WORLD TRADE  
ORGANIZATION  WT/REG208/1 
6 March 2006 
 
 (06-0960) 
Committee on Regional Trade Agreements Original:   English 
  
 
FREE TRADE AGREEMENT BETWEEN THE 
UNITED STATES AND MOROCCO
∗ 
 
 The following communication, dated 30 December 2005, is being circulated at the request of 
the Delegations of Morocco and the United States 
 
_______________ 
  
UNITED STATES – MOROCCO FREE TRADE AGREEMENT 
 
PREAMBLE
 
 
 The Government of the United States of America and the Government of the Kingdom of 
Morocco (the “Parties”): 
 
 Recognizing  the longstanding friendship between th em, and wishing to strengthen their 
partnership and promote mutually advantageous economic relations; 
 
Recognizing  Morocco’s commitment to reform to improve the lives of its people; 
 
 Desiring to raise living standards, promote ec onomic growth and stability, create new 
employment opportunities, and improve  the general welfare in their territories by liberalizing and 
expanding trade and investment between them; 
 
Seeking to enhance the competitiveness of th eir enterprises in global markets; 
 
 Desiring  to establish clear rules governing their trad e and investment that reflect the interests 
of both Parties and thereby foster a predictable and mutually advantageous commercial environment; 
 
 Committed to foster bilateral cooperation while reco gnizing the differences in their level of 
development and the size of their economies; 
 
 Affirming their commitment to facilitate trade between them by eliminating barriers to 
bilateral trade; 
 
 Building on their rights and obligations under the WT O Agreement and other agreements to 
which they are both parties; 
 
                                                      
∗ The complete text with annexes is availa ble on the websites of the United States,  
(http://www.ustr.gov/Trade_Agreements/Bilater al/Morocco_FTA/FInal_Text/Section_Index.html ), and 
Morocco, ( http://www.maec.gov.ma ).  They are also available at the Secretariat (office 1174) for consultation 
by interested Members. WT/REG208/1 
Page 2  
 
 Desiring to liberalize and expand bilateral agricultura l trade and investment and thereby make 
their agricultural sectors more competitive, foster ru ral development, and increase prosperity in their 
territories;  Desiring  to protect human, animal, and plant health  conditions in the Parties’ territories, 
enhance the Parties’ implementation of the SPS Agre ement, and provide a forum to address sanitary 
and phytosanitary matters between the Parties, thereby expanding trade opportunities; 
 
 Affirming  their commitment to transparency and their desire to eliminate corruption in 
international trade and investment; 
 
 Seeking  to foster creativity and innovation and to promote trade in goods and services that are 
the subject of intellectual property rights; 
 
 Desiring  to strengthen the development and enforcem ent of labor and environmental laws and 
policies, promote basic workers’ rights and sustai nable development, and im plement this Agreement 
in a manner consistent with enviro nmental protection and conservation; 
 
 Affirming their desire to establish a free trade area  of the United States, Middle East, and 
North Africa and thereby contribute to regi onal integration and economic development; 
 
Have agreed
 as follows: 
  
CHAPTER ONE:  INITIAL PROVISIONS AND DEFINITIONS 
 
Section A: Initial Provisions 
 
Article 1.1 
Establishment Of A Free Trade Area  
 Consistent with Article XXIV of GATT 1994 and Article V of GATS, the Parties hereby 
establish a free trade area in accordance with  the provisions of this Agreement.  
 
Article 1.2 
Relation To Other Agreements  
1. Except as provided in paragraphs three through five, each Party affirms its existing rights and 
obligations with respect to each other under existing bilateral and multilateral ag reements to which the 
Parties are party, including the WTO Agreement.  
2. This Agreement shall not be construed to de rogate from any legal obligation between the 
Parties that entitles goods or services, or suppliers of goods or services, to treatment more favorable 
than that accorded by  this Agreement.  
3. Articles VI and VII of the Treaty Between the United States of America and the Kingdom of 
Morocco Concerning the Encouragement an d Reciprocal Protection of Investments , with Protocol , 
signed at Washington on July 22, 1985 (the “Treaty” ) shall be suspended on the date of entry into 
force of this Agreement.  
4. Notwithstanding paragraph 3, for a period of te n years beginning on the date of entry into 
force of this Agreement, Articles VI and V II of the Treaty shall not be suspended:   WT/REG208/1 
 Page 3 
 
 
(a) in the case of investments covered by the Treat y as of the date of entry into force of 
this Agreement; or  
(b) in the case of disputes that arose prior to  the date of entry into force of this 
Agreement and that are otherwise eligib le to be submitted for settlement under 
Article VI or VII.  
5. In the event either Party terminates this Ag reement in accordance with Article 22.6 (Entry 
into Force and Termination), Articles VI and VII of the Treaty, to the ex tent suspended, shall 
automatically resume operation and shall continue in full force and effect as provided therein.  
Section B: General Definitions  
Article 1.3 
Definitions  
For purposes of this Agreement, unless otherwise specified:  
 
 Agreement on Textiles and Clothing  means the Agreement on Textiles and Clothing , 
contained in Annex 1A to the WTO Agreement;  
 
 central level of government  means:  
 (a) for the United States, the federal level of government; and   
(b) for Morocco, the national level of government;  
 covered investment  means, with respect to a Party, an investment (as defined in 
Article 10.27 (Investment – Definitions)) in its territory  of an investor of the other Party in existence 
on the date of entry into force of this Agreement or established, acquired, or expanded thereafter;  
 
 customs duty  includes any customs or import duty and a charge of any kind imposed in 
connection with the importation of a good, including any form of surtax or surcharge in connection with importation, but does not include any:   
(a) charge equivalent to an internal tax impo sed consistently with Article III:2 of GATT 
1994 in respect of like, directly competitive, or substitutable goods of the Party or in 
respect of goods from which the imported good has been manufactured or produced 
in whole or in part;  
(b) antidumping or countervailing duty; and  
(c) fee or other charge in connection with importation commensurate with the cost of 
services rendered;  
 Customs Valuation Agreement  means the WTO Agreement on Implementation of Article VII 
of the General Agreement on Tariffs and Trade 1994 , contained in Annex 1A to the WTO Agreement;  
 
 days  means calendar days;  
 
 enterprise means any entity constituted or organized unde r applicable law, whether or not for 
profit, and whether privately owned or governmenta lly owned, including any corporation, trust, 
partnership, sole proprietorship, joint venture, or other association;  WT/REG208/1 
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 enterprise of a Party  means an enterprise constituted or organized under the law of a Party;  
 
 existing means in effect on the date of entry into force of this Agreement;  
 
 GATS means the General Agreement on Trade in Services , contained in Annex 1B to the 
WTO Agreement;  
 
 GATT 1994  means the General Agreement on Tariffs and Trade 1994 , contained in 
Annex 1A to the WTO Agreement;  
 
 goods of a Party means domestic products as these are understood in GATT 1994 or such 
goods as the Parties may agree, and includes originating goods of that Party;  
 
 government procurement  or procurement means the process by which a government 
obtains the use of or acquires goods or services, or any combination thereof, for governmental 
purposes and not with a view to commercial sale or resale, or use in the production or supply of goods 
or services for commercial sale or resale;  
 
 Harmonized System (HS) means the Harmonized Commodity Description and Coding 
System , including its General Rules of Interpretation, Section Notes, and Chapter Notes, as adopted 
and implemented by the Parties in their respective tariff laws;  
 
 measure  includes any law, regulation, procedure, requirement, or practice;  
 
 national  means:  
  (a)  with respect to Morocco, “national of  the Kingdom of Morocco” in accordance with 
 Dahir  No. 1-58-250 of 21 Safar  1378 (September 6, 1958) enacting the Code of 
 Moroccan Nationality; and   
  (b) with respect to the United States, “natio nal of the United States” as defined in Title 
 III of the Immigration and Nationality Act;  
  originating good  means a good qualifying under the rules of origin set out in Chapter Five 
(Rules of Origin) or Chapter Four (Textiles and Apparel);  
 
 person  means a natural person or enterprise;  
 
 person of a Party  means a national or an enterprise of a Party;  
  preferential tariff treatment  means the duty rate applicable under this Agreement to an 
originating good;  
 regional level of government  means:  
  (a)  for the United States, a state of the Unite d States, the District of Columbia, or Puerto 
 Rico; and  
  (b)  for Morocco, “regional level of government” is not applicable;   
 Safeguards Agreement  means the Agreement on Safeguards , contained in Annex 1A to the 
WTO Agreement;  
  WT/REG208/1 
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 SPS Agreement  means the Agreement on the Application of Sanitary and Phytosanitary 
Measures , contained in Annex 1A to the WTO Agreement;  
 
 state enterprise  means an enterprise owned, or contro lled through ownership interests, by a 
Party;  
 
 TBT Agreement  means the Agreement on Technical Barriers to Trade , contained in 
Annex 1A to the WTO Agreement;  
 
 territory  means, with respect to the United States:  
  (a) the customs territory of the United States,  which includes the 50 states, the District of 
 Columbia, and Puerto Rico;  
  (b)  the foreign trade zones located in  the United States and Puerto Rico; and  
 
 (c)  any areas beyond the territorial seas of th e United States within which, in accordance 
 with international law and its domestic law, the United States may exercise rights 
 with respect to the seabed and subsoil and their natural resources;  
 
 TRIPS Agreement  means the Agreement on Trade-Related Aspects of Intellectual Property 
Rights , contained in Annex 1C to the WTO Agreement;   
 
 WTO means the World Trade Organization; and  
  WTO Agreement  means the Marrakesh Agreement Establishing the World Trade 
Organization, done on April 15, 1994.   
 
CHAPTER TWO:  NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 
 
Article 2.1 
Scope And Coverage
 
 Except as otherwise provided, this Chapter applies to trade in goods of a Party.  
Section A: National Treatment  
Article 2.2 
National Treatment  
 
1. Each Party shall accord national treatment to th e goods of the other Party in accordance with 
Article III of GATT 1994, including its interpretive notes, and to this end Article III of GATT 1994 
and its interpretative notes are incorporated in to and made a part of this Agreement, mutatis mutandis .  
2. The treatment to be accorded by a Party under paragraph 1 means, with respect to a regional 
level of government, treatment no less favorable than  the most favorable treatment that regional level 
government accords to any like, directly compe titive, or substitutable goods, as the case may be, of 
the Party of which it forms a part.  WT/REG208/1 
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3. Paragraphs 1 and 2 shall not apply to the measures set out in Annex 2-A.   
 
Section B: Tariff Elimination
 
Article 2.3 
Tariff Elimination  
1. Except as otherwise provided in this Agreem ent, neither Party may increase any existing 
customs duty, or adopt any new customs duty, on an originating good.   
2. Except as otherwise provided in this Agreement,  each Party shall progressively eliminate its 
customs duties on originating goods, in accordan ce with its schedule to Annex IV (Tariff 
Elimination).   
3. On the request of either Party, the Parti es shall consult to consider accelerating the 
elimination of customs duties set out in their Schedul es to Annex IV.  An agreement by the Parties to 
accelerate the elimination of a customs duty on a good shall supercede any duty rate or staging category determined pursuant to their Schedules to  Annex IV for that good when approved by each 
Party in accordance with its applicable legal procedures.  
4. For greater certainty, a Party may:  
(a) raise a customs duty back to the level established in its Schedule to Annex IV 
following a unilateral reduction; or  
(b) maintain or increase a customs duty as author ized by the Dispute Settlement Body of 
the WTO.  
Section C: Special Regimes
 
Article 2.4 
Waiver Of Customs Duties  
1. Neither Party may adopt any new waiver of cu stoms duties, or expand with respect to existing 
recipients or extend to any new recipient the app lication of an existing waiver of customs duties, 
where the waiver is conditioned, explicitly or implicitly, on the fulfillment of a performance 
requirement.  
2. Neither Party may, explicitly or implicitl y, condition on the fulfillment of a performance 
requirement the continuation of any existing waiver of customs duties, except as provided in Annex 2-B.  
 
Article 2.5 
 
Temporary Admission Of Goods
 
1. Each Party shall grant duty-free temporary admission for:   WT/REG208/1 
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 (a)  professional equipment, including equipmen t for the press or television, software and 
broadcasting and cinematographic equipment,  necessary for carrying out the business 
activity, trade, or profession of a business person who qualifies for temporary entry 
pursuant to the laws of the importing Party;  
 
 (b)  goods intended for display or demonstration;  
  (c)  commercial samples and adver tising films and recordings; and  
 
(d)  goods imported for sports purposes,  
 
regardless of their origin.  
 
2. Each Party shall, at the request of the pers on concerned and for reasons its customs authority 
considers valid, extend the time limit for temporar y admission beyond the period initially fixed.  
3. Neither Party may condition the duty-free temporary admission of a good referred to in 
paragraph 1, other than to require that the good:  
(a) be used solely by or under the personal s upervision of a national or resident of the 
other Party in the exercise of the business ac tivity, trade, profession, or sport of that 
person;  
(b) not be sold or leased while in its territory;  
(c) be accompanied by a security in an amount no greater than the charges that would 
otherwise be owed on entry or final impor tation, releasable on exportation of the 
good;  
(d) be capable of identification when exported;  
(e) be exported on the departure of the person re ferenced in subparagr aph (a), or within 
such other period related to the purpose of the temporary admission as the Party may 
establish;  
(f) be imported in no greater quantity than is  reasonable for its intended use; and  
(g) be otherwise admissible into the Party’s territory under its laws.  
4. If any condition that a Party imposes under para graph 3 has not been fulfilled, the Party may 
apply the customs duty and any other charge that would normally be owed on the good.  
5. Each Party, through its customs authority, shall adopt procedures providing for the 
expeditious release of goods admitted under this Artic le.  To the extent possible, these procedures 
shall provide that when such goods  accompany a national or resident of the other Party who is seeking 
temporary entry, the goods shall be released simultane ously with the entry of that national or resident.  
6. Each Party shall permit a good temporarily ad mitted under this Article to be exported through 
a customs port other than that through which it was admitted.  
7. Each Party, through its customs authority,  shall relieve the importer or other person 
responsible for a good admitted under this Article fr om any liability for failure to export the good on 
destruction of the good in the presence of the Party’s customs authority or presentation of satisfactory WT/REG208/1 
Page 8  
 
proof to its customs authority, in accordance with its laws, that the goo d has been destroyed within the 
original period fixed for temporary admission or any lawful extension.  
8. Subject to Chapters Ten (Investment) and Eleven (Cross-Border Trade in Services):  
(a) each Party shall allow a container used in inte rnational traffic that enters its territory 
from the territory of the other Party to exit its  territory on any route that is reasonably 
related to the economic and prompt departure of such container;  
(b) neither Party may require any bond or impose any penalty or charge solely because of 
any difference between the port of entry and the port of departure of a container;  
(c) neither Party may condition the release of any obligation, including any bond, that it 
imposes in respect of the entry of a containe r into its territory on its exit through any 
particular port of departure; and  
(d) neither Party may require that the carrier br inging a container from the territory of the 
other Party into its territory be the same carri er that takes such container to the territory 
of the other Party.  
Article 2.6 
Goods Re-Entered After Repair Or Alteration
 
1. Neither Party may apply a customs duty to a go od, regardless of its origin, that re-enters its 
territory after that good has been exported from its territo ry to the territory of the other Party for repair 
or alteration, regardless of whether such repair or  alteration could be performed in its territory.  
2. Neither Party may apply a customs duty to a good, regardless of its origin, imported 
temporarily from the territory of the other Party for repair or alteration.  
3. For purposes of this Article, repair or alteration means rest oration, renovation, cleaning, 
resterilizing, or other operation or process that does not:  
(a)  destroy a good’s essential characteristics or creates  a new or commercially different 
 good; or  
 
(b)  transform an unfinished good into a finished good.  
 
Article 2.7 
Duty-Free Entry Of Commercial Samples And Prin ted Advertising Materials Of Negligible Value  
 Each Party shall grant duty-free entry to comm ercial samples of negligible value and to 
printed advertising materials of negligible value,  imported from the territory of the other Party, 
regardless of their origin, but may require that:  
(a) such samples be imported solely for the so licitation of orders for goods, or services 
provided from the territory, of the other Party or a non-Party; or  
(b) such advertising materials be imported in packets that each contain no more than one 
copy of each such material and that neither such materials nor packets form part of a 
larger consignment.   WT/REG208/1 
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Section D: Non-Tariff Measures  
Article 2.8 
Import And Export Restrictions  
1. Except as otherwise provided in this Agreement,  neither Party may adopt or maintain any 
prohibition or restriction on the importation of an y good of the other Party or on the exportation or 
sale for export of any good destined for the territory  of the other Party, except in accordance with 
Article XI of GATT 1994 and its inte rpretative notes, and to this e nd Article XI of GATT 1994 and its 
interpretive notes are incorporated into and made a part of this Agreement, mutatis mutandis .1 
2. The Parties understand that GATT 1994 rights and obligations incorporated by paragraph 1 
prohibit, in any circumstances in which any other form of restriction is prohibited1, a Party from 
adopting or maintaining:   
(a) export and import price requirements, ex cept as permitted in enforcement of 
countervailing and antidumping dut y orders and undertakings;  
(b) measures conditioning the grant of an import license on the fulfillment of a 
performance requirement; or   
(c) voluntary export restraints inconsistent w ith Article VI of GATT 1994, as implemented 
under Article 18 of the WTO Agreement on  Subsidies and Countervailing Measures 
and Article 8.1 of the WTO Agreement on  Implementation of Article VI of GATT 
1994.  
3. In the event that a Party adopts or maintains a prohibition or restriction on the importation 
from or exportation to a non-Party of a good, no pr ovision of this Agreement shall be construed to 
prevent the Party from:  
(a)  limiting or prohibiting the importation of the good of the non-Party from the territory 
of the other Party; or  
 (b)  requiring as a condition for exporting the good of the Party to the territory of the 
other Party, that the good not be re-exported to the non-Party, directly or indirectly, 
without being consumed in the territory of the other Party.  
 
