WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 12 
 
 
II. TRADE AND INVESTMENT REGIMES 
(1) INSTITUTIONAL FRAMEWORK  
1. Morocco's institutional framework has unde rgone no major changes since the 1996 
constitutional reform1, which introduced major political, administrative, social and economic 
innovations.2  The provisions introduced by that fourth Constitution enshrine the freedom to do 
business as a basic right, and envisage reducing State in volvement in economic matters;  they also put 
the Court of Audit on a constitutional footing, a nd accord the regions local government status.3 
2. Under the Constitution, the King is the Head of St ate.  He appoints the Prime Minister, and on 
the latter's proposal, he also appoints the other me mbers of the Government.  He is empowered to 
terminate the functions of the Gove rnment and dissolve the Parliament.4  The King signs and ratifies 
treaties and chairs the Supreme Council of the Judiciary.5  The King has vested full authority to 
negotiate and sign treaties in the Minister of Fo reign Affairs and Cooperation (MAEC), who may in 
turn give authority to the other ministers to sign in ternational agreements with in their respective areas 
of competence;  for example, the Minister of Trade may sign trade agreements.  At the political level, 
the MAEC coordinates negotiations on Morocco's external commitments in the economic, trade, 
financial, social, cultural and technical spheres.6 
3. The King and the Government hold executive power .  Legislative power is exercised by the 
bicameral Parliament, comprising the House of Re presentatives and the House of Councillors;  the 
Parliament oversees Government action, notably  by adopting the laws on finance and budgetary 
control.7  The King and the two Houses are responsible  for proposing revisions of the Constitution.8 
4. The 325 members of the House of Representatives are elected by direct universal suffrage for 
a five-year term under a system of proportional representation.  Of the 325 members, 295 are elected from constituencies and 30 seats are based on national lists;  these 30 seats are reserved for women.  
The 270 members of the House of Councillors are elected on the basis of a list with proportional 
representation.  Three-fifths of its members are elec ted in the regions by electoral colleges (one per 
region) composed of representatives of local author ities, and the remaining two-fifths by electoral 
colleges composed of persons elected by professiona l chambers and members elected at the national 
level by an electoral college composed of empl oyee representatives.  Members of the House of 
Councillors are elected for a nine-year term;  one-thi rd of the House is renewed every three years. 
5. The Constitutional Council is responsible for verifying the legitimacy of parliamentary 
elections and referendums, as well as the constitutionalit y of all legislation, especially basic laws, and 
the regulations of each House.  Basic laws must  be submitted to the Constitutional Council before 
                                                     
 
1 The Constitution was enacted through Dahir No. 1-96-157 of 7 October 1996. 
2 For further details on that reform, see WTO (2003). 
3 Local authorities consist of regions, prefectures, communes, and any entity deemed as such according 
to the law. They elect assemblies responsible for administrating their affairs and settling, through deliberation, 
administrative and economic matters affec ting their particular territory.  Provin cial or prefectoral assemblies are 
composed of representatives of professi onal associations and elected members. 
4 Articles 24 to 27 of the Constitution. 
5 Treaties that affect the State's finances cannot be ratified without prior approval by Parliament. 
6 The MAEC also conducts negotiations on treaties, conventions, agreements, protocols and other 
international legal instruments of a political or diplomatic nature. 
7 The law on budgetary control records annual financial performance and makes it possible to verify 
whether the budget has been implemented in accordance with the approval given and to see whether there any 
differences between the estimates and the final figures. 
8 Article 103 of the 1996 Constitution. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 13 
 
 
they are enacted.  The Council is composed of 12 me mbers (six appointed by the King, three by the 
President of the House of Representatives, and thr ee by the President of the House of Councillors) 
appointed for a term of nine years.  One thir d of each category of members is renewed every 
three years.  The President of the Constitutiona l Council is appointed by the King from among the 
Council's members.9 
6. The judicial structure comprises ordinary law courts (706 municipal courts, 131 district 
courts, 68 courts of first instance with 183 centres with  resident judges, 21 courts of appeal, and the 
Supreme Court10), and special courts (seven administrative tribunals11, eight commercial courts, 
three commercial courts of appeal12, and two administrative courts of appeal).  Dahir No. 1-04-129 of 
15 September 2004 eliminated th e Special Court of Justice13 and transferred its material jurisdiction to 
criminal chambers of the courts of appeal.  In  November 2008, Organic Law No. 24-07 regarding the 
High Court (intended to judge high officials of St ate) was adopted, thus laying the groundwork for its 
establishment. 
7. The Customs and Indirect Taxation Code (CDII)14 contains provisions on disputes, allowing 
for the possibility of taking cases to the courts.  The Court of Audit (which has had constitutional 
status since 1996), is responsible for overseeing th e implementation of finance laws and evaluating 
the management of entities under its control.15  Since the last review of Morocco's trade policy (TPR) 
in 2003, nine regional courts of a udit have become fully operational.   They had been created under the 
1996 Constitution in the framework of the devolutio n and decentralisation process so as to improve 
management within local authorities.16  The regional courts of audit b ecame fully operational as of the 
2004 budget year. 
8. The institutional framework for the prevention of corruption was buttressed in 2007 with the 
creation of the Instance Centrale de Prevention de la Corruption  – ICPC (Central Body for the 
Prevention of Corruption) to coordinate, monito r and follow up on the implementation of corruption 
                                                      
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;  a nd criminal).  Its role is limited strictly to questions 
of law, however. 
11 The administrative tribunals are governed by Law No. 80-03 creating admini strative appeal courts, 
enacted by Dahir No. 1-06-07 of 14 February 2006. 
12 The commercial courts (e.g. th e regular commercial courts and the commercial courts of appeal) 
have responsibility for hearing all commercial disputes, including those relating to intellectual property.  
Commercial courts are responsible for hearing:  cases re lating to commercial contracts;  cases between business 
persons relating to their commercial activities;  cases relati ng to the effects of trade;  disputes between partners 
in a commercial company;  and disputes relating to a business. 
13 This court was created in 1972 and is responsible for punishing crimes committed by civil servants, 
including magistrates, such as misappropriation of public funds, corruption, peddling of influence, and 
misappropriation of public or private monies. 
14 The CDII regulates the competence  of the Customs and Indirect Ta xation Department at the border 
as regards imports and exports. 
15 In accordance with the Constitution, Law No. 62-9 9 establishing the Financial Courts Code was 
enacted on 13 June 2002.  This law expressly lays down the powers, organization and functioning of the Court 
of Audit as well as the regional courts, and determines  the special status of the magistrates of these courts. 
16 Under Article 98 of the Constitution, the regiona l audit courts are responsible for checking the 
accounts and evaluating the management of  local governments and their groups. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 14 
 
 
prevention policies.17  To that end the draft Finance Law for 2009 provides for support to the ICPC 
and the Council on pricing freedom and competition.18 
9. The new law on political parties (Law No. 36-04) was promulgated in 200619 and for the first 
time provides a definition of political parties and pr ohibits their formation on the basis of religious, 
ethnic, regional, linguistic or discriminatory consid erations, which is in contradiction with human 
rights.  Under the law, the State grants annual fina ncial support to political parties that have obtained 
at least 5 per cent of the votes cast during legislative elections.20  The Court of Audit is responsible the 
financial oversight of political parties. 
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
10. All (economic, including commercial) policies ar e formulated and implemented by means of 
legislation.  The initiative of legislation lies with the Government and Parliament.  Draft laws are put 
before the bureau of one of the two Houses.21  After being adopted by one House, a draft law must be 
transmitted to the other House.  A joint committee may be set up if there is any disagreement.22  
Under the procedure whereby bills shuttle betw een the two Houses, if there is a persisting 
disagreement, a final decision is taken by the H ouse 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 Houses, but only the Hou se of Representatives votes on it, while the House of 
Councillors 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 Hous es for proposed revisions of the Constitution;  an 
absolute majority for a motion of censure or a vote of confidence by the House of Representatives;  an 
absolute majority and a two-thirds majority of th e House of Councillors for a motion of warning or of 
censure of the Government23;  and an absolute majority of the members of both Houses for all draft 
and proposed laws.  The King must enact any adopted law within 30 days following its transmission to the Government.  Entry into effect is upon publicat ion in the Official Journal, unless another date is 
specified in the law itself. 
                                                     
