Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 79 
 
 
IV. TRADE POLICIES AND PRACTICES BY SECTOR 
(1) INTRODUCTION  
1. Since the previous review of its trade policy (TPR) in 2003, Morocco has continued to reform 
its sectoral policies, making notable progress in th e services sector.  Its economy remains relatively 
diversified.  Agriculture plays a key role, especially in terms of employment.  It remains the most 
heavily protected sector, with ad valorem  tariff rates as high as 304 per cent, although the average has 
fallen from 40 per cent in 2003 to 29 per cent in 2009;   variable duties apply to cereals and sugar.  
Common wheat marketing is subject to a specific re gime, the details of which are established at the 
beginning of each season.  Agricultural policy continu es to be influenced by the need to combat the 
effects of recurrent drought.  In addition to public investment, the sector benefits from numerous 
incentives in the form of financial assistance (subsid ies and premiums), tax concessions and loans.  
The aim of fisheries policy is to conserve resour ces, in particular by introducing selective fishing and 
reducing the level of informal ac tivity.  In 2005, a new fisheries agreement, marking the resumption 
of fishing relations between the two partners, was concluded with the EC. 
2. The manufacturing sector is mainly focused on exports and continues to be dominated by 
subcontracting (particularly in the textiles and clothing and automotive subsectors).  The average 
import tariff in the sector is 19.9 per cent (as compar ed with 33 per cent in 2003).  The most heavily 
protected branch is food processing.  There are vari ous tax incentives available to the sector, mainly 
to promote exports.  The textiles and clothing industry is the most important of the processing industries in terms of exports and employment;  th e present policy is aimed at facilitating its transition 
from subcontracting to co-contr acting and finished products. 
3. The exploitation of the country's principal mi neral resource - phosphates, of which Morocco 
is the world's leading exporter and third-ranking producer - continues to be a State monopoly exercised by the Office chérifien des phosphates  - OCP (Moroccan Phosphates Board).  In 2008, the 
OCP was converted into a public limited company w ith a view to improving its competitiveness.  The 
OCP is pursuing a new strategy in order to enable fo reigners to make equity investments in fertilizer 
production capacity on Moroccan territory.  The mining sector receives the least tariff protection, with 
an average duty of 9.1 per cent.  Morocco imports about 97 per cent of its energy requirements. 
4. Morocco is a net exporter of services, with  tourism now the primary source of foreign 
exchange, ahead of transfers from Moroccans living abroad.  The positive trend in tourism is the 
combined result of the policy of incentives for the sub sector and the air transport liberalization policy.  
Thus, the number of commercial passengers increa sed from 4.4 million in 2001 to 12.2 million in 2007.  
During the period 2005-2007, there was a considerable in crease in air tr affic marked by the entry of 
34 new companies, the establishment of 117 new rout es and the scheduling of 308 additional flights.  
The telecommunications sector has also been expanding rapidly thanks, in particular, to increased competition.  The regulatory environment for banki ng services has been reformed, and its scope 
extended to "related" instit utions such as offshore banks and micr o-credit associations.  The autonomy 
of Bank Al-Maghrib (BAM) in relati on to monetary policy has also been strengthened.  Maritime freight 
transport on scheduled routes has be en liberalized.  There are still St ate monopolies in subsectors such 
as rail transport and postal services.  In 1994, Morocco made substantial commitments under the 
General Agreement on Trade in Services in the ar eas of tourism, telecommunications and certain 
financial services, but its commitments remain limited in the areas of insurance and international road 
transport, in particular. WT/TPR/S/217/Rev.1 Trade Policy Review 
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(2) AGRICULTURE AND RELATED ACTIVITIES  
(i) Overview 
5. The agricultural sector (including fishing and for estry) is one of the pillars of the Moroccan 
economy (Chapter I(1)).  Fishing, especially ocean fishing, is fairly well developed 
(Section (2)(iii)(d)).  Agri-foodstuffs is the country 's second industrial sector with nearly 30 per cent 
of total industrial production (just behind chemicals,  with about 40 per cent);  some 16-17 per cent of 
its annual production is exported.  Forestry is still insignificant, though locally important. 
6. The main advantages of the agricultural sect or are an early spring which favours the 
production of early fruit and vegetables, a relativel y cheap supply of agricultural labour, and the 
proximity of the EU, Morocco's main customer.  At the same time, the sector suffers from a shortage 
of water, difficulties in applying the Labour Code to  agricultural work, and ri sing input prices (animal 
feed and fertilizer). 
7. The cultivable area amounts to 9 million hectares, of which 74 per cent is cultivated 
(2006/2007 season).  About 75 per cent of the cultivated area is used for growing cereals (mainly common wheat, barley, durum wheat, and maize (c orn)).  The main pulse crops are broad beans, 
chickpeas, lentils and kidney bean s.  The market garden produce for export consists chiefly of 
tomatoes, kidney beans, potatoes, melons, strawb erries and watermelons.  Farmers supplement their 
income by growing fruit and olives.  Livestock c onsists mainly of sheep, followed by goats and 
bovine cattle.  In 2007, the average rate of c overage of demand by domestic production ranged from 
18 per cent for oil to 100 per cent for eggs and meat (Table IV.1). 
Table IV.1 
Coverage of demand by domestic production  for the main agricultural products, 2002-2007 
(%) 
  2002 2003 2004 2005 2006 2007 
Cereals 56 67 68 47 72  .. 
Oil 11 22 14 20 19 18 
Sugar 47 49 48 44 37 38 
Milk 87 90 87 89 87 89 
Meat, red .. 99 102 100 100 100 
Meat, white 100 100 100 100 100 100 
Eggs 100 100 100 100 100 100 
.. Not available. 
Source : Ministry of Agriculture  and Marine Fisheries. 
8. At present, 16 per cent (as compared with 12 per cent in 2002) of the cultivable area is 
irrigated, i.e. 1.46 million hectares (including 682,600 ha. in large-scale irrigation areas, 334,100 ha. 
in small- and medium-scale irrigation areas, and the r est in privately irrigated areas).  On average, the 
irrigated areas account for 45 per cent of agricultu ral value added (and more than 70 per cent during 
drought years), as well as 75 per cent of exports.  Consequently, it is the traditional sectors that are more severely affected by drought, the export sectors (nursery and market garden sectors) being for 
the most part located in irrigated areas.  Moreover, it is these areas that attract most investment.  The 
Plan Maroc Vert  (Green Morocco Plan, see be low) provides for the implementation of a programme for 
saving and making better use of water consumed in irrigation schemes by converting the less efficient 
irrigation systems (particularly surface irrigation) to  localized irrigation tec hniques over an area of 
550,000 ha. Kingdom of Morocco WT/TPR/S/217/Rev.1 
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9. Morocco has almost 1.5 million agricultural holdings, of which nearly 1 million raise 
livestock.  Small units predominate (70 per cent of  holdings have less than 5 ha.;  17 per cent, 
between 5 and 10 ha.;  12 per cent, between 10 and 50 ha.;  and only 1 per cent more than 
50 hectares).  The numerous forms of land tenure1 and the registration of less than 40 per cent of the 
cultivable area make it more difficult to develop land for agricultural purposes, buy and sell it and 
obtain access to credit.  They also impede the leasi ng of land by foreigners (who are prohibited from 
buying it)2 and contribute to the weakness of foreign direct investment (FDI) in the sector.  According 
to the authorities, various steps have been taken to  remedy the situation, including the distribution of 
State-owned land.3  Two draft laws have been prepared w ith a view to revising texts governing the 
registration of land and abolishing the prohibitions on  the purchase of farmland by foreign investors.  
10. In general, agricultural products may be freely imported.  Their prices have been liberalized.4  
Other than in exceptional circumstances (Section (2)( iii)(a)), the State does not play any part in setting 
the prices for agricultural inputs (fertilizer, seed , phytosanitary products, farm machinery).  
Nevertheless, a policy of encouraging and prot ecting domestic production has been maintained. 
(ii) Policy objectives and instruments 
11. The main objectives of Morocco's agricultural policy are food security, the improvement of 
farmers' incomes and the conservation of natural re sources.  A new plan to stimulate the sector, the 
Plan Maroc Vert , was adopted in 2008.  Its objective is to make agriculture the engine of economic 
growth in 10-15 years.  The plan provides for the investment of DH 10 billion a year;  the overall budget for 2009-2013 amounts to DH 20 billion (the largest  ever devoted to the agricultural sector).  It 
has been announced that an Agence de développement agricole  - ADA (Agricultural Development 
Agency) will be set up to implement the plan;  it w ill be required, among other things, to play the part 
of intermediary between the farmer, the invest or and the administration, and to define the 
organizational framework for the sector's profe ssionals.  The law establishing the ADA has been 
adopted and should be published in the course of 2009. 
12. Where incentives are concerned, the Government  uses, in addition to public investment, 
instruments such as financial assistance (subsidies and premiums), taxation, credit, and border 
protection.  The general principles of the policy of incentives for private investment are laid down in the Agricultural Investment Code.
5  The Code provides for three forms of State aid:  premiums (e.g. 
funds allocated by the State to encourage investme nt) and subsidies;  long-, medium- and short-term 
loans;  and technical and material assistance provided by government services. 
                                                      
1 Melk or private land (76.5 per cent of the cultivable area), collectively owned land (17.1 per cent), 
State-owned land (3 per cent), Guich (2.7 per cent), and Habous land (0.7 per cent). 
2 A foreigner may take out a 99-year lease on land for farming purposes. 
3 The distribution of State-owned land within the context of agrarian reform involved 303,500 ha. and 
20,805 beneficiaries. 
4 With the exceptions provided for in Law No. 06-99 on pricing freedom and competition (such as 
de jure  or de facto  monopoly situations, continuing supply difficulties, or excessive price fluctuations), the 
prices of agricultural products are determined by free competition.  However, the prices of some products (domestic common-wheat flour, sugar, manufactured tobacco) will continue to be regulated. 
5 Dahir No. 1-69-25 of 25 July 1969 on the Agricultural Investment Code, as amended by the Dahir 
enacting Law No. 1-84-9 of 10 January 1984 and Dahir No. 1-01-55 of 15 February 2001, enacting Law No. 26-00. WT/TPR/S/217/Rev.1 Trade Policy Review 
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13. Numerous subsidies are granted to the agricu ltural sector (Table AIV.2) for, among other 
things, improvements6, the purchase of agricultural equipm ent, and providing value added for 
agricultural products.  Since 2003, there has also been  a subsidy for the production of sunflower seed 
for crushing (at most 4 per cent of edible oil production7).  The total amount of this subsidy gradually 
decreased from DH 108.2 million in 2003 to DH 15.6  million in 2007;  in 2008, no subsidy was 
granted because of the rise in prices.  At present, oilseed is being crushed by two companies - Lesieur 
Cristal and Huileries du Souss.  The subsidies for hydro-agricultural improvements, planned within 
the context of global projects submitted to the Mini stry responsible for agriculture for prior approval 
and intended to equip agricultural holdings with i rrigation systems, cannot be cumulated with those 
granted for hydro-agricultural improvements not subject to the prior approval of the Ministry in 
charge of agriculture, or with premiums.   
14. Export subsidies are granted for fruit, vegetables,  cut flowers and ornamental plants exported 
by air (Table AIV.2).  According to the latest no tification available, in 2002 export subsidies (for air 
freight) totalled DH 44,000, including DH 10,000 for flowers, DH 17,000 for vegetables and DH 17,000 for fruit.
8 
15. The areas in which State financial aid may be gr anted in the form of an investment premium 
have been established by regulation (Table IV.2).9  The premiums will be abolished as from 
8 July 2009. 
16. State financial aid (in the form of subsidies or premiums) is provided under the Fonds de 
développement agricole  - FDA (Agricultural Development Fund) through Crédit agricole du Maroc 
(CAM).10  In 2008, this aid almost doubled, rising to DH 1.6 billion as compared with DH 878 million 
in 2007.11  This increase was the result of the simplification of the FDA's aid granting procedures 
inter alia  through the creation of regional single windows in 2008.  In 2009, the funds allocated to the 
FDA in the State budget amounted to DH 1.5 billion. 
17. There are also consumer subsidies for domestic common-wheat flour (Section (2)(iii)(a)) and 
sugar;  these are administered by the Office national interprofessionnel des céréales et légumineuses - 
ONICL (National Interprofessional Cereals and Pulses Board) and the Caisse de compensation  
(Compensation Fund), respectively, and partly financed from the Fonds de soutien  (Price Support 
Fund for certain food products).  They are intende d to safeguard the purchasing power of low-income 
groups and stabilize the selling prices of the products  in question.  In 2007,  the budget for this fund 
amounted to DH 1.5 billion. 
                                                      
6 Order No. 1305-83 of 1 February 1985 establishing the modalities of State aid for the improvement of 
agricultural property, as amended by Orders No. 1574-93 of 4 January 1994 and No. 1936-96 of 
3 October 1996. 
7 Average edible oil production from the crushing of local sunflower seed amounts to 9,800 tonnes, 
i.e. 2.3 per cent of domestic consumption. 
8 WTO document G/AG/N/MAR/33, of 7 January 2005. 
9 Order No. 684-99 of 29 April 1999, implementing Decree No. 2-98-365 of 6 January 1999 
establishing a premium for certain agricultural investments, extended by Order No. 1691-04 of 
20 September 2004. 
10 Crédit agricole du Maroc (CAM ) was founded in December 2003 a nd resulted from the conversion 
of the Caisse nationale de crédit agricole (CNCA) into a joint-stock company;  51 per cent of CAM's capital is 
held by the State. 
11 This aid has gradually increased since 2003 (DH 290 million). Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 83 
 
 
Table IV.2 
Agricultural premiums 
Item Amount of premium 
Hydro-agricultural and farm property improvements:  
Irrigation equipment: 
Sprinkling (for certain geographical areas only) 
Localized 
Laser levelling (for certain  geographical areas only)  
650 DH/ha. 
2,000 DH/ha. 
400 DH/ha. 
Purchase of arable and livestock farming equipment :  
Tractors (horsepower < 40 HP)  5,000 DH/unit 
Tractors (horsepower ≥ 40 HP) 20,000 DH/unit (individuals) 
5,000 DH/unit (cooperatives) 
Mixers and rollers  12,000 DH/unit 
Milking cans and trolleys 5,000 DH/unit 
Milk tanks  8,000 DH/unit 
Hives  120 DH/unit 
Fruit growing:  
Citrus fruit (for farmers using certified plants) 7,800 DH/ha. 
Olive trees, rain-fed 
Olive trees, irrigated 
(for farmers who have made regular plantings with a minimum area of 0.5 ha. and a minimum 
density of 100 certified plants per ha, rain-fed, or  200 certified plants, under irrigation 1,800 DH/ha. 
2,600 DH/ha. 
Date palm Distribution of date palm 
vitro-plants free of charge 
Value added for agricultural products:  
Construction and equipping of cold storage units fo r agricultural products and grain storage units:  
Cold storage units for agricultu ral products, not linked to port ac tivities (with a capacity of from 
500 to 5,000 m3) 150 DH/m3 
Grain storage units, not linked to por t activities, with a capacity of:  
< 1,000 t. 
from 1,000 to 5,000 t. 150 DH/t. 
100 DH/t. 
Construction and equipping of fruit and vegetable packaging units:  
Fruit and vegetable packaging units, with a capacity of: 
2 to 4 t./h. 
More than 4 t./h.  
200,000 DH/t./h. 
140,000 DH/t./h. 
Construction and equipping of olive crushing units:  
Olive crushing units, with a capacity of: 
Less than 50 t./d. 
from 50 to 100 t./d.  
5,000 DH/t./d. 
3,500 DH/t./d. 
Source : Ministry of Agriculture, Rural De velopment and Fisheries (MADRPM), Document sur les aides financières 
accordées par l'État pour l'incitation à l'investisseme nt dans le cadre du Fonds de  développement agricole(FDA)  
(Document on financial aid granted by the State to enc ourage investment in the context of the Agricultural 
Development Fund (FDA)).  Viewed at:  http://www.ma drpm.gov.ma/download/dpae/fda/lmosa3adate_fr.pdf. 
18. For sugar, a flat-rate subsidy of DH 2,000/tonne is granted to refineries on the basis of the 
quantities sold, with a view to maintaining consumer  prices at DH 4.36/kg. fo r granulated sugar and 
DH 5.31/kg. for sugar loaves and blocks and lump sugar.12  Industrial beverage producers are required 
to refund the subsidy granted on the sugar they use as an input.  In 2008, the sugar subsidy amounted 
to DH 2,254 million (as compared with DH 2,0 04 million in 2002) and was financed from the 
Price Support Fund and budget appropriations. 
                                                      
12 The proceeds of customs duties levied on sugar imports are paid into the Compensation Fund, which 
provides 50 per cent of the sugar subsidy.  The balance of the cost is borne by the Government. WT/TPR/S/217/Rev.1 Trade Policy Review 
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19. Agricultural incomes are exempt from all taxati on until 2013.  Where financing is concerned, 
the CAM grants seasonal loans and medium- a nd long-term loans, for farm equipment and 
modernization, at rates of 5 per cent for short-te rm loans and 5.5 per cent for medium- and long-term 
loans.  In 2007, it was decided to set up a Société de financement pour le développement agricole  - 
SFDA (Agricultural Development Fina nce Company), a subsidiary of the CAM, which is in course of 
being established .  The SFDA will have a capital of DH 100 million and will take care of those farmers 
who have no bank account.  In 2007, CAM's contribution to the financing of agricultural sector and 
agro-industry activities amounted to DH 21.8 billion. 
20. Agriculture (ISIC definition) is the most heavily protected sector with a simple average tariff 
of 29.0 per cent, and rates that vary from 2.5 per cent (for most agricultural equipment) to 304 per 
cent (on live sheep and goats and their meat), not to  mention the other import duties and taxes payable 
(Chapter III(2)(iii)(c)).  Moreover, variable duties are applied to sugar and cereals (Section (2)(iii)(a) 
below).  In the case of sugar, the ad valorem  equivalent of the duty (inversely proportional to the 
import price) may vary from a constant (minimum) rate to infinity (Chart III.1 ).  On numerous 
agricultural tariff lines the applied rates ex ceed the bound rates (Chapter III(2)(iii)(c)). 
21. Tariff quotas are applied to agricultural products such as meat (bovine, sheep and poultry 
meat), milk, cereals (common wheat, barley, mai ze, rice and sorghum), soya and colza seed, oils, 
sugar and oilseed cake.  In practice, tariff quotas were not applied during the review period because of 
the application of ex-quota MFN duties lower than  the quota duties (Chapter III(2)(v)).  Quotas are 
administered by means of import licences on a "first come-first served" basis.  The latest relevant 
notification (dated 2005) covers only the year 2002.13 
22. Tariff preferences and preferential tariff-rate quotas are granted to imports of certain 
agricultural products.  Tariff preferences amounting to as much as 100 per cent are granted to imports 
of certain products from the United States under th e Free Trade Agreement (FTA) in force since 
1 January 2006 (Chapter III(2)(iii)(f)).  Preferential tariff-rate quotas are available for imports of 
certain products from the United States, such as red meat and poultry meat, apples, almonds, and 
wheat and wheat products (Section (iii)(a)).  Prefer ential tariff-rate quotas are also provided for by the 
Association Agreement with the EC (Chapter III(2)(v)), in particular w ith respect to cereals.  With the 
exception of common wheat, for which the annual quo ta volume varies with domestic production, the 
import quantities for other cereals are fixed. 
23. The additional duty14 applied as a safeguard measure to  fresh banana imports beyond a quota 
of 7,000 tonnes was abolished on 1 January 2005. 
24. Under the Uruguay Round, Morocco reserved the ri ght to evoke the special safeguard clause 
with respect to 374 agricultural product lines (Chapter  III(2)(iii)(d)).  According to the latest relevant 
notification, which covers the year 2002, Morocco has not made use of this clause.15 
(iii) Policies by product subsector 
(a) Cereals 
25. Cereal crops are grown by almost all agricultural holdings on 5 million hectares of land 
(including about 400,000 ha. in the irrigated zone).  Within this area the main crops are barley and 
                                                      
13 WTO document G/AG/N/MAR/30, of 7 January 2005. 
14 This duty was 150 per cent in 2001;  140 per cent in 2002;  130 per cent in 2003;  and 120 per cent in 
2004. 
15 WTO document G/AG/N/MAR/31, of 7 January 2005. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 85 
 
 
common wheat (41 and 36 per cent, respectively).16  Cereals contribute almost one third to 
agricultural value added formation, account for on e quarter of household expenditure on food, and 
cover 40 per cent of fodder needs.  The milling indust ry comprises more than 10,000 small-scale units 
concentrated in the rural areas and 210 industria l-scale units (including 153 for common wheat).  
During the 2007/2008 season, they industrially pr ocessed 46.3 million quintals of cereals;  the 
small-scale units process about 20 million additional  quintals each year.  Cereals remain very 
vulnerable to recurrent drought.  Cereal imports  increased from 38.5 million quintals in 2003/2004 to 
67.0 million quintals in 2007/2008. 
26. Through the ONICL, the State monitors the country's cereal supply trends.17  Exceptionally, 
the Board may be given responsibility for the buying  and selling, importing or storing, transporting 
and processing of these products, direc tly or through third parties.   
27. The storage, marketing and prices of  cereals were liberalized in 1996.18  However, because of 
the existence of an annual quota (10 million quintal s) for subsidized common-wheat flour (so-called 
"national flour") and the rise in world wheat prices, and in order to stabilize flour and bread prices, the marketing of common wheat has been made subject to a specific regime, the details of which are 
established by joint annual order of the ministerial departments concerned at the start of each season.
19 
28. The following figures relate to the 2008/2009 ma rketing season.  Most of the common wheat 
produced is sold to industrial buyers (i.e. flour m ills and storage organizations) at the common-wheat 
producers' purchase reference price20, which is negotiable according to quality (it was DH 300/q. for 
standard quality21).  The storage organizations (Moroccan agricultural cooperatives and their Union, 
and traders) benefit from a premium of DH 2/q, granted by the State for price stabilization purposes, 
on all quantities of domestically produced common wheat collected.  The premium is granted every two weeks, on the basis of the stocks declared.
22  For the period between 1 June and end August, the 
full premium is paid, after which it is reduced by 7 per cent every two weeks.  The storage 
organizations can either sell the common wheat to th e flour mills for the production of "free" flour, or 
participate in the call for bids organized by th e ONICL to procure supplies of wheat needed to 
manufacture subsidized flour. 
29. In the case of a call for bids, the bid price in cludes the storage premium, the transport costs 
and the operating margin of the storage organization.  A commission chooses the flour mills that will grind the wheat for national flour (according to the needs of the lo calities).  The quantities of common 
wheat awarded must be delivered to the flour m ills in accordance with a programme drawn up by the 
                                                     