4. In the event that a Party adopts or maintains a prohibition or restriction on the importation of 
a good from a non-Party, the Parties, on the request of  either Party, shall consult with a view to 
avoiding undue interference with or distortion of pr icing, marketing, and distribution arrangements in 
the other Party.  
5. Paragraphs 1 through 4 shall not apply to the measures set out in Annex 2-A.  
 
 
                                                     
 
1 For greater certainty, paragraph 1 applies to proh ibitions or restrictions on the importation of 
remanufactured products. 
 WT/REG208/1 
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Article 2.9 
Administrative Fees And Formalities
 
1. Each Party shall ensure, in accordance with Article VIII:1 of GATT 1994 and its interpretive 
notes , that all fees and charges of wh atever character (other than import and export duties, charges 
equivalent to an internal tax or other internal charges applied consistently with Article III:2 of 
GATT 1994, and antidumping and countervailing duties applied pursuant to a Party’s law) imposed 
on, or in connection with, importati on or exportation are limited in amount to the approximate cost of 
services rendered and do not represent an indirect protection to domestic goods or a taxation of 
imports or exports for fiscal purposes.  
2. Neither Party may require consular transacti ons, including related fees and charges, in 
connection with the importation of any good of the other Party.  
3. Each Party shall make available on the Intern et a current list of the fees and charges it 
imposes in connection with im portation or exportation.   
Article 2.10 
Export Taxes  
 Except as provided in Annex 2-C, neither Party may adopt or maintain any tax, duty, or other 
charge on the export of any good to the territory of ot her Party, unless the tax, duty, or charge is also 
adopted or maintained on the good when destined for domestic consumption.   
Section E: Definitions
 
Article 2.11 
Definitions  
For purposes of this Chapter:  
 
 advertising films and recordings  means recorded visual media or audio materials, consisting 
essentially of images and/or sound, showing the natu re or operation of goods or services offered for 
sale or lease by a person established or resident in the territory of a Party, provided that such materials 
are of a kind suitable for exhibition to prospectiv e customers but not for broadcast to the general 
public;   
 
 commercial samples of negligible value  means commercial samples having a value, 
individually or in the aggregate as shipped, of not more than one U.S.  dollar, or the equivalent amount 
in Moroccan currency, or so marked, torn, perforated,  or otherwise treated that they are unsuitable for 
sale or use except as commercial samples;  
 
 consular transactions means requirements that goods of a Party intended for export to the 
territory of the other Party must first be submitted to the supervision of the consul of the importing 
Party in the territory of the exporting Party for th e purpose of obtaining consular invoices or consular 
visas for commercial invoices, certificates of origin, ma nifests, shippers’ export declarations, or any 
other customs documentation required on, or in connection with, importation;  
 
 consumed means 
  WT/REG208/1 
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(a) actually consumed; or  
(b) further processed or manufactured so as to result in a substantial change in value, 
form, or use of the good or in the production of another good;  
 duty-free  means free of customs duty;  
 
 goods imported for sports purposes  means sports requisites for use in sports contests, 
demonstrations, or training in the territory of the importing Party;  
 
 goods intended for display or demonstration  includes their component parts, ancillary 
apparatus, and accessories;  
 
 import license  means a license issued by a Party pursu ant to an administrative procedure 
requiring the submission of an application or other documentation (other than that generally required 
for customs clearance purposes) to the relevant  administrative body as a prior condition for 
importation into the territory of the Party;  
 
 performance requirement means a requirement that:  
 
(a) a given level or percentage of goods or services be exported;  
(b) domestic goods or services of the Party granting a waiver of customs duties or an 
import license be substituted for imported goods or services;  
(c) a person benefiting from a waiver of custom s duties or an import license purchase other 
goods or services in the territory of the Party granting the waiver of customs duties or 
the import license, or accord a preference to domestically produced goods;  
(d) person benefiting from a waiver of customs duties or an import license produce goods 
or supply services, in the territory of the Party granting the waiver of customs duties or the import license, with a given level or  percentage of domestic content; or  
(e) relates in any way the volume or value of im ports to the volume or value of exports or 
to the amount of foreign exchange inflows;  
 but does not include a requirement that:  
  (f) an imported good be subsequently exported;  
 
 (g) an imported good be used as a material in the production of another good that is 
 subsequently exported;  
  (h) an imported good be substituted by an iden tical or similar good used as a material in 
the production of another good that is subsequently exported; or  
 
 (i) an imported good be substituted by an iden tical or similar good that is subsequently 
  exported; and    printed advertising materials of negligible value  means those goods classified in 
Chapter 49 of the Harmonized System, including br ochures, pamphlets, leaf lets, trade catalogues, 
yearbooks published by trade associations, tourist promo tional materials, and posters, that are used to 
promote, publicize, or advertise a good or service, are essentially intended to advertise a good or WT/REG208/1 
Page 12  
 
service, and are supplied free of charge, having a value,  individually or in the aggregate as shipped, of 
not more than one U.S. dollar, or the equivalent amount in Moroccan currency.  
 
 
ANNEX 2-A  
 
National Treatment And Import And Export Restrictions
 
Section A: Measures Of The United States  
 Articles 2.2 and 2.8 shall not apply to: 
 
 (a)  controls on the export of logs of all species;  
  (b)  (i) measures under existing provisions of  the Merchant Marine Act of 1920, 46 
 App.U.S.C. § 883; the Passenger Vessel Act, 46 App.  U.S.C. §§ 289, 292, 
 and 316; and 46 U.S.C. § 12108, to the extent that such measures were  mandatory legislation at the time the United States acceded to the General 
 Agreement on Tariffs and Trade 1947  (“GATT 1947”) and have not been 
 amended so as to decrease their conf ormity with Part II of GATT 1947;  
 
(ii)  the continuation or prompt rene wal of a non-conforming provision of any 
 statute  referred to in clause (i); and  
(iii)  the amendment to a non-conforming provision of any statute referred to in 
clause (i) to the extent that the amen dment does not decrease the conformity 
of the provision with Articles 2.2 and 2.8;  
 (c)  actions authorized by the Dispute Settlement Body of the WTO; and  
  (d)  actions authorized by the Agreement on Textiles and Clothing.   
Section B: Measures Of Morocco
 
 Articles 2.2 and 2.8 shall not apply to actions  authorized by the Dispute Settlement Body of 
the WTO.  
 
ANNEX 2-B  
 
Waiver Of Customs Duties  
Measures of Morocco 
 
 Article 2.4 shall not apply to the waiver of  customs duties, pursuant to Morocco’s existing 
contracts, on imports of comple te-knocked-down (CKD) parts (subh eadings 8703.22.10; 8703.32.10; 
8704.21.11.90; 8704.31.10.19; 8711.10.93.00; and 8712.00.10.00 of the Harmonized System), for the assembly of motor vehicles (subheadings 8703. 22.83.00 and 8703 .32.43.00 of the Harmonized 
System), light utility vehicles for cargo transport (subheadings 8704.21.99.51 and 8704.31.90.51 of 
the Harmonized System), bicycles (subheading 8712.00.90.90 of the Harmonized System), and motorcycles (subheading 8711.10.91.00 of the Harmoni zed System) until five years after the date of 
entry into force of this Agreement.  
   WT/REG208/1 
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ANNEX 2-C 
 
Export Taxes  
Measures of Morocco 
 
 Article 2.10 Shall Not Apply To A Tax On Exports Of Processed Or Unprocessed 
Phosphates, Provided that the tax rate is no higher than 34 dirhams  per ton of unprocessed 
phosphates, for five years beginning on the date of entry into force of this Agreement.  
 
 
CHAPTER THREE:  AGRICULTURE AND SANITARY AND 
PHYTOSANITARY MEASURES 
 
Section A: Agriculture  
Article 3.1 
Scope And Coverage  
 This Section applies to measures adopted or maintained by a Party relating to agricultural 
trade.  
Article 3.2 
 
Administration And Implementation Of Tariff-Rate Quotas  
1. Each Party shall implement and administer th e tariff-rate quotas for agricultural goods set out 
in Annex 1 to the General Notes to its Schedule to Annex IV (Tariff Elimination) (“TRQs”), in 
accordance with Article XIII of GATT 1994, incl uding its interpretive notes, and the WTO 
Agreement on Import Licensing Procedures. 
2. Each Party shall ensure that:  
(a) its procedures for administering its TRQs are transparent, made available to the 
public, timely, nondiscriminatory, responsiv e to market conditions, and minimally 
burdensome to trade;  
(b) any person of a Party that fulfills the Pa rty’s legal and administrative requirements 
shall be eligible to apply and to be co nsidered for an allocation under the Party’s 
TRQs;  
(c) it does not allocate any portion of an in-quota quantity to producer groups or other 
non-governmental organizations, except as ot herwise provided in Annex 3-C (Wheat 
Auction System);  
(d) solely government authorities administer its TRQs and, to that end, that the 
government authorities do not delegate admini stration of its TRQs to producer groups 
or other non-governmental organizations; and   
(e) it allocates in-quota quantities under its TRQs  in commercially viable shipping 
quantities and, to the maximum extent possibl e, in the amounts that importers request.  WT/REG208/1 
Page 14  
 
3. Each Party shall make every effort to administer its TRQs in a manner that allows importers 
to fully utilize them.  
4. Neither Party may condition application for, or  use of, an import license or an allocation 
under a TRQ on the re-export of an agricultural good.    
5. Neither Party may count food aid or other non-co mmercial shipments in determining whether 
an in-quota quantity under a TRQ has been filled.    
6. On request of either Party, the importing Part y shall consult with the other Party regarding 
administration of the importing Party’s TRQs.  
Article 3.3 
Agricultural Export Subsidies
 
1. The Parties share the objective of the multila teral elimination of export subsidies for 
agricultural goods and shall work together toward  an agreement in the WTO to eliminate those 
subsidies and prevent their reintroduction in any form.  
2. Except as provided in paragraph 3, neither Party may introduce or maintain any export 
subsidy on any agricultural good destined for the territory of the other Party.  
3. Where an exporting Party considers that a non-Party is exporting an agricultural good to the 
territory of the other Party with the benefit of e xport subsidies, the importing Party shall, on written 
request of the exporting Party, consult with the ex porting Party with a view to agreeing on specific 
measures that the importing Party may adopt to counte r the effect of such subsidized imports.  If the 
importing Party adopts the agreed-on measures, th e exporting Party shall refrain from applying any 
export subsidy to exports of such good to the territory of the importing Party.  
Article 3.4 
Export State Trading Enterprises  
 The Parties shall work together  toward an agreement on export state trading enterprises in the 
WTO that:  
 
(a) eliminates restrictions on the right to export;  
(b) eliminates any special financing granted di rectly or indirectly to state trading 
enterprises that export for sale a significant share of their country’s total exports of an agricultural good; and    
(c) ensures greater transparency regarding th e operation and maintenance of export state 
trading enterprises.  
Article 3.5 
Agricultural Safeguard Measures
 
1. Notwithstanding Article 2.3 (Tariff Elimination), a Party may apply a measure in the form of 
an additional duty on an originating agricultural go od listed in that Party’s Schedule to Annex 3-A 
(Agricultural Safeguard Measures), provided that th e conditions in paragraphs 2 through 5 are met.   WT/REG208/1 
 Page 15 
 
 
The sum of any such additional duty and any other customs duty on such good shall not exceed the lesser of:  
(a) the prevailing most-favored-nation (“MFN”) applied rate of duty; or  
(b) the MFN applied rate of duty in effect on the day immediately preceding the date of 
entry into force of this Agreement.  
2. 'The additional duty under para graph 1 shall be set according to each Party’s Schedule to 
Annex 3-A.  
3. Neither Party may apply or maintain an agricu ltural safeguard measure and at the same time 
apply or maintain, with respect to the same good:  
(a) a safeguard measure under Chapter Eight (Safeguards); or   
(b) a measure under Article XIX of GATT 1994  and the Safeguards Agreement.   
4. Neither Party may apply or maintain an agricultural safeguard measure on a good:  
(a) on or after the date that the good is subject to duty-free treatment under the Party’s 
Schedule to Annex IV (Tariff Elimination), except as otherwise provided in Annex 3-A; or  
(b) that increases the in-quota duty on a go od that is subject to a TRQ.  
5. A Party shall implement an agricultural safeguard  measure in a transparent manner.  Within 
60 days after applying a measure, the Party applyi ng the measure shall notify the Party whose good is 
subject to the measure, in writing, and shall provide  it relevant data concerning the measure.  On 
request, the Party applying the measure shall cons ult with the Party whose good is subject to the 
measure regarding the application of the measure.  
6. The operation of this Article may be the s ubject of discussion and review in the Joint 
Committee or any subcommittee on agriculture established pursuant to Article 19.2 (Joint 
Committee).  
Article 3.6 
Agricultural Trade Forum
 
 The Parties affirm their desire to provide  a forum, through the Joint Committee established 
pursuant to Article 19.2 or a subcommittee estab lished thereunder, for addressing agricultural trade 
matters under this Section.   
 
Article 3.7 
Definitions  
For purposes of this Section:  
 
 agricultural goods  means those goods referred to in Article 2 of the WTO Agreement on 
Agriculture; and  
 agricultural safeguard measure  means a measure described in Article 3.5.1.  WT/REG208/1 
Page 16  
 
Section B: Sanitary And Phytosanitary Measures
 
Article 3.8 
Scope And Coverage  
 
 This Section applies to all sanitary and phytosan itary measures of a Party that may, directly or 
indirectly, affect trade between the Parties.  
Article 3.9 
General Provisions  
 
1. The Parties affirm their existing rights and obligations with respect to each other under the 
SPS Agreement.  
2. Neither Party may have recourse to dispute settlement under this Agreement for any matter 
arising under this Section.  
3. The Parties affirm their desire to provide a forum, through the Joint Committee established 
pursuant to Article 19.2 or a subcommittee on san itary and phytosanitary matters established 
thereunder, for addressing sanitary and phytosanitary matters affecting trade between the Parties. the 
Parties.   
Article 3.10 
Definition  
For purposes of this Section, sanitary or phytosanitary measure  means any measure 
referred to in Annex A, paragra ph 1, of the SPS Agreement.   
 
 
ANNEX 3-A 
 
Agricultural Safeguard Measures  
Schedule Of The United States  
 1. The United States may apply a price-based ag ricultural safeguard measure, pursuant to 
Article 3.5 (Agricultural Safeguard Measures), on an  originating agricultural good listed in Table A if 
the good enters the customs territory of the United St ates at a unit import price below the trigger price 
set out in Table A for that good.  
(a) The unit import price shall be determined on the basis of the F.O.B. import price of 
the good in U.S. dollars (“import price”).  
(b) The trigger prices reflect historic unit import values for the products concerned. The 
Parties may mutually agree to periodically evaluate and update the trigger prices.  
2. For purposes of Article 3.5.2, the United States shall set the additional duty according to the 
following schedule:   WT/REG208/1 
 Page 17 
 
 
(a) if the difference between the import price of the good and the trigger price listed in 
Table A (“trigger price”) is less than or equal to 10 percent of the trigger price, no additional duty shall be applied;  
(b) if the difference between the import price and the trigger price is greater than 
10 percent but less than or equal to 40 percen t of the trigger price, the additional duty 
shall equal 30 percent of the differen ce between the MFN rate for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
the U.S. Schedule to Annex IV (Tariff Elimination);  
(c) if the difference between the import price and the trigger price is greater than 
40 percent but less than or equal to 60 percen t of the trigger price, the additional duty 
shall equal 50 percent of the differen ce between the MFN rate for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
the U.S. Schedule to Annex IV;  
(d) if the difference between the import price and the trigger price is greater than 
60 percent but less than or equal to 75 percen t of the trigger price, the additional duty 
shall equal 70 percent of the differen ce between the MFN rate for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
the U.S. Schedule to Annex IV; and  
(e) if the difference between the import price and the trigger price is greater than 75 
percent of the trigger price, the add itional duty shall equal 100 percent of the 
difference between the MFN rate for the good as determined under Article 3.5.1 and 
the applicable tariff rate specified for th e good in the U.S. Schedule to Annex IV.  
TABLE A – U.S. Agricultural Safeguard List 
 