 
17 According to Transparency Inte rnational's Corruption Perceptions Index 2008, Morocco occupies the 
80th  place, with 3.5 points out of 10 (10 points if ther e is no corruption) in a list of 102 countries.  Source:   
Transparency International, online information , Corruption Perceptions Index 2008.  Viewed at:  
http://www.transparency.org/policy_r esearch/surveys_indices/cpi/2008. 
18 Draft Finance Law for 2009.  Viewed  at:  http://www.finances.gov.ma/portal/ 
page?_pageid=53,17812962&_dad=portal&_schema=PORTAL. 
19 Dahir No. 1-06-18 of 14 February 2006, enacting Law No. 36-04 on political parties. 
20 The overall amount of that support is mentioned every year in the Finance Law.  Article 28 of the 
Law determines the rules on the financing of parties and identifies four sources:  dues paid by members;  gifts 
and bequests, capped at DH 100,000 per annum and per donor;  and the revenue associated with social and cultural activities. 
21 Draft laws from the Prime Minister must firs t be discussed in the Council of Ministers. 
22 Where a draft law or a proposed law has not been adopted after two readings by each House, or in 
cases of emergency, the Government may convene a m eeting of a joint committee to propose a text on the 
provisions that are still at issue.  The Government ma y submit the text prepared by the committee to the two 
Houses.  No amendment may be accepted, unless the Gove rnment agrees.  If the joint committee is unable to 
adopt an agreed text or if the latter is not adopted by the Houses, the Government may submit the draft or 
proposed law to the House of Representatives, as amended where applicable during parliamentary debates and then resubmitted by the Government. 
23 The House of Representatives ma y oblige a Government to resign by refusing a vote of confidence 
or by adopting a motion of censure.  The House of Councillors may adopt a motion of warning or censure;  the latter also results in the collective resignation of the Government. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 15 
 
 
12. The Prime Minister has regulatory authority ov er all matters other than those within the 
domain of the law.24  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 defined purpose.  Decrees enter into force upon publication, but within the period fixed in the enabling law 
they must be submitted to Parliament for ratifica tion.  The enabling law becomes null and void if at 
least one of the Houses of Parliament is dissolved .  Changes to the customs tariff may also 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 Houses a posteriori. 
13. Under Moroccan law, international legal inst ruments, including the WTO Agreements, take 
precedence over domestic law.  Treaties liable to affect constitutional provisions may be signed 
subject to the necessary constitutional amendments, whic h must be adopted prior to their ratification.  
According to the internal hierarchy of regulati ons, the Constitution is followed by laws, decrees, 
orders, and internal measures (such as circulars or notes).
25  Since its last TPR in 2003, Morocco has 
revised or amended some of its tr ade-related legislation (Table II.1).  The main changes affect, in 
particular, government procurement and the protec tion of intellectual property rights (Chapter III(4)), 
banking services (Chapter IV(5)), and the business climate (section (5) below). 
14. The Minister of Foreign Trade formulates Government policy in this sphere.  Depending on 
the subject-matter, he coordinates the policy with th e ministries concerned.  The Ministry of Foreign 
Trade collaborates with the Ministry of Foreign Affairs and Cooperation (MAEC) on international 
economic negotiations so as to coordinate the Mo roccan Government's position.  The Ministry of 
Foreign Trade is assisted by the Commission consultative des importations  – CCI (Advisory 
Commission on Imports), whose brief is to provide advice on all matters relating to requests for tariff 
protection or the adoption of contingency measures.26  The CCI is chaired by a representative of the 
Minister of Foreign Trade and is composed of representatives of several ministries, the Administration 
des douanes et des impôts indirects  – ADII (Customs and Indirect Taxation Department), a 
representative of each of the professional associations considered to be those most concerned, and a 
representative of the Federation of Chambers of Commerce, Industry and Services, the Federation of Chambers of Agriculture, and the Federation of Cham bers of Handicrafts.  The President of the CCI 
may call on any person whose advice could prove useful.  The Conseil national du commerce 
extérieur  – CNCE (National Foreign Trade Council), established in July 1996, is composed of 
representatives of the Government and economic opera tors.  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.
27  The Council provides its advisory services at 
the request of the Government or the private sector.  These various consultations are optional. 
                                                      
24 The domain of the law includes, inter alia,  the system of civil and commercial 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); 
25 The Dahir is a formal instrument that serves, among other things , to enact laws, and appoint senior 
Government officials, as well as the representatives of certa in professions, such as notaries;  it is not part of the 
strict hierarchy of norms. 
26 Decree No. 2-93-415 of 2 July 1993, implementing Law No. 13-89 on foreign trade, as amended and 
supplemented by Decree No. 2-99-1261 of 4 May 2000. 
27 The CNCE currently has 64 members:  12 members of the Government;  the Governor of the Bank 
Al-Maghrib and the Director-G eneral of the ADII (or their representatives );  14 Directors of State boards or 
establishments;  15 representatives of the federations of chambers of commerce, industry and services, 
agriculture, and handicrafts;  and 21 representatives of economic operators or pr ofessional associations 
concerned, appointed by the ministry responsible.  CNCE (undated). WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 16 
 
 
15. Morocco also consults its trading partners on trade-related issues through joint commissions, 
established under bilateral agreements, as well as re gional and multilateral forums such as the WTO, 
the Euro-Mediterranean process, the League of Arab States, UNCTAD, and the Group of 77 and China.  In principle, these agreements  provide for consu ltation procedures. 
16. Each year, several ministries responsible for fi nancial matters, foreign investment, foreign 
trade, and other economic matters, together with the Bank Al-Maghrib, undertake an evaluation of 
Morocco's economy, under the supervision of the Prime Minister.  Study days and seminars are 
regularly organized in order to exchange view s among the authorities, university bodies (research 
institutes and centres), and associations of economists  specializing in trade issues.  Two Ministries, 
namely those responsible for foreign trade and for fi nance (more particularly the latter's research and 
balance-of-payments division) are responsible for evaluating trade policy. 
Table II.1 
Main Moroccan trade-related  legislation in force, 2008 
Legislative text Effective 
date/latest 
amendment 
Import and export of goods:   
Law No. 13-89 on foreign trade 1992/1997 
Decree No. 2-93-415 implementing Law No. 13-89 on foreign trade  1993/2000 
Customs regulations:   
Customs and Indirect Taxation Code 1977/2000 
Decree No. 2-77-862 implementing the Cust oms and Indirect Taxation Code 1977/2002 
Various decrees amending the amount of customs duty impos ed on the import of certain products (the most recent 
dating from 2002) 2002/n.a. 
Decree No. 2-06-574 implementing the value-added tax foreseen in Title III of the General Tax Code 2006/2008 
Seven decrees suspending import duties and value adde d tax on the import of certain products 2001–2008/n.a. 
Decree No. 2-94-734 establishing the parafiscal import ta x for financing economic prom otion and the inspection of 
exports  1994/2006 
Domestic duties and taxes:   
General Tax Code  2007/n.a. 
Law No. 30-85 on value added tax (est ablishment of value added tax) 1985 
Decree implementing Law No. 30-85 on value added tax 1986/2005 
Commercial Code:  Law No. 15-95 containing the Commercial Code 1996/2006 
Pricing and competition:  Law No. 06-99 on pricing freedom and compet ition and its implementing decree 2001/n.a. 
Free export zones (ZFEs):   
Law No. 19-94 on ZFEs and its implementing decree  1995/n.a. 
Decrees Nos. 2-96-511 and 2-96-512 on the creation of the Tangiers and Nador ZFEs 1997/n.a. 
Decree No. 2-98-99 granting the concession for the deve lopment and management of the Tangiers ZFE to the 
"Tanger Free Zone" company 1998/n.a. 
Decree-Law No. 2-02-644 creating the Tanger-Méd iterranée Special Development Zone  2002/2006 
Government procurement:  Decree No. 2-06-388 defining the criteria and me thods for awarding State contracts 2007/n.a. 
SPS:   
Law No. 24-89 laying down veterinary san itary control measures for the import of animals, animal feed, products 
of animal origin, animal reproduction products, fres hwater and marine products, and implementing Decree 
No. 2 89-597 1993/n.a. 
Decree No. 2-94-76 fixing the fees for veterinary sanitary inspection for th e import of animals, animal feed, 
products of animal origin, animal reproducti on products, freshwater and marine products 1996/n.a. 
Dahir No. 1-69-169 regulating the production and marketing of seeds and seedlings 1969/1977 
Law No. 42-95 on the control and organization of trade in pesticides for agricultural use 1997/2002 
Dahir fixing the fee for sanitary inspection of imports an d exports of plants, parts thereof, or plant products 1933 Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 17 
 