 
16 Barley is important because of its adaptability to arid zones and its role in the livestock farming 
system. 
17 The ONICL is a public institution with financial autonomy. 
18 The Dahir of 1973, replaced by Law No. 12-94 and Law No. 13-89 (implemented in 1996), 
liberalized the trade in cereals and pulses. 
19 For the 2008/2009 marketing season , the Minister of the Interior, the Minister of the Economy and 
Finance and the Minister of Agriculture and Marine Fisheries issued joint Order No. 1728-08 of 
11 September 2008, establishing the conditions for the purchase of common wheat inte nded for the manufacture 
of subsidized flour, together with the conditions governing its manufacture, packaging and offering for sale. 
20 The reference price is established on the basis of parameters such as production costs, the prospects 
for domestic production during the season in question, the prospects for world supply, and world prices. 
21 It was DH 250/q. for the 2002 to 2007 crops. 
22 Before the 2006 crop, the premium was granted only for the quantities of wheat that the storage 
organizations decided to make available to the ONICL (i.e. the ONICL had decision-making power over this 
wheat with regard to the time of sale and the choice of buyers).  The quantities eligible for the premium were 
restricted to 1.2 million tonnes (a quantity which, according to the authorities, has never been attained in practice). WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 86 
 
 
ONICL and at the mill entrance reference price (DH 258.80/q. for standard quality).  The flour mills 
sell the national flour (intended for low-income groups ) to traders, whose selling price is fixed by the 
State. 
30. The difference between the price resulting from calls for bids and the selling price 
(DH 258.80/q.) forms the subject of either a refund or a levy applied by the ONICL to the successful 
bidders.  For the quantities offered to the ONICL, the storage organizations benefit from a subsidy 
equal to the difference between the reference pric e (DH 300/q.) and the price at which the grain is 
sold to the mills (DH 258.80/q.). 
31. The flour mills receive compensation equal to  the difference between their cost price 
(DH 325.375/q.) and their selling price for the subsidized flour23 (DH 182/q. for the packaged 
product, ex-mill price).  The compensation is hi gher for flour destined for certain provinces. 
32. For the 2008/2009 marketing season, the quantities of common wheat purchased by the 
storage organizations between 16 and 31 August 20 08 may also be offered directly to the ONICL, 
subject to a limit of one million quintals, for the manuf acture of subsidized flour at the reference price 
of DH 300/q. (standard quality).  The relevant stocks  available at the end of each two-week period 
benefit from the storage premium until exhausted.  Mo reover, the cost of transporting this wheat is 
borne by the State on the basis of the tariffs charged by the Société nationale de transport et de la 
logistique  - SNTL (National Transport and Logistics Company). 
33. During the period 2003-2007, the average annual global cost of the compensation for national 
flour amounted to DH 2.3 billion. 
34. The State no longer intervenes in the setting of input prices.  Exceptionally, however, in cases 
of drought and selling price support for certified cereal seeds (common wheat, durum wheat and barley), the State fixes maximum (subsidized) retroce ssion prices.  Two types of subsidy are used:  at 
the production stage (support for the cost of storing th e seed marketed by the seed companies) for an 
annual average amount of DH 10 million, and at the utilization stage (only in drought years) for an 
annual average amount of DH 50 million over the period 2002-2008. 
35. At present, 41 standards concerning the sp ecifications for common wheat, durum wheat, 
barley and their products and the relevant methods  of sampling and analysis are being applied. 
36. To protect the cereals subsector, ad valorem  duties of up to 172 per cent (as compared with 
53.5 per cent in 2003) are applied.  Some cereals are subject to ad valorem  customs duties whose rates 
vary by price bracket, in place since 1 June 2003 (Table IV.3).  Nevertheless, because of the poor 
domestic crop and the upsurge in world prices, the State suspended the customs duties on common 
wheat for the period from 27 September 2007 to 31  May 2008, and then again from 16 August 2008 to 
31 May 2009.  Customs duties on durum wheat were also suspended for the period from 27 September 2007 to 31 May 2009, and those on other ce reals (specifically, barl ey and maize) from 
1 June 2008 to 31 May 2009. 
37. Tariff preferences of up to 100 per cent on imports of barley, maize, rice, sorghum and oats 
are granted to the United States under the FTA, in fo rce since 1 January 2006.  Preferential tariff-rate 
quotas are also granted for certain products imported from the United States or the EC (Section (ii) above and Chapter III(v)). 
                                                     
 
23 This price is fixed at DH 188/q. for wholesalers and at DH 200/q. for the public. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 87 
 
 
Table IV.3 
Variable customs duties applied to cereals, 2009 
Cereal Rate for first tranch e Rate for second tranche 
Common wheat 50% on the tranche ≤ 1,000 DH/t. 2.5% on the tranche > 1,000 DH/t. 
Durum wheat 170% on the tranche ≤ 1,000 DH/t.a 
55% on the tranche ≤ 1,000 DH/t.b 2.5% on the tranche > 1,000 DH/t. 
Barley 35% on the tranche ≤ 800 DH/t. 2.5% on the tranche > 800 DH/t. 
Maize (corn) 17.5 on the tranche ≤ 800 DH/t. 2.5% on the tranche > 800 DH/t. 
Rice:   
Other rice in the husk (paddy or rough);  other 
husked (brown)  rice;  semi-milled or wholly 
milled rice, whether or not polished or glazed (round of which at least 90 per cent of the 
grains have a length of less than 5.2 mm. and a 
length/width ratio of less than 2.1) 140% on the tranche ≤ 3,000 DH/t. 16% on the tranche > 800 DH/t. 
Broken rice 90% on the tranche ≤ 3,000 DH/t. 16% on the tranche > 800 DH/t. 
Other semi-milled or wholly milled rice, 
whether or not polished or glazed 172% on the tranche ≤ 4,020 DH/t. 16% on the tranche > 4,020 DH/t. 
Sorghum 25% on the tranche ≤ 800 DH/t. 16% on the tranche > 800 DH/t. 
a For the period from 1 June to 31 July of each year. 
b For the period from 1 August to 31 May of each year. 
Source : Customs Import Tariff 2008. 
(b) Fruit and vegetables 
38. Since Morocco's previous TPR, production of the pr incipal fruits (e.g. citrus fruit) and market 
garden vegetables has averaged 8.5 million tonn es per season (8.2 million tonnes 2006/2007).  The 
subsector plays a significant role in terms of employment, providing more than 180,000 steady jobs.  Morocco exports citrus fruit (569,557 tonnes in 2007), fresh tomatoes (392,400 tonnes), vegetables 
(fresh, frozen or in brine) (285,700 tonnes), fruit (fresh , frozen or in brine) (156,700 tonnes), canned 
vegetables (61,700 tonnes), and potatoes (40,272 tonnes) , as well as fruit juice and olive oil.  There 
are 150 fruit and vegetable canning factories employ ing almost 18,000 people;  exports of canned 
fruit and vegetables and jam amount ed to DH 1.3 billion in 2007.
24  The main destination is the EU, 
particularly France. 
39. The average customs duty rate on imports of fru it and vegetables is about 46.0 per cent (with 
a maximum of 49 per cent).  Among other things, the State grants subsidies of from DH 1 to 4.5/kg, 
according to the destination, for the promotion of fruit and vegetable e xports (Table AIII.3). 
40. Morocco also has wine, cider, beer and spirits industries and 12 plants for producing 
non-alcoholic beverages.25  In 2007, production amounted to DH 5.76  billion;  exports of these 
products brought in DH 131.5  million.  Average annual wine production amounts to 
350,000 hectolitres (about 37 million bottles).  V iticulture employs about 10,000 people. 
41. Alcoholic beverages are heavily taxed (Table IV .4).  However, the customs duties on spirits 
have been reduced from 50 per cent in 2003 to 10 pe r cent at present. Customs and tax receipts from 
alcoholic beverages average DH 220 million annually. 
                                                      
24 The processing industri es operate below capacity because of the volatility of agri cultural production 
due to such factors as weather conditions, the low level of  mechanization, high energy  and transport costs, and 
the limited use of fertilizers and phytosanitary products. 
25 The Coca-Cola Company has 90 per cen t of the aerated beverage market. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 88 
 
 
Table IV.4 
Border taxation of alcoholic beverages, 2009 
Customs import duties (c.i.f.)  
Beer 49% 
Wine 49% 
Other alcoholic beverages 10% 
Domestic consumption tax (TIC)  
Beer 550 DH/hl. 
Wine, ordinary 260 DH/hl. 
Other wine (AOC, sparkling, old, or selected) 300 DH/hl. 
Alcohol contained  in vermouth a nd spirits 7,000 DH/hl. pure alcohol 
Tax for financing economic prom otion  0.25% on c.i.f. value 
Parafiscal tax on wine and beer 5 DH/hl. 
VAT 100 DH/hl. 
Source : Information provided by the Moroccan authorities. 
(c) Livestock farming 
42. Despite droughts, milk production has steadily progressed, rising from 1.1 billion litres in 
2001 to 1.66 billion litres in 2007.26  It covers about 90 per cent of  domestic requirements for milk 
and dairy products.  Imports of dairy produc ts consist mainly of butter, milk and cheese. 
43. Domestic meat production (bovine meat, meat  of sheep and goats, and poultry meat) was 
estimated at 756,000 tonnes in 2007, an increase on  2000 (570,000 tonnes) due mainly to progress 
with the production of poultry meat (250,000 tonnes in 2000 as compared with 420,000 tonnes in 
2007).27  During the period 2002-2007 the average c overage of domestic demand for red meat by 
domestic production was close to 100 per cent28;  it was 100 per cent of the demand for poultry and 
eggs (Table IV.1).  Meat exports, all species combined, are minimal.  There is no foreign trade in sheep or goat products (meat,  milk and milk products). 
44. Apart from sanitary controls (Chapter III (SPS)), the livestock subsector is not regulated.  The 
local authorities collect slaughter taxes.  Custom s duty rates amount to 304 per cent on sheep and goat 
meat (fresh or chilled), 254 per cent on bovine meat, and 102 per cent on milk.
29 
45. Poultry farming is regarded as an industrial activity30 and consequently does not benefit from 
the tax and customs concessions available to the agricultural sector.  The import duties on poultry 
meat and edible poultry offal are still high (116 per cent, with the exception of some boneless and 
                                                      
26 This increase is due, in particular, to imports of heifers, to the intensification and generalization of 
artificial insemination, to the revival of performance monitoring and dairy cattle nursery units, and the 
introduction of a support programme (concerning in particular genetic improvement, animal feed, and technical 
follow-up). 
27 Poultry meat production has almost doubled since 2001 from 250,000 tonnes to 420,000 tonnes in 
2007.  Red meat production remains dominated by bovine meat (169,000 tonnes) and sheep meat (120,000 tonnes). 
28 About 80 per cent of red meat production comes from extensive farming. 
29 Except on special milk for infants (32.5 per cent), skimmed-milk powder (60 per cent) and whey 
(10 to 17.5 per cent), butter (32.5 per cent), dairy spreads (49 per cent), and cheese (10 to 75 per cent). 
30 Poultry farming is governed by Law No. 49-99, enacted in June 2002, and Decree No. 2-04-684 of 
27 December 2004, relating to the sa nitary protection of poultry farms and control of the production and 
marketing of poultry products. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 89 
 
 
ground meat (60 per cent) and foies gras and other frozen meat (49 per cent) and are therefore limiting 
imports. 
46. With a view to intensifying livestock produc tion, subsidies are granted for the genetic 
improvement of cattle, the purchase of livestock breed ing equipment, the construction of buildings for 
livestock, and the building and equipping of coop erative milk collection centres (Table AIV.2).  
Premiums are also granted for the purchase of mixe rs and rollers, milking cans and trolleys, milk 
tanks, and hives (Table IV.2). 
(d) Fishery products and by-products 
47. Morocco has a 3,500 km.-long coastline and a marine area of 1.1 million km2, with an annual 
fishing potential estimated at 1.5 million tonnes rene wable.  The contribution of fishing to GDP is 
now about 2.5 per cent.  Despite the decline in fishery production from 970,204 tonnes in 2002 to 890,756 tonnes in 2007, Morocco is still one of Africa's largest producers and 25
th at world level.  In 
2007, the value of national production amounted to  DH 6.5 billion and earnings from marine product 
exports (including processed products) reached DH 11.8 billion.  The fishery product processing 
industry accounts for about 47  per cent of agri-food exports.  With an output (in 2007) of 441 tonnes, 
worth DH 12 million, aquaculture is still in its infancy. 
48. Within its territory, Morocco has 22 fishing ports, 11 commercial ports with facilities for 
fishing vessels, 22 specially equipped landing points, and four fishing villages.  The total number of 
fishing vessels registered in 2007 was 2,993 (449 deep-sea fishing vessels, 2,544 inshore fishing 
vessels) with a GRT31 of 259,797, together with about 15,0 00 small-scale fishing boats.  The sector 
employed 111,146 active sailors and 25,900 boatmen .  The active sailors are engaged in inshore 
fishing (51 per cent), small-scale fishing (40 per cent) and deep-sea fishing (8 per cent);  foreigners worked both in inshore fishing (0.27 per cent of the wo rkforce) and in deep-sea fishing (4.5 per cent).  
The processing industry employ s about 70,000 people.   
49. Inshore fishing (pelagic fish, mainly sardin es for canning, and whitefish) remains dominant, 
with nearly 80 per cent of the total volume produ ced.  Deep-sea fishing (mainly whitefish and 
cephalopods) and other inshore activities account for the remaining 20 per cent.  However, deep-sea 
fishing alone accounts for more than 40 per cent of total production value.  Value-added processing of 
marine products concerns mainly by the fish m eal and oil, freezing and canning industries.   
50. The products most exported in 2007 (in value terms) were frozen products (44 per cent), 
followed by canned products (25 per cent), and fresh or chilled fish (16 per cent).  The main export 
markets (in value terms) are Spain (38.9 per cent of exports), Italy (10.5 per cent) and Japan (7.9 per 
cent).  There are few imports (DH 485 million) as compared with exports.
    
51. The Ministry of Agriculture and Marine Fisher ies, through its Marine Fisheries Department, 
is responsible for the formulation and implementa tion of government maritime fishery and marine 
aquaculture policy (including the definition of fishin g zones).  It has two subordinate agencies:  the 
Office national des pêches  - ONP (National Fisheries Board) and the Institut national de la recherche 
halieutique  - INRH (National Fisheries Research Institu te).  The task of the ONP is to develop 
small-scale and inshore fishing and to organize the marketing of maritime fishery products.32  That of 
the INRH is to carry out research, studies, experiment s and investigations at sea and on shore with the 
                                                      
31 GRT stands for gross register tonnage. 
32 Dahir No. 1-96-99 of 29 July 1996, enacting Law No. 49-95 amending and supplementing Dahir 
No. 1-69-45 of 21 February 1969 concerning the National Fisheries Board. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 90 
 
 
aim of improving and rationalizing the management of fish and aquaculture resources and upgrading 
the industry.33 
52. Government strategy in the fishing subsector  is primarily based on the management and 
sustainable exploitation of fish resources.  The development of marine product processing industries 
has been identified by the Government in its Programme Émergence  (Chapter II(3)) as one of the 
pillars of its industrial development strategy. 
53. To achieve these objectives, a draft progra mme agreement 2008-2012 between the State and 
the ONP has been finalized;  an  overall investment of about DH 4 billion (including 2.4 for the 
organization of marketing, 1.6 for the developmen t of the sector and 0.1 for modernization) is 
envisaged.  Moreover, the upgrading of the existing market halls, begun in 1997, is continuing with 
18 ISO 9001 certified fish markets. 
54. The tax incentives for ocean fishing include th e possibility of deducting diesel costs when 
paying the market tax on all fish landed at Moroccan ports.34  Moreover, fishing is exempt from VAT 
at importation35 and from "inland" VAT36, on certain products and opera tions.  However, exemption 
from VAT is not automatic.37  Finally, the draft Finance Law No. 40-08 for 2009 provides for the 
establishment of a trust fund known as the Fonds de développement de la pêche maritime  (Maritime 
Fisheries Development Fund), which will be u sed, among other things, for supporting scientific 
research;  modernizing the fleet;  reinforcing th e campaign against undeclared and unregulated illegal 
fishing;  supporting fishery development and su stainable management programmes;  and quality 
promotion and upgrading. 
55. Deep-sea fishing companies are required to land a ll their catch in Morocco and to repatriate 
all their export earnings.  Subject to authorizati on by the Foreign Exchange Board, they may hold 
bank accounts in convertible DH to receive all fo reign-currency earnings paid into the banking 
system, like any other export company.38  These accounts may be used, among other things, for 
paying the operating expenses of fishing units and pa ying off foreign loans or export-related expenses. 
56. According to the 1919 Fishing Code, fishing companies must be constituted under Moroccan 
law and have a chairman, and a majority of the members of the board of directors, of Moroccan 
nationality.  Fishing boats may be deemed to be of Mo roccan "nationality" if their port of registry is in 
                                                      
33 Dahir No. 1-96-98 of 29 July 1996, enacting Law No. 48-95 establishing the National Fisheries 
Research Institute. 
34 Decree No. 2-08-410 of 30 October 2008 supplementing Decree No. 2-74-531 of 21 April 1975 
concerning the assumption by the ONP of the management of the fish market halls within the limits of the 
Kingdom's ports. 
35 The following are exempt from VAT at importation:  hydrocarbons for provisioning vessels sailing 
the high seas;  boats used for maritime fishing;  fishing gear and nets;  salted cod's roe and bait intended for use by fishing boats;  and aircraft intended for ship owners  and deep-sea fishing professi onals and used for locating 
shoals of fish. 
36 The following are exempt from VAT (without right of deduction):  fresh and frozen fishery products, 
whole or in pieces, and (with right of deduction) fishing gear and nets (e.g . appliances and products used to 
attract, lure with bait, catch or preserve fish) intended for maritime fishery profession als;  the sale, repair or 
conversion of seagoing vessels;  and sales to shipping companies, professional fishermen and fishing boat 
owners of products intended for incorporation in their vessels. 
37 It is subject to the submission of an application for exemption in accordance with the procedure 
established by Decree No. 2-06 -574 of 31 December 2006. 
38 Companies may be authorized to hold foreign curr ency accounts instead of convertible DH accounts.  
These foreign currency accounts may be credited with up to 25 per cent of repatriated earnings, the rest having 
to be paid into the banking system. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 91 
 
 
Morocco, if they customarily land their cat ch in Morocco, and if they are at least 
three-quarters-owned by Moroccan citizens.39  The nationality conditions also apply to the crews of 
fishing vessels.  Thus, the proportion of sailors  of Moroccan nationality who must sail on board 
Moroccan-flag ships is 100 per cent of the crew (i ncluding the captain or skipper and other ship's 
officers, if any) in the case of fishing vessels ope rating in the exclusive economic zone;  and eight 
tenths of the crew in the case of fishing vessel s operating on the high seas.  In the case of fishing 
vessels operating in the exclusive economic zone of a third State, the proportion is fixed in accordance 
with the provisions of the bilateral agreement be tween Morocco and the State in question, or the 
relevant regulations of that State, as the case may be.40 
57. In 2005, Morocco concluded a new four-year (February 2007-February 2011) fisheries 
partnership agreement with the EC.  It marked th e resumption of fishing relations between the two 
parties following the end of the previous agreemen t in 1999 and the failure of the negotiations to 
renew it.  The new, and less extensive, agreemen t authorizes fishing by 119 European vessels (as 
compared with 629 previously), including 97 vessel s (including 27 tuna pole and line vessels) for 
small-scale fishing and 22 long liners and trawle rs for demersal fishing.  An annual quota of 
60,000 tonnes of small pelagic species is set aside for industrial fishing.  In return, the agreement 
provides for the EC to pay Morocco financial compensation amounting to €36.1 million a year, including €13.5 million to support its fisheries polic y.  The fees payable by vessel owners include 
€53/GT/quarter for demersal fishing, €20/tonne fo r industrial pelagic fishing, and €25/tonne for 
tuna.
41  Finally, the licences issued to owners shoul d provide Morocco with an additional annual 
income of more than €3 million.  The agreemen t excludes Mediterranean waters and fishing for 
crustaceans and cephalopods and includes the obligati on to land (i.e. to sell) part of the catch in 
Moroccan ports. 
58. At present, there are two other agreements in force, with Japan and Russia.  They offer 
opportunities for tuna fishing to a Japanese long line fleet (15 vessels in 2007) and for small pelagic 
fishing to Russian trawlers (12 vessels), in return  for financial compensation.  The agreement with 
Japan is extended annually.  The agreement with  Russia was signed in September 2006;  it is the 
fourth such agreement between Russia and Morocco  and will remain in force until October 2009.  
Morocco has also signed numerous agreements , protocols and memoranda without access to 
resources.  Their aim is to promote cooperation in the fields of scientific and technical research, maritime training, upgrading and marketing of ma rine products, management and control of fishing 
activities, and partnership between fishing professionals.
42 
(3) MINING AND ENERGY  
59. Morocco's mining and energy sector continues to make only a modest contribution to GDP 
(Chapter I(1)).  About 97.3 per cent of the country 's energy needs are imported.  The annual bill for 
energy consumption amounts to about DH 50 billion (up from 19.1 billion in 2002).  Petroleum 
products are mainly imported, whereas electricity is generated locally.  In the rural areas, firewood is 
                                                      