HS Product Description Trigger Price 
(US$/Kilogram or 
US$/Liter) 
0712.20.2000  DRIED ONION POWDER OR FLOUR  0.77/kilogram 
0712.20.4000  DRIED ONIONS WHOLE, CU T, SLICED OR BROKEN, BUT NOT 
FURTHER PREPARED  1.26/kilogram 
0712.90.4020  GARLIC POWDER OR FLOUR  0.53/kilogram 
0712.90.4040  GARLIC, DRIED  0.48/kilogram 
2002.10.0020  TOMATOES WHOLE OR IN PIECES, PREPARED OR PRESERVED 
NESOI, IN CONTAINERS HOLDING LESS THAN 1.4 KG  0.52/kilogram 
2002.10.0080  TOMATOES WHOLE OR IN PIECES, PREPARED OR PRESERVED 
NESOI, IN CONTAINERS HOLDING 1.4 KG OR MORE  0.43/kilogram 
2002.90.8010  TOMATO PASTE IN CONTAI NERS HOLDING LESS THAN 1.4 KG.  0.64/kilogram 
2002.90.8020  TOMATO PASTE IN CONTAI NERS HOLDING 1.4 KG. OR MORE  0.56/kilogram 
2002.90.8030  TOMATO PUREE IN CONTAI NERS HOLDING LESS THAN 1.4 KG.  0.46/kilogram 
2002.90.8040  TOMATO PUREE IN CONTAI NERS HOLDING 1.4 KG. OR MORE  0.31/kilogram 
2002.90.8050  TOMATOES NESOI PREPARED OR PRESERVED  0.69/kilogram 
2005.60.0000  ASPARAGUS, PREPARED OR  PRESERVED NESOI, NOT FROZEN  1.59/kilogram 
2005.70.6020  OLIVES (NOT GREEN), WH OLE, PITTED, CANNED, OVER .3KG, 
IN SALINE  1.61/kilogram 
2005.70.6030  OLIVES (NOT GREEN), WH OLE, PITTED, CANNED, LESS THAN .3 
KG, IN SALINE  1.56/kilogram 
 WT/REG208/1 
Page 18  
 
TABLE A – U.S. Agricultural Safeguard List 
 
HS Product Description Trigger Price 
(US$/Kilogram or 
US$/Liter) 
2005.70.6050  OLIVES (NOT GREEN), SL ICED, CANNED, IN SALINE SOLUTION 1.79/kilogram 
2005.70.6060  OLIVES (NOT GREEN), C HOPPED/MINCED, CANNED, IN SALINE 0.97/kilogram 
2005.70.6070  OLIVES (NOT GREEN), WEDGED OR BROKEN, CANNED, IN 
SALINE  1.50/kilogram 
2008.40.0020  PEARS, PREPARED OR PR ESERVED, NESOI, IN CONTAINERS 
HOLDING LESS THAN 1.4 KG  0.65/kilogram 
2008.40.0040  PEARS, PREPARED OR PRES ERVED, NESOI, IN CONTAINERS 1.4 
KG OR MORE  0.63/kilogram 
2008.50.4000  APRICOTS, OTHER THAN PULP, OTHERWISE PREPARED OR 
PRESERVED, NESI  0.98/kilogram 
2008.70.1020  NECTARINES, PREPARED  OR PRESERVED, NESOI IN 
CONTAINERS HOLDING LESS THAN 1.4 KG  0.58/kilogram 
2008.70.1040  NECTARINES, PREPARED  OR PRESERVED, NESOI IN 
CONTAINERS 1.4 KG OR MORE  0.55/kilogram 
2008.70.2020  PEACHES, PREPARED OR PRESERVED, NESOI IN CONTAINERS 
HOLDING LESS THAN 1.4 KG  0.58/kilogram 
2008.70.2040  PEACHES, PREPARED OR PRESERVED, NESOI IN CONTAINERS 
1.4 KG OR MORE  0.55/kilogram 
2008.92.9030  FRUIT MXTRS WITH PEACH/PEAR PACKD IN LIQ LT 1.4K  0.83/kilogram 
2008.92.9035  FRUIT MIXTURES WITH PEACHES OR PEARS PACKED IN 
LIQUID, IN CONTAINTERS HOLDING MORE THAN 1.4 KG  0.75/kilogram 
2008.92.9040  FRUIT MIXTURES CONTAINING ORANGES OR GRAPEFRUIT  1.21/kilogram 
2008.92.9050  FRUIT MIXTURES NESOI  0.80/kilogram 
2009.11.0020  ORANGE JUICE UNFERMEN TED FROZEN CONTAINERS UNDER 
.946 LITER  0.23/liter 
2009.11.0040  ORANGE JUICE UNFERMENTED FROZEN CONTAINERS .946-
3.785L IN LITERS  0.22/liter 
2009.11.0060  ORANGE JUICE UNFERMEN TED FROZEN CONTAINERS OVER 
3.785L IN LITERS  0.20/liter 
2009.12.4500  ORANGE JUICE, UNFERME NTED, N/FROZEN, NESOI,<20 BRIX 
IN LITERS  0.49/liter 
2009.19.0000  ORANGE JUICE, UNFERMENTED,  NESOI IN LITERS  0.49/liter 
2103.20.4020  TOMATO SAUCES NESO I IN CONTAINERS HOLDING LESS 
THAN 1.4 KG  0.84/kilogram 
2103.20.4040  TOMATO SAUCES NESOI IN CONTAINERS HOLDING1.4 KG OR 
MORE  0.94/kilogram 
 
Schedule of Morocco  
 1. Morocco may apply a quantity-b ased agricultural safeguard measure, pursuant to Article 3.5 
(Agricultural Safeguard Measures), on an originati ng agricultural good listed in  paragraphs 2 through 
6 if, in any calendar year, the volume of imports of the good exceeds the volume of the good as set out in Tables B-1 through B-6.  
2. For purposes of Article 3.5.2, Morocco sha ll set the additional duty for whole birds 
designated by Moroccan HS subheadings 0207.11.0000, 0207 .12.0000, 0207.24.0000, and 
0207.25.0000 according to the following schedule:  
  WT/REG208/1 
 Page 19 
 
 
(a) for years one through seven, Morocco may a pply an additional dut y of less than or 
equal to 100 percent of the difference between the MFN rate of duty for the good as determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV (Tariff Elimination);  
(b) for years eight through 13, Morocco may a pply an additional duty of less than or 
equal to 75 percent of the difference betw een the MFN rate of duty for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV; and  
(c) for years 14 through 18, Morocco may apply an additional duty of less than or equal 
to 50 percent of the difference between the MFN rate of duty for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV.  
3. For purposes of Article 3.5.2, Morocco shall set the additional duty for leg quarters and wings 
designated by Moroccan HS subheadings 0207.13.00 29 and 0207.14.0029 according to the following 
schedule:  
(a) for years one through ten, Morocco may apply an additional duty of less than or equal 
to 100 percent of the difference between  the MFN rate of duty for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV;  
(b) for years 11 through 15, Morocco may apply an additional duty of less than or equal 
to 75 percent of the difference between the MFN rate of duty for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV;  
(c) for years 16 through 20, Morocco may apply an additional duty of less than or equal 
to 50 percent of the difference between the MFN rate of duty for the good as determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV; and  
(d) for years 21 through 24, Morocco may apply an additional duty of less than or equal 
to 30 percent of the difference between the MFN rate of duty for the good as determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV.  
(e) No later than year 24, the Parties will revi ew the operation of this paragraph and the 
need for a quantity-based safeguard after y ear 24.  Unless both Parties agree not to 
extend the safeguard, starting in year 25, Morocco may apply an additional duty of 
less than or equal to 25 percent of the MFN rate of duty for the good as determined under Article 3.5.1.  
4. For purposes of Article 3.5.2, Morocco shall set the additional duty for chickpeas designated 
by Moroccan HS subheadings 0713.20.9010 an d 0713.20.9090 and for lentils designated by 
Moroccan HS subheadings 0713.40.9010 and 0713.40 .9090 according to the following schedule:  
(a) for years one through six, Morocco may apply an additional duty of less than or equal 
to 100 percent of the difference between  the MFN rate of duty for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV;  WT/REG208/1 
Page 20  
 
(b) for years seven through 12, Morocco may a pply an additional dut y of less than or 
equal to 75 percent of the difference betw een the MFN rate of duty for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV; and  
(c) for years 13 through 17, Morocco may apply an additional duty of less than or equal 
to 50 percent of the difference between the MFN rate of duty for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV.  
5. For purposes of Article 3.5.2, Morocco sha ll set the additional duty for bitter almonds 
designated by Moroccan HS subheadings 0802.11.0011, 0802 .11.0019, 0802.12.0011, and 
0802.12.0019 according to the following schedule:  
(a) for years one through five, Morocco may apply an additional duty of less than or 
equal to 100 percent of the difference between the MFN rate of duty for the good as determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV;  
(b) for years six through ten, Morocco may apply an additional duty of less than or equal 
to 75 percent of the difference between the MFN rate of duty for the good as determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV; and  
(c) for years 11 through 14, Morocco may apply an additional duty of less than or equal 
to 50 percent of the difference between the MFN rate of duty for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV.    
6. For purposes of Article 3.5.2, Morocco sha ll set the additional duty for dried prunes 
designated by Moroccan HS subheading 0813.20 .0000 according to the following schedule:  
(a) for years one through five, Morocco may apply an additional duty of less than or 
equal to 75 percent of the difference betw een the MFN rate of duty for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV; and  
(b) for years six through nine, Morocco may a pply an additional duty of less than or 
equal to 50 percent of the difference betw een the MFN rate of duty for the good as 
determined under Article 3.5.1 and the appli cable tariff rate specified for the good in 
Morocco’s Schedule to Annex IV.   
7. Morocco may maintain an agricultural safegua rd measure only until the end of the calendar 
year in which it applies the measure.  
 
 
 
     
  WT/REG208/1 
 Page 21 
 
 
TABLE B-1:  Safeguard Volume Triggers For Whole Birds  
 
(Moroccan HS Subheadings 0207.11.0000, 0207 .12.0000,  
0207.24.0000, and 0207.25.0000)  
 
Year  Safeguard Volume Trigger (MT)  
1 1625 
2 1755 
3 1885 
4 2015 
5 2145 
6 2275 
7 2405 
8 2535 
9 2665 
10 2795 
11 2925 
12 3055 
13 3185 
14 3315 
15 3445 
16 3575 
17 3705 
18 3835 
 
 
TABLE B-2: Safeguard Volume Triggers for Leg Quarters and Wings 
 
(Moroccan HS Subheading 0207. 13.0029 and 0207.14.0029) 
Year Safeguard Volume Trigger (MT) 
1 5200 
2 5460 
3 5720 
4 5980 
5 6240 
6 6500 
7 6760 
8 7020 
9 7280 
10 7540 
11 7800 
12 8060 
13 8320 WT/REG208/1 
Page 22  
 
Year Safeguard Volume Trigger (MT) 
14 8580 
15 8840 
16 9100 
17 9360 
18 9620 
19 9880 
20 10140 
21 10400 
22 10660 
23 10920 
24 11180 
25 and thereafter five percent more than total U.S. exports of 
leg quarters to Morocco during previous 
year 
 
 
TABLE B-3:  Safeguard Volume Triggers for Chickpeas  
 
(Moroccan HS Subheadings 0713.20.9010 and 0713.20.9090) 
 
Year Safeguard Volume Trigger (MT) 
1 300 
2 312 
3 324 
4 337 
5 351 
6 365 
7 380 
8 395 
9 411 
10 427 
11 444 
12 462 
13 480 
14 500 
15 520 
16 540 
17 562 
 
    
 
  WT/REG208/1 
 Page 23 
 
 
TABLE B-4:  Safeguard Volume Triggers for Lentils  
 
(Moroccan HS Subheadings 0713.40.9010 and 0713.40.9090) 
 
Year Safeguard Volume Trigger (MT) 
1 500 
2 520 
3 541 
4 562 
5 585 
6 608 
7 633 
8 658 
9 684 
10 712 
11 740 
12 770 
13 801 
14 833 
15 866 
16 900 
17 936 
 
 
TABLE B-5:  Safeguard Volume Triggers For Bitter Almonds  
 
(Moroccan HS Subheadings 0802.11.0011, 0802 .11.0019, 0802.12.0011 , and 0802.12.0019) 
 
Year Safeguard Volume Trigger (MT) 
1 65 
2 68 
3 70 
4 73 
5 76 
6 79 
7 82 
8 86 
9 89 
10 93 
11 96 
12 100 
13 104 
14 108 
 
   WT/REG208/1 
Page 24  
 
TABLE B-6:  Safeguard Volume Triggers for Dried Prunes  
 
(Moroccan HS Subheading 0813.20.0000) 
Year Safeguard Volume Trigger (MT) 
1 121 
2 126 
3 131 
4 136 
5 142 
6 147 
7 153 
8 159 
9 166 
 
 
ANNEX 3-B  
 
Import Licensing For High-Quality Beef  
1. Morocco may establish an import licensing program for imports of high-quality beef from the 
United States to provide that the beef is sold to or imported by hotels or re staurants designated on lists 
agreed to by the Parties.  
2. Morocco shall:  
(a) implement and administer any such im port licensing program and procedures in 
accordance with Article VIII of GATT 1994 and the WTO Agreement on Import Licensing Procedures;  
(b) ensure that the import licensing program and procedures do not impede the orderly 
fill of the in-quota quantity for high-quality beef; and  
(c) limit the amount of any fees charged in conn ection with an import license to the cost 
of services rendered in processing the license application under the import licensing 
program and procedures.  
3. The Parties shall review and update the lists of  eligible hotels and restaurants at least once a 
year, or on request of either Party.  The Partie s shall develop an agreed set of non-discriminatory 
criteria and procedures for modifying the lists.  
4. The Parties shall review the operation of the import licensing program at least once a year, or 
on request of either Party.  
5. On request of either Party, the Parties shall consult on any issues related to the operation of 
the import licensing program.  Consultations shall co mmence within 30 days of receipt of a request 
for consultations with a view to resolving the issue.  
6. For purposes of this Annex:   WT/REG208/1 
 Page 25 
 
 
high-quality beef  means those goods defined in paragra ph 5(c) of Annex 1 to the General 
Notes to Morocco’s Schedule to Anne x IV (Tariff Elimination); and   
 hotels and restaurants means four- and five-star hotels and officially graded restaurants.  
  
ANNEX 3-C  
 
Wheat Auction System
 
1. Morocco may implement and administer an auc tion system for the in-q uota quantities of the 
TRQs on U.S. durum and non-durum wheat provided for in paragraphs 9 and 10, subject to the 
conditions set out in paragraphs 9(c) and 10(d), of Annex 1 to the General Notes to Morocco’s 
Schedule to Annex IV (Tariff Elimination).  
2. Morocco’s auction policies and procedures shall be:  
(a) transparent, nondiscriminatory, and made available to the public; and  
(b) developed and implemented in a manner that  minimizes the cost of participation in 
the auction.  
3. Morocco shall ensure that solely  government authorities administer its auctions and, to that 
end, may not delegate administration of its auc tions to producer groups or  other non-governmental 
organizations.  
4. Morocco’s auctions shall be held on a regular  basis and conducted in a timely fashion to 
facilitate trade.  
5. Morocco shall award licenses under the auction system:  
(a) in commercially viable shipping quantities;  
(b) to persons who have a history in tradin g and have posted a performance bond in an 
amount agreed by the Parties; and  
(c) in a manner that encourages competition and that precludes manipulation or control 
of the auction system by producer groups or other non-governmental organizations.  
6. Morocco shall not condition application for, or  use of, an auction license on the reexportation 
of the auctioned good.  
7. Morocco shall require:  
(a) any license holder that fails to fill its fu ll license amount by the date on which two-
thirds of the period covered by the aucti on has expired to immediately transfer the 
unfilled portion of the license to another licensee; and  
(b) that the original license holder shall be r esponsible for ensuring that at least 90  
percent of the license amount originally awarded is filled.   
8. Morocco shall provide that any license holder that  is unable to fill at least 90 percent of its 
license amount during the period covered by an aucti on shall remit all or part  of its performance bond, WT/REG208/1 
Page 26  
 
as agreed by the Parties, and shall not be permitte d to participate in auctions for the following two 
years. After this period, the license holder may re-apply to participate in the auction system, unless the Parties agree otherwise.  
9. For purposes of paragraphs 7 and 8, Morocco shall deem the date on which a license holder 
has filled a license as the date of the bill of lading for the relevant shipment.  
10. The Parties shall agree on auction policies a nd procedures, and any changes or amendments 
thereto.  Morocco shall disseminate the policies and procedures applicable to each auction through 
widely available publications, including on the websites of their relevant authorities, no later than 45 
days before the auction.  
11. Within 15 days of receipt of a request by either  Party, the Parties shall consult on any issues 
related to application and operation of this  Annex with a view to resolving them.  
 