 
Legislative text Effective 
date/latest 
amendment 
Labelling:  Decree No. 2-01-1016 regulating requirements for th e labelling and presentati on of foodstuffs 2002/2007 
Intellectual property:   
Law No. 17-97 on industrial property protection  2004/2006 
Law No. 25-06 distinctive signs indicating the origin an d quality of foodstuffs and agricultural and fisheries 
products 2008/n.a. 
Law No. 13-99 establishing the Moro ccan Office for Industrial and Comm ercial Property (OMPIC) 2000/n.a. 
Law No. 9-94 on the protection of new varieties of  plants and its implementing texts  1997/n.a. 
Decree No. 2-01-2324 implementing Law No. 9-94 on the protection of new varieties of plants  2002/n.a. 
Law No. 2-00 on copyright and related rights 2000/2006 
Decree No. 2-64-406 creating the Moroccan Copyright Bureau 1965/1966  
Investment:  
Framework Law No. 18-95 constituting th e Investment Charter  1995/n.a. 
Decree No. 2-00-895 implementing Articles 17 and 19 of Framework Law No. 18-95  2001/2004 
Dahir No. 1-69-25 constituting the Agri cultural Investment Code 1969/2001 
Decree No. 2-98-365 establishing a premium fo r certain agricultural investments 1999/n.a. 
Decree No. 2-85-891 determining the procedure for distributi on of the financial support granted by the State in 
order to intensify agricultural production 1986/2006 
Decree No. 2-69-313 regulating State incentives fo r the purchase of agricultural equipment 1969/2002 
n.a. Not applicable. 
Source : Artémis Conseil, online in formation.  View ed at:  http://www.artemis.ma/. 
(3) TRADE POLICY OBJECTIVES  
17. Since its last TPR, Morocco has pursued its econo mic reform in pursuit of better integration 
in the world economy.  It has continued to libera lize its trade regime, signing new trade agreements 
(section (5) below), and unilaterally  reducing tariffs (Chapter III(2)(iii)).  The Finance Law for 2009 
has introduced a comprehensive reform of tariffs on i ndustrial products.  It foresees tariff reductions 
between 2009 and 2012 intended to move the maximu m rate of 35 per cent on industrial goods to 
25 per cent in 2012. 
18. Together with economic policy, of which it form s part, the long-term objectives of Morocco's 
trade policy are poverty reduction and sustainable human development.  The Initiative nationale pour 
le développement humain  – INDH (National Human Development Initiative)28 was launched in 2005 
and supports activities designed to generate income, build capacities, improve access to basic services 
and infrastructure, and provide assistance to highly vulnerable people. 
19. The authorities consider that the achievement of the planned economic and social objectives, 
in particular reducing unemployment and exclusion,  as well as improving social well-being, will need 
sustained annual growth of 6 per cent.29  To that end, the Government is striving specifically to 
develop exports, boost productivity and encourage fo reign investment.  The draft 2009 Finance Law 
                                                      
28 To support this initiative, efforts have been deployed to step up devolution and the networking of 
experts, and a strategic inter-ministerial committee on human development has been set up under the chairmanship of the Prime Minister, composed of members of the Government and of public establishments and 
bodies;  a steering committee has al so been created, chaired by the Pr ime Minister and composed of the 
departments of home affairs, finance, social development and rural development. 
29 Economist Intelligence Unit (2008). WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 18 
 
 
contains, inter alia,  measures to boost companies' export poten tial, and more particularly that of 
SMEs.30 
20. The Programme Émergence31, adopted by the Government in 2007, aims to improve 
Morocco's technological infrastructur e, as well as its investment and trade support facilities.  The 
programme has two main focuses:  offshoring, and m odernizing the existing industrial fabric to make 
it more competitive.  Eight sectors have initially b een selected as drivers of growth:  French and 
Spanish-language offshori ng/nearshoring (see below)32, the agro-food industry, the seafood industry33, 
textiles34, the automotive, aeronautics and electronics sectors35 through the establishment of free 
zones36, and industrial crafts.37  Targeted policies have also been put in place for other sectors38, and 
are to be developed under the draft Finance Law for 2009.39 
21. On 13 July 2006, the Government officially  announced the establishment of zones for 
offshore activities40, offering cost-competitive, top-quality  reception and telecommunication facilities, 
as well as a system of incentives, especially in the area of skills training and income tax.41  A Strategic 
Offshoring Council was constituted at the time and charged with following up on the programme.42  
                                                      
30 Draft Finance Law for 2009.  Viewed at:  http://www.finances.gov.ma/portal/page?_pageid= 
53,17812949&_dad=portal&_schema=PORTAL. 
31 A presentation of the Programme Émergence  [an industrial policy strategy] can be viewed at:  
http://www.marocentrepreneur s.com/cr/emergence.pdf. 
32 The benefits expected by 2015 are the creation of 90,000 jobs, a DH 15 billion increase in the trade 
balance, and GDP growth of DH 15 billion. 
33 In the spheres of agro-industry and marine products, the Plan envisages developing eight to 
ten sectors, as well as integrated projects around dedicat ed agricultural or agrotech clusters (Agadir, Gharb, 
Bipôle Fès-Meknès, Oriental) and seafood processing (Chapter IV(2)). 
34 The strategy for textiles is based on targeted integration around some sectors, the quality of service 
of the export platforms (i.e. zones hosting enterprises and exporting finished products exclusively), a more competitive supply of finished goods with higher added value, more aggressive promotion, and the 
diversification of markets (Chapter IV(4)). 
35 It is planned to set up a first cluster in Mohammedia to strengthen the competitive advantages of the 
"specialized electronics and c onsumer electronics" subsectors. 
36 The "MED Zones" programme is designed to speed up the development of industrial outsourcing to 
Morocco's border areas with a view to supplying the European market (Chapter I II(4)(a)).  It concerns the 
automotive, aeronautics an d electronics industries. 
37 The strategy for the crafts sector revolves  around the emergence of five to ten leading 
export-oriented operators, specialized by sector and ha ving production, innovation and marketing capacities, and 
around the modernization of local distribution. 
38 They are:  Plan Azur and Vision 2020 for the tourism sector;  Vision 2015 for the crafts sector;  Plan 
Maroc Vert for the agricultural sector;  and Plan Rawaj 2020, intended to revive and modernize domestic trade.  
(Ministry of the Economy and Finance (2007b)). 
39 Draft Finance Law for 2009.  Viewed at:  http://www.finances.gov.ma/portal/page?_pageid= 
53,17812949&_dad=portal&_schema=PORTAL. 
40 A Circular dated 7 May 2007 on the implementation of Morocco's offshoring package sets out the 
activities involved, namely, business process outsourcing (BPO), along with general administrative activities 
and functions, customer relations management, and activities related to specific lines of business, as well as 
information technology outsourcing (ITO).  For further details, see the Circular on the implementation of 
Morocco's offshoring pack age.  Viewed at:  http://www.mcin et.gov.ma/mciweb/Emergence/DocEmerg/ 
Circulaire_07_05_07_PM.pdf. 
41 To foster integrated regional development, enterprises engaging in offshore business outside the 
dedicated areas also enjoy certain ad vantages.  For further details, see Ministry of Industry, Trade and New 
Technology (MICNET), Émergence .  Viewed at:  http://www.mcinet.gov.ma/mciweb/Emergence/Index.htm. 
42 The Council is chaired by the Prime Minister, an d includes members of the various government 
authorities responsible for domestic affairs, finance, higher education, industry and commerce, investments, 
professional training, as well as the Managing Directors of the Deposit and Management Fund, the National Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 19 
 
 
The offshoring sector has the benefit of an integrated  strategy that rests on four pillars:  dedicated 
zones;  the availability of qualified labour a nd attractive conditions and top-quality service 
infrastructure.43  It is expected that by 2015, offshore activities will be contributing some 
DH 15 billion to GDP and generating 91,000 new jobs.44 
22. The Moroccan Government believes that by fo cusing on the eight above-mentioned sectors, it 
would boost GDP growth by 1.6 percentage points over ten years, creating some 440,000 direct and 
indirect jobs and reducing the trade deficit by 50 per cent.45 
(4) TRADE AGREEMENTS AND ARRANGEMENTS  
23. Morocco has concluded and implemented several Free Trade Agreements (FTAs) since its 
last TPR.  In 2006, the countries with which Mo rocco had concluded FTAs accounted for 61 per cent 
of its imports and 77 per cent of exports. 
24. Up to February 2009, Morocco had never been involved either as a defendant, complainant or 
third party in any trade dispute settlement procedure. 
(i) World Trade Organization (WTO) 
25. Morocco is an original Member of the WTO.  It grants all its trading partners at least 
MFN treatment.  It is not party to any of the plur ilateral agreements concluded under WTO auspices.  
Morocco's main notifications to the WTO are listed in Table AII.1.  Morocco has fallen behind with 
its notifications in various fields, however.  Its la test notification on agriculture, for example, was 
made in January 2005 and cove red only calendar year 2002.  Morocco's most recent notification on 
quantitative restrictions dates from 2002.46 
26. Morocco has played an active part in the mu ltilateral trade negotiations.  It contributed 
significantly to the agreement reached on TRIPS a nd Public Health as the then coordinator of the 
countries of the African Group.  At the Cancun Ministerial Conference in 2003, Morocco underlined the need for special and differential treatment to b ecome "an instrument for integrating the developing 
countries and the least developed countries into worl d trade".  Morocco has generally made the case 
for developing countries to be granted greater flex ibility in the various areas of the negotiations, more 
specifically with respect to market acce ss for non-agricultural products (NAMA).
47  Morocco 
considers that one of the major objectives of these negotiations is to enhanc e the predictability of 
global trade by endeavouring to ensure generalized bi nding of tariffs on the part of Members.  At the 
same time, however, Morocco draws attention to th e erosion of preferences that would follow tariff 
reductions implemented as an outcome of the NAMA negotiations. 
27. In the agriculture negotiations, Morocco has a dvocated the strengthening of S&D in favour of 
developing countries and improved market access as well as substantial reductions in domestic 
                                                                                                                                                                     
