 26th meeting held in November 2002, the Interministerial Investment Commission stated that
the obstacles encountered by approved investment projects mainly concerned property questions andurbanization, followed by administrative authorizations and procedures, taxation, financing, and theinterpretation of the regulations.Kingdom of Morocco WT/TPR/S/116
Page 27
72. The purpose of the regional investment centres, established by the Royal Letter of
9 January 2002, is to decentralize and simplify procedures and lessen the number of persons involved
at the regional level.42  Their two main tasks are to assist the creation of enterprises and help investors,
each with its own special counter.  The counter that assists the creation of enterprises is the sole
interlocutor for those wishing to set up a business.   It furnishes applicants with the information
required by the law and undertakes the relevant procedures to collect the documents needed in orderto set up a business.  The counter assisting investors provides interested persons with all the necessary
information and proposes amicable solutions to any disputes between investors and the authorities.
The regional centres also deal with requests for administrative authorizations for investment projects
not exceeding DH 200 million and draw up the instruments needed for their implementation.  In the
case of investment exceeding DH 200 million, the centres deal with the administrative aspects of theproject, but the State has the right to take decisions regarding any obstacles.
73. The legal framework for investment in Mo rocco is based on the Investment Charter
(framework law of 8 November 1995) and its supporting and implementing texts.  The Charter sets
the orientations for State action up to 2005.  It has replaced all the (special) sectoral texts that
previously existed, except those concerning sectors such as agriculture, whose taxation regime is thesubject of special legislation.
43  The Charter does not discriminate between foreigners and Moroccans.
As far as exchange regulations are concerned, the transfer of investment income (profits, dividends,
capital) and the earnings from sale or liquidation, are guaranteed under the Charter without any
limitations on the amount or duration.
74. The Charter's aim is to assist the promotion of investment by enhancing the investment
climate and conditions, including investment incentives .  The latter include the following:  a reduction
of a maximum of 2.5 to 10 per cent in customs tariffs on capital goods, equipment and tools, andexemption from the fiscal levy on the import of such goods;  exemption from or refund of value added
tax (VAT) on capital goods, equipment and tools;  exemption from registration duties on land
purchase deeds (with the exception of land to be used for building houses and other construction, for
which the purchase deeds are subject to a rate of 2.5 per cent);  and application of a maximum rate of
0.5 per cent on contributions to the constitution or increase of capital in companies.
75. Exporting enterprises are exempt from corporation tax (IS) and the general income tax (IGR)
for a period of five years, after which there is a 50 per cent reduction in these taxes.  For enterprises
exporting services, including hotels, the exemption or reduction only applies to turnover in foreign
currency.  Enterprises established in prefectures or certain provinces covered by a decree and
handicrafts enterprises are eligible for a 50 per cent reduction in the IS or IGR for a period of fiveyears.
                                                     
42 All the 16 centres planned were set up in 2002 under the supervision of the Department of
Coordination and Economic Affairs of the Ministry of the Interior.
43 Investment in the agricultural sector is governed by Dahir No. 1-69-25 of 25 July 1969, amended and
supplemented by Dahir No. 1-97-171 of 2 August 1997, enacting Law No. 23-97, and by subsequent decrees.This legislation defines the financial (subsidies, inve stment premiums) and fiscal incentives available to
investors and operations eligible for financial support from the State.  Agricultural revenue is exempt fromdirect taxation until 2010.  The fiscal incentives under ordinary law include the application of minimum(reduced) duties and taxes on imports of the majority of agricultural products and machinery;  exemption from
VAT on products and equipment subject to the minimum (reduced) rate;  exemption from corporation tax (IS)
for companies raising livestock and cooperatives;  exemption from IS of 50 per cent on company profits earnedfrom growing cereals, oilseeds, sugar-producing crops, fodder, and cotton;  total exemption from IS on turnoveron exports for the first five years and a reduction of 50 per cent subsequently.  Ministry of the Economy,Finance, Privatization and Tourism (2002)WT/TPR/S/116 Trade Policy Review
Page 28
76. Large-scale investment (exceeding DH 200 million) is also exempt from import duty and
VAT on imported capital goods, equipment and tools.44  The State contributes 5 per cent of the total
amount of the investment, assists with land purchase co sts, external infrastructure and training costs in
the case of investment that meets the following criteria:  creation of 250 or more permanent jobs;
transfer of technology;  or contribution to protecting the environment.  For companies investing in the
provinces covered by Decree No. 2-98-520 or in semi -urban areas, the sum rises from 5 to 10 per cent
of the total amount of the investment.  In order to boost regional development, the State also assumes
part of the cost of developing industrial zones.