CHAPTER FOUR:  TEXTILES AND APPAREL 
 
Article 4.1 
Tariff Elimination
 
1. Except as otherwise provided in this Agreement,  each Party shall eliminate its customs duties 
on originating textile and apparel goods in acco rdance with its Schedule to Annex IV (Tariff 
Elimination).  
2. Duties on originating textile and apparel goods pr ovided for in the items in staging category A 
in a Party’s Schedule shall be eliminated entirely a nd such goods shall be duty-free on the date this 
Agreement enters into force.   
3. Duties on originating textile and apparel goods pr ovided for in the items in staging category D 
in a Party’s Schedule shall be reduced to 50 percent of that Party’s base rate of duty on January 1 of 
year one. Beginning January 1 of year two, duties shall be removed in five equal annual stages, and 
such goods shall be duty-free, effective January 1 of year six.  
4. Duties on originating textile and apparel goods pr ovided for in the items in staging category F 
in a Party’s Schedule shall be removed in nine e qual annual stages beginning January 1 of year one, 
and such goods shall be duty-free, effective January 1 of year nine.  
5. Duties on originating textile and apparel goods pr ovided for in the items in staging category H 
in a Party’s Schedule shall be removed in ten stages.  On January 1 of year one, duties shall be reduced by three percent of that Party’s base rate, and by an additional three percent of the base rate 
on January 1 of each year thereafter through year f our. Beginning January 1 of year five, duties shall 
be removed in six equal annual stag es, and such goods shall be duty-free, effective January 1 of year 
ten.  
6. The United States shall eliminate customs duti es on any originating textile or apparel goods 
that, after the date of entry into force of this Agreement, are designated as articles eligible for duty-
free treatment under the U.S. Generalized System of Preferences , effective from the date of such 
designation.  
7. On the date of entry into force of this Agreem ent, each Party shall provide that the originating 
apparel goods specified in Annex 4-B shall be duty-fr ee, up to the annual quantities identified therein.  WT/REG208/1 
 Page 27 
 
 
Duties on originating apparel goods specified in Anne x 4-B above those quantities shall be reduced as 
provided for in paragraph 3.  
8. An importing Party, through its competent authorities, shall require an importer claiming 
duty-free treatment for an originating apparel good listed in Annex 4-B to present to the competent 
authorities at the time of entry a declaration that it is entitled to duty-free treatment in accordance with 
paragraph 7 and Annex 4-B.  The importing Party sha ll not be required to provide duty-free treatment 
if an importer does not provide such a declaration. An exporting Party may require the exporter to prepare a declaration of eligibility for duty-free treat ment in order to administer the annual quantities 
listed in Annex 4-B.  
9. On the request of either Party, the Parti es shall consult to consider accelerating the 
elimination of customs duties, and to consider increasing the annual quantities listed in Annex 4-B. 
An agreement by the Parties to accelerate the elim ination of a customs duty or to adjust the annual 
quantities listed in Annex 4-B shall supersede any duty rate, staging category, or annual quantity 
determined pursuant to this Agreement when approved by each Party in accordance with its 
applicable legal procedures.  
Article 4.2 
Special Textile And Appa rel Safeguard Actions 
 
1. If, as a result of the reduction or elimination of a duty under this Agreement, a textile or 
apparel good benefiting from preferential tariff treatme nt under this Agreement is being imported into 
the territory of a Party in such increased quantiti es, in absolute terms or relative to the domestic 
market for that good, and under such conditions as to cause serious damage, or actual threat thereof, 
to a domestic industry producing a like or directly  competitive good, the Party may, to the extent and 
for such time as may be necessary to prevent or re medy such damage and to facilitate adjustment, 
increase the rate of duty on the good to a level not to exceed the lesser of:  
(a) the most-favored-nation (“MFN”) applied rate  of duty in effect at the time the action 
is taken; and  
(b) the MFN applied rate of duty in effect on the date of entry into force of this 
Agreement.   
2. In determining serious damage, or actual threat thereof, the importing Party:   
(a) shall examine the effect of increased imports of the good from the exporting Party on 
the particular industry, as reflected in cha nges in such relevant economic variables as 
output, productivity, utilization of capacity, in ventories, market share, exports, wages, 
employment, domestic prices, profits, and investment, none of which shall 
necessarily be decisive; and  
(b) shall not consider changes in technolo gy or consumer preference as factors 
supporting a determination of serious da mage or actual threat thereof.  
3. The importing Party may take a safeguard action under this Article only following an 
investigation by its competent authorities.  
4. The importing Party shall deliver to the exporti ng Party, without delay, written notice of its 
intent to take a safeguard action and, on the request of the exporting Party, shall enter into 
consultations with that Party regarding the matter.   WT/REG208/1 
Page 28  
 
5. An importing Party:   
(a) shall not maintain a safeguard action for a period exceeding three years, except that 
the Party may extend the period by up to two years if the Party’s competent authorities determine, in conformity with the procedures set out in paragraphs 3 and 
4, that the action continues to be necessary to prevent or remedy serious damage and 
to facilitate adjustment by the domestic in dustry, and that there is evidence that the 
industry is adjusting;  
(b) shall not take or maintain a safeguard action against a good  beyond ten years after 
the Party must eliminate customs duties on th at good pursuant to this Agreement;   
(c) shall not take a safeguard action more th an once against the same good of the other 
Party; and  
(d) shall, on termination of the safeguard action,  apply to the good that was subject to the 
safeguard action the rate of duty that would have been in effect but for the action.  
6. The importing Party shall provide to the exporting Party mutually agreed trade liberalizing 
compensation in the form of concessions having substan tially equivalent trade effects or equivalent to 
the value of the additional duties expected to result from the safeguard action. Such concessions shall 
be limited to textile and apparel goods, unless the Par ties agree otherwise. If the Parties are unable to 
agree on compensation, the exporting Party may su spend tariff concessions under this Agreement 
having trade effects substantially equivalent to the trade effects of the safeguard action. Such tariff 
action may be taken against any goods of the e xporting Party. The exporting Party shall apply the 
tariff action only for the minimum period necessary to  achieve the substantially equivalent trade 
effects. The importing Party’s obligation to provide trade compensation and the exporting Party’s 
right to take tariff action shall terminat e when the safeguard action terminates.  
7. Nothing in this Agreement shall be construed to limit a Party’s right to restrain imports of 
textile and apparel goods in a manne r consistent with the Agreement on Textiles and Clothing or the 
Safeguards Agreement.  However, a Party may not take or maintain a safeguard action under this 
Article against a textile or apparel good that is s ubject, or becomes subject, to a safeguard measure 
that a Party takes pursuant to  either such agreement.  
Article 4.3 
Rules Of Origin And Related Matters 
 
Application of Chapter Five 
 
1. Except as provided in this Chapter, including its Annexes, Chapter Five (Rules of Origin) 
applies to textile and apparel goods.  
2. For greater certainty, the rules of origin set forth in this Agreement shall not apply in 
determining the country of origin of a textile  or apparel good for non-preferential purposes.  
Consultations 
 
3. On the request of either Party, the Parties shall consult to consider whether the rules of origin 
applicable to a particular textile or apparel good should be revised to address issues of availability of 
supply of fibers, yarns, or fabrics in the territories of the Parties.   WT/REG208/1 
 Page 29 
 
 
4. In the consultations referred to in paragraph 3, each Party shall consider all data presented by 
the other Party that demonstrate substantial production in its territory of a particular fiber, yarn, or 
fabric. The Parties shall consider that there is s ubstantial production if a Party demonstrates that its 
domestic producers are capable of supplying commercial quantities of the fiber, yarn, or fabric in a timely manner.  
5. On request of an exporting Party, the Parties sh all consult to consider revising the rules of 
origin applicable to originating textile and appare l goods described in HS 6207, 6208, and 6212, with 
a view to furthering the objectives of the Agreement, if:  
(a) at any time beginning one year after the date of entry into force of this Agreement, 
the requesting Party’s annual exports of such goods to the other Party are not 
significantly higher than its annual exports of such goods before the date of entry into 
force of this Agreement, or  
(b) at any time after this Agreement enters in to force, either Party enters into an 
agreement that establishes a rule of origin fo r such goods that differs from the rule of 
origin provided for under this Agreement.  
6. The Parties shall endeavor to conclude the c onsultations referred to in paragraphs 3 and 5 
within 60 days after delivery of a request.  If the Pa rties agree in the consultations to revise a rule of 
origin, the agreement shall supersede that rule of origin when approved by the Parties in accordance 
with Article 22.2 (Amendments).  
De Minimis 
 
7. A textile or apparel good that is not an origin ating good because certain fibers or yarns used 
in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classi fication set out in Annex 4-A, shall nonetheless be 
considered to be an originating good if the total weight  of all such fibers or yarns in that component is 
not more than seven percent of the total weight of that component.
1 Notwithstanding the preceding 
sentence, a good containing elastomeric yarns in th e component of the good that determines the tariff 
classification of the good shall be considered to be  an originating good only if such yarns are wholly 
formed in the territory of a Party.  
Treatment of Sets  
 
8. Notwithstanding the specific rules of origin set  out in Annex 4-A, te xtile or apparel goods 
classified under General Rule of Interpretation 3 of the Harmonized System as goods put up in sets for 
retail sale shall not be regarded as originating goods unless each of the goods in the set is an 
originating good or the total value of the non-orig inating goods in the set does not exceed 10 percent 
of the value of the set determined for purposes of assessing customs duties.  
Preferential Tariff Treatment for Non-Orig inating Fabric and Apparel Goods (Tariff 
Preference Levels)   
9. Subject to paragraph 11, each Party shall accord preferential tariff treatment to fabric goods 
provided for in Chapters 51, 52, 54, 55, 58, and 60 of  the Harmonized System that are wholly formed 
in the territory of a Party, regardless of the origin  of the fiber or yarn used to produce the goods, and 
                                                     
 
1 For greater certainty, when the good is a yarn, fabric, or group of fibers, the “component of the good 
that determines the tariff classificati on of the good” is all of the fibers in the yarn, fabric, or group of fibers. WT/REG208/1 
Page 30  
 
that meet the applicable conditions for preferentia l tariff treatment under this Agreement other than 
the condition that they be originating goods.  
10. Subject to paragraph 11, each Party shall accord  preferential tariff treatment to apparel goods 
provided for in Chapters 61 and 62 of the Harmonize d System that are cut or knit to shape, or both, 
and sewn or otherwise assembled in the territory of a Party, regardless of the origin of the fabric or 
yarn used to produce the goods, and that meet th e applicable conditions for preferential tariff 
treatment under this Agreement other than th e condition that they be originating goods.  
11. A Party shall accord preferential tariff treatment  to the goods described in paragraphs 9 and 
10 up to the combined annual quantities specified in the following schedule:  
Year Following Date
    Combined Annual Quantities  
of Entry into Force of his Agreement   in Square Meters Equivalent  
 
 Year One: 
 Year Two: 
 Year Three: 
 Year Four:  Year Five: 
 Year Six: 
 Year Seven:  Year Eight: 
 Year Nine: 
 Year Ten:  30,000,000 
 30,000,000 
 30,000,000 
 30,000,000 
 25,714,0000 
 21,428,000 
 17,142,000  12,856,000 
 8,571,000 
 4,285,000 
 
12. An importing Party, through its competent author ities, may require that an importer claiming 
preferential tariff treatment for a fabric or a pparel good under paragraph 9 or 10 present to the 
competent authorities at the time of entry a declarat ion of eligibility for preferential tariff treatment 
under that paragraph.  The declaration shall be prepared by the importer and shall consist of 
information demonstrating that the good satisfies the requirements for preferential tariff treatment 
under paragraph 9 or 10.  An exporting Party may re quire the exporter to prepare a declaration of 
eligibility for preferential tariff treatment under paragr aph 9 or 10 in order to monitor the use of tariff 
preference levels.  
13. To determine the quantity in square meters e quivalent that is charged against the annual 
quantity set out in paragraph 11, the importing Part y shall apply the conversion factors listed in, or 
utilize a methodology based on, the Correlation: U.S. Textile and Apparel Category System with the 
Harmonized Tariff Schedule of the United States of America, 2003  (“The Textile Correlation”), U.S. 
Department of Commerce, Office of Textil es and Apparel, or successor publication.  
14. Paragraphs 9 through 13 shall cease to apply beginning on th e first day of the eleventh 
twelve-month period following the date of entry into force of this Agreement.  
Treatment of Certain Cotton Goods  
 
15. Each Party shall accord preferential tariff treat ment to a textile or apparel good listed in 
Annex 4-A that is not an originating good solely because cotton fibers used in the production of the 
good do not undergo an applicable change in tariff classification as set out in Annex 4-A if the cotton 
fibers, classified in HS heading 5201.00, used in  the good originate in one or more of the least-
developed beneficiary sub-Sa haran African countries designated in Article 6 of the Bulletin Officiel , 
No. 4861 bis – 6 chaoual  1421 (1.1.2001), Exoneration du droit d’importation en faveur des produits  WT/REG208/1 
 Page 31 
 
 
originaires et en provenance de certains pays d’Afrique , as of the date of entry into force of this 
Agreement, and provided the cotton fibers are carded or combed in the territory of a Party or of a 
designated least-developed country. The total quantit y of goods that may be accorded preferential 
tariff treatment based on this paragraph shall be limited to 1,067,257 kilogr ams annually. On request 
of either Party, the Parties shall consult on whethe r to adjust this quantity, or on any other matter 
related to this paragraph.  
Article 4.4 
Customs And Administrative Cooperation  
1. The Parties shall cooperate for purposes of:  
(a) enforcing or assisting in the enforcement of  their measures affect ing trade in textile 
and apparel goods;  
(b) verifying the accuracy of claims of origin;  
(c) enforcing or assisting in the enforcemen t of measures implementing international 
agreements affecting trade in textile and apparel goods; and  
(d) preventing circumvention of international ag reements affecting trade in textile and 
apparel goods.  
2. On the request of the importing Party, the exporting Party shall conduct a verification for 
purposes of enabling the importing Party to determine th at a claim of origin for a textile or apparel 
good is accurate. The exporting Party shall conduct su ch a verification, regardless of whether an 
importer claims preferential tariff treatment for the good. The exporting Party also may conduct such 
a verification on its own initiative.  
3. Where the importing Party has a reasonable suspicion that an exporter or producer of the 
exporting Party is engaging in unlawful activity re lating to trade in textile  or apparel goods, the 
exporting Party shall conduct, on the request of the importing Party, a verification for purposes of 
enabling the importing Party to determine that the ex porter or producer is complying with applicable 
customs measures regarding trade in textile and apparel goods, including measures that the exporting 
Party adopts and maintains pursuant to this Agr eement and measures of either Party implementing 
other international agreements affecting trade in te xtile or apparel goods, or to  determine that a claim 
of origin regarding textile or a pparel goods exported or produced by that enterprise is accurate.  For 
purposes of this paragraph, a reasonable suspicion of unlawful activity  means a suspicion based on 
relevant factual information of the type set forth in Article 6.5.5 (Cooperation) or information that 
indicates:   
(a) circumvention by the exporter or producer of applicable customs measures regarding 
trade in textile and apparel goods, includi ng measures adopted to implement this 
Agreement; or  
(b) conduct that facilitates the violation of me asures relating to any other international 
agreement regarding trade in textile or apparel goods.  
4. The exporting Party, through its competent au thorities, shall permit the importing Party, 
through its competent authorities, to assist in a ve rification conducted pursuant to paragraph 2 or 3, 
including by conducting, along with the competent au thorities of the exporting Party, visits in the 
territory of the exporting Party to the premises of an exporter, producer, or  any other enterprise 
involved in the movement of a textile or apparel good from the territory of the exporting Party to the WT/REG208/1 
Page 32  
 
territory of the importing Party.  The importing Pa rty shall notify the exporting Party in advance of 
any such visits.    
5. Each Party shall provide to the other Party, cons istent with the Party’s law, production, trade, 
and transit documents and other information necessary for the exporting Party to conduct a 
verification under paragraph 2 or 3. Each Party sha ll treat any documents or information exchanged in 
the course of such a verification in accord ance with Article 6.6 (Confidentiality).  
6. While a verification is being conduc ted, the importing Party may, c onsistent with its law, take 
appropriate action, which may include suspending th e application of preferential tariff treatment to:  
(a) the textile or apparel good for which a claim of  origin has been made, in the case of a 
verification under paragraph 2; or  
(b) any textile or apparel g ood exported or produced by the person subject to a 
verification under paragraph 3, where the reasonable suspicion of unlawful activity 
relates to that good.  
7. The Party conducting a verification under paragra ph 2 or 3 shall provide the other Party with 
a written report on the results of the verification,  which shall include all documents and facts 
supporting any conclusion th at the Party reaches.  
8.  (a) If the importing Party is unable to ma ke the determination described in paragraph 2 
within 12 months after its request fo r a verification, or makes a negative 
determination, it may, consistent with its  law, take appropriate action, including 
denying preferential tariff treatment to the textile or apparel good subject to the 
verification, and to similar goods exported or produced by the person that exported or 
produced the good.  
  (b)  If the importing Party is unable to make  a determination described in paragraph 3 
within 12 months after its request fo r a verification, or makes a negative 
determination, it may, consistent with its  law, take appropriate action, including 
denying preferential tariff treatment to any textile or apparel good exported or 
produced by the person subject to the verification.  
 9.  (a) The importing Party may deny preferen tial tariff treatment or entry under paragraph 8 
 only after notifying the other Party of its intention to do so.  
 
 (b)  If the importing Party takes action under paragraph 8 because it is unable to make a 
determination described in paragraph 2 or 3, it may continue to take appropriate 
action under paragraph 8 until it receives information sufficient to enable it to make the determination.  
 