39 When the boats are owned by public limited companies or limited partnerships, this condition is 
deemed to be fulfilled if a majority of the members of the board of directors or the supervising board are of 
Moroccan nationality and, more over, the chairman of the board of dir ectors, the CEO or the managing director 
is of Moroccan nationality. 
40 Decree No. 2-01-1543 of 20 October 2006, amending the Order of 7 April 1934 establishing the 
proportion of sailors of Moroccan  nationality required to sail on board Moroccan-flag vessels. 
41 Other fees are:  €67/GT/quarter  for small-scale pelagic fishing in  the north;  €60/GT/quarter for 
small-scale pelagic fishing in the north, longliners;  an d 60€/GT/quarter for small-s cale fishing in the south. 
42 For a list of countries, see Ministry of Agricu lture and Marine Fisheries, online information, 
La coopération bilatérale  (Bilateral cooperation).  Viewed at: http://www.mpm.gov.ma/. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 92 
 
 
widely used.  Most mining is for phosphates.  Alt ogether, there are 19 foreign enterprises operating in 
the mining and hydrocarbons sectors. 
60. The Office national des hydroc arbures et des mines  - ONHYM (National Hydrocarbons and 
Mining Board), a public agency reporting to the Mini stry responsible for energy and mining, was set 
up in December 200343 following the merger of the Office national de recherches et d'exploitations 
pétrolières  - ONAREP (National Petroleum Explora tion and Exploitation Board) and the Bureau de  
recherches et des participations minières  - BRPM (Mining Prospection and Participation Bureau).44  
Its tasks include carrying out, in the authorized areas, surveys, expl oration and prospection to discover 
fossil fuel and other mineral deposits (apart from phos phates);  to develop and exploit them;  and to 
engage in any other related activit y, in particular transport and processing.  The Moroccan Phosphates 
Board (OCP) was converted into a public limited company in 2008 in order to modernize the governance of this State-owned enterprise and improve its competitiveness. 
(i) Mining 
61. The mining sector is essentially export-oriented (14 per cent of merchandise exports in 2007).  
Export earnings have increased considerably since Morocco's previous TPR, benefiting in particular 
from the improvement in international market pri ces between 2003 and end 2007;  in 2007, export 
earnings reached DH 9.8 billion.  The improvement in  prices gave a boost to mineral prospection, 
with DH 7.6 billion being invested in 2004-2 007.  The sector employs about 34,000 people. 
62. In 2007, mining output reached 29.4 million tonnes, of which 27.6 million tonnes were 
phosphates.  Morocco is the world's leading exporte r and third-ranking producer of crude phosphates, 
and its second-ranking exporter of solid fertilizer.  Bar ite, salt, zinc, lead, cobalt, fluorine, bentonite, 
and fuller's earth are other important mining products. 
63. Several State entities are involved in the sector.  These include:  ONHYM, OCP S.A., which 
prospects for, exploits, processes and market s phosphates and phosphate  products, and the Centrale 
d'achat et de développement de la région minière de Tafilalet et de Figuig  - CADETAF (Purchasing 
and Development Cooperative for the Tafilalet and Figuig Mining Region), which is responsible for 
promoting and supporting the interests of th e small-scale mines in these regions.  CADETAF 
promotes the exploitation of small-scale lead, zinc and barite mines and provides technical, 
commercial and social assistance for the small-scale miners. 
64. The mining legislation in force was established by the Dahir of 16 April 1951 on the 
regulation of mining, as amended, t ogether with its implementing texts.
45  The sector also benefits 
from ordinary law incentives, such as those for whic h the Investment Charter provides, the application 
of a 50 per cent reduction in the rate of corpor ation tax (IS), and the total deductibility as from 
1 January 2004 (as compared with 33 and 66 per ce nt in 2002 and 2003, respectively) of the VAT 
paid on purchases of diesel used by road freight transport vehicles. 
                                                      
43 Dahir No. 1-03-203 of 11 November 2003, enacting Law No. 33-01 establishing the National 
Hydrocarbons and Mining Board. 
44 Movable and immovable property, mining titles, r econnaissance survey permits, exploration permits, 
concessions and holdings (in mining companies) belonging to the BRPM and the ONAREP were transferred to 
the ONHYM. 
45 Among others, Decree No. 2-57-1647 of 17 December 1957, establishing certain rules for the 
implementation of the provisions of the Dahir of 16 April 1951 on the regulation of mining in Morocco (the 
rules relate to the fees for the establishment or renewa l of mining titles, the annual fee for concessions, and the 
obligations concerning the work to be paid for by mining concessionaires and permit-holders);  Decree No. 2-65-249 of 7 June 1965 on the composition and functioning of the mining advisory committee. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 93 
 
 
65. Exemptions from duties and taxes are also granted on a case-by-case basis.  For example, 
equipment and processables imported by the compan y Phosboucraâ or for its account (within the 
context of its action programme to ensure the de velopment of the phosphate deposits of the Saharan 
provinces) have benefited from the exemption from import duties and taxes introduced by the 
1993 Finance Law.  This exemption was rece ntly extended (to 31 December 2009) by the 
2009 Finance Law.   
66. The "depletion allowance" (PRG) was abolished by the 2008 Finance Law.  This allowed any 
mining enterprise to set aside funds, free of prof essional profits tax and co rporation tax, up to a 
maximum of 50 per cent of its fiscal profits or 30 pe r cent of its turnover.  These sums were used to 
establish a social fund (20 per cent) and for mining rehabilitation (80 per cent). 
67. A new Mining Code has been drawn up with th e aim of attracting more investment and 
speeding up the pace of prospection.  This Code is also intended to introduce the exploration permit, 
provide for the renewal of the exploitation perm it until reserves are exhausted, and to introduce 
"small-scale mining" and tip and spoil permits.  It also  contains incentives.  In April 2009, it was still 
in process of being approved. 
68. The mining sector is subject to the general fisc al provisions of the General Tax Code and the 
1998/1999 Finance Law (Chapter II(5)), as well as to  specific taxes such as those on mining titles and 
mining enterprises. 
69. In Morocco mines are State property, and mi neral prospection and exploitation require a 
permit (prospection or exploitation permit), excep t in the case of phosphates, the prospection and 
exploitation of which are a State monopoly exercised by  OCP S.A.  Prospection permits are granted in 
the order in which applications are filed, with th e exception of solid fuel and radioactive substances, 
for which specific technical and fina ncial expertise is required.   
70. "Petite mine " (i.e. small-scale mining) occupies a bout 12,000 people and accounts for 40 per 
cent of total mineral production and 22 per cent of th e total value of mining sector sales, excluding 
phosphates.  Because of its socio economic importance, in July 2007 the Ministry of Energy and 
Mining introduced a small-scale mining development programme involving, in particular, technical 
assistance and training for small-scale miners.  The draft mining law contains specific provisions for regulating small-scale mining, which exploits minera ls such as lead, zinc, barite, coal, salt, talc, 
pyrophilite, and haematite. 
71. A large proportion of global phosphate reserves is  located in Morocco, which is the world's 
leading exporter of phosphates and phosphate products (with a 31.7 per cent share).  The exploitation, 
processing and marketing of phosphates are a State monopoly exercised by OCP S.A.  The phosphate 
subsector employs 17,065 people, i.e. 50.2 per cen t of those who work in the mining sector;  the 
majority work for the OCP Group.  In 2007, phosphate exports amounted to 27.6 million tonnes, stimulated by strong foreign demand. 
72. The contribution of the OCP Group to Moroccan GDP varies, according to estimates, between 
2 and 3 per cent.  Its production is export-orient ed.  In 2007, its export turnover amounted to 
DH 22.3 billion (i.e. 18.2 per cent of total exports).   The OCP Group is the world's foremost exporter 
of phosphate in all its forms;  its share of the world market stood at around 32 per cent in 2007.  The 
main export markets are the United States (2.6 mi llion tonnes), Spain (1.7 million tonnes), India 
(1.1 million tonnes), and Brazil (1.1 million tonnes).  It also exports products  derived from phosphate, 
specifically, phosphoric acid (2.1 million tonnes in 2007) and fertilizer (2.3 million tonnes in 2007).  WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 94 
 
 
The exploitation royalty (DH 34/tonne) levied on crude and processed phosphates at exportation, 
which weighed heavily on the competitiveness of  the OCP's products, was abolished in 2008. 
73. OCP S.A. is pursuing a new strategy aimed at opening up its Jorf Lasfar platform to foreign 
investors.  The Jorf Phosphate Hub (JPH) is inte nded to become the largest phosphate fertilizer 
production centre in the world.  OCP S.A. will offer foreign investors an integrated "plug and play" 
infrastructure, so that they can invest directly in fertilizer production capacity on Moroccan territory.  
OCP S.A. has launched an ambitious mining inv estment programme in order to increase its 
production.  In particular, it is pl anned to open three new mines at Khouribga and to build a pipeline 
(with a phosphate transport capacity equivalent to 38  million tonnes/year of dry merchantable finished 
product) to make transport between Khouribga and JPH more economical. 
(ii) Energy 
(a) Petroleum products 
74. In 2007, Morocco produced about 14,504 tonnes of crude oil;  about 6.3 million tonnes are 
imported.  The oil is refined by the Société anonyme marocaine de  l'industrie de raffinage  - SAMIR 
(Moroccan Refining Industry Company), which suppli es almost all the domestic demand for refined 
petroleum products from its two refine ries (at Mohammedia and Sidi Kacem).46  In 2007, 
6.4 million tonnes were refined.  According to the ONHYM, Morocco's proven oil reserves amount to 
1.07 billion barrels. 
75. To carry out geological, geochemical or geoph ysical reconnaissance surveys, explore for 
hydrocarbon deposits  and exploit them it is firs t necessary to obtain, as appropriate, a survey permit 
(for one year, renewable), an eight-year explor ation permit or an exploitation concession (for 
25 years, renewable for ten years).  The granting of an  exploration permit is subj ect, in its turn, to the 
conclusion of a petroleum agreement with the State, stipulating that the State will hold a stake (not more than 25 per cent) in the exploration permit and the exploitation concession.  The exploration 
permit and the exploitation concession constitute rights in rem  of limited duration which do not confer 
on their holder any right of ownership of the soil or subsoil. 
76. The issuing of exploration permits is conditiona l upon the payment of DH 1,000 (per permit 
or renewal application).  Exploitation concessions are granted subject to the payment of an "annual 
surface rental" of DH 1,000 per km
2 and a royalty.  The production of the first 300,000 tonnes from 
concessions situated onshore or offshore at a seaw ater depth of not more than 200 metres, and the 
production of the first 500,000 tonnes from concessions situated offshore at a seawater depth of more 
than 200 metres, are exempt from payment of the royalty ;  beyond that the rate is  fixed at 10 and 7 per 
cent, respectively. 
77. Various incentives may be granted under the Hydrocarbons Law.47  Thus, exploitation 
concessions are exempt from the payment of corporation tax for the first ten years from the start of production.  Equipment, materials and products (n ecessary for reconnaissance surveys, exploration or 
exploitation) are exempt from all import duties and taxes.  Goods and services procured on the local 
market for the needs of these activities are exempt from VAT.  Holders of an exploitation concession 
                                                     
 
46 SAMIR is a 64.73 per cent-owned subsidiary of Corral Holding AB (a Swedish-law company with 
Saudi capital), the balance being held by various share holders.  SAMIR is also engaged in LPG filling and in 
manufacturing lubricating oils. 
47 Dahir No. 1-91-118 of 1 April 1992, enacting Law No. 21-90 on the exploration and exploitation of 
hydrocarbon deposits and Dahir No. 1-99-340 of 15 February 2000, enacting Law No. 27-99 amending and supplementing Law No. 21-90. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 95 
 
 
benefit from exemption from the taxe professionnelle  (professional tax), which, in January 2008, 
replaced the impôt des patentes  (business tax), and from the taxe d'habitation  (local tax), which, in 
January 2008, replaced the taxe urbaine  (urban tax).  The profits and dividends of exploitation 
concession holders and those of shareholders in co ncessionaire enterprises are not taxed.  The annual 
royalty and the surface rental can be deducted from taxable income.  At importation, customs duties 
and the domestic consumption tax (TIC) applicable to crude petroleum and bituminous mineral oils 
intended for refining have been suspended since 19 95. No restrictions on movements of capital are 
being applied. 
78. To determine the selling prices of petroleum products on the domestic market, Morocco uses, 
in principle, a system that involves international pr ice fluctuations being passed on to domestic prices 
through a monthly indexation for gas and a two-w eekly indexation for liquid petroleum products.  
However, the use of this system has been suspended since 1999. 
79. The maximum basic consumer selling prices for liquid fuels are calculated on the basis of 
ceiling prices (e.g. the ex-refinery price), in accordan ce with the pre-established price structure.  They 
include wholesale distribution margins, retail margin s, a special margin for financing liquid-fuel 
safety stocks48, and a provision for the Mohammedia/Sidi-Kacem differential49 all fixed by Ministerial 
Order.50  The ex-refinery prices of petroleum products are calculated on the 1st and 16th of each month. 
80. Since July 2002, Morocco has b een updating the various elements of its price structure, has 
reduced the adjustment coefficient (used to calcula te ceiling prices) from 6.5 to 2.5 per cent and has 
increased distribution margins.  Mo rocco has taken measures such as the suspension of customs duties 
on refined products and the reduction to 2.5 per cent of the customs duties applied to LPG, as well as 
abolishing the TIC applicable to petroleum c oke and fuel oil intended for power generation 
(Section (3)(ii)(c)).  For the purpose of alignment on international standards, Morocco has revised the 
list of marketable products.  Thus, diesel 350 (i.e . low-sulphur diesel) marketed in August 2002 was 
replaced in 2009 by diesel 50 ppm.  Two-star petr ol and paraffin have not been marketed since 
July 2005 and August 2006, respectively.  As from 2009, only two fuels are being marketed through 
the national service station network:  di esel 50 ppm. sulphur and unleaded super. 
81. The State continues to subsidize, through th e Compensation Fund, the consumption of liquid 
and gaseous petroleum products.  Since 2003 (i.e. th e beginning of the steady rise in the price of 
crude), the State has regularly intervened to absorb , each month, wholly or in part, the increases due 
to the application of the indexation formula.  As distinct from petroleum products, the support for 
butane gas is provided on a permanent basis.  In 2006, the State supported the price of butane gas at 
55 per cent of the ex-refinery price  (i.e. DH 50 per 12 kg. bottle and DH 13 per 3 kg. bottle);  the price 
of butane gas is determined by the State.  The amount disbursed by the Compensation Fund rose from 
DH 3.7 billion in 2004 to DH 10.7 billion in 2007.   In 2008, about DH 13 billion was budgeted for 
subsidizing petroleum and gas products.  Howe ver, subsidy requirements were estimated at 
DH 23 billion.  In 2008, it was decided to create a special fund to offset the soaring price of 
petroleum.  Saudi Arabia and the United Arab Emirates were to channel US$800 million into this 
fund. 
                                                      
48 However, this margin is currently fixed at DH 0. 
49 This differential is collected on behalf of th e Compensation Fund and is used to reimburse the 
Sidi Kacem refinery for the cost of  transporting crude oil from Mohammedia to Sidi Kacem (annual maximum 
DH 40 million) and the distribution companies for the cost (DH 35 million maximum) of transporting super, diesel and diesel 350 fr om the zero zone of Mohammedia to Sidi Kacem. 
50 Order of the Minister responsible to the Prime Minister for economic and general affairs, 
No. 2380-06 of 23 October 2006 concerning the fixing of the ex-refinery and selling prices of liquid fuels and butane, as amended. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 96 
 
 
82. Refiners are required to build up and keep a saf ety reserve of crude petroleum equivalent to 
the monthly average of their total sales of refine d products on the domestic market.  In the case of 
distribution companies, the safety reserve must repres ent the equivalent, by prod uct, of two and a half 
times the monthly average sales on the domestic market.51 
(b) Natural gas 
83. According to ONHYM, Morocco's natural gas reserves amount to 1.7 billion m3.  Although 
increasing, gas production in Morocco was only about 60 million m3 (of natural gas) in 2007.  
However, Morocco has access to Algeri an natural gas thanks to the fee (which it collects in kind) for 
transit through the Maghreb-Europe Gas Pipeline (GME).   In order to diversify the sources and reduce 
the cost of energy, the Government is seeking to encourage natural gas consumption.  The gas plan 
(finalized in 2004) aims to meet, by 2020, 14 per ce nt of the domestic demand for energy;  domestic 
consumption is expected to reach nearly 5 billion m3, with 3 billion m3 being used for power 
generation. 
84. In 2005, the annual transport capacity of the Moroccan leg of the GME was increased from 
8.5 to 12.5 billion m3.  In 2007, the in-kind transit fee totalled 756 million m3 of gas, of which 
480 million m3 was used to fire the Tahaddart power sta tion (Section (3)(ii)(c));  the difference was 
collected in foreign exchange.  In 2005, techni cal and financial feasibility studies for a liquefied 
natural gas terminal were carried out.  A draft gas code has been drawn up.52 
85. Gas exploitation concessions are subject to th e payment of a royalty.  However, the 
production of the first 300 million m3 from concessions situated onshore or offshore at a seawater 
depth of not more than 200 metres, a nd the production of the first 500 million m3 from concessions 
situated offshore at a seawater depth of more th an 200 metres, are exempt.  Beyond that, the rate is 
fixed at 5 and 3.5 per cent, respectively.  Th e same incentives are accorded to gas production as are 
accorded to petroleum production (Section (3)(ii)(a)). 
86. ONHYM prospects for and produces natural gas in partnership with nati onal and international 
private operators.  The modest output achieved so  far is sold by ONHYM to the OCP, for drying 
phosphates, and to a sugar factory.  The only transport activity is that through the GME, carried on by 
the company Europe Maghreb Pipeline Limited (E MPL).  The GME (i.e. the 520 km. stretch on 
Moroccan territory) is operated, maintained a nd monitored by the company METRAGAZ based in 
Tangiers.  There is currently no distribution activity in Morocco. 
(c) Electricity 
87. The electricity produced comes mainly from th ermal sources (92 per cent in 2007), but also 
from hydroelectric (6.7 per cent, including STEP53) and wind power (1.4 per cent) sources 
(Table IV.5).  The main resources used for therma l generation are coal (64 per cent in 2007), followed 
by fuel oil (14 per cent) and natural gas (14.4 per cent).  The use of natural gas for generating 
electricity dates from 2005, the year in which the first combined-cycle power station at Tahaddart, 
which burns gas from the GME (Section (3)(ii)(b )), was commissioned.  A combined-cycle 
thermo-solar power station using natural gas ( 452 MW) and a solar array (20 MW), as well as a wind 
farm (140 MW), are being built and are scheduled to come into service in 2009. 
                                                      
51 Order of the Minister of Trade, Industry, Mining and Merchant Marine No. 393-76 of 
17 February 1977, concerning safety stocks of petroleum products. 
52 Ministry of Energy, Mining, Water and the Environment, online information, Hydrocarbures  
(Hydrocarbons).  Viewed a t:  http://www.mem.gov.ma/Realis ations/hydrocarbures.htm. 
53 STEP stands for Station de transfert d'énergie par pompage  (Pumped Energy Transfer Station). Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 97 
 
 
88. Electricity is generated by the Office national de l'électricité  - ONE (National Electricity 
Board) and private concessionaires (JLEC, CED, and EET)54;  transport is the exclusive responsibility 
of the ONE.55  Where private concessions are concerne d, the ONE gives a purchase guarantee.  
Electricity is distributed by the ONE (45 per cent of the domestic market), the municipal electricity 
boards and private distribution companies.  The Stat e's share of electricity generation has fallen to 
about 35 per cent. 
89. Law No. 16-0856, enacted in October 2008, raised th e self-generation threshold from 10 to 
50 MW.  The ONE still has a monopoly on the installati on of means of production of electrical energy 
with a capacity of more than 50 MW.  However, it is  authorized to conclude agreements with private 
operators for the generation of electricity in excess of 50 MW under concession, provided that the 
generator supplies the power generated exclusivel y to the ONE and the economic balance clauses in 
the agreement are respected.57  In such cases, competitive tendering is compulsory.  The ONE is also 
authorized to enter into private contracts with producers for the concession of electricity generation 
from domestic energy sources (fossil or renewable)  for their own use, any surplus being sold 
exclusively to the ONE.  
Table IV.5 
Electricity generation, 2002-2008 
 2002 2003 2004 2005 2006 2007 2008a 
Net electricity generation utilized (GWh.) 15,339.6 16,779.1 17, 945.3 19,518.4 21,104. 6 22,608.1 24,002.8 
 Generated by ONE: 4,537.1 5,776.5 6,251.9 6,439.9 5,935.0 6,087.9 6,689.0 
  Hydroelectric 842.0 1,441.1 1,600.3 1,411.9 1,585.3 1,318.1 1,359.5 
  Energy absorbed by STEP   -9.6 -496.1 -728.1 -528.7 -574.5 
  Thermal 3,680.7 4,320.6 4,648.1 5,508.7 5,068.8 5,201.8 5,758.4 
  Wind power 14.4 14.8 13.1 15.4 9.0 96.7 145.6 
 Domestic third parties 84.2 44.9 76.3 85.5 39.5 32.5 40.0 
 Energy exchange 1,392.4 1,437.9 1,534.9 813.7 2,026.8 3,506.5 4,261.4 
 Generated by JLEC 9,386.9 9,375.2 9,936.3 10,027.9 10,472.7 10,016.4 10,022.1 
 Generated by CED 179.5 188.0 185.8 190.9 174.2 182.2 152.6 
 Generated by EET n.a. n.a. n.a. 2,003.3 2,512.3 2,823.0 2,867.4 
 Internal consumption -40.5 -43.4 -39.9 -42.8 -55.9 -40.4 -29.7 
n.a. Not applicable. 
a Provisional data. 
Source : Ministry of Energy, Mining, Water and the Environment, onl ine information, Électricité (Electricity).  Viewed at:  
http://www.mem.gov.ma/Rea lisations/electricite.h tm;  and information provided by the Moroccan authorities.  
90. A draft law on renewable energy is in process of being approved.  It introduces a legal 
framework for the construction and operation of re newable electrical power generating installations 
by natural or legal persons, public or private.  A ccording to the authorities, a general study is also 
being carried out for the purpose of reorganizing the electricity sector. 
                                                      