77. Foreign investors, whether resident or non-resident, and Moroccan investors resident abroad
are eligible for a convertibility regime that guarantees total freedom to transfer profits without tax and
the revenue from the sale or total or partial disposal  of their investment, including capital gains.  In
order to benefit from this regime, the investment must be financed by repatriating currency to
Morocco or by a similar method.  The transfer of the revenue from the sale or disposal of investment
is not subject to authorization by the Foreign Exchange Board, but a record must be drawn up.45  The
preferential fiscal regimes available to foreign investors are subject to the issue of an administrative
authorization and the conclusion of an agreement between the investors and the Moroccan State.46
78. Investors may also take advantage of a number of benefits granted under customs regimes,
such as temporary entry for inward processing, in-bond warehousing and storage, as well as those
provided under the free export zone regime and the offshore financial centre regime
(Chapters III(3)(v) and IV(5)(iv)(b)), as well as the Hassan II Fund for economic and social
development (Chapters III(4)(i)and IV(4)(i)).  Appeal s may also be lodged in relation to national and
local taxation.  The priority given to large-scale investment, the ban on the purchase of agricultural
land by foreigners, and the slowness and hazards of developing industrial zones are currently the mainobstacles to investment, particularly foreign investment.
47
79. Morocco has signed 42 double taxation agreements, of which 26 are currently in effect
(Bahrain, Belgium, Bulgaria, Canada, Denmark, Eg ypt, Finland, France, Germany, Hungary, India,
Italy, Luxembourg, Netherlands, Norway, Poland, Po rtugal, Republic of Korea, Romania, Russian
Federation, Spain, Sweden, Switzerland, United Arab Emirates, United Kingdom, andUnited States).
48  Within the UMA, there are provisions on double taxation among the five member
countries.  Bilateral agreements on the promotion and reciprocal protection of investment are in effect
with European countries such as Austria, Bulgaria , France, Hungary, Italy, Poland, Romania, Sweden,
Switzerland, and the United Kingdom;  with countries in Africa, Asia and the Middle East such as
China, India, Indonesia, Islamic Republic of Iran, Jordan, Kuwait, Lebanon, Libyan Arab Jamahiriya,
Mauritania, Oman, Sudan, Syrian Arab Republic, and Turkey;  and with countries in America such as
Argentina, and the United States.49  Similar agreements have been signed in the context of regional
arrangements such as the UMA, OPEC, and the Arab League;  however, only the agreement with the
UMA is currently in force.
                                                     
44 Article 7-1 of the 1998-1999 Finance Law, as amended by Finance Laws Nos. 25-00 and 55-00.
45 Foreign Exchange Board (undated).
46 An administrative authorization is deemed to have been granted when there is no response from the
authorities within a period of 60 days as of the date of the application.
47 MINEFI-DREE (2002)c.
48 Fifteen other agreements are being finalized with the following countries: Austria, China, Croatia,
Czech Republic, Gabon, Greece, Indonesia, Kuwait, Lebanon, Malaysia, Malta, Qatar, Senegal,  South Africa,
and Turkey.
49 Agreements have also been signed with Canada, Chad, Czech Republic, Dominican Republic,
El Salvador, Finland, Gabon, Germany, Pakistan, Republic of Guinea, Republic of Korea, Saudi Arabia, Spain,Ukraine, and Yemen, but have not yet entered into force.Kingdom of Morocco WT/TPR/S/116
Page 29
80. Morocco has signed several multilateral trade and investment agreements, for example, the
Washington Convention on the Settlement of Inve stment Disputes (ICSID) and the Convention
Establishing the Multilateral Investment Guarantee Agency (MIGA).