10. On the request of either Party, the Parties sh all consult to resolve any technical or interpretive 
difficulties that may arise under this Article or to discuss ways to improve the effectiveness of their 
cooperative efforts. In addition, either Party may request technical or other assistance from the other 
Party in implementing this Article.  The Party recei ving such a request shall make every effort to 
respond favorably and promptly.     
      WT/REG208/1 
 Page 33 
 
 
Article 4.5 
Definitions  
 
 For purposes of this Chapter:    base rate of duty means:   a) with respect to the United States, the HTSUS Column 1 
General rates of duty in effect January 10, 2003; and b) with respect to Morocco, the 
HTSMOROCCO MFN rates of duty in effect January 1, 2003;  
  claim of origin  means a claim that a textile or a pparel good is an originating good;  
  exporting Party  means the Party from whose territo ry a textile or apparel good is 
exported;  
  importing Party  means the Party into whose territory a textile or apparel good is imported; 
and   
 textile or apparel good  means a good listed in the Annex to the Agreement on Textiles and 
Clothing.    
ANNEX 4-A  
 
Rules Of Origin For Textile Or Apparel Goods For Chapters 42, 50 Through 63, 70, And 94 
 
1. For goods covered in this Annex, a good is an originating good if:  
(i) each of the non-originating materials used in the production of the good 
undergoes an applicable change in tariff  classification specified in this Annex 
as a result of production occurring entirely in the territory of one or both of 
the Parties, or the good otherwise satisfi es the applicable requirements of this 
Chapter where a change in tariff classification for each non-originating 
material is not required,   
(ii) and the good satisfies any other applicab le requirements of this Chapter and 
Chapter Five (Rules of Origin).  
2. For purposes of interpreting the rules of  origin set out in this Annex:  
(a) the specific rule, or specific set of rules,  that applies to a particular heading or 
subheading is set out immediately adjacen t to the heading or subheading;   
(b) a rule applicable to a subheading shall ta ke precedence over a rule applicable to the 
heading which is parent to that subheading;  
(c) a requirement of a change in tariff classi fication applies only to non-originating 
materials;  
(d) a good is considered to be “wholly” of a ma terial if the good is made entirely of the 
material; and  
(e) the following definitions apply:  WT/REG208/1 
Page 34  
 
chapter  means a chapter of the Harmonized System;  
heading  means the first four digits in the tariff classification number under the 
Harmonized System; section means a section of the Harmonized System; and   
subheading means the first six digits in the tariff classification number under the 
Harmonized System.  
 
Chapter 42 - Luggage  
 
4202.12  A change to subheading 4202.12 from any other chapter, except from 
headings 54.07, 54.08, or 55.12 through 55.16 or tariff items 5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 
5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 
5906.99.25, 5907.00.05, 5907.00.15, or 5907.00.60.  
 
4202.22  A change to subheading 4202.22 from any other chapter, except from 
headings 54.07, 54.08, or 55.12 through 55.16 or tariff items 5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 
5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 
5906.99.25, 5907.00.05, 5907.00.15, or 5907.00.60.  
 
4202.32  A change to subheading 4202.32 from any other chapter, except from 
headings 54.07, 54.08, or 55.12 through 55.16 or tariff items 5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 
5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 
5906.99.25, 5907.00.05, 5907.00.15, or 5907.00.60.  
 
4202.92  A change to subheading 4202.92 from any other chapter, except from 
headings 54.07, 54.08, or 55.12 through 55.16, or tariff items 5903.10.15, 
5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 
5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.05, 5907.00.15, or 5907.00.60.  
Chapter 50 - Silk  
5001-5003   A change to heading 50.01 through 50.03 from any other chapter.   
 5004-5006   A change to heading 50.04 through 50.06 from any heading outside that  
   group. 
5007    A change to heading 50.07 from any other heading.  
Chapter 51 - Wool, Fine or Coarse Animal Hair; Horsehair Yarn and Woven Fabric  
 
5101-5105  A change to heading 51.01 through 51.05 from any other chapter.     5106-5110  A change to heading 51.06 through 51.10 from any heading outside that 
group.  
  WT/REG208/1 
 Page 35 
 
 
5111-5113  A change to heading 51.11 through 51.13 from any heading outside that 
group, except from heading 51.06 through 51.10, 52.05 through 52.06, 54.01 through 54.04, or 55.09 through 55.10.  
 
Chapter 52 - Cotton  
 
5201-5207  A change to heading 52.01 through 52.07 from any other chapter, except 
from heading 54.01 through 54.05 or 55.01 through 55.07.  
5208-5212  A change to heading 52.08 through 52.12 from any heading outside that 
group, except from heading 51.06 through 51.10, 52.05 through 52.06, 54.01 
through 54.04, or 55.09 through 55.10.  
 
Chapter 53 - Other Vegetable Textile Fibers; Paper Yarn and Woven Fabrics of Paper 
Yarn  
 
5301-5305   A change to heading 53.01 through 53.05 from any other chapter.   5306-5308  A change to heading 53.06 through 53.08 from any heading outside that 
group.  
 
5309    A change to heading 53.09 from any other heading, except from     heading 53.07 through 53.08.   5310-5311  A change to heading 53.10 through 53.11 from any heading outside that 
group, except from heading 53.07 through 53.08.  
 
Chapter 54 - Man-Made Filaments  
5401-5406  A change to heading 54.01 through 54.06 from any other chapter, except 
from heading 52.01 through 52.03 or 55.01 through 55.07.  
 5407   A change to tariff items 5407.61.11, 5407.61.21, or 5407.61.91 from tariff 
items 5402.43.10 or 5402.52.10, or from any other chapter, except from headings 51.06 through 51.10, 52.05 through 52.06, or 55.09 through 55.10.  
 
  A change to heading 54.07 from any other chapter, except from heading 
51.06 through 51.10, 52.05 through 52.06, or 55.09 through 55.10.  
 5408   A change to heading 54.08 from an y other chapter, except from heading 
51.06 through 51.10, 52.05 through 52.06, or 55.09 through 55.10.  
 
Chapter 55 - Man-Made Staple Fibers  
 
5501-5511  A change to heading 55.01 through 55.11 from any other chapter, except 
from heading 52.01 through 52.03 or 54.01 through 54.05.  
 
5512-5516  A change to heading 55.12 through 55.16 from any heading outside that 
group, except from heading 51.06 through 51.10, 52.05 through 52.06, 54.01 through 54.04, or 55.09 through 55.10.  
 
 WT/REG208/1 
Page 36  
 
Chapter 56 - Wadding, Felt and Nonwovens; Special Yarns; Twine, Cordage, Ropes and 
Cables and Articles Thereof  
 
5601-5609  A change to heading 56.01 through 56.09 from any other chapter, except 
from heading 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, or Chapter 54 through 55.  
 
Chapter 57 - Carpets and Other Textile Floor Coverings   
5701-5705  A change to heading 57.01 through 57.05 from any other chapter, except 
from heading 51.06 through 51.13, 52.04 through 52.12, 53.08, or 53.11, 
Chapter 54, or heading 55.08 through 55.16.  
 
Chapter 58 - Special Woven Fabrics; Tufted Textile Fabrics; Lace; Tapestries; 
Trimmings; Embroidery  
 
5801-5811  A change to heading 58.01 through 58.11 from any other chapter, except 
from heading 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, or Chapter 54 through  55.  
 
Chapter 59 - Impregnated, Coated, Covered or Laminated Textile Fabrics; Textile Articles 
of a Kind Suitable For Industrial Use  
 
5901  A change to heading 59.01 from an y other chapter, except from heading 
51.11 through 51.13, 52.08 through 52.12, 53.10 through 53.11, 54.07 through 54.08, or 55.12 through 55.16.  
 
5902   A change to heading 59.02 from any other heading, except from heading 
51.06 through 51.13, 52.04 through 52.12, or 53.06 through 53.11, or Chapter 54 through 55.  
 5903-5908  A change to heading 59.03 through 59.08 from any other chapter, except 
from heading 51.11 through 51.13, 52.08 through 52.12,  53.10 through 
53.11, 54.07 through 54.08, or 55.12 through 55.16.  
 5909   A change to heading 59.09 from an y other chapter, except from heading 
51.11 through 51.13, 52.08 through 52.12, or 53.10 through 53.11, Chapter 54, or heading 55.12 through 55.16.  
 
5910   A change to heading 59.10 from any other heading, except from heading 
51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, or Chapter 54 through 55.  
 5911   A change to heading 59.11 from an y other chapter, except from heading 
51.11 through 51.13, 52.08 through 52.12, 53.10 through 53.11, 54.07 
through 54.08, or 55.12 through 55.16.  
 
Chapter 60 - Knitted or Crocheted Fabrics  
 
6001-6006  A change to heading 60.01 through 60.06 from any other chapter, except from 
heading 51.06 through 51.13, Chapter 52, heading 53.07 through 53.08, or 53.10 through 53.11, or Chapter through 54 and 55.  WT/REG208/1 
 Page 37 
 
 
Chapter 61 - Articles Of Apparel And Clothing Accessories, Knitted Or Crocheted  
 Chapter Rule 1 :  Except for fabrics classified in 540 8.22.10, 5408.23. 11, 5408.23.21, 
and 5408.24.10, the fabrics identified in the following sub-headings 
and headings, when used as visible lining material in certain men's and women's suits, suit-type jackets, skirts, overcoats, carcoats, 
anoraks, windbreakers, and similar ar ticles, must be both formed 
from yarn and finished in the territory of a Party: 
 
5111 through 5112, 5208.31 through 5208.59, 5209.31 through 
5209.59, 5210.31 through 5210.59, 5211.31 through 5211.59, 5212.13 through 5212.15, 5212.23 through 5212.25, 5407.42 
through 5407.44, 5407.52 through 5407.54, 5407.61, 5407.72 
through 5407.74, 5407.82 through 5407.84, 5407.92 through 5407.94, 5408.22 through 5408.24, 5408.32 through 5408.34, 
5512.19, 5512.29, 5512.99, 5513.21 through 5513.49, 5514.21 
through 5515.99, 5516.12 through 5516.14, 5516.22 through 5516.24, 5516.32 through 5516.34, 5516.42 through 5516.44, 
5516.92 through 5516.94, 6001.10, 6001.92, 6005.31 through 
6005.44, or 6006.10 through 6006.44.  
 
Chapter Rule 2
:  For purposes of determining the origin of a good of this Chapter, the 
rule applicable to that good shall only apply to the component that 
determines the tariff classification of the good and such component 
must satisfy the tariff change requirements set out in the rule for that good. If the rule requires that the good must also satisfy the tariff 
change requirements for visible lining fabrics listed in chapter rule 1 
to this Chapter, such requirement shall only apply to the visible lining fabric in the main body of the garment, excluding sleeves, 
which covers the largest surface area, and shall not apply to removable linings . 
 
6101.10-6101.30  A change to subheadings 6101.10 through 6101.30 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that:  
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 61.  
6101.90  A change to subheading 6101.90 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
6102.10-6102.30  A change to subheadings 6102.10 through 6102.30 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 WT/REG208/1 
Page 38  
 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 61.  
6102.90  A change to subheading 6102.90 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 
through 60.06, provided that the good is cut or knit to shape, or both, and 
sewn or otherwise assembled in the territory of one or both of the Parties.  
 
6103.11-6103.12  A change to subheadings 6103.11 through 6103.12 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 61.  
6103.19  A change to tariff items 6103.19.60 or 6103.19.90 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to shape, or 
both, and sewn or otherwise assembled in the territory of one or both of the 
Parties.  
A change to subheading 6103.19 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that:  
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 61.  
6103.21-6103.29  A change to subheadings 6103.21 through 6103.29 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and   WT/REG208/1 
 Page 39 
 
 
(b) with respect to a garment described in heading 61.01 or a jacket or a 
blazer described in heading 61.03, of  wool, fine animal hair, cotton, 
or man-made fibers, imported as pa rt of an ensemble of these 
subheadings, any visible lining material contained in the apparel article satisfies the requirements of  Chapter Rule 1 for Chapter 61.  
6103.31-6103.33  A change to subheadings 6103.31 through 6103.33 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 61.  
6103.39  A change to tariff items 6103.39.40 or 6103.39.80 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16 or 60.01 through 60.06, provided that the good is cut or knit to shape, or 
both, and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
A change to subheading 6103.39 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 61.  
6103.41-6103.49  A change to subheadings 6103.41 through 6103.49 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to 
shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
6104.11-6104.13  A change to subheadings 6104.11 through 6104.13 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 61.  WT/REG208/1 
Page 40  
 
6104.19  A change in tariff items 6104.19.40 or 6104.19.80 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to shape, or 
both, and sewn or otherwise assembled in the territory of one or both of the 
Parties.  
 
A change to subheading 6104.19 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 61.  
6104.21-6104.29  A change to subheadings 6104.21 through 6104.29 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) with respect to a garment described in heading 61.02, a jacket or a 
blazer described in heading 61.04, or a skirt described in heading 61.04, of wool, fine animal hair , cotton, or man-made fibers, 
imported as part of an ensemble of these subheadings, any visible 
lining material contained in the apparel article satisfies the 
requirements of Chapter Rule 1 for Chapter 61.  
6104.31-6104.33  A change to subheadings 6104.31 through 6104.33 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 61.  
6104.39  A change to tariff items 6104.39.20 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
   WT/REG208/1 
 Page 41 
 
 
A change to subheading 6104.39 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 61.  
6104.41-6104.49  A change to subheadings 6104.41 through 6104.49 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
6104.51-6104.53  A change to subheadings 6104.51 through 6104.53 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 61.  
6104.59  A change to tariff items 6104.59.40 or 6104.59.80 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to 
shape, or both, and sewn or otherwise assembled in the territory of one or 
both of the Parties.  
 
A change to subheading 6104.59 fro m any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 61.  
6104.61-6104.69  A change to subheadings 6104.61 through 6104.69 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to 
shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  WT/REG208/1 
Page 42  
 
6105-6106  A change to headings 61.05 through 61.06 from any other chapter, except 
from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the 
Parties.  
 
6107.11-6107.19  A change to subheadings 6107.11 through 6107.19 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to 
shape, or both, and sewn or otherwise assembled in the territory of one or 
both of the Parties.  
 
6107.21  A change to subheading 6107.21 from: 
 
(a) tariff item 6006.21.10, 6006.22.10, 6006.23.10, or 6006.24.10, 
provided that the good, exclusive of collar, cuffs, waistband, or elastic, is wholly of such fabric and the good is cut or knit to shape, 
or both, and sewn or otherwise assembled in the territory of one or 
both of the Parties, or  
(b) any other chapter, except from headings 51.06 through 51.13, 52.04 
through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, 
provided that the good is cut or knit to shape, or both, and sewn or 
otherwise assembled in the territory of one or both of the Parties.  
6107.22-6107.99  A change to subheadings 6107.22 through 6107.99 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or 
both of the Parties.  
 6108.11-6108.19  A change to subheadings 6108.11 through 6108.19 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to 
shape, or both, and sewn or otherwise assembled in the territory of one or 
both of the Parties.  
 
6108.21  A change to subheading 6108.21 from: 
 
(a) tariff item 6006.21.10, 6006.22.10, 6006.23.10, or 6006.24.10, 
provided that the good, exclusive of waistband, elastic or lace, is 
wholly of such fabric and the good is cut or knit to shape, or both, 
and sewn or otherwise assembled in th e territory of one or both of the 
Parties, or   WT/REG208/1 
 Page 43 
 
 
(b) any other chapter, except from headings 51.06 through 51.13, 52.04 
through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
6108.22-6108.29  A change to subheadings 6108.22 through 6108.29 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or 
both of the Parties. 
 
6108.31  A change to subheading 6108.31 from: 
 
(a) tariff item 6006.21.10, 6006.22.10, 6006.23.10, or 6006.24.10, 
provided that the good, exclusive of collar, cuffs, waistband, elastic, 
or lace, is wholly of such fabric and the good is cut or knit to shape, 
or both, and sewn or otherwise assembled in the territory of one or both of the Parties, or  
(b) any other chapter, except from headings 51.06 through 51.13, 52.04 
through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 
54, or headings 55.08 through 55.16 or 60.01 through 60.06, 
provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
6108.32-6108.39  A change to subheadings 6108.32 through 6108.39 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or 
both of the Parties.  
 6108.91-6108.99  A change to subheadings 6108.91 through 6108.99 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to 
shape, or both, and sewn or otherwise assembled in the territory of one or 
both of the Parties.  
 
6109-6111  A change to headings 61.09 through 61.11 from any other chapter, except 
from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 
53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
6112.11-6112.19  A change to subheadings 6112.11 through 6112.19 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to WT/REG208/1 
Page 44  
 
shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
6112.20  A change to subheading 6112.20 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 
through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) with respect to a garment described  in heading 61.01, 61.02, 62.01, 
or 62.02, of wool, fine animal ha ir, cotton, or man-made fibers, 
imported as part of a ski-suit of this subheading, any visible lining material contained in the apparel article satisfies the requirements of Chapter Rule 1 for Chapter 61.  
6112.31-6112.49  A change to subheadings 6112.31 through 6112.49 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16 or 60.01 through 60.06, provided that the good is cut or knit to 
shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
6113-6117  A change to headings 61.13 through 61.17 from any other chapter, except 
from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 
or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, 
and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
Chapter 62 - Articles Of Apparel And Clothing Accessories, Not Knitted Or Crocheted 
Chapter Rule 1
:  Except for fabrics classified in 54 08.22.10, 5408.23.11 , 5408.23.21, and 
5408.24.10, the fabrics identified in  the following sub-headings and 
headings, when used as visible lining ma terial in certain men's and women's 
suits, suit-type jackets, skirts, overc oats, carcoats, anoraks, windbreakers, 
and similar articles, must be both fo rmed from yarn and finished in the 
territory of a Party: 
 
5111 through 5112, 5208.31 through 5208.59, 5209.31 through 5209.59, 5210.31 through 5210.59, 5211.31 through 5211.59, 5212.13 through 
5212.15, 5212.23 through 5212.25, 5407.42 through 5407.44, 5407.52 through 5407.54, 5407.61, 5407.72 through 5407.74, 5407.82 through 
5407.84, 5407.92 through 5407.94, 5408.22 through 5408.24, 5408.32 
through 5408.34, 5512.19, 5512.29, 5512.99, 5513.21 through 5513.49, 5514.21 through 5515.99, 5516.12 through 5516.14, 5516.22 through 
5516.24, 5516.32 through 5516.34, 5516.42 through 5516.44, 5516.92 
through 5516.94, 6001.10, 6001.92, 6005.31 through 6005.44, or 6006.10 through 6006.44.    WT/REG208/1 
 Page 45 
 
 
Chapter Rule 2 :  Apparel goods of this Chapter shall be considered to originate if they are cut 
or knit to shape, or both, and sewn or ot herwise assembled in the territory of 
one or both of the Parties and if the fabric of the outer shell, exclusive of collars or cuffs, is wholly of one or more of the following:  
 
(a) Velveteen fabrics of subheading 5801.23, containing 85 per cent or more by weight 
of cotton;  
(b) Corduroy fabrics of subheading 5801.22, cont aining 85 per cent or more by weight of 
cotton and containing more than 7.5 wales per centimeter;  
(c) Fabrics of subheading 5111.11 or 5111.19, if hand-woven, with a loom width of less 
than 76 cm, woven in the United Kingdom  in accordance with the rules and 
regulations of the Harris Tweed Association, Ltd., and so certified by the Association;  
(d) Fabrics of subheading 5112.30, weighing not more than 340 grams per square meter, 
containing wool, not less than 20 per cent by weight of fine animal hair and not less 
than 15 per cent by weight of man-made staple fibers; or  
(e) Batiste fabrics of subheading 5513.11 or 5513.21, of square construction, of single 
yarns exceeding 76 metric count, containing between 60 and 70 warp ends and filling 
picks per square centimeter, of a weight not exceeding 110 grams per square meter.  
Chapter Rule 3
:  For purposes of determining the origin of a good of this Chapter, the 
rule applicable to that good shall only apply to the component that 
determines the tariff classification of the good and such component 
must satisfy the tariff change requirements set out in the rule for that 
good. If the rule requires that the good must also satisfy the tariff change requirements for visible lining fabrics listed in chapter rule 1 
to this Chapter, such requirement shall only apply to the visible 
lining fabric in the main body of the garment, excluding sleeves, which covers the largest surface area, and shall not apply to 
removable linings.  
 