54 JLEC stands for Jorf Lasfar Energy Company;  CED for Compa gnie éolienne du Détroit;  and EET 
for Énergie électrique de Tahaddart. 
55 There are also independent generators, such as mining companies and phosphate processing plants, 
which generate electricity mainly for their own need s.  Any surplus can be supplied to the ONE under a 
negotiated agreement. 
56 Dahir No. 1-08-97 of 20 October 2008, enacting Law No. 16-08 amending and supplementing Dahir 
No. 1-63-226 of 5 August 1963establishing the ONE was adopted in July 2008. 
57 Decree-Law No. 2-94-503 of 23 September 1994. WT/TPR/S/217/Rev.1 Trade Policy Review 
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91. The rates at which the ONE sells electricity to its distributor customers (Table IV.6), and the 
rates which the distributors charge the consumer , are examined by an interministerial price 
commission and, in principle, are fixed by regulation.  In the case of distribution by delegated management in the cities of Rabat, Casablanca, Ta ngiers and Tétouan, prices are fixed contractually 
between the commune and the private operator.  Up until 2004, the industrial sector received a 
cumulative rate reduction of about 34 per cent (5 pe r cent in October 1997, 6 per cent in July 1998, 
17 per cent in October 2000 and 6.2 per cent in January 2004).  
92. Within the context of rising fuel prices, the basi c rates for the sale of electricity to customers 
subject to VAT at 14 per cent were increased by 5 cDH/kWh. for very high voltage-high voltage 
(VHV-HV) and medium voltage (MV) as from 1 February 2006, and by 7 per cent for low voltage 
(LV) as from 1 July 2006.  Another rate adjustment entered into force on 1 March 2009, with an average rate of increase of 18 per cent for VHV-HV, 7 per cent for MV and 3 per cent for LV (households excluded). 
93. With a view to reducing generating costs, the domestic consumption tax (TIC) applicable to 
petroleum coke, coal and fuel oil for electricity generation has been progressively eliminated.  This 
measure was accompanied by an increase, as from January 2004, in the rate of VAT on electrical 
energy from 7 to 14 per cent.  In 2005, the natura l gas used by the ONE and concessionaire companies 
for generating electricity at above 10 MW was also exempted from TIC;  this limit has since been 
raised to 50 MW.  The customs tariff on coal impor ts was reduced to 2.5 per cent.  In 2007 and 2008, 
VAT on solar water heating installations was lo wered from 20 to 14 per cent;  the 2009 Finance Law 
reduced customs duties to the minimum rate (2.5 pe r cent) for certain equipment that uses renewable 
energy. 
Table IV.6 
Basic rates for electricity, 2008 
(DH/kWh., all taxes included) 
 Very high voltage High  voltage Medium voltage 
Premium fixed by kVA. per year 121.63 121.63 121.63 
Peak hours (7 a.m. to 10 p.m. GMT) 0.8161 0.8190 0.8341 
Off-peak hours (10 p.m. to 7 a.m. GMT) 0.5007 0.5012 0.5025 
Source : Order of the Minister responsible to the Prime Mi nister for economic and general affairs No. 309-06 of 
14 February 2006, fixing the rates for the sale of electrical  energy supplied by the National Electricity Board to its 
distributor customers. 
94. As a result of the Government's Programme d'électrification rurale globale  - PERG (Global 
Rural Electrification Programme), launched in 1995, the rural electrification level rose from 18 per 
cent in 1995 to 96 per cent in 2008.  
(4) MANUFACTURING SECTOR  
(i) Overview 
95. The contribution of the manufacturing sector  (excluding oil refining and mining and 
quarrying) has declined slightly since 2006 (Chapter I and Table I.1).  In 2006, the most important 
subsectors, in terms of their contribution to sector  value added, were agri-foodstuffs (36 per cent), 
chemicals-parachemicals (33 per cent), textiles-clothing-leather (15 per cent), and mechanical engineering-metallurgy (11 per cent). 
96. The industrial fabric consists of 7,734 units (including 2,475 with foreign shareholdings).  
Foreigners provide 20.54 per cent of the total regi stered capital of industrial enterprises.  The Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 99 
 
 
chemicals and parachemicals subsector alone drains  off about 42 per cent of foreign capital.  The 
processing industries employ about 500,000 people.  The clothing industry (including furs) remains 
the most labour-intensive, with 30 per cent of the total industrial labour force.  Small- and 
medium-sized industry (SMI) continues make an im portant contribution, particularly in terms of 
employment, accounting for 45 per cent of jobs in th e sector;  the textiles and clothing industry comes 
first, followed by chemicals-para chemicals, agri-foodstuffs, mechanical engineering-metallurgy and 
electrical-electronics.58 
97. The Programme  Émergence  now forms the basis for the Government's industrial strategy.  It 
is aimed at revitalizing the industria l fabric and is targeted at six subsectors:  automotive equipment;  
aviation equipment;  specialty electronics;  agri-foodst uffs;  textiles;  and offshoring.  The measures 
planned depend on each specific subsector (see be low).  Subcontracting is being promoted in 
connection with three subsectors:  automotive, el ectronics and aviation, in particular through the 
creation of integrated industrial hubs (P2I).  Th ese hubs offer industrialists various advantages, 
including fiscal and specific, simplified administ ration, and the availability of infrastructure. 
98. Since 2003, several initiatives have been adopted  on behalf of small-  and medium-sized 
enterprises (SMEs).  In November 2002, the Agence nationale de promotion de la petite et moyenne 
entreprise  - ANPME (National Small- and Medium-S ized Enterprise Promotion Agency) was 
established;  among other things, it has made it easier for SMEs to obtain access to credit 
(Chapter III(4)(ii)).  Moreover, sectoral financi ng mechanisms have been set up.  Thus, the Fonds 
national de mise à niveau  - FOMAN (National Upgrade Fund), established in 2003, is providing 
financial support for business upgrading programm es by cofinancing (with the banks) physical 
investment and technical assistance projects.   Financ ing for physical investment is available for up to 
40 per cent of the cost, at an interest rate of 2 per cent (excluding VAT) and with a ceiling of DH 5 million.  Financing for "non-physical" investment is available for up to 80 per cent of the cost of 
the assistance and advice, with a ceiling of DH 400,000.   To be eligible it is necessary to be a private 
industry-sector enterprise or industry-related services en terprise with at least three years of continuous 
activity and a balance sheet total and upgrade programme that do not exceed DH 70 million and 
DH 25 million, respectively.  In 2002, the Fonds de restructuration des enterprises du secteur du 
textile et habillement  - FORTEX (Fund for the Restructuring of the Textiles and Clothing Sector) was 
also set up for the textiles and clothing subsector (see below). 
99. In general, various fiscal incentives are available to the manufacturing sector, in particular to 
promote exports (Chapter III(3)(iv) and (4)(ii)).  The sector is allowed a 17 per cent reduction in the 
cost of electricity (medium voltage) and its simple  average tariff protection rate (ISIC, Rev. 2) is 
19.9 per cent.  The highest protection is still accorded  to the processing of food products (average rate 
47.4 per cent), in particular, meat (82.5 per cent), da iry products (64.4 per cen t), bakers' wares (49 per 
cent), wine (49 per cent), and non-alcoholic beverages (48.2 per cent).  The average rate is also still 
relatively high for carpets (35 per cent), meta l furniture and accessories (35 per cent), and wood 
products (30.2 per cent). 
(ii) Textiles and clothing  
100. Textiles and clothing is the most important manufacturing industry subsector in terms of 
exports (22 per cent of industrial exports in 2007), as well as in terms of jobs (206,000 employees, i.e. 
41 per cent of industrial employment).  Its contribution to GDP amounts, on average, to about 5 per 
cent, with a declining trend during the review pe riod (4.5 per cent in 2007).  In 2007, subsector 
production (together with leather) approached DH 25.4  billion (10 per cent of industrial production).  
                                                     
 
58 Ministry of the Economy and Finance (2007a). WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 100 
 
 
Production is strongly oriented towards exports, partic ularly to the EC.  In 2007, investment in the 
subsector reached DH 1.5  billion (i.e. 8.4 per cent of industrial investment).  The subsector is 
characterized by the large proportion of small units (despite a gradual decline from 1,717 in 2002 to 1,398 in 2007) and the concentration of production. 
101. The subsector appears to have recovered from the fall in exports to the EC following the 
dismantling of quotas by the Agreement on Textiles a nd Clothing (ATC).  In 2007, exports amounted 
to DH 16.5 billion.  This performance is partly a ttributable to the implementation of a programme 
agreement (signed in October 2005), dr awn up by the Government and the Association marocaine des 
industries du textile et de l'habillement - AMITH (Moroccan Textile and Clothing Industries 
Association) within the framework of the Programme  Émergence .  This agreement is aimed at 
helping enterprises to make the transition from s ubcontracting to co-contracting and the finished 
product and to adapt to international structural changes.  It provides for the establishment of a 
favourable customs environment through, in partic ular:  the reduction of the customs duties on raw 
materials and inputs to 2.5 per cen t;  customs facilitation measures;  facilitated installation of supply 
and export hubs;  and assistance for new investors. 
102. The subsector also benefited indirectly from the reintroduction by the EC in 2005 of 
safeguard measures in the form of import quotas for textile goods from China.  However, these quotas 
were dismantled in 2008.  For its part, the entry in to force of the FTA with the United States helped, 
in 2006, to increase clothing exports by up to 89 per cent (for woven goods). 
103. A number of incentives are available to the subsector.  Thus, since 2008, the State has 
contributed 10 per cent (as against 20 per cent previously) to the amount invested in projects 
exceeding DH 200 million through the Fonds de promotion des investissements  - FPI (Investment 
Promotion Fund).  Subcontracting benefits from c oncessions, notably under the temporary admission 
for inward processing procedure, which provides for relief from duties and taxes on imports of raw materials (Chapter III(3)(iv)), as well as the free zone  regime (Chapter III(3)(iv)(a)).  Since 2002, the 
subsector has also been able to claim the refund (i n the form of drawback) of the duties and taxes on 
energy for all exports, including those under th e temporary admission for inward processing regime. 
104. A financial contribution is made, in princi ple, through FORTEX.  The Fund was set up 
following the signature, in 2002, of the framework  agreement for 2002-2010 between AMITH and the 
Government.  The agreement on the implementati on of FORTEX was signed in February 2003.  
FORTEX has an overall budget of DH 100 million, th e management of which is entrusted to the 
Caisse centrale de garantie  - CCG (Central Guarantee Fund) or  Dar Ad Damane (DAD).  It is 
intended for financing the restructuring programmes of  textile and clothing enterprises with at least 
three years of continuous activity.  Financing is gran ted for terms of up to 12 years, jointly with the 
CCG or DAD and the Société générale.  FORTEX  finances up to 30 per cent (with a ceiling of 
DH 1.5 million) of the estimated costs, at an annual fixed rate of 2 per cent;  Société générale - up to 
50 per cent, at a negotiated variable  rate;  and the remaining 20 per cen t is provided by the enterprise.  
However, FORTEX does not seem to be functioning in  practice.  Up to 2008, a financial contribution 
was also made through the Hassan II Fund for Econ omic and Social Development (Chapter III(4)(ii)). 
105. Customs duties have also been lowered on woven fabrics (to 25 per cent), yarn (to 17.5 per 
cent) and raw materials and accessories (to 2.5 per cent).  The average tariff rates remain progressive (3.7 per cent for raw materials, and 19.0 and 31 .5 per cent for semi-processed and processed products 
(as against 9.6, 37.5 and 46.4 in 2003), respectively).  Customs duties on textile imports vary from 
2.5 to 35 per cent.  In addition to the agreements w ith the EC and the United States, the subsector also 
benefits from FTAs with partners such as Turkey. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 101 
 
 
(iii) Transport equipment 
106. The automotive sector accounts for more than 5 per cent of industrial GDP (with a turnover of 
about DH 14 billion in 2007 as compared with DH 9 billion in 2000) and contributes 15 per cent to industrial exports (Table IV.7).  The most important  subsector is that which makes parts.  There are 
more than 130 automotive companies (including ab out 100 parts manufacturers) employing a total of 
40,000 people.  The sector has a large number of  enterprises with foreign shareholdings and 
concentration of production is a characteristic featur e.  About 40 per cent of enterprises are located in 
free zones.  
Table IV.7 
Development of the Moroccan automotive sector, 2002-2007 
(DH million) 
 2002 2003 2004 2005 2006 2007 
Production 10,366 11,338 12,256 12,711 13,300 13,900 
Value added 2,766 3,001 3,166 3,634 3,600 3,700 
Exports 5,495 5,840 6,868 9,230 11,130 11,300 
Investment 920 1,024 1,239 1,596 2,000 3,000 
Source : Information provided by the Moroccan authorities. 
107. The Moroccan automotive sector can be divided into two main categories of activity, namely, 
the assembly of private vehicles and light and heavy goods vehicles and subcontracting (i.e., the 
manufacture of motor vehicle parts and the building of bus and coach bodies).  The assembly work is 
done by the assembly units of such makers as DA F, ISUZU, IVECO, MAN, Mercedes, Mitsubishi, 
Nissan, Renault, Scania and Volvo.  After stagnati ng at between 4,000 and 4,50 0 units for more than 
15 years, the production of industrial goods vehicles has developed considerably during the last three 
years to reach about 10,000 units in 2007. 
108. Private and light goods vehicles are assemble d by the plants of the Moroccan Automobile 
Construction Company (SOMACA), which is 80 per cent-owned by Renault59, the rest of the capital 
being held by PSA (Peugeot-Citroën).  Currently, SOMACA is assembling Renault vehicles (Dacia Logan, Kangoo VP, Kangoo VU and Kangoo "7 seater") and PSA vehicles (Citro ën Berlingo, 
Peugeot Partner).  The assembly of private vehicles by Fiat Auto at SOMACA ceased in January 2004.  
Out of a production capacity of 60,000 vehicles a year, SOMACA is currently assembling about 36,000, a proportion of which are exported.  The assembly volume doubled from 18,517 units in 2002 to 36,629 units in 2007. 
109. In January 2008, the Government signed a fra mework agreement with the Renault-Nissan 
alliance for the construction of a new production plant near Tangiers.  It will have an assembly 
capacity of 400,000 vehicles a year by 2013, with 90 per cent being destined for export. 
110. Heavy goods vehicles are assembled by the assembly units of various makers with a presence 
in Morocco.
60  Almost all the vehicles are imported in kit form, with only a low local content ratio.61 
111. There are 60 or so enterprises engaged in subcontracting, which employs nearly 
35,000 people.  These enterprises are mainly located  in the Tangiers Free Zone (ZFT) and along the 
                                                      
59 Renault bought up SOMACA in stages:  34 per cent in September 2003 and early 2004 (part of the 
Moroccan State's holding), 20 per cent in  April 2005 (Fiat's holding), 12 per cent in October 2005 (the rest of 
the Moroccan State's holding) and 14 per cent in 2006 (the private shareholders' holding). 
60 Specifically, Daf, Isuzu, Iveco, MAN, Mercedes, Mitsubishi, Nissan, Renault and Volvo. 
61 Ministry of Finance and Privatization (2005). WT/TPR/S/217/Rev.1 Trade Policy Review 
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Casablanca-Rabat corridor.  About 90 per cent of pr oduction is exported.  The coachwork is done by 
domestic coachbuilders, in association with foreign enterprises.  Units specializing in the manufacture 
of automotive parts produce components such as cable bundles, seat covers, plastic parts, shock 
absorbers, filters, exhaust pipes, and tyres. 
112. The Government considers the automotive sector to  be a strategic part of its industrial policy 
and has identified it as one of the engines of growth in the Programme  Émergence  (Chapter II(3)).  
Within the framework of this Programme, the strategy for the automotive sector is aimed at attracting foreign enterprises.  The ZFT is th e Government's main means of attr acting investment in the sector 
(more than 40 per cent of investments ) (Chapter III(3)(iv)(a)).  At present, some 15 foreign parts 
manufacturers are installe d there.  The Government is also counting on the proximity of the ZFT to 
Port Tanger-Med to reduce logistical costs.  More over, the Government has undertaken to put in place 
sufficient infrastructure capacity to support th e development of the sector by implementing an 
automotive action plan based on the development of inte grated industrial hubs (P2I).  Thus, it is planned 
to create two P2Is dedicated to the manufacture of automotive parts for export:  one at Tangiers 
(Tangiers Automotive City) and the other at Kenitra (Kenitra Automotive City), each on about 
300 hectares and with nearly 15,000 jobs by 2015. 
113. Other tax incentives are available to the auto motive sector.  For example, customs duty of 
2.5 per cent is applied to chronotachygraphs used to equip transport vehicles and to goods vehicle 
CKD kits assembled in Morocco.
62  Some incentives are specific to  so-called "economy" vehicles.  
Thus, economy cars and economy light goods vehicles are exempt from customs duty on the products, 
materials, accessories and sets needed to manufact ure them.  Imported economy cars are also exempt 
from customs duty.  VAT is applied at the reduced rate of 7 per cent to economy cars and their inputs 
and at the reduced rate of 14 per cent to economy light goods vehicles (with the right to deduction) 
and their inputs. 
114. The sector is eligible for the Hassan II Fund, wh ich finances 30 and 10 per cent of the cost of 
industrial buildings and new capital equipment, respec tively (Chapter III(4)(ii)), for up to 10 per cent 
of the global investment.  In addition to the ex isting benefits, other m easures are being proposed 
under the Programme  Émergence .  An increase in the amount of s upport provided by the Hassan II 
Fund is also envisaged.  The 60 to 70 per cent local  content requirement applied to the automobile 
assembly industry was abolished in 2004.63 
115. In 2009, the customs duty rates on imports of new vehicles ranged up to as much as 35 per 
cent, with an average of 19.9 per cent.  However,  imported CKD elements are subject to rates of 
2.5 to 10.2 per cent.  The Government is planning a tariff reform based on the gradual elimination of 
the customs duties on all industrial products for 2012. 
(5) SERVICES  
(i) Overview 
116. Services, including those provided by public au thorities, account for a substantial proportion 
of Morocco's GDP (Table I.1).  Trade, trans port, telecommunications, and tourism are among the 
most important sectors.  Within the framework of the WTO's General Agreement on Trade in Services 
(GATS), Morocco has entered into commitment s concerning, among other things, professional 
services, certain business services, value-added telecommunications services, environmental services 
                                                      
62 CKD means "completely knocked down". 
63 By Dahir No. 1-04-155 of 4 November 2004, enacting Law No. 03-04 repealing Law No. 10-81 
governing the motor vehicle assembly industries. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 103 
 
 
and financial and tourism services (see the re levant sections below).  Morocco has not bound 
measures affecting the presence of natural persons , with the exception of certain executive staff, 
experts and trade representatives. 
(ii) Transport 
(a) Road transport 
117. Road transport has the use of a network of 58,000 km. of motorways and roads, of which 
more than 35,000 km. are surfaced.  In 2009, the motorway network had 916 km. of motorways in operation and 483 km. under constructi on.  Internally, most freight is transported by road (about 
75 per cent of total freight flows, excluding phosphates). 
118. The reform of road transport began in 2000 with the launch of an upgrading programme 
which led to the enactment of Law No. 16/99, in force since March 2003.
64  Among other things, this 
Law abolished the haulage monopoly of the Office national des transports  - ONT (National Transport 
Board) and liberalized the transport of goods by ro ad.  Moreover, transport using lorries of less than 
8 tonnes TLW (which accounted for more than a third of the global supply and operated mainly in the 
informal sector) was integrated into the organized sector.  In June 2006, average reference costs for the 
road transport of goods on behalf of third parties were introduced and published.  According to the 
authorities, they are intended to inform and guide the various stake holders (i.e. shippers, forwarders 
and operators).  The provision requiring Moroccan na tionality for engaging in transport activities was 
amended in March 2006.  Since then, these activities can  also be pursued by nationals of States with 
which Morocco has concluded an FTA.65  On 1 January 2007, the ONT was converted into the Société 
nationale des transports et de la logistique  - SNTL (National Transport and Logistics Company), a 
limited company with public capital (100 per cent ).66   
119. According to statistics published in March 2008, the number of new road haulage enterprises 
established since the reform began in March 2003 am ounted to 11,040.  To these should be added the 
20,000 already operating at the time.  Nevertheless, road transport remains characterized by its fragmentation and the predominance of the informal sector, 80 per cent of enterprises having a fleet of 
fewer than three lorries.  Moreover, 88.6 per cent of newly established enterprises are sole traders and 
only 10 per cent are registered as "SARLs" (limited liability companies).  During the same period, some 69,828 lorries were registered;  32,432 of less than 8 tonnes were integrated into the formal 
sector. 
120. The bilateral agreements conc luded between Morocco and its partners specify the prior 
authorization regime for international road trans port (TIR) operations.  Authorization quotas are fixed 
by joint commissions.  Thus, carnets authorizing move ment within the national territory are issued to 
foreign carriers by the ADII border customs office, to  cover transport to the destination of the goods 
declared.  Return loads are prohibited, except where authorized by the government authority 
responsible for transport.  However, for ve hicles from countries with which Morocco has not 
concluded agreements, a fee of DH 10 per tonne  total permissible laden weight per day
67 must be paid 
at the border office.  Nevertheless, Moroccan partic ipation in international road transport is still 
                                                      
64 Dahir No. 1-00-23 of 15 February 2000, enacting Law No. 16-99 amending and supplementing Dahir 
No. 1-63-260 of 12 November 1963 on road transport by motor vehicle. 
65 Dahir No. 1-06-55 of 14 February 2006, enacting Law No. 48-05 supplementing Dahir No. 1-63-260 
of 12 November 1963 on road transport by motor vehicle. 
66 Dahir No.1-05-59 of 23 November 2005, enacting Law No. 25-02 on the establishment of the 
National Transport and Logistics Company and the winding up of the National Transport Board. 
67 Circular No. 4955/312 of the Ministry of Finance and Privatization of 14 September 2005. WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 104 
 
 
limited.  According to the authorities, this is due, in particular, to the increasing difficulties faced by 
Moroccan drivers in obtaining visas and the numerous authorizations required, together with the 
related costs. 
121. In order to lower transport costs, the Government  is continuing to provide various tax breaks, 
such as exemption from VAT on international transpor t operations and the supply of related services;  
exemption from VAT on imported coaches, lorries a nd equipment needed for international road 
transport activities;  exemption from VAT on purch ases of coaches, lorries and related capital goods;  
imposition of a minimum customs tariff (2.5 per cent ) on imports of trailers for the transport of 
textiles and clothing products for export;  and ref und of VAT on the diesel fuel used by public road 
transport companies and enterprises engaged in th e road transport of goods on their own account. 
122. The prices for transporting goods by road  were liberalized in February 2004.68  Passenger 
road transport fares are fixed by ministerial order.69 
123. The annual tax on private goods transport for the benefit of the ONT, which varied from 
DH 275 to DH 7,560 (depending on the weight)70 and the ad valorem  tax71 levied by the ONT were 
abolished in 2004.  The axle tax w as amended by the 2004 Finance Law.  Thus, motor vehicles for the 
transport of goods and passengers are subject to th e payment of an axle tax that varies between 
DH 800 and DH 11,000 per annum depending on the tota l laden weight (TLW).  The other taxes 
currently being applied to the transport of goods a nd passengers by road are the annual load tax on 
road vehicles for the transport of goods on own account whose TLW exceeds 3.5 tonnes (DH 20/tonne);  the urban tax on coaches for the public transport of passengers for the benefit of local 
authorities (depending on the nature of the coach and amounting to about DH 500 per year)
72;  and the 
temporary admission tax on vehicles registered ab road when entering Morocco under the temporary 
admission procedure. 
(b) Rail transport 
124. The Moroccan rail network covers 1,989 km., of  which 1,014 km. are electrified and 600 km. 
dual-track.  In 2007, freight transport amounted to 35.9 million tonnes (as compared with 29.8 million 
tonnes in 2002), of which about three quarters relate d to the transport of phosphates.  A total of 
26.1 million passengers were carri ed, up from 14.7 million in 2002. 
125. The State still retains a monopoly on the construc tion, operation and management of railroads 
through the Office national des chemins de fer  - ONCF (National Railway Board).  Passenger 
transport, freight (other than phosphate) transpor t, and phosphate trans port account for 34, 15 and 
                                                      