Telecommunications Regulatory Authority, the Office for Occupational Training and Labour Promotion, and for 
the Promotion of Employment and Skills. 
43 By way of example, the Casanearshore park creat ed at the end of 2007 is a "ready for output" 
business park with all the support services, high-perfo rmance telecommunications infrastructure, tax incentives, 
and a simplified administrative system, which should help create 30,000 jobs and generate GDP growth of 
DH 5 billion. 
44 Ministry of Industry, Trade and Economic Upgrading (2006). 
45 Idem . 
46 WTO Document G/L/223/Rev.15, of 27 February 2008. 
47 Statement by HE Mr Mustapha Mechahouri, Minister of Foreign Trade of the Kingdom of Morocco, 
Fifth Session of the Ministerial Conference, WTO Document WT/MIN(03)/ST/85, of 11 September 2003. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 20 
 
 
support and export subsidies.  Morocco favours the el imination of subsidies in the marine fisheries 
sector as it views them as real sources of trade di stortion and as contributi ng to the over-exploitation 
of fisheries resources. 
28. Morocco is taking an active part in the negotiatio ns on services.  In that context it has stated 
its wish for a better balance between rights and ob ligations under the General Agreement on Trade in 
Services (GATS) in order to ensure better access fo r developing country expor ts to developed country 
markets, inter alia  by further liberalizing the conditions gove rning the movement of natural persons 
(mode 4).  In 2005, and at the request of some WTO members (including th e European Communities, 
the United States of America, Japan, Canada, No rway, Switzerland, China, Egypt and India), 
Morocco submitted an initial offer48 that envisaged the elimination of restrictions in respect of some 
horizontal commitments.  The offer submitted by Morocco covered 70 subsectors, making it one of 
the most ambitious from any developing country.49  Morocco also places particular importance on 
liberalization of the cross-border supply of services (mode 1). 
29. At the Ministerial Conference in Hong Kong (Chi na) in 2005, Morocco recalled the need for 
balance amongst the three pillars of the agriculture  negotiations, leading to the improvement of all 
market-access conditions, the withdrawal of all fo rms of export subsidies and the establishment of a 
domestic support system that "effectively and s ubstantially" reduces trade-distorting effects.50 
30. Morocco had also expressed the hope for the est ablishment of a multilateral register for the 
protection of geographical indications (GIs) and ex tension of the protection conferred on GIs for 
wines and spirits to other products;  it had further wished for S&D to be taken into account in the 
GATS negotiations.  With regard to the negotia tions on anti-dumping and countervailing measures, 
Morocco reiterated the position it had already st ated in Cancun on the need to preserve the 
effectiveness of anti-dumping and countervailing m easures as means of combating harmful trading 
practices, whilst improving the relevant rules of transparency. 
31. For the purposes of trade facilitation, Morocco  underscored the importance of technical 
assistance and capacity building, as well as S&D. 
(ii) Regional agreements 
32. At the Ministerial Conference in Hong Kong (C hina), Morocco affirmed the importance of 
regional trade agreements  in the process of trade liberalization and economic openness.51  Since its 
last TPR, and to diversify its trading partners, Mo rocco has concluded new agreements (with Turkey 
and the United States) and is engaged in discu ssions with partners such as MERCOSUR and the 
West African Economic and Monetary Union (WAEMU).52 
                                                      
48 For the first time, the offer introduced commitments  by Morocco for services such as wholesale and 
retail distribution, maritime transport, mail services, inte grated engineering services and related scientific and 
technical consulting services for the mining industry. 
49 Permanent Mission of Kingdom of Morocco to the United Nations Office, online information, 
Le Maroc et le cycle des Négociations  Commerciales Multilatérales de Doha  (Morocco and the Doha Round of 
Multilateral Trade Negotiations).  Viewed at:  http://www.mission-maroc.ch/fr/pages/102.html. 
50 Statement by HE Mr Mustapha Mechahouri, Minister of Foreign Trade of the Kingdom of Morocco, 
at the Sixth Session of the Minister ial Conference in Hong Kong, Chin a, WTO document WT/MIN(05)/ST/31, 
of 14 December 2005. 
51 Idem . 
52 Ministry of Foreign Trade (2007). Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 21 
 
 
(a) Arab Maghreb Union (UMA) 
33. The UMA has existed since 1989 and brings toge ther Algeria, Libya, Morocco, Mauritania 
and Tunisia.  Its purpose is to create a free trade area, and in the long run, a Maghreb economic union between the five States.
53  The UMA does not seem to be operating in practice.  Morocco believes that 
the effective operation of the UMA could strengthe n the partnership with the European Communities 
(EC), making the region attractive to FDI and enab ling it to develop intra-Maghreb trade, which is 
still relatively limited.54  Of UMA trade currently totalling US $137 billion, a mere 2 per cent takes 
place amongst the UMA countries.55 
(b) Pan-Arab Free Trade Area (PAFTA) 
34.  Under the Programme for implementing the Ag reement on Facilitation and Development of 
Trade (signed in 1981 under the auspices of the Ar ab League), adopted on 19 February 1997, and 
effective as of 1 January 1998, all tariff and n on-tariff barriers to trade among its members should 
have been eliminated without exception on 1 January 2005.56  Nonetheless, non-tariff barriers, in 
particular, standards, excessive bureaucratic and admi nistrative red tape at the borders and transit fees 
are still being reported as costly and time-consumin g procedures.  The programme also provides for 
rules of origin (Chapter III(2)(iv)).  The principal entity responsible for implementing the 
liberalization programme is the Economic and Social  Council of the League of Arab States.  The 
PAFTA was notified to the WTO by Saudi Arabia in 2006.  In recent years, the PAFTA has contributed modestly to increasing inter-Arab trade (Chapter I(3)(i)). 
(c) Arab-Mediterranean Free Trade Ag reement (Agadir Agreement) 
35. The Arab-Mediterranean Free Trade Agreement concluded between Morocco, Egypt, Jordan 
and Tunisia was signed by Morocco on 25 April 2004 and took effect on 27 March 2007.
57  I t  
commits the parties to removing all tariffs on tr ade between them and to intensifying economic 
cooperation on standards and customs procedures.   The agreement also covers government 
procurement, financial services, contingency measur es, intellectual property, and dispute settlement.  
It provides for the adoption of the pan-Euro-Medite rranean rules of origin, which allow for diagonal 
cumulation of origin among its member countries (Chapter III(2)(iv)).  The conclusion of this 
agreement is deemed to be a major step towards creating the Euro-Mediterranean free trade area in 
2010 (2012 in the case of Morocco). 
                                                      
53 The UMA represents a market of 80 million consumers.  For further information on the UMA, see 
WTO (2003). 
54 Ministry of the Economy and Finance (2007b). 
55 Idem . 
56 The PAFTA had originally been known as the Greater Arab Free Tr ade Area.  Its members are:  
Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libyan Arab Jamahiriya, Morocco, Oman, Palestinian 
Authority, Qatar, Saudi Arabia, Sudan, Syrian Arab Republic, Tunisia, United Arab Emirates, and Yemen. 
57 ADII, online information, Accords et conventions  (Accords and agreements).  Viewed at:  
http://www.douane.gov.ma/Accords/default.htm. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 22 
 
 
(iii) Bilateral agreements and arrangements 
(a) Regional groups 
Morocco-EFTA Free Trade Agreement 
36. Since the entry into force on 1 March 2000 of the Morocco-EFTA Free Trade Agreement 
signed in 199758, all import tariffs and taxes having equiva lent effect on non-agricultural products 
originating59 in Morocco have been elim inated by the EFTA countries.60  Similarly, Morocco has 
undertaken to eliminate import tariffs and all ta xes having equivalent effect on non-agricultural 
products from EFTA countries within a maximum period of 12 years for some products.61  Morocco 
has also been allowed to main tain quantitative restrictions on a specified number of products 
(Annex IV), but it must not introduce any new trade restrictions or increase the levels of those already 
applied.  Nevertheless, because the products liste d in Annex IV are alr eady covered by general 
exceptions or by security exceptions (Articles 9 and 26 of the Agreement), Annex IV was eliminated 
in October 2004. 
37. The Agreement also contains provisions relating, inter alia,  to technical regulations, 
standards, and conformity assessment, sanitary a nd 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.62  I t  p e r m i t s  
pan-Euro-Mediterranean cumulation of origin (Chapter III(2)(iv)). 
38. At the fourth meeting of the Advisory Committee on 14 March 2007, the EFTA members and 
Morocco agreed to further libera lize trade in goods and to start negotiations on services.  Trade 
between Morocco and EFTA has expanded significantly  during the period under review (Tables AI.3 
and AI.4). 
Morocco-EU Association Agreement 
39. The Morocco-EC Associat ion Agreement, which has been in force since 1 March 2000, was 
concluded in the framework of the Euro-Medite rranean Partnership launched in November 1995 
                                                      