6201.11-6201.13  A change to subheadings 6201.11 through 6201.13 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or bot h, and sewn or otherwise assembled in the 
territory of one or both of the Parties, and  
(b) any visible lining material contained in th e apparel article satisfies the requirements 
of Chapter Rule 1 for Chapter 62.  
6201.19  A change to subheading 6201.19 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is cut or knit to 
shape, or both, and sewn or otherwise assembled in the territory of one or 
both of the Parties.  
 WT/REG208/1 
Page 46  
 
6201.91-6201.93  A change to subheadings 6201.91 through 6201.93 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
 assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.  
6201.99  A change to subheading 6201.99 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to 
shape, or both, and sewn or otherwise assembled in the territory of one or 
both of the Parties.  
 
6202.11-6202.13  A change to subheadings 6202.11 through 6202.13 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.  
6202.19  A change to subheading 6202.19 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 
53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 
through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
6202.91-6202.93  A change to subheadings 6202.91 through 6202.93 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.  
6202.99  A change to subheading 6202.99 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or 
both of the Parties.   WT/REG208/1 
 Page 47 
 
 
6203.11-6203.12  A change to subheadings 6203.11 through 6203.12 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
 assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.  
6203.19  A change to tariff items 6203.19.50 or 6203.19.90 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
  A change to subheading 6203.19 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.  
6203.21-6203.29  A change to subheadings 6203.21 through 6203.29 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) with respect to a garment described in heading 62.01 or a jacket or a 
blazer described in heading 62.03, of  wool, fine animal hair, cotton, 
or man-made fibers, imported as pa rt of an ensemble of these 
subheadings, any visible lining material contained in the apparel article satisfies the requirements of  Chapter Rule 1 for Chapter 62.  
6203.31-6203.33  A change to subheadings 6203.31 through 6203.33 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.  WT/REG208/1 
Page 48  
 
6203.39  A change to tariff items 6203.39.50 or 6203.39.90 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the 
territory of one or both of the Parties.  
 
  A change to subheading 6203.39 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.  
6203.41-6203.49  A change to subheadings 6203.41 through 6203.49 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
6204.11-6204.13  A change to subheadings 6204.11 through 6204.13 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.  
6204.19  A change to tariff items 6204.19.40 or 6204.19.80 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the 
territory of one or both of the Parties.  
 
A change to subheading 6204.19 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 
53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.   WT/REG208/1 
 Page 49 
 
 
6204.21-6204.29  A change to subheadings 6204.21 through 6204.29 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) with respect to a garment described in heading 62.02, a jacket or a 
blazer described in heading 62.04, or a skirt described in heading 62.04, of wool, fine animal hair , cotton, or man-made fibers, 
imported as part of an ensemble of these subheadings, any visible 
lining material contained in the apparel article satisfies the requirements of Chapter Rule 1 for Chapter 62.  
6204.31-6204.33  A change to subheadings 6204.31 through 6204.33 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.  
6204.39  A change to tariff items 6204.39.60 or 6204.39.80 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the 
good is cut or knit to shape, or both, and sewn or otherwise assembled in the 
territory of one or both of the Parties.  
 
A change to subheading 6204.39 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings  
55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, 
provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.  
6204.41-6204.49  A change to subheadings 6204.41 through 6204.49 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the 
good is cut or knit to shape, or both, and sewn or otherwise assembled in the 
territory of one or both of the  Parties.  
  WT/REG208/1 
Page 50  
 
6204.51-6204.53  A change to subheadings 6204.51 through 6204.53 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.  
6204.59  A change to tariff item 6204.59.40 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 
53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.     
 
A change to subheading 6204.59 from any other chapter, except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that:  
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material containe d in the apparel article satisfies 
the requirements of Chapter Rule 1 for Chapter 62.  
6204.61-6204.69  A change to subheadings 6204.61 through 6204.69 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 
through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that 
the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
6205.10  A change to subheading 6205.10 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
6205.20-6205.30  
 
Subheading Rule
:  Men's or boys' shirts of cotton or man-made fibers shall be 
considered to originate if they are both cut and assembled in the territory of one or both of the Parties and if the fabric of the outer shell, exclusive of collars or cuffs, is wholly of one or more of the 
following:  
 
  WT/REG208/1 
 Page 51 
 
 
(a) Fabrics of subheading 5208.21, 5208.22, 5208.29, 5208.31, 5208.32, 5208.39, 5208.41, 
5208.42, 5208.49, 52 08.51, 5208.52, or 520 8.59, of average yarn number exceeding 
135 metric;   
(b) Fabrics of subheading 5513.11 or 5513.21, not  of square construction, containing more 
than 70 warp ends and filling picks per square centimeter, of average yarn number 
exceeding 70 metric;   
(c) Fabrics of subheading 5210.21 or 5210.31, not of square construction, containing 
more than 70 warp ends and filling picks per square centimeter, of average yarn 
number exceeding 70 metric;   
(d) Fabrics of subheading 5208.22 or 5208.32, not of square construction, containing 
more than 75 warp ends and filling picks per square centimeter, of average yarn 
number exceeding 65 metric;   
(e) Fabrics of subheading 5407.81, 5407.82, or 5407.83, weighing less than 170 grams 
per square meter, having a dobby weave created by a dobby attachment;  
(f) Fabrics of subheading 5208.42 or 5208.49, not of square construction, containing 
more than 85 warp ends and filling picks per square centimeter, of average yarn 
number exceeding 85 metric;   
(g) Fabrics of subheading 5208.51, of square construction, containi ng more than 75 warp 
ends and filling picks per square centimeter, made with single yarns, of average yarn 
number 95 or greater metric;   
(h) Fabrics of subheading 5208.41, of square  construction, with a gingham pattern, 
containing more than 85 warp ends and filli ng picks per square centimeter, made with 
single yarns, of average yarn number 95 or greater metric, and characterized by a check effect produced by the variation in colo r of the yarns in the warp and filling; or  
(i) Fabrics of subheading 5208.41, with the wa rp colored with vegetable dyes, and the 
filling yarns white or colored with vegetable dyes, of average yarn number greater 
than 65 metric.  
6205.20-6205.30  A change to subheadings 6205.20 through 6205.30 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the 
territory of one or both of the Parties.  
 
6205.90  A change to subheading 6205.90 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 
53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
6206-6210  A change to headings 62.06 through 62.10 from any other chapter, except 
from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or WT/REG208/1 
Page 52  
 
knit to shape, or both, and sewn or othe rwise assembled in the territory of one 
or both of the Parties.  
 
6211.11-6211.12  A change to subheadings 6211.11 through 6211.12 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the 
good is cut or knit to shape, or both, and sewn or otherwise assembled in the 
territory of one or both of the Parties.  
 
6211.20  A change to subheading 6211.20 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 
53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that: 
 
(a) the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) with respect to a garment described  in heading 61.01, 61.02, 62.01, 
or 62.02, of wool, fine animal ha ir, cotton, or man-made fibers, 
imported as part of a ski-suit of this subheading, any visible lining material contained in the apparel article satisfies the requirements of Chapter Rule 1 for Chapter 62.  
6211.31-6211.49  A change to subheadings 6211.31 through 6211.49 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the 
territory of one or both of the Parties.  
 6212.10  A change to subheading 6212.10 from any other chapter, provided that the 
good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parti es, and provided that, during each annual 
period, such goods of a producer or an entity controlling production shall be 
eligible for preferential treatment under this Agreement only if the aggregate 
cost of fabric(s) (exclusive of findings  and trimmings) formed in the territory 
of one or both of the Parties that is us ed in the production of all such articles 
of that producer or entity during the preceding annual period is at least 75 percent of the aggregate declared customs value of the fabric (exclusive of 
findings and trimmings) contained in all such goods of that producer or entity 
that are entered during the preceding one-year period.  
 
6212.20-6212.90  A change to subheadings 6212.20 through 6212.90 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
  WT/REG208/1 
 Page 53 
 
 
6213-6217  A change to headings 62.13 through 62.17 from any other chapter, except 
from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or othe rwise assembled in the territory of one 
or both of the Parties.  
 
Chapter 63 - Other Made Up Textile Articles; Sets; Worn Clothing And Worn Textile Articles; 
Rags  
Chapter Rule 1
:  For purposes of determining the origin of a good of this Chapter, 
the rule applicable to that good shall only apply to the component that determines the tariff classification of the good and such component must satisfy the tariff change requirements set out in the 
rule for that good.  
 
6301-6302  A change to heading 63.01 through 63.02 from any other chapter, except 
from heading 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, 
or 53.10 through 53.11, Chapter 54, or heading 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
6303  A change to tariff item 6303.92.10 from tariff items 5402.43.10 or 
5402.52.10 or any other chapter, except from headings 51.06 through 51.13, 5204 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, chapter 54, 
or heading 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, 
provided that the good is cut or knit to shape, or both, and sewn or otherwise 
assembled in the territory of one or both of the Parties.  
 
A change to heading 63.03 from any ot her chapter, except from heading 
51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or heading 55.08 through 55.16, 58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, 
or both, and sewn or otherwise assembled in the territory of one or both of 
the Parties.   
6304-6308  A change to headings 63.04 through 63.08 from any other chapter, except 
from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 
53.08, or 53.10 through 53.11, Chapter 54, or heading 55.08 through 55.16, 
58.01 through 58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, or both, and sewn or othe rwise assembled in the territory of one 
or both of the Parties.  
 
6309   A change to 63.09 from any other heading.   
6310   A change to heading 63.10 from an y other chapter, except from heading 
51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08, or 53.10 through 53.11, Chapter 54, or heading 55.08 through 55.16, 58.01 through 
58.02, or 60.01 through 60.06, provided that the good is cut or knit to shape, WT/REG208/1 
Page 54  
 
or both, and sewn or otherwise assembled in the territory of one or both of the Parties.  
 
Chapter 70 - Glass Fiber Rovings And Yarns  
7019   A change to heading 70.19 from any other heading, except from headings 
70.07 through 70.20.  
 
Chapter 94 - Comforters  
9404.90  A change to subheading 9404.90 from any other chapter, except from 
headings 50.07, 51.11 through 51.13, 52.08 through 52.12, 53.09 through 
53.11, 54.07 through 54.08, or 55.12 through 55.16, or subheading 6307.90.  
  
ANNEX 4-B 
 
Tariff-Rate Quotas On Apparel Goods
 
 
General Notes :  
 (1) This Annex lists apparel goods defined by HS codes at the six-digit level.  
 
(2) Effective on January 1 of year six, each Party shall eliminate its customs duties on originating 
apparel goods listed in this Annex without an y limitation on the annual quantity of such 
imports.  
 
Imports to Morocco  
(Quantities in kilograms) 
 
HS No. Quantity in 
Year 1 Quantity in 
Year 2 Quantity in 
Year 3 Quantity in 
Year 4 Quantity in 
Year 5 
6104.62 30,583 38,229 45,875 53,521 61,167 
6104.63 2,000 2,500 3,000 3,500 4,000 
6105.10 350 438 525 613 700 
6106.10 250 313 375 438 500 
6106.20 2,000 2,500 3,000 3,500 4,000 
6108.22 82,759 103,449 124,139 144,828 165,518 
6109.10 26,000 32,500 39,000 45,500 52,000 
6109.90 1,000 1,250 1,500 1,750 2,000 
6110.10 3,500 4,375 5,250 6,125 7,000 
6110.20 500 625 750 875 1,000 
6110.30 31,100 38,875 46,650 54,425 62,200 
6111.20 500 625 750 875 1,000 
6111.30 2,500 3,125 3,750 4,375 5,000 
6201.92 8 10 12 15 17 
6201.93 433 542 650 758 867 
6202.92 4,770 5,963 7,155 8,348 9,540 
6203.11 100 125 150 175 200 
6203.31 300 375 450 525 600 
6203.33 1,000 1,250 1,500 1,750 2,000 
6203.42 35,933 44,917 53,900 62,883 71,867  WT/REG208/1 
 Page 55 
 
 
HS No. Quantity in 
Year 1 Quantity in 
Year 2 Quantity in 
Year 3 Quantity in 
Year 4 Quantity in 
Year 5 
6203.43 6,000 7,500 9,000 10,500 12,000 
6204.33 5,867 7,333 8,800 10,267 11,733 
6204.42 100 125 150 175 200 
6204.43 750 938 1,125 1,313 1,500 
6204.44 750 938 1,125 1,313 1,500 
6204.52 150 188 225 263 300 
6204.59 750 938 1,125 1,313 1,500 
6204.61 50 63 75 88 100 
6204.62 233 292 350 408 467 
6204.63 15,200 19,000 22,800 26,600 30,400 
6204.69 500 625 750 875 1000 
6205.20 31,517 39,396 47,275 55,154 63,033 
6205.30 2,000 2,500 3,000 3,500 4,000 
6206.30 30 38 45 53 60 
6206.40 1,000 1,250 1,500 1,750 2,000 
6208.92 1,000 1,250 1,500 1,750 2,000 
6209.20 500 625 750 875 1,000 
6211.33 1,000 1,250 1,500 1,750 2,000 
6211.42 200 250 300 350 400 
6212.10 1,212,423 1,515,529 1, 818,635 2,121,741 2,424,847 
6301.40 3000 3750 4500 5250 6000 
6303.91 200 250 300 350 400 
6303.92 3480 4350 5220 6090 6960 
 
Imports to the United States  
(Quantities in Square Meters Equivalent) 
 
HS No. Quantity in 
Year 1 Quantity in 
Year 2 Quantity in 
Year 3 Quantity in 
Year 4 Quantity in 
Year 5 
6104.62 1,027,517 1,284,396 1, 541,275 1,798,154 2,055,033 
6104.63 541,800 677,250 812,700 948,150 1,083,600 
6105.10 782,110 977,638 1,173, 165 1,368,693 1,564,220 
6106.10 76,850 96,063 115,275 134,488 153,700 
6106.20 445,200 556,500 667,800 779,100 890,400 
6108.22 17,022,703 21,278,379 25, 534,055 29,789,730 34,045,406 
6109.10 17,134,067 21,417,583 25, 701,100 29,984,617 34,268,133 
6109.90 1,756,467 2,195,583 2, 634,700 3,073,817 3,512,933 
6110.10 366,217 457,771 549,325 640,879 732,433 
6110.20 5,736,583 7,170,729 8, 604,875 10,039,021 11,473,167 
6110.30 5,394,700 6,743,375 8, 092,050 9,440,725 10,789,400 
6111.20 2,366,183 2,957,729 3, 549,275 4,140,821 4,732,367 
6111.30 249,033 311,292 373,550 435,808 498,067 
6201.92 4,250,708 5,313,385 6, 376,063 7,438,740 8,501,417 
6201.93 332,367 415,458 498,550 581,642 664,733 
6202.92 1,285,990 1,607,488 1, 928,985 2,250,483 2,571,980 WT/REG208/1 
Page 56  
 
HS No. Quantity in 
Year 1 Quantity in 
Year 2 Quantity in 
Year 3 Quantity in 
Year 4 Quantity in 
Year 5 
6203.11 483,610 604,513 725,415 846,318 967,220 
6203.31 332,420 415,525 498,630 581,735 664,840 
6203.33 143,200 179,000 214,800 250,600 286,400 
6203.42 108,394,613 135,493,267 162, 591,920 189,690,573 216,789,227 
6203.43 1,749,417 2,186,771 2, 624,125 3,061,479 3,498,833 
6204.33 600,733 750,917 901, 100 1,051,283 1,201,467 
6204.42 2,045,717 2,557,146 3, 068,575 3,580,004 4,091,433 
6204.43 2,144,750 2,680,938 3, 217,125 3,753,313 4,289,500 
6204.44 1,254,500 1,568,125 1, 881,750 2,195,375 2,509,000 
6204.52 2,095,985 2,619,981 3, 143,978 3,667,974 4,191,970 
6204.59 1,295,450 1,619,313 1, 943,175 2,267,038 2,590,900 
6204.61 392,625 490,781 588,938 687,094 785,250 
6204.62 39,216,310 49,020,388 58, 824,465 68,628,543 78,432,620 
6204.63 6,299,430 7,874,288 9, 449,145 11,024,003 12,598,860 
6204.69 1,151,967 1,439,958 1, 727,950 2,015,942 2,303,933 
6205.20 6,011,550 7,514,438 9, 017,325 10,520,213 12,023,100 
6205.30 1,862,667 2,328,333 2, 794,000 3,259,667 3,725,333 
6206.30 4,318,080 5,397,600 6, 477,120 7,556,640 8,636,160 
6206.40 2,295,367 2,869,208 3, 443,050 4,016,892 4,590,733 
6208.92 5,974,200 7,467,750 8, 961,300 10,454,850 11,948,400 
6209.20 11,400,900 14,251,125 17, 101,350 19,951,575 22,801,800 
6211.33 1,831,600 2,289,500 2, 747,400 3,205,300 3,663,200 
6211.42 1,275,887 1,594,858 1, 913,830 2,232,802 2,551,773 
6212.10 8,286,787 10,358,483 12, 430,180 14,501,877 16,573,573 
6301.40 380,000 475,000 570,000 665,000 760,000 
6303.91 51,710 1,034,200 1, 292,750 1,551,300 2,068,400 
6303.92 362,400 453,000 543,600 634,200 724,800 
 
Note: For the purposes of determining the quantity of square meters equivalent that is charged against the annual 
quantities, the conversion factors listed in the Correlation: U.S. Textile and Ap parel Category system with the 
Harmonized Tariff Schedule of the United States of America (“The Textile Correlation”), 2003,  
U.S. Department of Commerce, Office of Textiles and Apparel, or successo r publication, apply.  
 