68 Ministerial Order No. 2159-03 of 8 December 2003 on the withdrawal of freight transport by road 
from the list of products and services annexed to Decree No. 2-00-854 of 17 September 2001, implementing 
Law No. 06-99 on free pricing and competition. 
69 Order of the Minister of Transport No. 2445-96 of 2 December 1996, fixing the maximum rates for 
passenger transport and parcel delivery services by motor coach. 
70 Decree No. 2-03-700 of 31 D ecember 2003, repealing Decree No. 2- 64-534 of 26 December 1964 
instituting a tax on motor vehicles and combinations of vehicles used for the private transport of goods. 
71 This refers to the ad valorem  tax of 2 to 3 per thousand on a ll goods according to the number of 
kilometres, with a minimum levy of DH 4.5 and a maximum of DH 7.50 or 12.50 per delivery/per tonne 
depending on whether the distance is more or less than 150 km., with the exception of cereals (1.5 per thousand, 
with a minimum of DH 3 per consignment/per tonne), sugar (1.5 per thousand, with a flat rate of DH 3 per consignment/per tonne) and mineral ore (1 per thousand and a minimum of DH 4 per consignment/per tonne).  
Source :  Order of the Minister of Tran sport No. 2446-96 of 2 December 1 996, fixing the maximum rates for 
freight transport by lorry. 
72 Fees are charged for the use of and transit throug h coach terminal infrastructure, where it exists.   Kingdom of Morocco WT/TPR/S/217/Rev.1 
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51 per cent of ONCF income, respectively.  Rail transport prices have been liberalized since 
June 2002.73  Passenger traffic revenue increased gradually from DH 540 million in 2002 to 
970.4 million in 2007, and freight revenue  from DH 1.4 billion to 2.9 billion. 
126. To overcome the difficulties facing this mode of transport, such as the lack of resources for 
extending the network, the Government is in the process of making substantial investments in the 
sector, as well restructuring the ONCF to facilitate  the participation of the private sector in 
construction and operation.  Under the programme  agreement 2005-2009 between the Government 
and the ONCF, it is intended to invest DH 18 billion. 
127. In 2005, the regulatory framework was also renewed by the adoption of Law No. 52-03.74  
This law provides for the opening up of the sector to competition by authorizing the entry of new 
operators.  It specifies, among other things, the railw ay activities that can be entrusted to enterprises 
through concession agreements concluded with the State (such as the management of the 
infrastructure of a particular part of the network or its construction and/or operation).  Technical and 
commercial operation can also be carried out under a rail transport operating licence issued by the 
State.  In this case, the operator must conclude an  agreement for the use of the rail infrastructure with 
the infrastructure manager concerned. 
128. Law No. 52-03 also provides for the establishment of the Société marocaine des chemins de 
fer - SMCF (Moroccan Railway Company), a 100 per cent State-owned public limited company 
which will replace the ONCF.  It will take charge, under a 50-year concession agreement, of the management of the rail infrastructure and its tec hnical and commercial operation, including the supply 
of rail transport services.  The SMCF will have sole authority to conclude the above-mentioned 
agreements with third parties a nd to issue technical and commercial operating licences for the part of 
the rail network forming the subject of the concession .  The agreement stipulates the conditions of use 
of the infrastructure, as well as the remuneration to be received by the SMCF.  Agreements and 
licences may be concluded or granted only in the case of a service that complements the tasks assigned to the SMCF or where the latter considers that the service provider can carry out those tasks 
more advantageously than it can itself. 
129. Since 2002, within the context of the reform  of the sector, the ONCF has withdrawn from 
ancillary activities such as hotels, internal pension fund, security and surveillance, cleaning of stations 
and rolling stock, third-party civil liability insura nce, industrial accident compensation, printing, and 
express baggage and parcels.  Studies are being cond ucted with a view to making it possible to begin 
transferring to the private sector other more comp lex ancillary activities, in cluding rolling stock and 
infrastructure maintenance. 
(c) Maritime transport 
130. Maritime transport is of primordial importance for Morocco's economy - about 98 per cent of 
foreign trade transits by sea.  Almost all of Moroccan  maritime traffic consists of international trade 
activities, the rest being domestic cabotage traffic (mainly petroleum products).  In 2008, the 
Moroccan flag fleet was composed of 33  units with a deadweight capacity of 248,000 tonnes (DWT), 
including 112,000 DWT for oil and ch emical tankers;  67.6 million t onnes of merchandise freight was 
transported (as compared with 57 million in 2002).  The share of foreign trade carried by Moroccan 
                                                     
 
73 Ministerial Order No. 571-02 of 25 March 2002 on the withdrawal of passenger and freight transport 
by rail from the list of products and services annexed to Decree No. 2-00-854 of 17 September 2001 
implementing Law No. 06-99 on pricing freedom and competition. 
74 Dahir No. 1-04-256 of 7 January 2005, enacting Law No. 52-03 on the organization, management 
and operation of the national rail network. WT/TPR/S/217/Rev.1 Trade Policy Review 
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vessels rose from 10.6 per cent in 2001  to 14.5 per cent in 2006, and then to 12.5 per cent in 2007.  
There are several reasons why this share is low includi ng, in particular, the relatively small scale of most 
Moroccan operators, the technical c ondition of the fleet and the attenda nt high operating costs, and the 
rise in hydrocarbons prices. 
131. To remedy the situation, in 200675 the Government began the process of reforming maritime 
transport76 with a view to liberalizing the transport of freight on regular routes;  the reform process 
extended from May 2006 to July 2007 and involved thr ee stages of liberalization.  The first, which 
entered into force on 30 May 2006, abolished th e restraints imposed on Moroccan flag vessels by 
allowing them to operate freely, without prior author ization, on all maritime routes without restriction 
and by guaranteeing them the right to resort to chartering at any time to respond to market 
opportunities.  The second stage, which entered in to force on 1 July 2006, allowed all vessels 
(self-owned or chartered), irrespective of the flag , to operate direct services from and/or to Moroccan 
ports without restrictions or prior authorization.   The third stage, which entered into force on 
1 July 2007 (i.e. the effective date of total frei ght liberalization), also allowed foreign flag vessels 
(self-owned or chartered) freely to operate wa yport and transhipment services from and/or to 
Moroccan ports.  The shipowners are simply require d to give the merchant marine authority prior 
notice of the opening of new services;  the previ ous authorization procedures have been abolished.77  
Since the circular, some 40 new services (mainly fo r transhipment) have been initiated by domestic 
and foreign companies.78 
132. In 2008, there were 11 Moroccan maritime tran sport companies operating 33 units under the 
Moroccan flag.  In 2007, three private Moroccan shi pping lines shared more than two thirds of the 
traffic carried by Moro ccan companies:  the Compagnie marocaine de la navigation  - COMANAV 
(Moroccan Navigation Company), the International Maritime Transport Corporation (IMTC) and the 
Mediterranean Shipping Company (MSC Maroc).  COMANAV, Morocco's leading maritime carrier, 
was restructured and then privatized in 2007.79  At the time of privatization, it owned and operated a 
fleet of ten vessels, employed more than 1, 500 people and was the foremost cargo handler in 
Morocco, with 35 per cent of the shares being held by Moroccan shipowners. 
133. Maritime transport rates are fixed by the shippi ng companies themselves.  The intervention of 
the merchant marine authority is restricted to the regulation of the sector, safety controls, and the registration of units and seafarers.  To fly the Moroccan flag, the vessel must have its port of registry in Morocco;  there are also nationality requirements to be met.  Thus, in the case of natural persons, the 
vessel must be 75 per cent owned by Moroccans, and in the case of legal persons, the majority of the 
members of the board of directors or supervisory board must be of Moroccan nationality.  Moreover, the 
                                                     
 
75 Circular of the Minister of Infrastructure and Transport No. 51/Sec Min/2006 of 30 May 2006. 
76 The reform of passenger maritime transport, wh ich formed the subject of Ministerial Circular 
No. 82 of 23 March 2007, envisages liberalization based on the introduction of specifications that establish 
criteria and conditions to be met by every operator.  Fis cal measures are envisaged.  Shipowners and operators 
will have to make a formal commitment to provide the service proposed to a certain standard and for a minimum 
period of three years.  A draft law organizing shipping agency and ship brokerage services is in process of 
adoption.  Moreover, a draft law aimed at liberalizin g the chartering of foreign vessels was adopted in 
July 2008. 
77 Ministry of Infrastructure and Transport, online information, press release, Réforme du transport 
maritime:  Rappel des objectifs et synthèse des premiers résultats , 31 July 2007 (Reform of maritime transport:  
Restatement of objectives and ou tline of initial results).  Viewed at:  http://www.mtpnet.gov.ma/MET_ 
New/Fr/MenuServices/Actualites/De tailArticles.htm?Id=73&type=2. 
78 Ministry of Infrastructure and Transport, online information, 2002-2007:  Cinq années de grands 
chantiers et de réformes dans les secteurs de l'équipement et du transport  (Five years of major endeavours and 
reforms in the infrastructure and tr ansport sectors), March 2008, Rabat. 
79 COMANAV was taken over by the French  maritime transport group CMA CGM. Kingdom of Morocco WT/TPR/S/217/Rev.1 
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chairman of the board of directors, the CEO or the managing director must be Moroccan.  However, by 
way of derogation, a vessel belonging to foreign na tionals or a foreign company may fly the Moroccan 
flag if it has its port of registry in Tangiers, belong s to private individuals domiciled in Morocco or to a 
company having its registered office s in Tangiers or owning a subsidiary  which has its re gistered offices 
in that port, and puts into the port of Tangiers at l east once every six months.  Nationality requirements 
also apply to the crew.  Thus, half the crew (incl uding the captain and officers) must be of Moroccan 
nationality in the case of merc hant ships and harbour vessels.80  Moreover, the captai n and officers must 
be of Moroccan nationality to be able to exercise  their profession on board a Moroccan flag vessel.  
Cabotage is reserved exclusively for the national flag.81 
134. The port subsector consists of 35 ports (inc luding Tanger-Med, see below), of which 13 are 
commercial ports, 17 fishing ports (plus five fishing havens) and five marinas.  The total volume of 
trade through Moroccan ports rose from 57 million tonnes in 2002 to 67.6 million tonnes in 2008.  
Port traffic is dominated by imports (41.4 million tonnes, as compared with 26.1 million tonnes for 
exports).  The port of Casablanca alone handles near ly 40 per cent of the traffic and 37 per cent of 
turnover.  Around 4 million passengers transit through Moroccan ports each year. 
135. The port subsector has also been reformed to  improve the competitiveness of Moroccan ports 
by restructuring their organization and abolishing the de facto monopoly exercised by the Office 
d'exploitation des ports  - ODEP (Port Operations Board) and the oligopoly exercised by the cargo 
handling companies in orde r to bring down costs82, as well as by improving quality and security.  In 
particular, the reforms begun in December 2006 invol ved institutional restructuring (see below), the 
introduction of "unified handling" in four ports  (including the port of Casablanca), which should 
result in the elimination of the dislocation in  responsibility between ship and shore, greater 
productivity, shorter stays in port, lower port charges,  and the abolition of hiring centres.  Moreover, 
in order to introduce competition into the por t of Casablanca, a second handling operator 
(SOMAPORT) has been constituted from the stevedoring companies operating in the port.  Since 
March 2007, the Agence nationale des ports  - ANP (National Ports Ag ency) has been publishing 
public provisional ceiling tariffs for the port of Casablanca. 
136. The legislative framework was modernized by  the adoption of Law No. 15-02 concerning 
ports and establishing the ANP and the Société d'exploitation des ports  - SODEP (Port Operations 
Company), which entered into force on 5 December 2006.83  A "road map" for the port of Casablanca 
was signed on 14 December 2007.  Its objective is to speed up the development of infrastructure and 
equipment, as well as to improve operational performance, in particul ar, by reorganizing the operation 
of the port, simplifying procedures, and optimizing the information loop. 
137. Within the context of these reforms, the co mmercial and authority functions have been 
separated as a result of the establishment of the ANP and the SODEP, which emerged from the 
breakup of the ODEP.  The ANP (a public body) is  responsible for regulating the sector, granting 
concessions and permits to exercise port activiti es, and maintaining and modernizing the port 
infrastructure.  The ANP's responsibilities extend to all Morocco's ports, with the exception of the port 
                                                      
80 Order of the Viziriel of 7 April 1934, establishing the proportion of sailors of Moroccan nationality 
required to sail on board Moroccan flag vessels, as  amended by Decree No. 2-61-174 of 30 May 1961. 
81 Decree No. 2-60-389 of 25 February 1961, establishing the requirements for commanding and 
performing the functions of deck officer and engineering officer on board merchant ships and fishing vessels. 
82 The World Bank considered that port charges were particularly high compared with those in Europe, 
and that the crossing times for the Straits of Gibr altar were too long.  Source:  World Bank (2006). 
83 Dahir No. 1-05-146 of 23 November 2005, enacting Law No. 15-02 concerning ports and establishing 
the National Ports Agency and th e Port Operations Company. WT/TPR/S/217/Rev.1 Trade Policy Review 
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of the Tanger-Med special development zone.84  ODEP's commercial activities (such as handling and 
warehousing) have been taken over by SODEP, a pu blicly owned limited company.  SODEP's capital 
will be open to the private sector.  The ANP will au thorize other entities to exercise these activities, 
which would eliminate the port operations monopoly. 
138. The progressive commissioning of a new port complex (Tanger-Med I and II) has been under 
way since the summer of 2007 with the entry into oper ation of Tanger-Med I, with an annual capacity 
of 3.5 million TEU (20-foot equivalent units), co rresponding to 8.5 million c ontainers.  It abuts on 
logistical, commercial and industrial free zones (C hapter III(3)(iv)(a)).  By 2015, the Tanger-Med 
(I and II) port complex should reach its full capacity  of 8 million containers, 7 million passengers, 
700,000 lorries, 2 million vehicles and 10 million tonn es of petroleum products.  Tanger-Med II (an 
extension of Tanger-Med I) will have a capacity  of 5 million TEU and should become operational 
in 2012.  Tanger-Med will concentrate mainly on container transhipment activities.  It will also 
include a hydrocarbons terminal and a rail term inal, scheduled to come into service in 2009. 
139. Tanger-Med is under the authority of th e specialized agency TMSA (Special 
Tangiers-Mediterranean Port Agency), establishe d in September 2002.  The TMSA is a limited 
company directly controlled by the State thr ough the Hassan II Fund for Economic and Social 
Development and endowed with the public prerogati ves deemed necessary for the implementation of 
the Tanger-Med project, such as those of a port author ity and free zone authority.  Thus, the TMSA is 
responsible for land use management and urban plan ning within the special development zone, which 
covers an area of 500 km.² around the Tanger-Med port.   It is exempt from the payment of corporation 
tax and qualifies, together with the companies involved in the realization of the project, for the 
concessions granted to free zone (ZFE) enterprises (Chapter III(3)(iv)(a)).  Tanger-Med is exempt 
from VAT. 
140. Some port activities are undertaken by private companies.  These include ship chandling, 
security, refuse collection and ship cleaning, refue lling, and scrap metal recovery.  Other activities, 
such as pilotage, towage, berthing, onboard handl ing, lighterage, cargo trimming, tallying, and 
bagging, are also exercised by private companies, in addition to the SODEP. 
141. The following charges and taxes on port servi ces are collected by th e ANP:  port dues for 
vessels;  port dues for goods and passenge rs;  and dues for fisheries products. 
(d) Air transport 
142. In 2008, Morocco had 18 international airports and six secondary airport hubs.  The country is 
served by 128 airlines, with 63  foreign  companies (as compared with 54 in 2002) and four domestic 
companies (including the national airline Royal Air Maroc (RAM)) offering scheduled flights.  
In 2008, a total of 12.9 million passengers (as compar ed with 7 million in 2001) were carried in air 
traffic, nearly 60 per cent by Mo roccan companies, together with 62.9 million tonnes of freight (as 
compared with 49.2 million tonnes in 2001), about 50 per cent by Moroccan companies.  In 2007, 
12.3 per cent of passenger traffic was carried by char ter flights, which was less than in 2006 (15.4 per 
cent) due to the expansion of scheduled flights.  In 2008, passenger traffic increased by 6 per cent. 
143. The expansion of air traffic is the result of Government policy, as defined in the Strategic 
Plan for 2004-2007.  The plan was aimed at increasing airport capacity to support the tourism strategy 
(Section (5)(iii));  adapting the level of security  to meet international requirements and improving 
airport safety;  improving the quality of the services offered and the performance of the Office 
national des aéroports  - ONDA (National Airports Board);  and continuing the process of opening up 
                                                      
84 Article 32 of Law No. 15-02 relating to ports. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 109 
 
 
to international competition.  In this respect, the main achievements relate to the automation of air 
traffic control, air navigation equipment, the saf ety and security programme, the integrated airport 
management system, the introduction of a quality management system with ISO-9001, version 2000 
certification of the six main airports (Agadir, Ma rrakesh, Rabat-Salé, Fez, Tangiers and Oujda) and 
continuation of the certification of Mohammed V air port, and the constructi on and/or refurbishment 
of terminal buildings.  With regard to the air port infrastructure, ONDA has almost doubled airport 
capacity, which increased from 12 million passengers in 2004 to 20 million passengers in 2007;  it is 
planned to raise this capacity to 36 million by 2012. 
144. A new Strategic Plan for 2008-2012 is now following on from that for 2004-2007.  In 
particular, it seeks to achieve integration into the European area and participation in the European 
Galileo satellite programme, the deve lopment of Casablanca airport as an international hub, and an 
improvement in the quality of airport services.  The investment of DH 10.7 billion is planned. 
145. To implement the Plan for 2004-2007, ONDA (a public body) invested about 
DH 3,700 million in various projects, which mainly involved the extension and/or refurbishment of 
existing airports, together with the replacement of airport equipment/modernization of airport 
infrastructure.  The Government has also pursu ed a policy of opening up routes to "low-cost" 
companies85 and has an "open skies" agreement with  the EC (see below).  In 2006, a second 
Moroccan low-cost company, Jet4You, was established (the first being Atlas Blue, a subsidiary of 
RAM).  At the end of 2007, the low-cost market  share was 38.5 per cent in terms of passengers 
transported (up by 48.6 per cent on 2006).  The Mo roccan low-cost airlines account for 56.5 per cent 
of this traffic (up by 27.5 per cent on 2006). 
146. Since 2005, ONDA has introduced an incentives policy to develop air traffic.  These 
measures will remain in effect  until 2012 and include re ductions of up to 100 pe r cent on certain types 
of airport fees for establishing new routes or incr easing flight frequencies.  Tax reductions (ranging 
from 5 to 20 per cent) are also granted dependi ng on the number of movements per year on the 
international network within the context of majo r account measures.  Tax reductions ranging from 
2 to 6 per cent are granted depending on the f light volumes handled by each airport, as volume 
incentives.  Reductions in fees are also being offere d to develop Casablanca airport as an international 
hub.  In 2009, new fare incentives were introduced to encourage the development of regional traffic, 
boost both charter and scheduled traffic during th e period from midnight to 6 a.m. and promote 
charter traffic through concessions aligned on those a ccorded to scheduled traffic for establishing new 
routes and expanding services. 
147. The Moroccan State remains a significant presen ce in the sector.  Its shareholding in RAM 
amounted to 95.94 per cent in December 2008.  In  2007, RAM's shares of total passenger and freight 
traffic were estimated at about 45.4 per cent (in a ddition to the 12 per cent of its subsidiary Atlas 
Blue) and 47.7 per cent, respectively.  RAM also  held a monopoly on certain activities such as 
handling and schedule management.  However, since December 2004, a second operator 
(Marhandling) has been providing handling services  in the airports of Casablanca-Mohammed V, 
Marrakesh-Ménara and Agadir-Al Ma ssira.  In 2005, Decree No . 2-05-1399 was adopted;  this 
establishes the conditions for the granting of approval  to enterprises responsible for the provision of 
                                                      
85 Such as Corsair, Air Horizons, Air Europa, Virgin Express, and First Choice. WT/TPR/S/217/Rev.1 Trade Policy Review 
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stopover assistance services.86  Time slots are now managed by a slots committee set up in 
February 2004 by the Ministry of  Infrastructure and Transport.87 
148. Morocco's airports belong to the State.  ONDA manages and operates the airports, with the 
exclusion of their handling, catering, aircraft fuel  distribution and air freight processing and handling 
activities.   
149. Aircraft registered in a foreign State can enga ge in paid activities in Morocco only under the 
terms of agreements or conventions  concluded between Morocco and the State of registration or those 
of a special authorization granted by the Minister of Infrastructure and Transport (MET). 
150. Enterprises may fix their tariffs freely.  These ta riffs are submitted, for information, to the 
aviation authorities two weeks before being applied. 
151. In December 2006, Morocco signed an air trans port agreement with the EU.  The agreement 
entered provisionally into force upon being signed pending ratification by the parties.88  T h i s  
agreement replaced all the previous bilateral avia tion agreements between the Member States of the 
EC and Morocco.  In addition to providing for progr essive market opening, the agreement includes a 
chapter on legislative alignment which obliges Morocco to apply most of the texts of the EC's aviation 
legislation.  As a result of the first phase of the ag reement, European airlines have the right to operate 
in Morocco without restrictions (between any point  in Europe and any point in Morocco).  ONDA has 
also strengthened its ties with its partners , including EUROCONTROL, with which a second 
agreement was signed on 17 October 2007 to accompan y the introduction of the Single European Sky. 
152. Morocco had already signed an open skies agre ement with the United States in October 2001, 
in force since 23 July 2002.  Altogether, Morocco has concluded bilateral ai r transport agreements 
with 82 countries (including the agreement with the EC).  The liberalization programme also provides 
for the total liberalization of air transport betw een the Arab countries as from November 2006.  There 
is code sharing with 11 airlines.89 
153. A draft law on the civil aviation code has be en finalized.  Its main objectives are the 
adaptation of the legal framework to promote air tr ansport, improvements in safety, the investigation 
of accidents, and the protection of passengers and the environment, in conformity with European 
standards. 
(iii) Tourism 
154. Tourism plays a key role in Morocco's economy.  In 2007, revenue from tourism was around 
DH 58.8 billion (9.6 per cent of GDP), i.e. an increas e of 100 per cent as compared with 2001.  It has 
become the largest source of foreign currency, exceeding the transfers made by Moroccan nationals 
resident abroad (DH 55.1 billion in 2007).  In 2007 , some 7.4 million tourists visited Morocco, as 
                                                      