58 The Agreement covers industrial goods, fish and other marine products, and processed agricultural 
products.  The agricultural component consists of bilateral arrangements between the contracting parties 
(Iceland, Norway, Switzerland and Li echtenstein), which set the rules of origin for agricultural products. 
59 Protocol B to the Agreement lays out the rules of origin and allows for the (bilateral) cumulation of 
origin between parties (Chapter III(2)(iv)). 
60 Switzerland and Liechtenstein may maintain custom s tariffs and taxes having equivalent effect on 
imports of certain fish fats and oils for human consumption and certain prepared animal feeds.  See 
ADII website.  Viewed at:  h ttp://www.douane.gov.ma/A ccords/documents/Cooperati on/Liste5_AnnexeIV_ 
AELE.pdf [17 February 2009]. 
61 Morocco has been given transitional periods ranging from two to eight years and waivers for fish and 
other marine products.  Morocco has set tariff quotas for smoked salmon and fishmeal;  these products will be allowed outside the quotas and exempt from customs duties ten years after the Agreement' s entry into force.  For 
further details, see ADII, online information, " Accord de libre échange Maroc-États de l'AELE " 
(Morocco-EFTA Free Trade Agreement) .  Viewed at:  
http://www.douane.gov.$ma/A ccords/Detail.asp?Num=11. 
62 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 arbitra tion.  The arbitral tribunal 
settles the dispute in accordance with the rules of in ternational law, and its ruling is final and binding. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 23 
 
 
between the EC and 12 Mediterranean partners.63  The Agreement aims to establish a free trade area 
by 2012 and covers all products.64  Quantitative restrictions and measures having equivalent effect 
between Morocco and the EC were abolishe d when the Agreement entered into force.65  T o  h e l p  
Moroccan enterprises cope with the increased competition, the Programme de mise à niveau  – PMN 
(upgrading programme) focused on industrial enterpri ses and their immediate environment, adopted 
in 1997, was revived in 2003.  The BAM also in itiated several programmes to encourage commercial 
banks to extend their services to SMEs.66 
40. For non-agricultural products originating in th e EC, it was agreed that Morocco would phase 
out its tariffs upon the entry into force of the Agreement, or over a four-year period as of the entry 
into effect of the Agreement67, or over a 12-year period.  The Agreement also provides that Morocco 
will 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 some  products or at an annual rate of 10 per cent, 
three years after entry into  force of the Agreement.68  Moroccan non-agricultural products exported to 
the EC are exempt from import duties.69 
41. Moroccan imports of agricultural products of EC origin are subject to preferential tariff 
quotas covering 125 tariff lines.  Morocco applies MFN rates on fish, crustaceans and molluscs of 
EC origin.  EC imports of agricultural products of Moroccan origin are subject to a tariff quota, with 
zero or reduced customs duty, with or without an export timetable and import price.70  Customs duties 
are zero or reduced on over 240 eight-digit tariff lines in the HS, including fruit and vegetables of 
Moroccan origin.71  Fisheries products from Morocco enjoy free access to the EU market.72 
42. The Agreement also covers standards, anti- dumping, countervailing a nd safeguard measures, 
State monopolies of a commercial character, intellectual property rights, and dispute settlement procedures.
73  The EC is Morocco's leading trading part ner, accounting for some 70 per cent of its 
exports (mainly textile articles and ag ricultural products) (Table AI.3). 
                                                      
63 See WTO (2008). 
64 Protocol 4 defines "originating products" and lays down the rules of origin (Chapter III(2)(iv)). 
65 Except for Moroccan imports of used goods such as tyres, vehicles, domestic appliances, bicycles, 
and motorized bicycles (Annex 6 to the Agreement), to which this requirement will only apply after the end of 
the transition period. 
66 Economist Intelligence Unit (2008). 
67 By an initial reduction of 25 per cent upon entry into force of the Agreem ent, then an annual 
reduction of 25 per cent over three years. 
68 These products are listed in Annexes 3 and 4, respectively. 
69 The provisions on free movement of goods do not prevent the EC from maintaining an agricultural 
component for the import of certain processed agricultural products of Moroccan origin listed in Annex I (such 
as dairy products, sweet corn (maize) , margarine, confectionery not containing cocoa, chocolate and other food 
preparations containing cocoa, etc.).  Likewise, Morocc o may separate an agricultural component, in the form of 
a fixed sum or an ad valorem duty, in the duties on imports of certain agricultural products of EU origin, as set 
out in Annex 2 (confectionery not containing cocoa, chocolate, edible pasta, bakery products or biscuits, certain 
cereal-based products, etc.). 
70 Some products are subject to zero duty only within the limits of the quota. 
71 The agricultural component of the Agreement has been applied in advance, even before the 
Agreement's entry into force, to certain sensitive pr oducts (tomatoes, oranges, zucchini, artichokes and 
cucumbers). 
72 Those of Chapter 03, and parts of HS headings 1604, 1605 and 1902, with the exception of sardine 
preparations, for which a tariff quota has been set. 
73 The Agreement prohibits customs duties and quantitativ e restrictions on exports by any of the parties 
or any State support that would distort competition.  The Agreement nevertheless authorizes Morocco to grant 
government aid for restructuring the steel industry over a period of five years as of the date of entry into force. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 24 
 
 
43. In January 2006, Morocco became the firs t Mediterranean country to adopt the 
pan-Euro-Mediterranean system of cumulation of orig in (Chapter III(2)(iv)), which offers new outlets 
to economic operators, especially those in the te xtile industry, and favours continued regional 
economic integration. 
(b) Other trading partners 
Morocco-United Arab Emirates (UAE) Free Trade Agreement 
 
44. The Morocco-UAE Free Trade Agreement, which was signed on 25 June 2001 and took 
effect on 9 July 2003, provides for the annual reducti on of customs tariffs and taxes having equivalent 
effect at a rate of 10 percentage points more  than the rate applied in the PAFTA framework74, as well 
as the elimination of all non-tariff barriers a nd a decision not to apply new non-tariff measures.75  The 
Agreement further provides for the implementati on of WTO-consistent safeguard measures, the 
exclusion from tariff dismantling of products from the free zones in both countries pending a study by the Economic and Social Council of the Arab League
76, and the application of the general rules of 
origin until the Economic and Social Council adopts specific rules. 
Morocco-Turkey Free Trade Agreement 
45. Morocco signed an FTA with Turkey on 7 Ap ril 2004 as part of the Euro-Mediterranean 
regional integration process.  The Ag reement took effect on 1 January 2006.77  It provides for the 
gradual establishment of a free trade area for non-ag ricultural products between Morocco and Turkey 
over a maximum transitional period of ten years, as from the entry into force of the Agreement, with 
asymmetric treatment in favour of Morocco, who se non-agricultural products have enjoyed full 
exemption since the Agreement entered into effect .  For non-agricultural products originating in 
Turkey and imported into Morocco, a ten-year ta riff dismantling timetable (based on schedules) is 
provided.78 
46. For agricultural products, tariff concessions cove r a small number of products (the schedules 
for which are annexed to Protocol II of the Agreement79) and consist essentially of in-quota tariff 
reductions.  An evolutionary clause in the Agre ement provides for the gradual liberalization of 
agricultural trade as well as the liberalization of trad e in services, and for the right of establishment.  
Protocol III on rules of origin is similar in Prot ocol IV to the Morocco-EU Association Agreement 
(Chapter III(2)(iv)).  The parties have adopted a joint declaration on replacing Protocol III signed with 
                                                      
74 This reduction was 60 per cent in 2003 for the PAFTA and 70 per cent for the UAE, in 2004 it was 
80 per cent for the PAFTA and 90 per cent for the UAE, and 100 per cent in 2005 for both the PAFTA and the 
UAE. 
75 Article 5 of the Agreement. 
76 The study and adoption of these rules of origin are in progress. 
77 The Agreement was notified to the WTO on 10 February 2006 (WTO document WT/REG209/N/1, 
of 21 February 2006). 
78 Schedule 1:  Annual dismantling of 10 per cent per annum over ten years as from the effective date;  
Schedule 2:  Annual dismantling over ten years as from th e effective date of the Agreement, at a rate of 3 per 
cent over four years, and 15 per cent over six years as of the 5th year following the entry into force of the 
Agreement;  Schedule 3 covers used goods, but its pr ovisions will be reviewed by a joint committee.  All 
products of Turkish origin not included in these three schedules have been exempt  since the Agreement took 
effect. 
79 Viewed at:  http://www.dtm.gov. tr/dtmadmin/upload/AB/SerbestTicar etDb/Protocol2 Annex2.doc;  
and http://www.dtm.gov.tr/dtmadmin/upload/AB/SerbestTicaretDb/Protocol2_Annex1.doc. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 25 
 