 
CHAPTER FIVE:  RULES OF ORIGIN 
 
Article 5.1  
Originating Goods  
 Except as otherwise provided in this Chapter or Chapter Four (Textiles and Apparel), each 
Party shall provide that a good is an originating g ood where it is imported directly from the territory 
of one Party into the territory of the other Party, and   WT/REG208/1 
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(a) it is a good wholly the growth, product, or manufacture of one or both of the Parties;  
(b) for goods other than those covered by the rules in Annex 4-A or Annex 5-A , the good 
is a new or different article of commerc e that has been grown, produced, or 
manufactured in the territory of one or both of the Parties; and the sum of (i) the value of materials produced in the territory of one or both of the Parties, plus (ii) the direct 
costs of processing operations performed in the territory of one or both of the Parties is 
not less than 35 percent of the appraised valu e of the good at the time it is imported into 
the territory of a Party; or  
(c) for goods covered by the rules in Annex 4-A or Annex 5-A, the good has satisfied the 
requirements specified in that Annex.  
Article 5.2 
New Or Different Article Of Commerce 
 
 For purposes of this Chapter, new or different article of commerce  means a good that has 
been substantially transformed from a good or materi al that is not wholly the growth, product, or 
manufacture of one or both of the Parties and that has a new name, character, or use distinct from the 
good or material from which it was transformed.   
Article 5.3  
Non-Qualifying Operations 
 
 Each Party shall provide that, for purposes of Ar ticle 5.1, no good shall be considered a new 
or different article of commerce by virtue of having merely undergone (a) simple combining or 
packaging operations or (b) mere dilution with water or with another substance that does not 
materially alter the characteristics of the good.   
Article 5.4  
Cumulation 
 
1. Each Party shall provide that direct costs of processing operations performed in one or both of 
the Parties as well as the value of materials produced in  the territory of one or both of the Parties may 
be counted without limitation toward satisfying the 35  percent value-content requirement specified in 
Article 5.1(b).  
2. Each Party shall provide that an originating good or a material produced in the territory of one 
or both of the Parties, incorporated into a good in th e territory of the other Party, shall be considered 
to originate in the other Party.  
3. Each Party shall provide that a good grown, produced, or manufactured in the territory of one 
or both of the Parties by one or more producers shall be an originating good, provided that it satisfies the requirements of Article 5.1 and all other applicab le requirements in this Chapter and Chapter Four 
(Textiles and Apparel). 
 
 WT/REG208/1 
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Article 5.5  
Value Of Materials 
 
1. For purposes of this Chapter, each Party shall pr ovide that the value of a material produced in 
the territory of one or both of the Parties includes:  
(a) the price actually paid or payable by the producer of the good for the material;  
(b) when not included in the price actually paid or payable by the producer of the good 
for the material, the freight, insurance, packing, and all other costs incurred in 
transporting the material to the producer’s plant;  
(c) the cost of waste or spoilage, less the value of recoverable scrap; and  
(d) taxes or customs duties imposed on the material by one or both of the Parties, 
provided the taxes or customs duties are not remitted on exportation.  
2. Each Party shall provide that where the relationship between the producer of the good and the 
seller of the material influenced the price actually pa id or payable for the material, or where paragraph 
1 is otherwise not applicable, the value of the materi al produced in the territory of one or both of the 
Parties includes:  
(a) all expenses incurred in the growth, pr oduction, or manufacture of the material, 
including general expenses;  
(b) a reasonable amount for profit; and  
(c) freight, insurance, packing, and all other cost s incurred in transporting the material to 
the producer’s plant.  
Article 5.6 
Direct Costs Of Processing Operations  
1. For purposes of this Chapter, direct costs of processing operations  means those costs either 
directly incurred in, or that can be reasonably a llocated to, the growth, production, or manufacture of 
the good.  Such costs include the following, to th e extent that they are includable in the appraised 
value of goods imported into the territory of a Party:  
(a) all actual labor costs involved in the growth, production, or manufacture of the 
specific good, including fringe benefits, on-the-job training, and the costs of engineering, supervisory, quality control, and similar personnel;  
(b) tools, dies, molds, and other indirect materials, and depreciation on machinery and 
equipment that are allocable to the specific good;  
(c) research, development, design, engineering, and blueprint costs, to the extent that 
they are allocable to the specific good;   
(d) costs of inspecting and testing the specific good; and  
(e) costs of packaging the specific good for export to the territory of the other Party.   WT/REG208/1 
 Page 59 
 
 
2. For greater certainty, costs that are not included as direct costs of processing operations are 
those that are not directly attributable to the good or are not costs of growth, production, or manufacture of the good.  These include:  
(a)  profit; and  
(b) general expenses of doing business that are e ither not allocable to the good or are not 
related to the growth, production, or manufacture of the good, such as administrative 
salaries, casualty and liability insurance,  advertising, and salesmen’s salaries, 
commissions, or expenses.  
Article 5.7  
Packaging And Packing Materials And Contai ners For Retail Sale And For Shipment 
 
 Each Party shall provide that packaging and packing materials and containers for retail sale 
and for shipment shall be disregarded in determ ining whether the good qualifies as an originating 
good, except to the extent that the value of such packaging and packing materials and containers may 
be counted toward satisfying the 35 percent value- content requirement specified in Article 5.1(b), 
where applicable.  
 
Article 5.8  
 
Indirect Materials  
 Each Party shall provide that indirect materi als shall be disregarded in determining whether 
the good qualifies as an originatin g good, except that the cost of such indirect materials may be 
counted toward satisfying the 35 percent valu e-content requirement where applicable.  
 
Article 5.9  
 
Transit And Transshipment  
 For purposes of this Chapter, each Party shall pr ovide that a good shall not be considered to 
be imported directly from the territory of the other Party if the good undergoes subsequent production, 
manufacturing, or any other operation outside the territories of the Parties, other than unloading, reloading, or any other operation necessary to preser ve it in good condition or to transport the good to 
the territory of the other Party.  
 
Article 5.10  
Importer Requirements 
 
 Each Party shall provide that whenever an importer makes a claim for preferential tariff 
treatment for a good, the importer:  
 
(a) shall be deemed to have certified that  the good qualifies for preferential tariff 
treatment; and  
(b) shall submit to the customs authority of the importing Party, on request, a signed 
declaration setting forth all pertinent inform ation concerning the growth, production, or 
manufacture of the good.  Each Party may requi re that the declaration contain at least 
the following details:  WT/REG208/1 
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(i) a description of the good, quantity, numbers, and invoice numbers and bills 
of lading;  
(ii) a description of the operations perform ed in the growth, production, or 
manufacture of the good in the territory of one or both of the Parties and, where applicable, identification of the direct costs of processing operations;  
(iii) a description of any materials used in the growth, production, or manufacture 
of the good that are wholly the growth, product, or manufacture of one or both of the Parties, and a statement as to the value of such materials;  
(iv) a description of the operations performed on, and a statement as to the origin 
and value of, any materials used in th e good that are claimed to have been 
sufficiently processed in the territory of one or both of the Parties so as to be 
materials produced in the territory of one or both of the Parties, or are claimed to have undergone an appli cable change in tariff classification 
specified in Annex 4-A or Annex 5-A; and   
(v) a description of the origin and value of any foreign materials used in the good 
that are not claimed to have been substantially transformed in the territory of 
one or both of the Parties, or are not claimed to have undergone an applicable 
change in tariff classification specified in Annex 4-A or Annex 5-A.  
 The importing Party should request a declaration only when that Party has reason to question 
the accuracy of a deemed certification referred to in subparagraph (a), when that Party’s risk 
assessment procedures indicate that verification of an entry is appropriate, or when the Party conducts 
a random verification.  The importer shall retain the information necessary to prepare the declaration 
for five years from the date of importation of the good.   
Article 5.11 
Obligations Relating To Importation 
 
1. Each Party shall grant any claim for prefer ential tariff treatment, unless the Party possesses 
information indicating that the importer’s claim fa ils to comply with any requirement under this 
Chapter or Chapter Four (Textiles and Apparel).    
2. To determine whether a good imported into its territory qualifies for preferential tariff 
treatment, the importing Party may, through its customs authority, verify the origin.  
3. Where a Party denies a claim for preferential tariff treatment, it shall issue a written 
determination containing findings of fact and the legal basis for its determination.  The Party shall 
issue the determination within a pe riod established under its law.  
4. Nothing in this Article shall prevent a Party from taking action under Article 4.4 (Customs 
and Administrative Cooperation).  
Article 5.12 
Consultations And Modifications  
1. The Parties shall consult and cooperate to ensure that this Chapter is applied in an effective 
and uniform manner, in accordance with the objectives of this Agreement.    WT/REG208/1 
 Page 61 
 
 
2. The Parties may establish ad hoc  working groups, or a subcommi ttee of the Joint Committee 
established pursuant to Article 19.2 (Joint Committee),  to consider any matter related to this Chapter 
(including Annex 5-A).  On request of a Party, the Parties may direct a working group or subcommittee to review operation of this Chapter (including Annex 5-A) and develop 
recommendations for amending them in the light of pertinent developments, including changes in 
technology and production processes, and other relevant factors.  
Article 5.13 
Regional Cumulation 
 
 At a time to be determined by the Parties, a nd in the light of their desire to promote regional 
integration, the Parties shall enter into discussions  with a view to deciding the extent to which 
materials that are products of countries in the re gion may be counted for purposes of satisfying the 
origin requirement under this Agreement as a st ep toward achieving regional integration.  
Article 5.14 
 
Definitions  
 
 For purposes of this Chapter:  
 
 foreign material  means a material other than a material  produced in the territory of one or 
more of the Parties;  
 good  means any merchandise, product, article, or material;  
 
 goods wholly the growth, product, or manufacture of one or both of the Parties means 
goods consisting entirely of one or more of the following:  
 
(a) mineral goods extracted in the territory of one or both of the Parties;  
(b) vegetable goods, as such goods are defined in  the Harmonized System,  harvested in 
the territory of one or both of the Parties;  
(c) live animals born and raised in the territo ry of one or both of the Parties;  
(d) goods obtained from live animals raised in the territory of one or both of the Parties;  
(e) goods obtained from hunting, trapping, or fishing in the territory of one or  both of 
the Parties;  
(f) goods (fish, shellfish, and other marine life) taken from the sea by vessels registered 
or recorded with a Party and flying its flag;  
(g) goods produced on board factory ships from the goods referred to in subparagraph (f) 
provided such factory ships are registered or recorded with that Party and fly its flag;  
(h) goods taken by a Party or a person of a Party from the seabed or beneath the seabed 
outside territorial waters, provided that a Party has rights to exploit such seabed;  
(i) goods taken from outer space, provided they are obtained by a Party or a person of a 
Party and not processed in the territory of a non-Party;  WT/REG208/1 
Page 62  
 
(j) waste and scrap derived from:  
(i) production or manufacture in the territory of one or both of the Parties, or  
(ii) used goods collected in the territory of one or both of the Parties, provided 
such goods are fit only for the recovery of raw materials;  
(k) recovered goods derived in the territory of a Party from used goods and utilized in the 
Party’s territory in the production of remanufactured goods; and  
(l) goods produced in the territory of one or both of the Parties exclusively  from goods 
referred to in subparagraphs (a ) through (j), or from their derivatives, at any stage of 
production;  
indirect material  means a good used in the growth, production, manufacture, testing, or 
inspection of a good but not physically incorporated into the good, or a good used in the maintenance 
of buildings or the operation of equipment associated  with the growth, production, or manufacture of 
a good, including:  
(a) fuel and energy;  
(b) tools, dies, and molds;  
(c) spare parts and materials used in the maintenance of equipment and buildings;  
(d) lubricants, greases, compounding materials, and other materials used in the growth, 
production, or manufacture of a good or used  to operate equipment and buildings;  
(e) gloves, glasses, footwear, clothing, safety equipment, and supplies;  
(f) equipment, devices, and supplies used for testing or inspecting the good;  
(g) catalysts and solvents; and  
(h) any other goods that are not incorporated into the good but whose use in the growth, 
production, or manufacture of the good can reasonably be demonstrated to be a part of that growth, production, or manufacture;  
 material means a good, including a part or ingredient, that is used in the growth, production, 
or manufacture of another good that is a new or diff erent article of commerce that has been grown, 
produced, or manufactured in one or both of the Parties;  
 
 material produced in the territory of one or both of the Parties  means a good that is either 
wholly the growth, product, or manufacture of one or  both of the Parties, or a new or different article 
of commerce that has been grown, produced, or ma nufactured in the territory of one or both of the 
Parties;  
 
 recovered goods  means materials in the form of indivi dual parts that are the result of: (1) the 
complete disassembly of used goods into individual pa rts; and (2) the cleaning, inspecting, testing, or 
other processing of those parts as necessary fo r improvement to sound working condition;  
  remanufactured goods  means industrial goods assembled in the territory of a Party that:  
(1) are entirely or partially comprised of recovere d goods; (2) have similar lif e expectancies and meet 
similar performance standards as new goods; and (3) enjoy similar factory warranties as new goods;   WT/REG208/1 
 Page 63 
 
 
 simple combining or packaging operations  means operations such as adding batteries to 
electronic devices, fitting together a small number of components by bolting, gluing, or soldering, or packing or repacking components together; and  
 
 substantially transformed  means, with respect to a good or material, changed as the result of 
a manufacturing or processing operation where: (1) the good or material has multiple uses and is 
converted into a good or material with limited uses; (2) the physical properties of the good or material 
are changed to a significant extent; or (3) the opera tion undergone by the good or material is complex 
in terms of the number of processes and materials involved, as well as the time and level of skill required to perform these processes; and the good or  material loses its separate identity in the 
resulting, new good or material.    
 
 
ANNEX 5-A  
 
Certain Product-Specific Rules Of Origin
 
Section A: Interpretative Notes  
1. For goods covered in this Annex, a good is an originating good if:  
 (a) each of the non-originating materials us ed in the production of the good undergoes an 
applicable change in tariff classification specified in this Annex as a result of 
production occurring entirely in the territory of one or both of the Parties, or the good otherwise satisfies the applicable requirements of this Annex where a change in tariff 
classification for each non-originating material is not specified; and   
 
 (b) the good satisfies any other applicable requirements of this Chapter.   2. For purposes of interpreting the rules of  origin set out in this Annex:  
(a) the specific rule, or specific set of rules,  that applies to a particular heading or 
subheading is set out immediately adjacen t to the heading or subheading;   
(b) a rule applicable to a subheading shall ta ke precedence over a rule applicable to the 
heading which is parent to that subheading;  
(c) a requirement of a change in tariff classi fication applies only to non-originating 
materials; and  
(d) the following definitions apply:  
  chapter  means a chapter of the Harmonized System;  
   heading  means the first four digits in the tariff classification number under the 
 Harmonized System; and  
  
  subheading means the first six digits in the tariff classification number under the 
 Harmonized System. 
 
 
 WT/REG208/1 
Page 64  
 
Section B: Specific Rules 
 
 ANNEX NOTE:  A good containing over 10 percent by weight of cow’s milk solids classified under 
chapter 4 or heading 1901, 2105, 2106, or 2202 must be made from originating cow's milk.  Use of non-originating sheep’s or goat’s milk in a good classified under Chapter 4 or heading 1901, 2105, 2106, or 2202 
shall not render the good non-originating.  
 
Section I  
Vegetable Products (Chapter 6-14)  
 
 NOTE: An agricultural or horticultural good grown in the territory of a Party shall be treated as an 
originating good even if grown from a non-originating se ed, bulb, rootstock, cutting, slip, graft, shoot, bud or 
other live part of a plant.  
 