86 Decree No. 2-05-1399 of 2 Decembe r 2005, establishing the conditions  for the granting of approval 
to enterprises responsible for the provision of stopover assistance services in airports. 
87 Circular No. 204/ DAC/DTA of 10 February 2004 concerning the allocation of time slots in 
international airports.  The committee is composed of a representative of ONDA (chair man);  a representative of 
the air carriers committee;  a representa tive of each stopover serv ices provider;  and a re presentative of the Civil 
Aviation Authority. 
88 Twelve EU Member States (Austria, Czech Republic, Finland, France, Hungary, Latvia, Lithuania, 
Malta, Poland, Slovakia, Spain, and Sweden) have ratified it.  In Morocco, the agreement was approved by the 
Government Council on 29 September 2009. 
89 Air Iberia, Air France, Air Senegal International,  Brussels Airlines, Corsairfly, Delta Airlines, 
Egyptair, Emirates, Ittihad, Jeta irfly, and Turkish Airlines. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 111 
 
 
against 4.4 million in 2001.  Among foreign tourists the French make up the largest group, followed 
by the Spanish (Table IV.8).  Tourism generates 420,000 direct jobs (3.8 per cent of the labour force).  
Foreign direct investment (FDI) in tourism has increased considerably, rising from DH 332.4 million 
in 2001 (1 per cent of overall FDI) to DH 7,925. 5 million in 2006 (31 per cent of overall FDI). 
Table IV.8 
Main tourism indicators, 2001-2008 
 2001 2002 2003 2004 2005 2006  2007  2008 
Arrivals at border posts (million): 4.4 4.5 4.8 5.5 5.8 6.6 7.4 7.9 
Moroccans living abroad 2.3 2. 2 2.5 2.8 2.8 3.0 3.4 3.7 
France 0.8 0.9 0.9 1.2 1.3 1.5 1.6 1.7 
Spain 0.2 0.2 0.2 0.3 0.4 0.5 0.5 0.6 
Germany 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.2 
United Kingdom 0.1 0.1 0.1 0.1 0.2 0.3 0.3 0.3 
Italy 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 
Belgium 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 
Other 0.7 0.6 0.6 0.7 0.8 0.9 1.0 1.1 
Nights in classified accommodation 
(million) 12.7 11.3 11.2 13.2 15.2 16.3 16.9 16.5 
Capacity (beds) 97,001 102,097 109,615 119,248 124,270 133,230 143,221 152,936 
Room occupancy rate (%) 48 42 39 43 47 49 48 45 
Excursion revenue (DH million) 29,196 29,159 30,881 34,794 40,967 52,486 58,838 56,598 
Source : Ministry of Tourism, online information, Évolution annuelle des principau x indicateurs touristiques  (Annual 
trends in key tourism indicators).  Viewed at:  http://www.tourism.gov.ma/fra ncais/5-Tourism-chiffres/ 
ChiffresCles.htm;  and information pr ovided by the Moroccan authorities. 
155. The expansion of tourism is the combined result of the Government's tourism and air 
transport (Section (5)(ii)(d)) policies.  The main outlines of tourism policy were laid down in 2001 in 
the so-called Vision 2010 strategy90, which aims to achieve the objective of 10 million visitors in 
2010.  To this end, it is intended to provide for DH 80 to 90 billion of hotel investment and to build 
80,000 additional rooms.  This strategy is expect ed to generate a cumulative total of DH 480 billion 
by 2010, create 600,000 new jobs, and raise tourism' s contribution to GDP to nearly 20 per cent.  The 
strategy is built on six main pillars:  development of tourism products, develo pment of air transport, 
training for tourism professionals, marketing a nd communication, responsible tourism, and 
institutional organization. 
156. The legislation has been revised in order to implement the Vision 2010 strategy.  Thus, the 
main instruments governing the sector, namely, Law No . 61-00 on the status of tourist facilities and 
its implementing decree91, entered into force during 2002.  Since Morocco's previous TPR, new legal 
instruments have also been adopted, including th e new order concerning the classification of tourist 
facilities.92  New specifications establishing the conditions of access to, and exercise of, the activity of 
transporting tourists by road was signed on 10 February 2009.93  This text lays down the minimum 
standards with which the investor must comply in terms of the minimum vehicle size (52 seats), 
                                                      
90 For more details, see WTO (2003). 
91 Decree No. 2-02-640 of 9 October 2002. 
92 Order of the Minister of Tourism No. 1751-02 of 18 December 2003, establishing the rules for the 
classification of tourist facilities, in force since March 2004. 
93 The specifications were signed jointly by the Minister of Infrastructure and Transport and the 
Minister of Tourism and Crafts. WT/TPR/S/217/Rev.1 Trade Policy Review 
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premises, and the qualifications required.  The invest or must also provide for the maintenance of the 
vehicles and the medical monitoring of the drivers and comply with the labour regulations in force.   
157. With regard to the implementation of Vision 2010,  the efforts have mainly been concentrated 
on hotel capacity, air transport, and the promotion of Morocco abroad.  The progress made includes, 
in particular, the setting up of the Azur  and Mada'In Plans94, and the gradual liberalization of air 
transport (Section (5)(ii)(d)).  In June 2008, at the Tourism Conference, the management of human 
resources and training for tourism professionals were given a central place among the priorities.  To improve the standard of service it was decided, am ong other things, to amend the texts governing the 
professions of travel agent and tourist guide.
95 
158. The institutional organization of the sector has also undergone changes.  The Ministry of 
Tourism remains the institution in charge of formulating and implementing government tourism 
policy.  The Office national marocain du tourisme  - NMT (Moroccan National Tourist Board), whose 
responsibilities include the promotion of Morocco as a destination, has been r estructured in order, 
among other things, to refocus its activities on mark eting and to endow the ONMT with adequate 
budget resources.  A new institution - the Tourism Observa tory (OT) - has been set up in the form of a 
non-profit (public-private) association.  Its main  purpose is to observe the tourist economy by 
collecting and publishing information, in par ticular concerning the economic situation, the 
competition situation, the competitiveness of the des tination, and operating standards.  The OT has 
been operational since February 2005.  At th e end of 2006, a Moroccan committee on responsible 
tourism was also set up within the OT. 
159. Moreover, to support the efforts to promote investment in tourism, Law No. 10-07 of 
30 November 2007 established the Société marocaine de l'ingénierie touristique  - SMIT (Moroccan 
Tourism Engineering Company), a public company whose tasks include:  carrying out the studies needed to define and implement the tourism de velopment strategy;  negotiating and monitoring 
agreements with private developers of tourist areas;  and measures to stimulate interest in tourism development among potential investors. 
160. Given the importance of tourism, investors ar e offered various incentives.  Thus, they can 
take advantage of tax concessions, State financi ng, and other benefits made available by the 
Investment Charter (Chapter II(5)), the Finance Laws and the Hassan II Fund or by specific 
provisions (Table IV.9).  The measures adopted  since Morocco's previous TPR include the 
establishment of three investment fund management  companies:  H Partners, a subsidiary of 
Attijariwafa Bank specializing in capital investment (established in 2005), Madaef belonging to the 
CDG (established in 2006) and Actif Invest, a subsidiary of the Banque marocaine du commerce 
extérieur  - BMCE (Moroccan Foreign Trade Bank) (est ablished in 2004), the latter being Morocco's 
leading real estate and tourism fund manager.  The public and parapublic sectors are expected to 
contribute to their capital. 
                                                     
 
94 The Plan Azur  provides for the development of six seaside resorts with a capacity of 110,000 beds 
(including 80,000 hotel beds), on 3,000 ha. of land, and an overall investment of DH 46 billion.  The Plan 
Mada'In  (i.e the regional tourism development programme) is aimed at repositioning the already existing 
destinations (Fez, Casablanca, Agadir, Tangiers, Tétouan, Meknes, Rabat, and Ouarzazate-Zagora). 
95 Formation-tourism.com, online information, Assises du tourisme: Un recadrage de la stratégie 
touristique s'impose  (Tourism conference:  Need to refocus th e tourism strategy).  Viewed at:  http:// 
www.formation-tourism.com/Assises-du -tourism-Un-recadrage-de- la-strategie-touristi que-s-impose-Formation-
et-qualite-au-centre-des-preoccupations_a638.html. Kingdom of Morocco WT/TPR/S/217/Rev.1 
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Table IV.9 
System of incentives for investment in tourism 
 Description 
Registration fees Reduction in the fees for establishing touris m companies, with a rate of 0.5 per cent 
 Exemption from registration fees for purchase deeds fo r land to be used for investment projects within a 
maximum period of 36 months 
 Reduced rate of 1 per cent  for registration fees for emphyteutic leases on properties to be used for hotels 
and ancillary buildings 
 Reduced registration fees for the sale of businesses 
Customs duties Exemption for investments amounting to DH 20 million or more under agreements concluded with the 
Government 
Corporation tax (IS) and general income tax (IGR) Total exemption from IS or IGR on the part of the taxable base corresponding to the turnover of hotel 
companies in foreign currency over a period of five years and a 50 per cent reduction as from the sixth 
year 
 Reduction of 50 per cent in IS for five years for all companies setting up in the following provinces:  
Larache, Nador, Tangiers, Asila h, and Tétouan, among others 
 Reduction of 50 per cent in the IS, without any time limit, for any company setting up in the province of 
Tangiers, which can be combined with the aforementioned benefits 
VAT Exemption for capital goods, equipment and tools, purchas ed locally or imported, entered in a capital asset 
account and used for operating purposes  
 Rate reduced to 10 per cent for hotel enterprises, with  right to deduction in respect of lodging, restaurant, 
and hotel and tourist fac ility letting operations  
Business tax and urban 
tax Total exemption, for a period of five years, for i nvestment in business creation and for any additional 
investment or extension 
Financing Partial State participation, through investment agreemen ts, in the expenditure associated with the purchase 
of the land, the completion of the external infrastructure and profe ssional training for enterprises whose 
investment programme is very c onsiderable by reason of:  the amount (more than DH 200 million), the 
number of jobs created, the location, the technology or  its contribution to the protection of the environment 
 Subsidy equal to 50 per cent of the cost of the land (with a ceiling at a maximum of DH 250/m.²) for hotel 
investors for the purchase of  sites for tourist facilities  
 Investment credit for building, extension and renovatio n projects, within the framework of agreements 
concluded with the banking institutions 
 Availability to developers of land for servicing tourist resorts and areas at attractive prices, as well as the 
total funding or participation in the cost of off-site  infrastructure needed to supply drinking water and 
power or create road links 
 Guarantee from the Loan Guarantee Fund for loans intended to fi nance investment projects initiated by 
young Moroccan entrepreneurs, acting individu ally or through companies and cooperatives 
 Credit for renovation through the Fonds de rénovation des unités hôtelières,  "RENOVOTEL" (Hotel Unit 
Renovation Fund), at a preferential interest rate of 2 per cent per annum (excl. VAT) (with a ceiling fixed 
by categories of accommodation) 
Other benefits Free convertibility guaranteeing foreign investors total freedom to transf er profits net of tax (capital, 
capital gains and income) 
 Reduction of 100 per cent on dividends and other yields from holdings received by enterprises 
 Reduction and exemptions for capital gains and profits made when dis posing of or selling fixed assets 
 Ceiling of DH 50 million on the basis used to calcu late the rental value of taxable investment 
 State funding of the off-site infrastructu re needed to develop new tourist areas 
 Partial State funding of hotel staff training. 
Source:  WTO (2003), EPC Maroc;  and Ministry of Tourism, online information, Axes stratégiques  (Strategic Outlines).  
Viewed at:  http://www.tourinvest.ma/main.php?Id=15& lang=fr;  and information provided by the Moroccan 
authorities. 
161. Tourist arrivals are up, whereas bed-nights are dow n.  This is due to the development of new 
types of accommodation, such as apartment hotels,  riads and guesthouses and the purchase by tourists 
of their own holiday homes.  To bring all these types of accommodation back within the fold of 
classified tourist facilities, a new law on the Résidences immobilières de  promotion touristique  - RIPT WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 114 
 
 
(Tourism Promotion Real Estate Developments) was enacted in 2008.96  The Finance Law for 
2010/2011 provides for incentivization and stimulus measures.  
162. In order to promote Morocco's image on the international scene, the country has so far 
concluded 52 tourism cooperation agreements, whil e 11 others are in process of being signed.97  It is 
also participating in the work of the specialized  international agencies, such as the World Tourism 
Organization, the Council of Arab Tourism Minister s (Arab League), and the Islamic Conference of 
Tourism Ministers (Organisation of the Islamic Conference). 
163. Certain restrictions apply to foreigners.  Within the context of the GATS, Morocco has 
reserved the right to require that travel agenci es established outside Morocco provide their services 
through agencies set up within Morocco (however, this  requirement is not being applied);  and that 
foreign (and Moroccan) agencies may not establish a commercial presence in Morocco without an 
operating licence (this requirement is actually being app lied).  It has also reserved the right to reserve 
the profession of tourist guide for Moroccan nationals (this requirement is actually being applied).  
However, groups may be accompanied by tour lead ers.  Morocco has undertaken not to impose any 
limitation on national treatment or mark et access for hotel (modes 1, 2 and 3)98 and restaurant services 
(modes 2 and 3), travel agency services (modes 2 a nd 3) except for an operating licence, and other 
tourism services (modes 2 and 3);  or on national treatment for travel agency services (mode 1).99 
164. The rules on the classification of hotels and restau rants are laid down in Order of the Minister 
of Tourism No. 1751.02 of 18 December 2003. 
(iv) Telecommunications and postal services 
(a) Telecommunications 
165. The telecommunications subsector has expande d considerably, with turnover rising from 
DH 17 billion in 2002 to over DH 34 billion in 2008.  The subsector accounts for about 7 per cent of 
GDP and, in late 2007, it was providing jobs for 37, 000 people directly and about 120,000 indirectly. 
It has also absorbed roughly half of all FDI inflow s over the last five years, and is Morocco's largest 
taxpayer.  Government policy has focused on mo dernization, strengthening competition and the 
promotion of offshoring (Chapter III(4)(ii)).  The la tter was designated as one of the seven pillars of 
economic growth by the Programme d'Émergence  (Chapter II(3)).  
166. Since the last review of its trade policy, Mo rocco has continued to bolster competition by 
updating legislation and issuing ne w operating permits (see below).  In 2004, for example, Law 
No. 24-96 on postal and telecommunications services (providing for liberalization of the subsector) 
was amended by Law No. 55-01.  Among other things , this introduced innovations such as extension 
of the universal service concept (see below), th e possibility of using alternative infrastructures, 
authorization to share existing infrast ructures, and authorization for the Agence nationale de 
réglementation des télécommunications  - ANRT (National Telecommunications Regulatory 
                                                      
96 Dahir No. 1-08-60 of 23 May 2008, enacting Law No. 01-07 decreeing special measures relating to 
tourism promotion real estate developments and amending and supplementing Law No. 61-00 on the status of tourist facilities. 
97 For a complete list, see Ministry of Tourism, online information, Coopération  (Cooperation).  
Viewed at:  http://www.tourism.gov. ma/francais/1-Administration-tour ism/5-Cooperations/Accordsb.htm. 
98 The supply modes relate to:  cross-border supply (mode 1), consumption abroad (mode 2), 
commercial presence (mode 3), and presence of natural persons (mode 4). 
99 WTO documents GATS/SC/57, of 15 April 1994; GATS/SC/57/Suppl.1/Rev.1, of 4 October 1995;  
and GATS/SC/57/Suppl.2/Rev.1, of 23 July 2002. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 115 
 
 
Authority) to apply graduated sanctions (warning, su spension, or withdrawal of licence) and financial 
penalties.100  Under the law, the connection of end-us er equipment to a public telecommunications 
network and radioelectric facilities require  a prior agreement (lasting ten years). 
167. Despite a significant rise in the fixed telephony penetration rate (from 4. 24 per cent in 2006 to 
9.70 per cent in 2008) this is still one of the lowest  in the region.  The number of subscribers rose 
from 1,140 in 2001 to 2,991,158 in 2008, mainly thanks to the introduction of fixed phone services with restricted mobility in March 2007.  In 2008, the share of residential phone lines rose to 82.1 per cent, while the relative shares of business lines a nd public payphones declined (Table IV.10). 
168. The mobile telephony market is booming (Tab le IV.10).  The number of mobile phone 
subscribers reached 22.8 million in 2008, representing a penetration rate of 74.0 per cent.  Prepayment 
schemes accounted for 96 per cent of all subscriber contracts. 
169. The Internet market is also growing strongl y, and here Morocco has focused on improving 
connection quality.  The country had a total of 757 ,453 Internet subscribers in 2008 (Table IV.10), but 
the penetration rate was still low at 2.46 per cent in 2008.  The number of Internet subscribers with 
dial-up connections in 2008 was 5,454, while the dominant ADSL access mode had 
482,791 subscribers in that year. 
170. Call centre (CC) activity has also developed strongly in Morocco, with the number of CCs 
registered with the ANRT rising from 31 in 2001 to 244 in 2008 (Table IV.10).  The Government views this as one of the economy's most buoyant activities in terms of employment and investment.  
In 2006, 49 per cent of all CCs had fore ign capital (often majority ownership).
101 
171. Three operators currently shar e the Moroccan fixed and mob ile telephony market:  Maroc 
Télécom (IAM), Méditel (Medi Telecom)102 and Wana (known as Maroc Connect103 until 2007).  
Maroc Télécom (Ittissalat Al-Maghrib)104 remains the market leader in  the mobile phone segment and 
the number-one provider of Internet access via ADSL,  through its Casanet s ubsidiary.  Following its 
listing on the Casablanca stock exchange in Dece mber 2004, the Maroc Télécom share price rose 
from DH 68.25 to DH 213.8 in May 2008, before slipping back to DH 183 in November 2008.  The 
arrival on the fixed telephony market of Médite l and Wana (fixed line services with restricted 
mobility) in 2007 put an end to the de facto monopoly held by Maroc Télécom.  Mobile phone 
                                                      
100Several new decrees have also been adopted:  Decree No. 2-05-772 of 22 June 2005, concerning the 
procedure followed before the ANRT regarding disputes, non-competitive practices and operations resulting in 
economic concentration;  Decree No. 2-05-771 of 13 July 2005, amending and supplementing Decree 
No. 2-97-1026 of 25 February 1998, on general conditions for the operation of public telecommunications 
networks;  and Decree No. 2-05-770 of 13 July 2005 amending and supplementing Decree No. 2-97-1025 of 25 February 1998, on the interconnection of telecommunications networks. 
101 ANRT (2007). 
102 Meditel was created in 1999 by a consortium including the Spanish Telefónica group (32.18 per 
cent), Portugal Telecom (32.18 per cent), RMA Watania (13.06 per cent), Finance.com (5.0 per cent) and 
Holdco (17.59 per cent);  it began operations in 2000. 
103 Maroc Connect was formed in 1999 in a partnership with Wanadoo of France Telecom.  In 2004, 
France Telecom sold its stake to Attijariwafa Bank and the Caisse de dépôt et de gestion .  In 2005, the Omnium 
Nord Africain (O NA) group became the majority shareholder. 
104 Maroc Télécom SA was created in 1998 as a joint-stock corporation (société anonyme);   it is 
Morocco's traditional telephone service operator (see WTO (2003) for details).  The French group Vivendi 
Universal holds 53 per cent of the equity, having purchased stakes of 35 per cent in 2001, 16 per cent in 2004 and 2 per cent thereafter (through a sh are swap with the Moroccan CDG group). WT/TPR/S/217/Rev.1 Trade Policy Review 
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services have been provided by all three entities si nce Wana launched its op erations in June 2008 
(mobile services using the 3G technology) ther eby ending the Maroc Télécom - Méditel duopoly.105 
Table IV.10 
Telecommunications:  basic indicators, 2001-2008 
 2001 2002 2003 2004 2005 2006 2007 2008 
Turnover of telecommunications operators (€  million) 1,382 1,552 1,716 1,964 2,269 2, 364 2,474 32,253 
Turnover of mobile telephony (€ million) 482 644 838 1,250 1,557 .. .. .. 
Turnover of fixed telephony and Intern et (€ million) 896 905 871 1,017 1,089 .. .. .. 
Number of fixed lines (thousand) 1,140 1,127 1,219 1,308 1,341 1,266. 2,394 2,991 
Share of residential subscribers (per cent) .. .. .. 68.0 65.9 64.2 80.4 82.1 
Share of business subscribers (per cent) .. .. .. 21.6 21.8 23.4 12.9 12.5 
Share of payphones (per cent) .. .. .. 10.4 12.3 12.4 6.7 5.35 
Number of mobile subscribers (thousand) 4,776 6,198 7,333 9,337 12,393 16,005 20,029 22,816 
Number of lines (percentage of inhabitants)         
Fixed 3.92 3.86 4.11 4.38 4.49 4.24 7.85 9.70 
Mobile 15.68 20.90 24.80 31.23 41.46 53.54 65.66 73.98 
Cost of access to GSM network (DH excl. taxes) 100 .. .. .. .. .. .. 100 
Cost of subscription to GSM network (DH excl. taxes/ 
month) 125 .. .. .. .. .. .. 125 
Cost of connecting to a fixed telephone line 
(DH excluding taxes/month)         
For private persons  500 .. .. .. .. .. .. 600 
For businesses  1,000 .. .. .. .. .. .. 1,200 
Cost of subscription (DH excl. tax/month)         
For a fixed telephone for private persons  70 .. .. .. .. .. .. 100 
For a fixed telephone for businesses  100 .. .. .. .. .. .. 120 
Data transmission networks         
Integrated services digital network (ISDN) 10,000 11,823 12,621 5,830 .. .. .. .. 
X-25 2,735 1,741 1,537 1,504 1,470 1,271 1,081 591 
"Frame relay" 118 530 859 1,226 1,401 1,357 1,350 1,198 
Leased lines 5,728 6,457 6,440 6,335 6,189 5,703 5,819 5,860 
Internet subscribers (incl. "fr ee" Internet access) 53,000 .. 60,812  113,170 262,324 399, 720 526,080 757,453 
Dial-up .. .. 55,600 37,950 13,187 7,862 5,991 5,454 
ADSL .. .. 2,712 62,960 248,011 390,836 476,414 482,791 
Call centres (CCs)         
Total CC registrations 31 51 77 122 166 235 244 244 
Number of CCs registered .. .. .. 50 50 180 .. .. 
Number of CCs operating .. .. .. 50 50 143 .. .. 
Number of positions .. .. .. 4,400 4,400 14,700 .. .. 
Average size (positions)/CC .. .. .. 88 88 114 .. .. 
Number of staff .. .. .. 5,500 5,500 17,500 .. .. 
Turnover (DH million) .. .. .. .. 830 2,900 .. .. 
.. Not available.  
Source : ANRT (2008), Rapport annuel 2007, Rabat;  ANRT (2006), Le secteur des télécommunications et des 
technologies de l'information au Maroc en chiffres 2005 .  Viewed at:  http://www.septi.gov.ma/ 
Fiche_pdf/ Divers/Telecom_&_TI_au_M Aroc_en_chiffres_2005.pdf. 
                                                      