 
Turkey with the pan-Euro-Mediterranean Protocol80, as of its adoption in the framework of the 
Morocco-EU Association Agreement.81  The pan-Euro-Mediterranean Protocol took effect on 
1 January 2006. 
47. Turkey's share in Morocco's ove rall trade increased from 1.5 per cent in 2005 to 2.1 per cent 
in 2006.  Such performance was the outcome of st rong growth in imports from Turkey, estimated at 
DH 5.5 billion in 2006 compared to DH 3.56 billion in 2005.82  Although expanding rapidly, 
Moroccan exports to Turkey are still limited (Table AI.3) 
Morocco-United States Free Trade Agreement 
48. The Morocco-United States Free Trade Agre ement was signed on 15 June 2004 and entered 
into force on 1 January 2006.83  The Agreement provides for free a ccess for almost all of Morocco's 
non-agricultural products (barring textiles) and fisher ies products to the US market;  this covers 
6,966 headings in the US tariff out of 7,052 eight -digit tariff lines, as from the effective date of the 
Agreement.  This represents 98.8 per cent of US tariff headings corresponding to 99.7 per cent of 
Moroccan exports in value terms in 2006.  The tariff  on the remaining products is to be dismantled 
over nine and ten years, depending on the products.84  Special treatment will be accorded to textile 
exports;  Morocco's quota immediately increased to 25  times the quota to which its textile exports to 
the United States had been subject before the Agreement.85 
49. The Agreement also covers trade in agricultural products86 and in services (including financial 
and telecom services), government procurement, investment, transparency, trade-related aspects of intellectual property protection, the environment, and labour.
87  In principle, all agricultural products 
should be liberalized by 2023 at the latest.  Ar ound one thousand agricultural tariff lines currently 
enjoy free access to the Moroccan market.  Some agri cultural products enjoy tariff preferences within 
the limit of an annual quota.88 
50. Bilateral trade expanded by 30 per cent to almo st DH 11.3 billion in 2007.  The share of the 
United States in Morocco's overall foreign trade has also increased (Tables AI.3  and AI.4).  Morocco's 
chief exports have been electric machinery, clothi ng, preserved food, footwear, and edible fruits and 
                                                      
80 The Euromed countries concerned by the adoption of cumulation of origin are:  the EU member 
countries (27), the four EFTA member countries, Turkey, and the nine countries of the southern Mediterranean 
shore, i.e. Morocco, Algeria, Egypt,  Tunisia, Syria, the Palestinian Authority, Jordan, Israel, and Lebanon.  
Ministry of Foreign Trade, online information, Accords de libre échange  (Free Trade Agreements).  Viewed at:  
http://www.mce.gov.ma/AccordConv/Accord_Lib.asp. 
81 Ministry of Foreign Trade (2007). 
82 Ministry of the Economy and Finance (2008b). 
83 The Agreement was notified the WTO on 30 December 2005 
(WTO document WT/REG208/N/1S/C/N/362, of 16 January 2006). 
84 The products covered include footwear, fisheries products, glass and ceramic products, leather 
goods, costume jewellery, and lighting equipment.  Ministry of Foreign Trade (2007). 
85 Economist Intelligence Unit (2008). 
86 Under the Agreement, Morocco ma y apply automatic safeguard measures to imports of agricultural 
products when the import volumes of the products concerned increase above the trigger level specified for each of those products (see Annex V to the implementing circular).  Ministry of Foreign Trade, online information, 
Accords de libre échange  (Free Trade Agreements).  Viewed at: http://www.mce.gov.ma/AccordConv/ 
Accord_Lib.asp. 
87 Ibid. 
88 Annex IV to Circular No. 4977/ 222 of 30 December 2005, as amended,  lists the agricultural products 
that enjoy preferential tariff benefits within the limit of a tariff quota for the period 1 January to 31 December 2009.  Viewed at:  http://www.douane.go v.ma/circulaires/maj _fichiers/5129.pdf. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 26 
 
 
nuts.  Morocco's imports from the United States have grown more rapidly, the main products being 
aircraft, cereals, machinery, plastic and chemical s.  Moreover, Morocco witnessed strong growth in 
private investments and loans from the United Stat es in 2006 (Chapter I(3)(ii)), covering several 
sectors including the financial, electrical-electronics, engineering, tourism and textile sectors.89 
Agreements concluded in the framework of  inter-Arab and inter-African cooperation 
51. Morocco has signed trade and tariff agreements w ith a number of Arab a nd African countries.  
These agreements accord tariff preferences for a list of products (i.e. the agreements with 
Saudi Arabia, Guinea, and Mauritania), or to all pr oducts (the agreements with Algeria, Iraq, and 
Libya).  In addition to tariff preferences, some ag reements also provide for the waiver of charges 
having equivalent effect (the agreements with Al geria, Libya, and Guinea), and the elimination of 
non-tariff barriers (Tunisia, Jordan, and Guinea).90  The authorities report that the main advantages of 
these agreements with countries that already have FTAs with Morocco are more flexible rules of 
origin (i.e. rules of origin "à la carte" ). 
(iv) Other agreements and arrangements 
52. Under the Generalized System of Preferences (GSP) Morocco enjoys benefits on a 
non-reciprocal basis, accorded by  countries such as Australia, Be larus, Bulgaria, Canada, the 
Czech Republic, the European Communities, Hunga ry, Japan, New Zealand, Norway, Poland, the 
Russian Federation, the Slovak Republic, Switzerland, Turkey, and the United States.91  Moroccan 
exports of products covered by the GSP are totally or partially exempt from customs duties in those 
countries. 
53. Morocco was one of the 43 countries to sign the agreement on the Global System of Trade 
Preferences among Developing Countries (GSTP)92, under which of tariff preferences are granted on a 
reciprocal basis.  The agreement also provides for special treatment for LDCs. 
54. The framework agreement on the Trade Prefer ences System (TPS) among Islamic countries, 
signed in 1993 and in force since 2003, was ratified by Morocco on 25 July 2006.  In that framework, 
Morocco has signed the Protocol on the Prefer ential Tariff Scheme among the members of the 
Organisation of the Islamic Conference (PRETAS), as well as on the rules of origin attached to it.  
The Protocol provides for a reduction in customs duties for 7 per cent of tariff lines. 
55. Morocco has also signed 49 trade agreements based on the MFN principle93, including with 
several countries that are not WTO Members, na mely:  Equatorial Guinea, Iran, Iraq, the 
Democratic People's Republic of Korea, the Russi an Federation, the Seychelles, Sudan and Yemen.94 
                                                      
89 Ministry of the Economy and Finance (2007b). 
90 Moroccan Exporters Associa tion, online information, Accords commerciaux bilatéraux, 
multilatéraux, régionaux et systèmes préférentiels  (Bilateral, Multilateral and Regional Commercial Agreements 
and Preferential Systems).  View ed at:  http://www.asmex.org/asmex/Rubriques.jsp?THM=7&MOD=55& 
RUB=179. 
91 UNCTAD, online information, Generalized System of Preferences.  Viewed at:  
http://www.unctad.org/Templates/Page.asp?intItemID=2309&lang=1. 
92 The agreement was signed between developing c ountries in April 1988, but was only ratified by 
Morocco in 1993.  Morocco' s accession schedule became effective on 16 March 1997. 
93 The most recent being the agreemen t with Peru, which took effect on 18 June 2003.  For the full list, 
see Ministry of Foreign Tr ade, online information, Accords commerciaux NPF  (MFN trade agreements).  
Viewed at:  http://www.mce.gov.ma /AccordConv/Accord_ComNPF.asp. 
94 All these States nonetheless have  observer status at the WTO. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 27 
 
 
(5) INVESTMENT REGIME  
56. Morocco considers the promotion of foreign inv estment as crucial to stimulating its economic 
growth and development, and to its  greater integration in the intern ational economy.  The Government 
therefore gives priority to strengthening the lega l and institutional framework.  Accordingly, Morocco 
has taken a number of steps to improve its business climate since its last TPR in 2003.  These include 
the adoption of the General Tax Code incorporat ing all tax incentives, the new Labour Code (see 
below), and the establishment of the Comité national de simplification des procédures liées à 
l'investissement  – CNPI (National Committee for the Streamlining of Investment-Related Procedures) 
and of the Moroccan Investment Development Agency. 
57. Investment incentives (to foreign and domestic investment) may be granted under the general 
investment incentives regime constituted by most of the provisions of the Investment Charter and its 
implementing decree95, supplemented by other texts96, and under the agreement regime.  Freedom to 
do business is guaranteed under the Constitution. 
58. As a framework law, the Investment Charter lays  out the Government's investment objectives.  
It guarantees the transfer (after payment of the app licable duties and taxes in Morocco) of investment 
income (profits, dividends, capital) and earnings from sale or liquidation, without any limitations on 
the amount or duration.  The transfer of the proceed s from the sale or disposal of investment is not 
subject to authorization by the Foreign Exchange Board, but a record must be drawn up by an 
authorized dealer, who will communicate it to th e Foreign Exchange Board for statistical and 
subsequent verification purposes. 
59. The Charter covers all sectors, industries a nd bodies, apart from those whose taxation regime 
is the subject of special legislation, including agriculture97, banking services, insurance and 
reinsurance, offshore financial centres (Chapter IV(5)(v)(a)), real estate, areas such as free export 
zones (Chapter III(3)(iv)), and government procurem ent;  it further covers institutions such as the 
Organismes de placement collectif en valeurs mobilières  – OPCVM (collective securities investment 
agencies), the Organismes de placement en capital risque  – OPCR (venture capital investment 
agencies), and the Fonds de placements collectifs en titrisation  – FPCT (Mutual Securitization Fund). 
                                                      