105 In 2008, the market was still shared between Maroc Télécom (63.4 per cent) and Méditel (34.7 per 
cent). Kingdom of Morocco WT/TPR/S/217/Rev.1 
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172. Several new operators entered the market between 2002 and 2008, including two radio 
network operators using shared resources (3RP) (INQUAM Telecom SA, and Moratel SA), three 
operators of public GMPCS satellite teleco mmunications networks (European Datacomm 
Maghreb SA, Thuraya Maghreb SA, and Soremar Sarl), and three VSAT operators (Spacecom, 
Gulfsat, and CIMECOM).  These joined two pub lic GMPCS satellite telecommunications network 
operators that had been in existence sin ce 2000 (Orbcomm Maghreb and TESAM Maroc).  The 
INQUAM Telecom SA licence was withdrawn in July 2008;  and three third-generation (3G) licences 
were awarded to IAM, Médi Telecom and Wana in that year. 
173. The sector is regulated by the ANRT, which was created in 1998.  Its functions include 
processing licence requests106 (based on criteria that include quality, territorial coverage and 
conservation of local jobs) and authorizations for private networks (business networks), as well as 
frequencies.  It also monitors the development of  information and communication technologies.  Since 
late 2004, it has also been responsible for supervising competition and dispute settlement.107  Since 
May 2007, the ANRT has also administered ".ma" domain names108, and it has served as national 
authority for authorization and supervision of electronic certification.109 
174. Licence costs are as follows:  DH 1.836 million TTC110 (Méditel) and 1.5 per cent of turnover 
HT per year (Wana) for the GSM licence;  DH 360 million (for each operator) for the 3G licence;  DH 75 million (Méditel) and DH 306 million (Wana) for the NGN licence;  DH 300,000 HT (for each operator) for the GMPCS licence;  DH 36 million TTC (Gulfsat), DH 45 million TTC (Spacecom), and DH 19 million TTC (CIMECOM) for the VSAT licence;  and DH 500,000 HT (Moratel) for the 
3RP licence.  GMPCS operators are also charged a va riable counterpart based on turnover.  Moreover, 
all operators also are subject to the following levies:  2 per cent of their turnover in respect of universal service missions;  1 per cent of turnove r for training and research;  and frequency rental 
charges. 
175. Interconnection is established in a contract nego tiated between the operators in question.  If 
the parties fail to reach agreement, they can app eal to the ANRT.  Interconnection requests cannot be 
refused if they are "reasonable" in relation to th e requester's needs and the capacities of the operator 
concerned.  As interconnection fees have to be a pproved by the ANRT, all technical and price bids by 
operators exerting a "significant influence" (defin ed annually) on the market for a specific service 
must be submitted to it for approval.
111  In 2008, the ANRT designated Maroc Télécom as an operator 
exerting a significant influence in the fixed line e nd-user and leased line markets, along with Maroc 
Télécom and Méditel in the mobile voice and AMS end-user segments.  Mobile network 
interconnection fees (excl. taxes) approved for 2007-2009 gradually decrease from DH 1.3309 to 
DH 1.1552 per minute in peak periods and from DH 0.6650 to DH 0.5775 per minute in off-peak 
hours.112  Fixed telephony interconnection charges shoul d also decrease between 2008 and 2010, with  
                                                      
106 Licences are granted by decrees issued by the Prime Minister. 
107 Dahir No. 1-04-154 of 4 November 2004, enacting Law No. 55-01, amending and supplementing 
Law No. 24-96 on postal and telecommunications services. 
108 Dahir No. 1-07-43 of 17 April 2007, enacting Law No. 29-06, amending and supplementing 
Law No. 24-96 on postal and telecommunications services. 
109 Dahir No.1-07-129 of 30 November 2007, enacting Law No. 53-05 on the electronic exchange of 
legal data. 
110 TTC (toutes taxes comprises)  means including all taxes;  HT (hors taxes)  means excluding taxes. 
111 Decree No. 2-97-1025 of 25 February 1998, on the interconnection of telecommunications 
networks, and Decree No. 2-05-770 of 13 July 2005, amending and supplementing Decree No. 2-97-1025 of 
25 February 1998. 
112 ANRT (2008). WT/TPR/S/217/Rev.1 Trade Policy Review 
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reductions varying from 2 per cent for primary digita l blocks (PDBs) to 15.5 per cent in the case of 
simple and double transits.113 
176. Since Morocco's last TPR, the universal service (US) concept114 has been expanded to cover 
telecommunications services more generally (i.e. in  addition to the phone service), including services 
related to land-use management a nd value-added services such as the Internet.  Operators contribute  
2 per cent of their turnover to the universal service fu nd, which is used to finance US programmes.  In 
2005, the Comité de gestion du service universel des télécommunications  - CGSUT (Universal 
Telecommunications Service Management Committee)  was set up to improve the effectiveness of 
fund management.115  Operators can choose to provide US programmes themselves (which 
nonetheless must be validated by the CGSUT).  In th is case, the amounts retained for their operations 
are deducted from amounts owed in respect of th e 2 per cent contribution.  A public tender is 
launched for CGSUT programmes that are not undertaken  by the operators.  Since the creation of the 
CGSUT two large-scale programmes have been adopte d:  the programme for generalizing information 
and communication technologies in education (GENIE ), and the PACTE programme for generalizing 
telecommunications access in rural areas.  The CGSUT has also approved a dozen annual 
programmes submitted by operators. 
177. Under the GATS, Morocco made commitments  on telecommunications which it completed 
when it participated in the latest negotiations on te lecommunications services.  It reserved the right to 
limit access to the fixed telephony market, and to ISDN, by making it compulsory to use the Maroc 
Télécom network and establish a commercial presence (a requirement enforced in practice) for the 
cross-border supply of mobile phone services, pagi ng, mobile packet switched data transmission 
(PSDT) services, frame relay services, services provided over private leased circuits, and PCS systems.  Morocco undertook not to restrict mark et access for the cross-border supply of value-added 
services (apart from telephone and telex), or for th e consumption abroad of consolidated services, 
except for those provided over private leased ci rcuits, for which consumption abroad may be 
restricted by "the necessary use of the available capacities of existing public telecommunications 
networks". 
178. In relation to commercial presence, Morocco reserved the right (in terms of market access) to 
require any operator wishing to set up its own tran smission infrastructure to obtain an establishment 
and operating licence, and a declaration as to whether these capacities are leased to other operators (in 
the case of PSDT and frame relay services);  a nd a permit for operating and setting up mobile phone 
services, paging services, PCS systems and mobile data transmission services (which are also reserved 
for selected operators by tender).  On nati onal treatment, Morocco undertook not to impose 
restrictions for the cross-border supply and consumption abroad of consolidated services.
116 
(b) Postal services 
179. Barid Al-Maghrib (Morocco's postal system) was created as a public enterprise in 1998 by 
Law No. 24-96, which divided the postal and telecommuni cations sectors in two.  It had a turnover of 
                                                      
113 Decision ANRT/DG/No.01/08, approving the technical and price bid for interconnection to the 
Itissalat Al Maghrib (IAM) fixed network for 2008. 
114 Universal service is governed by Law No. 24-96 of 7 August 1997, as amended by Law No. 55-01 
of 8 November 2004;  Decree No. 2-97-1026 of 25 February 1998, as amended by Decree No. 2-05-771 of 
13 July 2005;  and the specifications issued by public telecommunications network operators. 
115 Decree No. 2-05-771 of 13 July 2005, amending and supplementing Decree No. 2-97-1026 of 
25 February 1998, on the general operating conditions for public telecommunications networks. 
116 WTO documents GATS/SC/57, of 15 April 1994;  and GATS/SC/57/Suppl.2/Rev.1, of 
23 July 2002. Kingdom of Morocco WT/TPR/S/217/Rev.1 
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DH 1.4 billion in 2007 and about 8, 393 employees.  In 2006, an agreement between the Government 
and Barid Al-Maghrib was renewed, which, among othe r things, aims to convert it into a joint-stock 
company.  This would enable it to finance itself by issuing private debt or possibly by obtaining a stock market listing.  A draft law transforming the institution into a joint-stock corporation has been 
drawn up.  In June 2008, Decree No. 2-08-258 of 5 June 2008 authorized Barid Al-Maghrib to create 
a subsidiary empowered to provide restricted banking services, to be known as Al Barid Bank SA. 
180. Postal services are liberalized, apart from t hose that remain under the Barid Al-Maghrib 
monopoly, i.e. all dispatches of up to 1 kg, includi ng letters (other than the international express 
courier service).  Under the banking law, m oney remittance services are controlled by 
Bank Al-Maghrib (BAM) in terms of prudential rul es, communication of documents and information, 
reporting on any anomaly or serious events in the activity or its governance, and the duty of vigilance. 
(v) Financial services 
(a) Banking services 
181. The banking sector, which provides the main s ource of financing for the Moroccan economy, 
has concentrated further during the reporting period .  The system currently consists of 16 banks 
(compared to 18 in 2002) and 37 finance companies (49 in 2002).
117  Majority shares in five banks 
and significant stakes in four others are foreign-owned;  the public sect or is a majority shareholder in 
five118 banks.  In the case of finance companies, eight are controlled by foreign capital, and three have 
significant foreign participation;  the public sector is  a majority shareholder in four finance companies 
and has a substantial stake in four others.  F ourteen lending institutions are listed on the stock 
exchange, including six banks.  The number of microc redit associations has risen to 13 (compared to 
11 in 2002);  and in 2008 there were six offshor e banks operating on the Tangier financial market. 
182.  The banking system is highly concentrated.  In 2002 the three leading banks accounted for 
51.4 per cent of total assets, 56.7 per cent of deposits and 40.2 per cent of loan s;  and by 2007 these 
figures had risen to 63.4 per cent, 67 pe r cent and 59.2 per cent, respectively.119  The volume of bank 
loans also doubled between December 2002 a nd April 2008 (increasing from DH 216.5 billion to 
DH 457.6 billion), to account for 98 per cent of all financing for the economy. 
183. Both the profitability and the performance of ba nks have improved.  Return on assets and on 
equity increased from 0.08 per cent and 1.0 per cent, respectively in 2002, to 1.5 per cent and 20.6 per cent in 2007.  The proportion of overdue debt rose from 17.7 per cent to 19.4 per cent between 2002 and 2004, before gradually declining to 7.9 per cen t in 2007;  the equivalent figure for banks under 
majority private ownership is 5.3 per cent.  This improvement is mainly explained by loan portfolio 
consolidation processes undertaken by the banks, encour aged by the implementation of Basel II rules.  
The proportion of the population that makes use of the banking system
120 has increased since 
Morocco's last TPR, but is still relatively low (a round 31 per cent compared to 18 per cent in 2002). 
                                                      
117 Bank Al-Maghrib (2008a). 
118 Crédit populaire du Maroc (CPM), Crédit agricole du Maroc (CAM), Crédit immobilier et hôtelier 
(CIH), Fonds d'équipement communal (FEC), and CDG capital. 
119 Considering the five leading banks, between 2002 and 2007 concentration increased from 68.8 per 
cent to 81.1 per cent of total assets;  from 75.6 per cent to 83.3 per cent in terms of deposits;  and from 60.4 per 
cent to 77.7 per cent in terms of loans.  (Bank Al-Maghrib, 2007). 
120 Measured as the ratio between the number of bank accounts held by residents and the population of 
over 15 years of age. WT/TPR/S/217/Rev.1 Trade Policy Review 
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184. The banks comply with all prudential regul ations.  Their minimum solvency ratio 
(Cook ratio) averaged 12 per cent in December 2007 (above the minimum regulatory rate of 8 per 
cent);  their liquidity ratio averaged 125 per cent (above the required minimum of 100 per cent);  and in 2007 their overall foreign-exchange positions, limited to 20 per cent of net equity, were 6.2 per cent 
for long positions and 0.6 per cent in the case of short positions. 
185. In order to protect customers, the aggregate effective rate for loan  operations applied to 
customers may not exceed the maximum conventional interest rate ( taux maximum des intérêts 
conventionnels - TMIC) , i.e. the weighted average rate char ged on consumer loans in the previous 
year plus 200 basis points.  For example, over the period 1 April 2008 to 31 March 2009 the TMIC 
was 14.17 per cent.  In 2006, lending rates were mo stly in the range of 6.5 per cent - 9 per cent 
(compared to 7.5 per cent - 12 per cent in 2002). 
186. Small- and medium-sized enterprises and indus tries (SME/SMIs), which lending institutions 
consider more risky (specifically because of their weak governance, undercapitalization and 
insufficient profitability) find it hard to obtain finance through the banking system.
121  The authorities 
have taken a number of steps to overcome this s ituation, opening credit lines at concessional rates for 
SMEs, and setting up guarantee funds, the most recent of which is for the restructuring of enterprise 
debts.122  The SME share of total loans has nonetheless gr own to around 23 per cent in 2006 (or 40 per 
cent when loans to non-financial enterprises are excluded).  SMEs have also benefited from lower 
interest rates on their borrowing. 
187. Since its last TPR, Morocco has pressed ahead in reforming the regulatory environment for 
banking services.  Two major pieces of legislation cam e into force in 2006:  Law No. 34-03, on credit 
institutions and similar organi zations (i.e. the banking law)123, and Law No. 76-03, setting forth the 
Bank Al-Maghrib (BAM) charter.124  Prudential regulations have also been brought into line with the 
provisions of the new banking la w and international standards.125 
188. The key features of the new banking law include extending its field of application (and 
consequently BAM control) to en compass "similar" organizations ( organismes assimilés ) 
(i.e. offshore banks, microcredit associations, Caisse centrale de garantie , Caisse de dépôt et de 
gestion , and the financial services provided by BAM) , as well as strengthening BAM autonomy and 
its oversight and supervision power s.  The Governor of the BAM is now the only person empowered 
to authorize banking establishments (see below).  Other amendments concern, inter alia , the 
responsibilities of the various mechanisms set up by the banking law to improve supervision;  the 
creation of a commission for coordination among the oversight authorities in the financial sector 
(i.e. the BAM, the Securities Ethics Council  and the Insurance and Social Security Directorate);  and 
stronger protection for depositors. 
                                                      
121 Bank Al-Maghrib (2007). 
122 Bank Al-Maghrib (2006). 
123 Law No. 34-03 supersedes Law No. 1-93-147 of 1993. 
124 Respectively enacted by Dahir No. 1-05-178 of 14 February 2006 and Dahir No. 1-05-38 of 
23 November 2005. 
125 The new regulations adopted include Circular No. 20/G/2006 of 30 November 2006, on the 
minimum capital needed for lending ins titutions;  Circular No. 24/G/2006 of 4 December 2006, on the equity of 
lending institutions;  Circular No. 25/G/2006 of 4 D ecember 2006 on the minimum solvency ratio;  Circular 
No. 26/G/2006 on capital requirements for market and operational credit risks;  Circular No. 29/G/2006 of 
5 December 2006 on conditions governi ng the acquisition of shareholdings by  lending institutions in existing 
enterprises or those to be created in the future;  and Circular No. 31 /G/2006 of 5 December 2006 on the 
minimum liquidity ratio for banks. Kingdom of Morocco WT/TPR/S/217/Rev.1 
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189. The revision of the law containing the BAM ch arter established the institution's autonomy in 
respect of monetary policy and clarified its powers in relation to exchange-ra te policy.  Nonetheless 
the BAM has to comply with the dirham exchange  and parity framework, established by a regulation 
issued by the Minister of the Economy and Finance.  A joint commission has been set up between the 
BAM and the Ministry of the Economy and Finance.   The BAM is now prohibited from providing any 
financial assistance to the State, apart from certai n cashflow facilities (up to of 5 per cent of fiscal 
revenue obtained during the precedi ng fiscal year).  The BAM may suspend the use of these facilities 
when it considers that the money market situation so warrants.  It must also eliminate activities that 
are incompatible with its supervisory role, and (as of March 2006) withdraw from all management 
and oversight bodies in lending institu tions and similar organizations;  then, no more than three years  
later (as of March 2006), divest all of its sharehol dings in lending institutions  (Moroccan or foreign). 
190. Under current legislation, before starting to ope rate in Morocco, all lending institutions must 
be previously authorized, as banks or finance co mpanies, by the BAM (and no longer by the Minister 
of Finance), subject to an opinion issued by the Credit Institutions Committee .  Banks must have 
wholly paid-up minimum capital (or allotment) of DH 200 million, unless they do not accept funds 
from the public (DH 100 million in this case).126  The minimum capital required for finance 
companies varies between DH 1 million and DH 50 million, depending on the nature of their operations.  Lending establishments headquartered  in Morocco must be set up as joint-stock 
companies with fixed capital, except for those that ha ve a special legal status.  The granting or refusal 
of approval is notified within a maximum of four months.  Lending establishments must belong to one 
of the two professional associations (the Professi onal Moroccan Banks Group or the Professional 
Association of Finance Companies). 
191. A new BAM authorization is required when ch anges occur that affect the nationality or 
control of a lending institution, or the nature of its operations, and also in the case of mergers and 
acquisitions.  BAM approval is also required for any acquisition or divestment (direct or indirect) of a 
stake in a lending institution, involving at least 10, 20 or 30 per cent (as the case may be) of the equity 
or voting rights at shareholder meetings.  The BAM may oppose the appointment of an individual in 
the administration, management or overs ight boards of a lending institution. 
192. Lending institutions headquartered abroad ma y create subsidiaries or open branches in 
Morocco.  To obtain authorization for this, an opinion from the authority in the country of origin is requested.  The BAM must also make sure that the applicable laws and regulations in the country of 
origin do not hinder oversight of the subsidiary or branch to be created in Morocco.  They may also 
open information, liaison or representation offices, s ubject to an opinion from the Credit Institutions 
Committee. 
193. An offshore financial centre, consisting of ba nks and holding companies, is situated in 
Tangiers.
127  Only subsidiaries and branches of well- known international banks, with minimum capital 
or allotment of US$500,000, may be set up there.  O ffshore banks have to fulfil the applicable rules in 
terms of solvency, risk diversification and liquidi ty.  Nonetheless, they may be exempted from these 
requirements if the BAM considers that their risk management is satisfactorily assured by their parent companies.
128  Since 2006, offshore banks have been subject  to BAM control, pursuant to the banking 
                                                      
126 Order No. 215-07 of the Minister of Finance and Privatization of 30 January 2007, approving 
Circular No. 20/G/2006 issued by the Governor of the BAM on the minimum capital (or allotment) of lending establishments. 
127 Conditions governing their operation are establishe d in Law No. 58-90 on offshore financial centres, 
the banking law, and Order No. 33-07 of the Minister of Finance and Privatization, of 5 January 2007. 
128 Order No. 33-07 of the Minister of Finance and Privatization, of 5 January 2007. WT/TPR/S/217/Rev.1 Trade Policy Review 
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law.  In 2007, the activity of six banks operating offshore (i.e. five subsidiaries and one branch) 
accounted for about 2 per cent of total cumulative bank balance sheets. 
194. Offshore banks benefit from several tax incentiv es, such as exemption from registration fees 
and stamp duty on deeds when constituting or in creasing capital or purchasing property (headquarters 
and branches), provided that these remain on their asset s balance sheets for ten years.  They are also 
exempt from VAT on the local purchase of capital goods and supplies, and from duties and taxes on imported equipment, furniture and capital goods need ed for their operations.  Dividends paid to 
shareholders, as well as interest on customers' de posit accounts and investments in convertible foreign 
currencies and on loans granted by offshore banks ar e also exempt from levies.  Attendance fees and 
all other remuneration paid by the banks to their board members, along with wages, emoluments and 
salaries paid to non-resident staff
129, are subject to income-tax withholding at a rate of 18 per cent.  
Offshore banks also benefit from optional imposition of corporation tax (IS) for the first 15 years 
following the date of their approval at a rate of  10 per cent, or a fixed annual flat-rate tax of 
US$25,000, free of any other tax on profits or revenu e.  For offshore holding companies, the flat-rate 
tax is US$500 for the first 15 years after their establishment, after which they are liable for 
corporation tax under the ordina ry law regime (Chapter II(5)). 
195. Under the GATS, Morocco reserved the right to limit foreign ownership of large banks in 
situations where the shareholding could result in gaining control, as defined by Article 24 of the 
banking law of 6 July 1993 (the content of which was incorporated in Law No. 34-03).  It also undertook not to impose restrictions on the creat ion of lending institutions, or the opening of 
branches, agencies, outlets or representation o ffices.  These two commitments are subject to a 
reciprocity clause, however.  Morocco also reserve d the right to prohibit the supply of financial 
services (including insurance) by private individua ls;  and it undertook not to impose any restriction 
on national treatment in the case of all financial services in its schedule of commitments
130, or on 
market access under mode 3 (commercial presence), except for the limitations noted above.  In the 
case of cross-border supply of financial services, Morocco undertook not to impose any restriction on 
market access in the case of loans granted to fi nance investments in Mo rocco or commercial 
transactions with Morocco;  guarantees and commitm ents;  the supply and transfer of financial 
information;  and the processing of financial data and related software.131 
(b) Insurance services 
196. The Moroccan insurance market is Africa's s econd largest in terms of turnover, but its 
contribution to GDP is small.  It currently consists of ten firms (joint-stock companies)132, 
three mutual insurers and a public reinsuran ce company, as well as three assistance companies 
(sociétés d'assistance ) and a credit insurance compan y, grouped together under the Fédération 
marocaine des sociétés d'a ssurances et de réassurances  - FMSAR (Moroccan Federation of Insurance 
and Reinsurance Companies).  In 2007 there were 972 authorized insurance dealers (726 insurance 
agents and 246 brokers).  The Government contin ues to dominate the reinsurance segment through the 
Société centrale de réassurance  - SCR (Central Reinsurance Company)133, which accounts for over 
70 per cent of the Moroccan reinsu rance market and benefits fro m an unconditional State guarantee 
(most of rest of the market is held by SCOR , Swiss-Re, AXA and Afrique-Re).  The Insurance and 
                                                      