95 Dahir No. 1-95-213 of 8 November 1995, enacting Framework Law No. 18-95 laying down the 
Investment Charter;  Decree No. 2-00-895 of 31 January 2001, implementing Articles 17 and 19 of Framework Law No. 18-95, as supplemented by Decree No. 2-04-847 of 22 October 2004. 
96 I.e., Finance Law No. 26-99 for the financial year 1999-2000, establishing a trust fund known as the 
Investment Promotion Fund;  Royal Letter to the Prime Minister dated 6 January 2002 on decentralized investment management;  Dahir No. 1-02-02 of 29 January 2002, enacting Law No. 36-01 creating the Hassan II 
Fund for Economic and Social Development;  Prime Minister's Circular No. 20/2002 of 26 December 2002 
regarding investment project management;  Decree No. 2- 03-727 of 26 December 2003  on the organization of 
regional investment centres;  Prime Minister's Circular No. 2/2006 of 26 June 2006 relating to the National 
Committee for the Streamlining of Pro cedures;  Prime Minister's Circular No. 9/2007 regarding Morocco's 
offshoring package;  and the General Tax Code. 
97 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.  Agricultural revenue is exempt from direct taxation un til 2013.  The fiscal incentives for agriculture under 
ordinary law include:  the application of minimum (reduced) duties and taxes on imports of most agricultural 
products and machinery;  exemption from VAT on products and equipment subject to the minimum (reduced) rate;  exemption from corporation tax (IS) for companie s raising livestock and for cooperatives;  a 50 per cent 
IS exemption on company profits earned from growing cereals, oilseeds, sugar-producing crops, fodder, and 
cotton;  total exemption from IS on turnover from exports for the first five years and a reduction of 50 per cent subsequently. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 28 
 
 
60. The tax measures foreseen in the Charter are waivers or reductions of direct and indirect taxes  
(incorporated in the General Tax Code), including:  a tariff reduction of 2.5 to 10 per cent at most on 
capital goods, equipment and tools;  exemption fro m registration duties on land purchase deeds (with 
the exception of land to be used for building houses and other constr uction);  and application of a 
maximum rate of 0.5 per cent on contributions to th e constitution or increase of capital in companies.  
Investments also enjoy exemption from or re fund of value added tax (VAT) on capital goods, 
equipment and tools.  The State helps reduce the cost of the investment by meeting certain expenditures associated with investment projects. 
61. Under the agreement regime, foreign and Moroccan investors may conclude investment 
contracts or agreements
98 with the Moroccan Government with in the framework of the following 
provisions, the benefits of which may be cumula ted:  Article 7.1 of Finance Law No. 12/98 (as 
amended and supplemented and now incorporated in  the General Tax Code), Article 17 of the 
Investment Charter, and the Hassan II Fund for Econ omic and Social Development.  Some two-thirds 
of overall investment takes place under agreements. 
62. Thanks to Article 7.1 of Finance Law No. 12/ 98, firms that commit to investments worth 
DH 200 million or more (large-scale investments) ar e exempt from customs duty on imports of capital 
goods, equipment and tools needed for their projects.  They are also exempt from VAT on imports.  Since 2008, however, VAT exemptions have been granted only for the first 36 months of the company's existence. 
63. Article 17 (together with Article 19) of the Investment Charter provides for a financial 
contribution by the State (Table II.2) toward certai n expenditures related to projects whose investment 
programme is of a certain weight by virtue of the amount involved, the number of stable jobs they will 
create, the region of implantation, the technology tr ansfer that will result, or their contribution to 
environmental protection.  In such cases, investors may conclude individual contracts with the State 
under which the latter helps bear the cost of purch asing land, building external infrastructure and of 
the skills training needed for the investment project. 
Table II.2 
Regime under Article 17 of the Investment Charter 
Advantages State contribution toward: 
- The cost of purchasing the land needed for the invest ment programme – up to 20 per cent of the cost of 
 the land; 
- the cost of external infrastructu re needed for the investment project – up to 5 per cent of the overall 
 amount of the investment programme; - the cost of professional training planned as part of  the investment programme – up to 20 per cent of the 
 cost of the training. 
Eligibility  Enterprises that: 
- Invest DH 200 million or more (almost US$27 million); 
- create 250 or more stable jobs; 
- locate their project in one of the provinces or  prefectures mentioned in Decree No. 2-98-520 of 
 30 June 1998; - effectively transfer technology;  and/or - help protect the environment. 
Other provisions The above advantages may be combined provided that  the State's total contribution does not exceed 5 per 
cent of the overall amount of the investment programme. 
If the investment project is planne d for a suburban or rural area, or if the investment is made in the 
spinning, weaving and finishing of textiles, the State' s contribution may be as much as 10 per cent of the 
overall value of the investment programme.  
Implementation time-frame Set in the investment contract.  
Disbursement of the 
contribution  After effecting the investment, and in  keeping with a timetable established in the particular contract, upon 
the submission of supporting vouchers. 
Source : Investment Directorate. 
                                                      
98 Agreements are concluded in the case of large-s cale investments (DH 200 million and higher);  and 
contracts are used for other investments. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 29 
 
 
64. The Hassan II Fund for Economic and Social Development99 bears a part of the costs incurred 
for the construction or purchase of buildings, and the purchase of capita l goods by enterprises 
operating in some industrial sectors, as envisaged  in the framework agreements signed between the 
Hassan II Fund and the Department of Industry (Chapter III(4)(ii)).  The sectors are:  textiles-clothing 
and made-up textile goods;  manufact ure of equipment for the automotive industry;  manufacture of 
components for electronic assemblies and sub-assemblies;  manufacture of equipment for the aeronautics industry;  nanotechnology-related manufacturing;  and microelectronics and 
biotechnology.  Those eligible to benefit are ne w investment projects (creation or expansion) 
submitted by investors whose overall investment is more than DH 5 million, excluding taxes, and 
provided that the amount invested in capital goods is more than DH 2.5 million, excluding taxes.
100 
65. The financial input from the Hassan II Fund is 30 per cent of the cost of commercial buildings 
(based on a maximum unit cost of almost DH 2,000/m2, excl. taxes), and a maximum of 10 per cent of 
the cost of purchasing new capital goods (excluding import duties and charges).  Nevertheless, the financial contribution from the Hassan II Fund to any single project may not exceed 10 per cent of the overall amount of the investment and is capped at DH 20 million. 
66. Other incentives exist under various provisi ons.  Incentives are provided specifically for 
exporting firms (Chapter III(3)(iv)), for example.  Enterprises setting up operations in prefectures or provinces designated by decree as well as small-scale industries are eligible for a 50 per cent reduction in corporation tax or income tax for a pe riod of five years.  Investors may also take 
advantage of a number of benefits under the régimes économiques en douane  – RED (customs 
regimes) (Chapter III(3)(iv)(b)). 
67. Most sectors are open to foreign investors, who may own up to 100 per cent of the equity 
capital of companies in all activities that are not re served (for the State or for Moroccan nationals) or 
subject to special regulations.  In the case of monopolies, the investment restrictions are total (applicable to foreign and Moroccan investors alike) or partial (applicable to foreign investors only), 
involving restrictions in the form of authorization requirements or completion of certain formalities. 
68. The State currently holds the monopoly on phosphates, hazardous waste management, 
wholesale fruit and vegetable distribution, fish halls and slaughterhouses, some postal services
101, and 
water and electricity supplies.  Water or electricity  distribution, the management of public seaports, 
railway infrastructure management and the ope ration of rail transport services as well as waste 
management inter alia , are open to private operators (nati onal or foreign), through delegated 
management or by concession.  Other monopolies have  been temporarily transferred to the private 
sector under operating licences.  One example is the monopoly on the marketing of pure ethyl alcohol. At the end of 2008 it was transferred to the Société de transformati on des mélasses du Gharb  – 
SOTRAMEG (Gharb region molasses processing compan y), which has been entrusted with managing 
the monopoly for a 15-year period.  The State monopoly on the wholesale importation and 
distribution of manufactured tobacco has been transferred to the private sector (through the 
privatization of the Tobacco Authority) and is  being maintained until 2010 (Chapter III(4)(i)). 
69. In the farming sector, foreign persons are not  allowed to purchase agricultural land but may 
sign long-term leases.  The academic leadership of private institutions of higher learning is reserved 
                                                     
 
99 The Hassan II Fund for Economic and Social Development was established by Dahir No. 1-02-02 of 
29 January 2002, enacting Law No. 36-01. 
100 HT means excluding customs duty and taxes. 
101 The issuing of postage stamps and other franking marks, the collection of savings, and all dispatches 
weighing up to 1 kg. (including letters) (except for international express courier services). WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 30 
 
 
for Moroccans.  Jobs as tour guides and accomp anying personnel will apparently no longer be 
restricted to Moroccan nationals as of 2009. 
70. Foreign investment in some sectors (services,  in particular) must meet certain specific 
prerequisites.  Commercial presence and/or the est ablishment of an enterp rise under Moroccan law 
are required for engaging in activities such as mari ne fisheries, telecommunications, audiovisual 
activities, road transport, the operation of fishi ng companies, insurance and filmmaking.  A ceiling 
has been set for the share of foreign capital in ai r transport companies and in the purchase of vessels 
sailing under the Moroccan flag.  There are limits on foreign capital stakes in the large established 
banks, where such stakes could give rise to th e takeover of those establishments.  Cabotage is 
reserved exclusively for vessels sailing under the national flag. 
71. Broadly speaking, the prerequisites for investing in the services and energy sectors often 
entail (for foreign and domestic investors alike) obtaining an operating licence (telecommunications), a permit to practice (insurance), authorization (banking services), and/or a performance requirement (hydrocarbons) (Chapter IV(5)).  In principle, th e service professions (lawyers, architects, doctors, 
surveyors, topographers) are reserved for Moro ccan nationals.  Market access for foreigners is 
contingent on the residency requirement, election of domicile with Moroccan professionals and/or the 
existence of a bilateral agreement containi ng a reciprocity clause (Chapter IV(5)(vi)). 
72. The investment regime encompasses a great many institutions.  Thus, the Agence marocaine 
de développement des investissements  – AMDI (Moroccan Investment Development Agency), which 
in February 2009 replaced the Investment Director ate under the Ministry of Industry, Trade and New 
Technology is the body responsible for investment promotion.  The 16 Regional Investment Centres 
(CRIs) provide investors with the help they need lo cally.  Their main functions are to help with the 
creation of enterprises and to assist investors.  The CRIs have two windows:  The one that helps with 
the creation of enterprises is the sole interlocutor  for those wishing to set up a business;  and the 
window assisting investors provides interested pers ons with all the necessary information, and 
proposes amicable solutions to any disputes betwee n investors and the authorities.  The regional 
centres also deal with applications for administ rative authorization for investment projects not 
exceeding DH 200 million (requiring the approval of th e region's Wali), and draw up the instruments 
needed for their implementation.  For investme nts in excess of that amount, the CRIs handle 
administrative procedures, but the projects must be approved by the Investment Commission. 
73. The Investment Commission (CI), for which the AM DI acts as Secretariat, is responsible for 
making a determination regarding obstacles to investme nt projects, and for taking steps to improve the 
investment environment.  Its remit further include s:  ruling on investment disputes that require 
arbitration by the Prime Minister;  approving investment agreements and contracts that call for a financial contribution by the State, as well as other types of investment agreements linking State and 
investors;  ensuring that enterprises benefiting unde r the agreement regime abide by the general and 
specific obligations arising from the investment agreements and contracts;  and following up on 
approved investment projects.  The CI is composed of members of the Government and is chaired by 
the Prime Minister.  The number of projects submitted to it for approval rose from 38 in 2002 to 40 in 2008, for investments worth DH 12.3 billion and DH 36.66 billion, respectively. 
74. The National Committee for the Streamlining of Investment-Related Procedures was set up in 
2006 and its main task is to propose measures to simplify administrative procedures.  It has drawn up Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 31 
 
 
a manual of investment-related procedures and is res ponsible for updating it.  The manual is available 
in French, English, German, and Arabic.102 
75. The Regional Commission Responsible for Ce rtain Land-Related Transactions was 
established by Decree No. 02-04-683 of 29 December 2004 and is chaired by the region's Wali.  Its 
remit is to process applications regarding land tran sactions for non-agricultural investment projects of 
an economic or social nature.  It is also require d to decide on:  applications to purchase or rent 
State-owned agricultural or cultivable land;  purc hases of agricultural or cultivable land located 
(completely or partly) outside urban areas, by fo reign natural persons, joint-stock companies, or 
companies whose capital is wholly or partly owne d by foreign persons;  authorization of land 
parcelling in irrigated areas or in areas dedicated to the development of rain-fed agriculture, for the 
purposes of creating or expanding non-agricultural en terprises;  and it must decide on investments to 
be made in coastal areas not covered by la nd planning documents, or in sensitive areas. 
76. To improve the business environment and fo ster investment, a new Labour Code was 
introduced in 2004, designed to render labour legi slation more flexible while safeguarding workers' 
rights.103  The General Tax Code was introduced in 2007 as the outcome of a fiscal simplification and 
harmonization process begun in 2004.104  In 2007 the provisions of Chapter VIII, Title V of the Code 
of Civil Procedure regarding arbitration we re repealed and replaced by Law No. 08-05 of 
30 November 2007.  The resulting new measures include d extending the scope of arbitration to legal 
entities under public law.105 
77. Under the Code, corporation tax (IS) is levied on income and profit at a general rate of 30 per 
cent (39.6 per cent for financial establishments).  Tw o flat rates are applied to non-resident foreign 
companies:  a flat rate of eight per cent of the overall value of contracts for works, construction and assembly done in Morocco;  and a 10 per cent withhol ding tax on services.  Income tax (IR) (which 
replaced the general income tax (IGR) in 2006) is le vied on income and profit accruing to natural and 
legal persons that have not opted for the IS.  The Code has modified all income tax brackets and the 
corresponding rates.  The rate currently varies between zero (on incomes of up to DH 28,000 per 
annum) and 40 per cent (on incomes above DH 150, 000 per annum).  Some types of income 
(i.e. earnings from securities investments and some la nd revenues) have been made subject to the IR, 
but at a rate specific to them.  On balance, howev er, there are numerous IS and IR waivers (whether 
total, partial, regional or sectoral). 
78. In 2006, the World Bank and the Internationa l Finance Corporation (IFC) ranked Morocco 
first in the region of the Middle East and North Africa (MENA) in terms of business-friendly reforms.  
In contrast, the World Bank rates Morocco 129
th among 178 economies when it comes to ease of 
                                                      
102 CNPI, online information, Procedures Manual for Incoming Investors.  Viewed at:  
http://www.manueldesprocedures.com/. 
103 Dahir No. 1-03-194 of 11 September 2003, enacting Law No. 65-99 on the Labour Code.  Amongst 
other things, the Code provides clarif ication about cases in which an employ er may resort to dismissal, and the 
amounts of compensation payable, intr oduces indefinite contracts and make s the use of fixed-term contracts 
more flexible.  Its other provisions cover the shortening the working week from 48 to 44 hours, improving 
occupational safety and health arrangements as well as  the handling of industrial disputes by instituting 
compulsory conciliation by the appropriate bodies. 
104 The authorities have taken other measures such as reducing the minimum capital required to create 
an enterprise from DH 100,000 to DH 10,000, reducing the transfer tax from 5 to 2.5 per cent of the value of goods so as to facilitate property tran sfer, and simplifying fiscal procedures. 
105 The execution of arbitral awards in connectio n with such acts nevertheless still requires an 
exequatur from the administrative court in whose jurisd iction the award will be executed, or from the Rabat 
Administrative Court, when the arbitral aw ard concerns the entire national territory. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 32 
 
 
doing business – which means that Morocco has slipped from the 121st place it occupied in 2007.106  
The authorities report that the major stumbling blocks  to investment include administrative and land 
problems, as well as cumbersome judicial procedures. 
79. Morocco has concluded over 60 bilateral invest ment promotion and protection agreements, of 
which 37 are in force (with 8 Arab countries, 18 European countries, 5 African countries, 4 Asian 
countries, and 2 countries in the Americas).  It has also signed more than 50 double taxation agreements, of which 37 are in force (with 4 Ar ab countries, 20 European countries, 5 African 
countries, 6 Asian countries and 2 countries in the Am ericas).  For the first time in an FTA concluded 
by Morocco, a more in-depth section was included on investment (going beyond the mere cooperation 
clause) in its agreement with the United States (s ee Section (4) above).  Morocco has also signed 
several multilateral agreements on trade and inv estment, including the agreement establishing the 
Multilateral Investment Guarantee Agency (MIGA) , the agreement establishing the International 
Centre for Settlement of Investment Disputes (ICSI D) between States and Nationals of Other States, 
and the Convention on the Recognition and Enforcem ent of Foreign Arbitral Awards (New York 
Convention). 
                                                     
 
106 World Bank (2008).