129 Resident staff may benefit from the same rate (i.e. 18 per cent) if they can show that the counterpart 
of their remuneration in convertible foreign curr ency has been surrendered to a Moroccan bank. 
130 WTO document GATS/SC/57/Suppl.1/Rev.1, of 4 October 1995. 
131 Idem . 
132 Since 2002, Al Wataniya and Royale marocaine d'assurances  have merged to form Groupe RMA 
Watanya. 
133 SCR is 94 per cent owned by the Moroccan State through the Caisse de dépôt et de gestion . Kingdom of Morocco WT/TPR/S/217/Rev.1 
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Social Security Department of the Ministry of  the Economy and Finance serves as the regulatory 
authority and oversees the activities of insuran ce, reinsurance and capitalization companies.134 
197. The insurance market is highly concentrated.  In 2007, four companies accounted for 62.1 per 
cent of the sector's total premium turnover135 of DH 17.7 billion, which was up by 46.3 per cent on the 
2002 figure.  Life and capitalization insurance has b ecome the most important branch (33.2 per cent 
of sector turnover), followed by automobile (30.7 per cent) and personal accident insurance (12.6 per 
cent).  In 2007, only one company was in deficit (reporting a loss of DH 23.9 million), while the other 16 generated total profits of DH 8.2 billion.
136 
198.  The insurance sector is regulated by the 2002 Insurance Code (amended in 2006) and its 
enabling decrees.137  The amendments made to the Code in 2006 by Law No. 39-05138 now permit 
insurance companies from countries with which Mo rocco has signed a free trade agreement (FTA) 
(Chapter II(4)) to open branches in Morocco, without having set up a company under Moroccan law.  Other amendments include provisions making it possible to sign insurance contr acts abroad in certain 
specific cases (see below), provisions on the orga nization and financial and accounting management 
of companies, and provision for an administrative san ction in the case of a company's failure to pay a 
benefit or indemnity owed under an insurance cont ract, or a final court ruling.  The Code also 
regulates bancassurance and restricts services supp lied by the banks and Barid Al-Maghrib (see 
Section (5)(iv)(b) above) to personal insu rance, assistance and credit insurance. 
199. Under the Code, only legal entities are entitled to provide insurance, although brokerage 
services can be supplied by either natural or legal persons (general agents or brokerage companies). 
Approval to operate as an insurance intermediary  is given only to natural persons of Moroccan 
nationality, and to legal entities incorporated unde r Moroccan law with hea dquarters in Morocco and 
at least 50 per cent of their capital held by natura l persons of Moroccan nationality or legal persons 
under Moroccan law, except when this conflicts w ith FTAs signed by Morocco;  the person in charge 
must be a Moroccan national. 
200. Approval for insurance and reinsurance compani es is given by branch to companies governed 
by Moroccan law, FTAs notwithstandi ng, with their headquarters in Morocco (and capital of at least 
DH 50 million).  These companies must, FTAs notwithstanding, be established as joint-stock companies or mutual insurance companies.
139  The main criteria for approval of the creation of 
insurance companies are their technical and financia l resources in relation to the stated programme of 
activities;  the good character and qualifications of th e directors;  how their capital is divided and the 
                                                      
134 Other bodies play a role in various areas:  th e Advisory Committee on Pr ivate Insurance acts as 
coordinator;  the Traffic Accidents Guarantee Fund compensates victims of bodily injuries resulting from traffic accidents when the perpetrator is unkno wn, uninsured or insolvent;  and the Bureau central marocain des 
sociétés d'assurance  (Moroccan Central Insurers Bureau (automobile insurance)) administers the international 
insurance system (green card) , and handles accidents in Morocco caused by vehicles registered abroad (and vice 
versa). 
135 RMA-Watanya (20.1 per cent of the market), Wafa Assurance (19.9 per cent), AXA Assurance 
Maroc (a subsidiary 51 per cent owned by the AXA group) (14.3 per cent),  and CNIA (7.8 per cent). 
136 Ministry of the Economy and Finance (2008a). 
137 Dahir No. 1-02-238 of 3 October 2002, enacting Law No. 17-99 on the Insurance Code, Decree 
No. 2-03-50 of 22 May 2003, implementing Title III of Book II and T itle X of Book III of Law No. 17-99, and 
Decree No. 2-04-355 of 2 November 2004. 
138 Dahir No. 1-06-17 of 14 February 2006, enacting Law No. 39-05 amending and supplementing Law 
No. 17-99 on the Insurance Code. 
139 Nonetheless, credit and deposit insurance operations cannot be provided by mutual insurance 
companies or their groupings;  life insurance operations cannot be provided by variable premium mutual insurers. WT/TPR/S/217/Rev.1 Trade Policy Review 
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status of the shareholders.140  The Ministry of Finance is in charge of the approval procedure and no 
fees are payable.  Any change in majority holdings , sale of more than 10 per cent of shares, and any 
takeover exceeding 30 per cent of the capital stock of an insurance or reinsurance company requires 
prior agreement from the Ministry of Finance.  Some companies provide both "life" and "non-life" 
insurance services.  Nonetheless,  in 2006, an amendment of the Insurance Code introduced 
specialization.  No authorization can now be gi ven to a company to provide life insurance and 
capitalization services alongside other t ypes of insurance and reinsurance. 
201. The Code requires risks in Morocco, persons dom iciled in Morocco and relevant liabilities to 
be insured under contracts subscribed and admi nistered by insurance and reinsurance companies 
approved in Morocco, FTAs notwithstanding. N onetheless, aviation and maritime insurance141 
(including "Protecting club" insurance142), and insurance for international road transport may (subject 
to FTAs) be subscribed abroad following approval by  the Minister responsible for finance.  Insurance 
may also be contracted abroad for imports in s ituations such as the following:  goods imported under 
external financing that provides for the signing of  a foreign insurance contract;  capital goods and 
tools imported under turnkey contracts that envisage insurance abroad;  crude oil, gas and diesel;  
heifers;  wood;  and goods impor ted by plane or parcel post.143  The Code does not prohibit companies 
domiciled in Morocco from covering risks abroad. 
202. The main prudential rules applicable to insu rance companies are the following:  constitution 
of sufficient technical funds and their representation by assets that satisfy security, profitability and liquidity criteria and comply with the rules on diversification and dispersion;  and a margin of 
solvency.
144  Since 2006, the board of directors of ev ery insurance company has been required to 
produce an annual solvency report, copies of which must be sent to the Minister responsible for 
finance and the company's auditors.  The latter must al so ensure that an internal oversight system has 
been put in place together with an intern al audit unit reporting directly to them. 
203. Premiums are freely set by the companies, in cluding civil liability premiums for automobile 
insurance, which were regulated until July 2006.  The rates applied by insurance companies must 
nevertheless be based upon each company's statistics;  or, failing that, market statistics to calculate the 
net premium.  Since 2002, the managements have had a system for compiling data on rates with a 
view to implementing a benchmark for controlling e quilibrium rates, specifically for automobile and 
workplace accidents. 
204.  The Fonds de solidarité des assurances  - FSA (Solidarity Insurance Fund), set up in 1984, 
grants subsidies or financial assistance, respectiv ely, to insurance and reinsurance companies in 
liquidation, and companies in difficulties. 
                                                      
140 Order dated 3 November 2000 on the approval of insurance, reinsurance and capitalization 
companies. 
141 These operations relate to the following:  insurance of ship hulls and aircraft fuselages;  insurance 
against civil liability risk resulting from the use of maritime vessels or aircraft, including transporter 
responsibility;  and the insurance of transported merchandise. 
142 Moroccan shipowners are required to join foreign associations or clubs known as "Protecting and 
Indemnity"  for the purpose of covering certain risks relating to the use of their vessels which cannot be insured 
by a policy contracted in Morocco. 
143 Foreign Exchange Board (2007). 
144 Order No. 369-95 of 10 June 1996 on the financial guarantees, documents and records required of 
insurance, reinsurance and capitalization companies;  and Instruction 18 of 29 March 1996 on solvency indicators and operating rules for insurance companies. Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 125 
 
 
205. Under the GATS, Morocco reserved the right to require all insurance companies to have a 
registered place of business in Morocco;  nonethel ess, it also undertook not to impose any market 
access restriction on commercial presence for the pur pose of providing reinsurance services.  It also 
reserved the right to require all insurance and reinsurance compani es to establish a reinsurance plan 
subject to transfer of operations to the SCR .  Morocco undertook not to impose any restriction on 
national treatment for insurance and reinsurance services. 
(vi) Professional services 
(a) Overview 
206. Professional services in Morocco are regulated by the Secretariat General of the Government 
(SGG), and by the Ministry of Justice in the case of the legal professions. 
207. For professions regulated by the SGG, such as architecture and engineering, authorizations to 
operate (for both nationals and fo reigners) are issued by the Direction des associations et des 
professions réglementées - DAPR (Department of Regulated Associations and Professions) of the 
SGG.  In general, membership of the relevant  national professional association is required for 
nationals and foreigners alike.  Once the authori zation has been granted, foreigners must obtain a 
residence permit ( carte d'immatriculation ) valid for between one and ten years (renewable for an 
equal period).145 
208. Morocco has made sectoral commitments in the WTO for a specific category of professional 
services, namely accounting, auditing and bookkeeping, reserving the right to restrict foreign share 
ownership to 25 per cent, and to impose a Moroccan  nationality condition for access to its market;  it 
also undertook not to impose any restriction on natio nal treatment regarding commercial presence.  At 
the horizontal level, Morocco undertook not to im pose any restriction on national treatment for the 
movement of natural persons, but did not make  any commitment on market access, except for 
personnel employed by a company and transferred to a company created in Morocco that is owned or 
controlled by, or is a subsidiary of the former, in certain categories.146  Thus, directors, senior 
executives and specialists with essen tial knowledge may need a prior work contract to obtain a work 
permit, and commercial representatives may have their stay limited to 90 days. 
(b) Accounting and auditing services 
209. There are two major professional accountancy qualifications in Morocco:  expert-comptable  
(public accountant) and comptable agréé  (chartered accountant).  The two categories are protected by 
separate legislation and represented nationa lly by their respective associations, the Ordre des 
experts-comptables  (Association of Public Accountants) and the Association des comptables agréés 
du Maroc  - ACAM (Association of Chartered Accountants). 
210. The public accountancy profession is governed by Law No. 15-89, which regulates the 
profession and establishes an association of public accountants, along with its implementing decree.147  
The profession can be practised either independently as an individual or within a firm of public 
accountants, or as a salaried employee of an inde pendent public accountant or firm of public 
accountants.  Some activities are exclusively r eserved for public accountants.  These include 
verification of balance sheets, income statements and accounting and financial statements;  issuing of 
                                                      
145 Dahir No. 1-03-196 of 11 November 2003, enacting Law No. 02-03 on the entry and stay of 
foreigners in the Kingdom of Morocco, and on irregular emigration and immigration. 
146 WTO document GATS/SC/57, of 15 April 1994. 
147 Decree No. 2-93-521 of 30 August 1993. WT/TPR/S/217/Rev.1 Trade Policy Review 
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all other certifications expressing an opinion on the accounts of firms or organizations;  and  
performing audits.148  In 2007, there were 320 professionals and 80 firms registered in the Association 
of Public Accountants. 
211. Membership of the Association of Public Accountants149 is compulsory to be able to practise 
the profession.  To be admitted, candidates must, inter alia,  be of Moroccan nationa lity or nationals of 
a State that has signed a reciprocal treatment agre ement with Morocco;  and they must hold a national 
public accountancy qualification or r ecognized equivalent.  Without memb ership of the Association, it 
is however possible to use the title " titulaire du diplôme d'expert comptable " ("holder of the 
qualification of public accountant"), mentioning the aut hority or institution that issued the diploma in 
question. 
212. The profession of chartered accountant (CA) is regulated by Decree No. 2-92-837 of 
February 1993, and Finance Minister Order No. 1909-94 of 20 September 1994.  Members of this 
profession must be registered with the ACAM.  The commission is responsible for reviewing 
applications for inclusion in the list of CAs and is chaired by the Minister.  To be admitted, 
individuals must, among other things, be of Mo roccan nationality and possess the diploma of the 
Normal Cycle of the Higher Institute of Trade a nd Business Management, or of the Higher Cycle of 
the Higher Institute of Trade and Business Ma nagement, or a degree in economics (with a 
management or enterprise economics option), or an y other diploma recognized as equivalent.  They 
must also have practised the accountancy pr ofession in Morocco for at least five years.150  The list of 
chartered accountants is published annually in th e Official Journal, and in 2007 numbered roughly 
280 members.151 
(c) Legal services 
Lawyers 
213. The legal profession is governed by La w No. 20-08, enacted on 20 October 2008.152  It is a 
liberal profession and may be prac tised individually or in association with other lawyers, or as an 
assistant. 
214. Morocco has nearly 8,700 lawyers registered with one of the country's 17 bars, and about 
1,300 trainee lawyers.  The bars are federated wi thin a national organization.  Legal counsel is 
provided by lawyers, who are also empowered to draft private agreements of any nature.  Legal 
representation is compulsory in all Moroccan jurisdictions.153 
215. To be entitled to practise the legal profession, candidates must be of Moroccan nationality or 
nationals of a country with which Morocco has an  agreement containing a reciprocity clause on the 
                                                      
148 First Article of Law No. 15-89. 
149 The National Association includes the National Council and two regional councils (for Rabat and 
Casablanca).  These three councils  enforce the profession's rules. 
150 First article of Decree No. 2-92-837 of 3 February 1993. 
151 Official Bulletin No. 5492 of  18 January 2007 (List of ch artered accountants for 2007). 
152 Dahir No. 1-08-102 of 20 October 2008, enacting  Law No. 28-08, amending the Dahir containing 
Law No. 1-93-162 of 10 September 1993, organizing the practice of the legal profession.  Other instruments 
regulating to the profession include Dahir No. 1-08-102 of 20 October 2008, enacting Law No. 29-08 on the 
organization of professional law firms, and Decree No. 2-81-276 of 1 February 1982, specifying the procedures for obtaining the certificate of aptitude for practising the le gal profession.  A draft decree on the organization of 
the examination to assess foreign lawyers' knowledge of  the Arabic language and Moroccan law is currently 
being finalized. 
153 World Bank (2003). Kingdom of Morocco WT/TPR/S/217/Rev.1 
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right to practise.154  They must also be registered with one of Morocco's bar associations and have 
been removed from their bar association in their coun try of origin, and be holders of a certificate of 
aptitude to practise the legal profession.  Failing that , they have to sit an examination to assess their 
knowledge of the Arabic language and Moroccan law.  The certificate of aptitude is not required for 
former lawyers who have not practised the profession for a period of ten years but were registered for 
at least five years without interruption in one of the bar associations in countries with which Morocco 
has an agreement.  Recognition agreements have  been signed with countries such as France and 
Spain. 
216. Even if a lawyer may perform his or her functions throughout Moroccan territory, it is 
necessary to establish domicile in the jurisdiction of  the Court of Appeal corresponding to his or her 
bar.  To plead in a jurisdiction elsewhere in Moro cco, the lawyer must establish domicile either in the 
office of a colleague established in that jurisdicti on or at the office of the corresponding clerk of the 
court.  Lawyers practising their profession in a fore ign country with which Morocco has a recognition 
agreement may practise in Moroccan jurisdictions provided they establish domicile with a lawyer 
registered in one of the Moroccan bars, and (unless this is waived by the aforementioned agreement) 
have been specially authorized to prac tise there by the Minister of Justice. 
217. All pleas in Moroccan courts are made in Arabic. 
Notaries and "adouls" 
218. The notary profession in Morocco is governed by  the Dahir of 4 May 1925, dealing with the 
organization of the French notary service, the la st amendment to which dates back to before 
independence;  and the " adoul " profession is regulated by Decree No. 2-82-415 of 18 April 1983.155  
Morocco has about 600 notaries and 5,000 adoul s (i.e. auxiliaries of the traditional justice sector) who 
perform notary tasks.  Moroccan notaries do not have an organized professional body.  At the present time, there is only one modern national notary ch amber (membership is optional), which represents 
notaries vis-à-vis  public authority.  The possibilit y of association does not exist. 
219. To practise as a notary, it is necessary to have  a degree in law, have spent four years on 
probation in a notary's office, and pass two exams at the end of each two-year period.  Foreign 
nationals cannot work as notaries in Morocco. 
220. The legislation governing the notary profession is  currently being reviewed, and a draft law 
has been prepared.  Among other things, the new legislation provides for the creation of a professional notary training institute, creation of a national council and regional counc ils to oversee compliance 
with notary ethics, the possibility of notaries form ing associations within a single office, and the 
question of fees.  It also gives the notaries the stat us of liberal professionals rather than Government 
officials. 
221. Adoul s are attached to Taoutiq  judges, who hear litigation under traditional family law in 
courts of first instance.  They are appointed by th e Ministry of Justice and overseen by the Court of 
Appeals, and they fulfil notary and clerk of the court functions.  Adoul s are not paid by the Ministry of 
Justice, but receive a commission based on the value of  the transaction in question together with clerk 
expenses set by decree.  They do not have an official association.
156 
                                                      
154 Article 5 of Law No. 1-93-162. 
155 Decree No. 2-82-415 of 18 April 1983, on the appointment of adouls  and oversight of the adoul  
profession, the drafting and filing of testimony, and the establishment of adoul  fees. 
156 World Bank (2003). WT/TPR/S/217/Rev.1 Trade Policy Review 
Page 128 
 
 
222. The adoul  profession is governed by Law No. 16-03157, which came into force in 
November 2008.  To be able to work as a professional adoul , candidates must be Muslim Moroccans, 
pass a competitive selection process, work as a trai nee for a year and then pass a final exam. 
(d) Architecture services 
223. The architecture profession is governed by Law No. 016-89158, which has been in force since 
1993, and its enabling decree.159  To be able to work as a professional architect on a private basis, 
prior authorization from the SGG is required (Sec tion (a) above), which is issued subject to a 
favourable opinion from the National Associati on of Architects.  The applicant must, inter alia,  be of 
Moroccan nationality or from a country with wh ich Morocco has an agreement containing a 
reciprocity clause on the right to practise the arch itecture profession, hold an architecture qualification 
awarded by the National Architectur e School or equivalent diploma160;  and (except for special cases) 
have completed two years training with an independent architect or in a firm of architects. 
224. Foreigners may be authorized to practise as ar chitects on a private basis "subject to conditions 
and limits specified by the legislation on immigration, according to which, inter alia , authorization to 
practise the profession may be restricted to a certain administrative jurisdiction".  Authorization is 
granted by the SGG, subject to an opinion from the government urban development authorities, the 
Association of Architects and the commission res ponsible for reviewing immigration applications 
requests.  Foreigners must satisfy the same study requirements as nationals, establish domicile with a 
Moroccan architect, and be removed from the list of th e Association of Architects in their country of 
origin to register with the National Association of Architects in Morocco.  Nonetheless, they are 
exempted from the period of professional work experien ce if they can show that they have practised 
as an independent architect in their country of orig in for least five years continuously.  Foreigners 
from a country with which Morocco has signed a reci procal establishment agreement, must have an 
architecture qualification or other equivalent title161, entitling them to practise the profession in their 
country of origin.  They must also produce a certif ied copy of the decision to remove them from the 
list of the Association of Architects in their country of origin. 
225. As of June 2008, nearly 2,000 architects had been authorized to practise the profession 
privately.  All architects must be registered with the National Association of Architects, which is responsible, among other things , for ensuring that its members comply with legislation governing the 
architecture profession, and for establishing the code of professional duties. 
(e) Engineering services 
226. Engineering services continue to be governed by an  obsolete instrument dating back to before 
Morocco's independence, i.e. the Dahir of 11 June 1949, regulating the title of engineer in Morocco.  
According to this, to be able to use the title of e ngineer in Morocco, it is n ecessary to have an official 
                                                     
 
157 Dahir No. 1-06-56 of 14 February 2006, enacting Law No. 16-03, relating to the adoul  profession. 
158 Dahir No. 1-92-122 of 10 September 1993, enacting Law No. 016-89 on the exercise of the 
architecture profession and establishment of  the National Association of Architects. 
159 Decree No. 2-93-66 of 1 October 1993, implementing Law No. 016-89 concerning the practice of 
the architecture profession an d establishment of the National Association of Architects. 
160 The list of equivalent diplomas is published by the Minister responsible for education subject to an 
opinion from the Association of Architects. 
161 The list of diplomas recognized as equivalent incl ude those awarded by univ ersities in the following 
countries:  Algeria, Belgium, Bulgaria, Canada, Egypt,  France, Germany, Iraq, It aly, Libya, Netherlands, 
Poland, Romania, Russia, Senegal, Spain, Switzerland, Syria, Tunisia,  Ukraine, and the United States. 
 Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 129 
 
 
engineering diploma awarded in Morocco or in France,  or abroad, and, in the latter case, previously 
recognized by the "État chérifien" or by France.  In practice, authorization to provide professional 
engineering services is granted by the SGG.  In the case of foreigners, this is subject to a favourable 
opinion from the Ministry of Foreign Affairs and Cooperation, which is  responsible for the 
authentication of diplomas.  There is no national association of engineers. 
227. Morocco does not have enough engineers.  In 2007 there were nine engineers per 10,000 of 
population, compared to 40 in Jordan and 130 in France.  A new draft regulation on the status of 
engineers is reportedly being prepared. 
 Kingdom of Morocco WT/TPR/S/217/Rev.1 
 Page 131 
 
 
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