Chapter 6 - Live Trees and Other Plants; Bulbs, Roots and the Like; Cut Flowers and 
Ornamental Foliage   
0602-0603   A change to heading 0602 through 0603 from any other chapter.  
 
Chapter 7 - Edible Vegetables and Certain Roots and Tubers  
 
0710-0713   A change to heading 0710 through 0713 from any other chapter.   
Chapter 8 - Edible Fruit and Nuts; Peel or Citrus Fruit or Melons  
 
0811-0814   A change to heading 0811 through 0814 from any other chapter.   
Chapter 9 - Coffee, Tea, Mate and Spices  
 
0901.21-0901.22  A change to subheading 0901.21 through 0901.22 from any other chapter.   0902.10   A change to subheading 0902.10 from any other subheading.   0904.20   A change to subheading 0904.20 from any other chapter except from 
 chapter 7.  
 0910.20   A change to subheading 0910.20 from any other chapter.   
Chapter 12 - Oilseeds and Oleaginous Fruits ; Miscellaneous Grains, Seeds, and Fruits; 
Industrial or Medicinal Plants; Straw and Fodder  
 
1212.10  A change to a good of subheading 1212.10 from any other subheading or 
from carob or seed of carob of subheading 1212.10.  
 
Chapter 13 - Lac; Gums; Resins and Other Vegetable Saps and Extracts  
 
1302.32  A change to goods of subheadi ng 1302.32 from any other subheading or 
from mucilage, not modified, of subheading 1302.32.  
    WT/REG208/1 
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Section II  
Prepared Foodstuffs; Beverages, Spirits A nd Vinegar; Tobacco And Manufactured Tobacco 
Substitutes (Chapter 16-24)  
 
Chapter 20 - Preparations of Vegetables, Fruits, Nuts or other Parts of Plants  
 
2001    A change to heading 2001 from any other chapter except from chapter 7 or 8.  
 2002    A change to heading 2002 from any other heading except from chapter 7.   2003    A change to heading 2003 from any other chapter except from chapter 7.   2004    A change to heading 2004 from any other chapter except from chapter 7.   2005   A change to heading 2005 from any other chapter except from chapter 7.   2006    A change to heading 2006 from any other chapter except from chapter 7 or 8.   2007    A change to heading 2007 from any other chapter except from chapter 7 or 8.   2008    A change to heading 2008 from any other chapter except from chapter 8.   2009.11-2009.39  A change to subheading 2009.11 through 2009.39 from any other chapter 
except from heading 0805.  
 
2009.41-2009.80  A change to subheading 2009.41 through 2009.80 from any other chapter or 
from concentrated juice of grapes, appl es, pears, bananas, guavas, mangoes, 
or carrots of heading 2009.  
 2009.90  A change to subheading 2009.90 from any other chapter; or a change to 
subheading 2009.90 from any other subheading within Chapter 20, whether 
or not there is also a change from any other chapter, provided that a single 
juice ingredient, or juice ingredients from a single non-Party, constitute in single strength form no more than 60 percent by volume of the good.  
 Chapter 21 - Miscellaneous Edible Preparations  
 
2106.90  A change to concentrated juice of any single fruit or vegetable fortified with 
vitamins or minerals of subheading 21 06.90 from any other chapter or from 
juice of grapes, apples, pears, bananas, guavas, mangoes and carrots of heading 2009, except from heading 0805, subheading 2009.11 through 2009.39, or subheading 2002.90.  
 
Chapter 22 - Beverages, Spirits and Vinegar  
 
2204.10-2204.30  A change to subheading 2204.10 through 2204.30 from any other chapter.  
    WT/REG208/1 
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Section III  
Plastics And Articles Thereof; Rubber A nd Articles Thereof (Chapter 39-40)  
 
Chapter 39 - Plastics and Articles Thereof  
 
3919.10-3919.90  A change to subheading 3919.10 through 3919.90 from any other 
subheading outside that group.  
 
Section IV 
Base Metals And Articles Of Base Metal (Chapter 72-83) 
Chapter 72 - Iron and Steel  
 7209    A change to heading 7209 from any other heading  
7210    A change to heading 7210 from any other heading.  
7211    A change to heading 7211 from any other heading.  7212    A change to heading 7212 from any other heading.  
 
Section V  
Machinery and Mechanical Appliances; Electric al Equipment; Parts Thereof; Sound Recorders 
and Reproducers, Television Image and Sound  Recorders and Reproducers, and Parts and 
Accessories of Such Articles (Chapter 84-85)   Chapter 85 - Electrical Machinery and E quipment and Parts thereof; sound recorders and 
reproducers, television image and sound record ers and reproducers, and parts and accessories 
of such articles   
8544.30  A change to an ignition wiring set or other wiring set of 8544.30, of a kind used in 
vehicles, from any other subheading, or from a good within that subheading, provided that assembly of the wiring set involves at  least each of the following operations:  
 
(a) assembly of at least 10 separate parts;   
(b)  cutting of wire into different lengths to create wire sub-assemblies;  (c)  stripping of the sheathing of wire;    (d)  inserting connectors to the ends of wire sub-assemblies;   (e)  attaching wire sub-assemblies to cable; and  
(f)  100 percent testing of wiring sets and othe r quality control operations and packaging 
and labeling of finished product.  
8544.11-8544.20 &  
8544.41-8544.70  A change to subheadings 8544.11-8544.20 and subheadings 8544.41-8544.70 
from any other subheading, including a subheading within that group, provided that the value of materials produced and direct costs of processing  WT/REG208/1 
 Page 67 
 
 
operations performed in the territory of one  or both of the Parties is not less 
than 35 percent of the appraised value of the good at the time it is entered 
into the territory of a Party.  
 
Section VI  
Vehicles, Aircraft, Vessels and Associated Transport Equipment (Chapter 86-89)   Chapter 87 - Vehicles Other than Railway or Tramway Rolling-Stock and Parts and Accessories thereof   
8707    A change to heading 8707 from any other heading.  
 8708.91   A change to subheading 8708.91 from any other subheading.   8708.93   A change to subheading 8708.93 from any other subheading.   8708.94   A change to subheading 8708.94 from any other subheading.   8708.99   A change to subheading 8708.99 from any other subheading.   8716.31/39/40  A change to subheading 871631/39/40 from any other subheading.   
8716.90   A change to subheading 8716.90 from any other subheading.  
  
CHAPTER SIX:  CUSTOMS ADMINISTRATION 
 
Article 6.1  
Publication 
 
1. Each Party shall publish its customs laws, re gulations, and administrative procedures on the 
Internet.  
2. Each Party shall designate one or more inquiry  points to address inquiries from interested 
persons concerning customs matters and shall make available on the Internet information concerning 
procedures for making such inquiries.  
3. In accordance with Article 18.1.2 (Publication) , to the extent possible, each Party shall 
publish in advance any regulations of general app lication governing customs matters that it proposes 
to adopt and shall provide interested persons the opportunity to comment on such proposed regulations prior to their adoption.  
Article 6.2 
Release Of Goods 
 
 Each Party shall:  
 
(a) adopt or maintain procedures providing fo r the release of goods within a period no 
greater than that required to ensure complia nce with its customs laws and regulations WT/REG208/1 
Page 68  
 
and, to the extent possible, within 48 hour s of arrival, provided that necessary data 
submission requirements are fulfilled;  
(b) adopt or maintain procedures allowing, to the extent possible, goods to be released at 
the point of arrival, without interim tran sfer to warehouses or other locations;  
(c) adopt or maintain procedures allowing the release of goods prior to, and without 
prejudice to, the final determination by its customs authority of the applicable 
customs duties, taxes, and fees and, as part of such procedures, may require an importer to provide a sufficient guarantee in th e form of a surety or other appropriate 
instrument to ensure payment of any cu stoms duties, taxes, and fees that may 
ultimately be assessed; and  
(d) otherwise endeavor to adopt or maintain simplified procedures for the release of 
goods.  
Article 6.3 
Automation
 
 Each Party’s customs authority shall:  
 
(a) endeavor to use information technology th at expedites procedures for the importation 
of goods; and  
(b) in deciding on the information technology to be used for this purpose, take into 
account international standards.  
Article 6.4  
Risk Assessment  
 Each Party shall endeavor to adopt or mainta in risk management systems that enable its 
customs authority to concentrate inspection ac tivities on high-risk goods and that simplify the 
clearance and movement of low-risk goods.    
 
Article 6.5  
 
Cooperation  
1. Each Party shall endeavor to provide the othe r Party with advance notice of any significant 
modification of administrative policy regarding the im plementation of its customs laws that is likely 
to substantially affect the ope ration of this Agreement.  
2. The Parties shall cooperate in achieving complianc e with their laws and regulations pertaining 
to:  
(a) the implementation and operation of the provisions of this Agreement relating to the 
importation of goods, including Chapter Five (Rules of Origin) and this Chapter;  
(b) the implementation and operation of the Customs Valuation Agreement;  
(c) restrictions or prohibitions on imports or exports; or   WT/REG208/1 
 Page 69 
 
 
(d) such other matters relating to the importati on or exportation of goods as the Parties 
may agree.  
3. Where a Party has a reasonable suspicion of unlawf ul activity related to its laws or regulations 
governing importation, the Party may request that the other Party provide specific confidential information that pertains to that activity and that is normally collected by the other Party in 
connection with the importation of goods.  The Part y shall make its request in writing, identify the 
requested information with specificity sufficient to enable the other Party to locate it, and specify the 
purposes for which the information is sought.      
4. The other Party shall respond by providing any information that it has collected that is 
material to the request.    
5. For purposes of paragraph 3, a reasonable suspicion of unlawful activity  means a suspicion 
based on relevant factual information obtaine d from public or private sources, including:  
(a) historical evidence that a specific importer, exporter, producer, or other enterprise 
involved in the movement of goods from the territory of one Party to the territory of the other Party has not complied with a Party’s laws or regulations governing 
importation;    
(b) historical evidence that some or all of th e enterprises involved in the movement from 
the territory of one Party to the territory of the other Party of goods within a specific product sector have not complied with a Pa rty’s laws or regulations governing 
importation; or  
(c) other information that the Parties agree is sufficient in the context of a particular 
request.  
6. Each Party shall endeavor to provide the other Party with any other information that would 
assist in determining whether imports from or expo rts to the territory of the other Party are in 
compliance with the other Party’s laws and regula tions governing importation, in particular those 
related to the prevention of unlawful shipments.    
7. The United States shall endeavor to provide Mo rocco with technical advice and assistance for 
the purpose of improving risk assessment techniques,  simplifying and expediting customs procedures, 
advancing technical skills, and enhancing the use of technologies that can lead to improved 
compliance with laws and regula tions governing importation.  
8. Building on the procedures established in this Ar ticle, the Parties shall use best efforts to 
explore additional means of coope ration to enhance each Party’s ability to enforce its laws and 
regulations governing importation, including by:  
(a) endeavoring to conclude a mutual assis tance agreement between their respective 
customs authorities within six months after the date of entry into force of this 
Agreement; and  
(b) considering whether to establish additional channels of communication to facilitate 
the secure and rapid exchange of info rmation and to impr ove coordination on 
customs issues.    
 
 WT/REG208/1 
Page 70  
 
Article 6.6  
Confidentiality 
 
1. Where a Party providing information to the ot her Party in accordan ce with this Chapter 
designates the information as confidential, the othe r Party shall maintain the confidentiality of the 
information.  The Party providing the information may require written assurances from the other Party 
that the information will be held in confidence, will be used only for the purposes specified in the 
other Party’s request for information, and will not be disclosed without the Party’s specific 
permission.  The Parties may agree that the informa tion may be used or disclosed for law enforcement 
purposes or in the context of judicial proceedings.  
2. A Party may decline to provide confidential in formation requested by the other Party where 
the other Party has failed to act in conformity  with assurances provided under paragraph 1.  
3. Each Party shall adopt or maintain procedures that protect confidential information, including 
information the disclosure of which could prejud ice the competitive position of the person providing 
the information, submitted in connection with the ad ministration of its customs laws and regulations 
from unauthorized disclosure.    
Article 6.7  
Express Shipments  
 Each Party shall adopt or maintain separate, expedited customs procedures for express 
shipments, including procedures:   
(a) that, to the extent possible, allow the in formation necessary for the release of express 
shipments to be submitted electronically;   
(b) in which the information necessary for th e release of an express shipment may be 
submitted, and processed by the Party’s cu stoms authority, before the shipment 
arrives;   
(c) allowing a shipper to submit a single manifest covering all goods contained in an 
express shipment;  
(d) that, to the extent possible, minimize the documentation required for the release of 
express shipments; and  
(e) that, under normal circumstances, allow for an express shipment that has arrived at a 
point of entry to be released no later th an six hours after the submission of the 
information necessary for release.  
Article 6.8  
Review And Appeal 
 
 Each Party shall ensure that with respect to a determination of the Party on customs matters, 
the importer in its territory has access to:  
 
(a) administrative review independent of the official or office that issued the 
determination; and   WT/REG208/1 
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(b) judicial review of the determination in accordance with its law.   
Article 6.9  
Penalties  
 Each Party shall adopt or maintain measur es that provide for the imposition of civil, 
administrative, and, where appropriate, criminal sa nctions for violations of its customs laws and 
regulations, including its laws a nd regulations governing tariff classification, customs valuation, 
country of origin, and entitlement to preferential tariff treatment.    
Article 6.10 
Advance Rulings 
 
1. Each Party, through its customs authority, sha ll issue advance rulings prior to the importation 
of a good into its territory at the written request of  an importer in its territory, or an exporter or 
producer in the territory of the other Party, on th e basis of the facts and circumstances provided by the 
requester, concerning:    
(a) tariff classification;  
(b) the application of customs valuation crite ria, including the criteria in the Customs 
Valuation Agreement;  
(c) duty drawback;  
(d) whether a good qualifies as an originating good); and  
(e) whether a good qualifies for duty-free treatme nt in accordance with Article 2.6 
(Goods Re-entered After Re pair or Alteration).  
2. Each Party shall provide that its customs aut hority shall issue an advance ruling within 150 
days of a request, provided that the requester  has submitted all necessary information.    
3. Each Party shall provide that an advance ruling sh all be in force from its date of issuance, or 
such other date specified by th e ruling, for at least three year s, provided that the facts and 
circumstances on which the ruling is based remain unchanged.  
4. The issuing Party may modify or revoke an advance ruling when facts or circumstances 
warrant, such as where the information on which the ruling is based is false or inaccurate.  
5. Where an importer claims th at the treatment ac corded to an imported good should be 
governed by an advance ruling, the customs authority may evaluate whether the facts and circumstances of the importation are consistent with the facts and circumstances on which the advance ruling was based.  
6. Each Party shall make its advance rulings pu blicly available, subject to confidentiality 
requirements in its law.    
7.  If a requester provides false information or omits relevant circumstances or facts in its 
request for an advance ruling, or does not act in accordance with the ruling’s terms and conditions, the 
importing Party may apply appropriate measures, including civil, criminal, and administrative 
penalties, or other sanctions.   WT/REG208/1 
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8. For purposes of this Article, advance ruling  means a written response by a Party to a request 
made in accordance with this Article, setting forth the official position of the Party on the 
interpretation of its relevant laws  and regulations pertaining to a ma tter referenced in paragraph 1(a) 
through (e), as applied to a specific,  prospective customs transaction.  
9. This Article shall apply to Morocco beginning tw o years after the date of entry into force of 
this Agreement.  
Article 6.11  
Technical Cooperation And Implementation 
 
1. Within 120 days after the date of entry into fo rce of this Agreement, the Parties shall consult 
and establish a work program on procedures that Morocco may adopt to implement Article 6.10 and 
shall consult on technical assistance that the Unite d States may provide to assist Morocco in that 
endeavor.  
2. Not later than 18 months after the date of entry into force of this Agreement, the Parties shall 
consult on Morocco’s progress in implementing Artic le 6.10 and on whether to undertake further 
cooperative activities.  
 
CHAPTER SEVEN:  TECHNICAL BARRIERS TO TRADE 
 
Article 7.1  
Scope And Coverage  
1. This Chapter applies to all standards, t echnical regulations, and conformity assessment 
procedures of the central level of government that ma y, directly or indirectly, affect trade in goods 
between the Parties.  
2. Notwithstanding paragraph 1, this Chapter does not apply to:   
(a) technical specifications prepared by governmental bodies for production or 
consumption requirements of such bodies; or   
(b) sanitary and phytosanitary measures as defi ned in Annex A of the SPS Agreement.  
 
Article 7.2 
Affirmation Of The WTO Agreement On Technical Barriers To Trade  
 
 Further to Article 1.2 (Relation to Other Agreem ents), the Parties affirm their existing rights 
and obligations with respect to each other under the TBT Agreement.    
 
Article 7.3 
International Standards  
 In determining whether an international standard, guide, or recommendation within the 
meaning of Articles 2 and 5 and Annex 3 of the TBT Agreement exists, each Party shall apply the 
principles set out in Decisions and Recommendations adopted by the Committee since 1 January  WT/REG208/1 
 Page 73 
 
 
1995 , G/TBT/1/Rev.8, 23 May 2002, Section IX ( Decision of the Committee on Principles for the 
Development of International Standards, Guides and Recommendations with relation to Articles 2, 5 
and Annex 3 of the Agreement) , issued by the WTO Committee on Technical Barriers to Trade.  
 
Article 7.4  
Trade Facilitation  
 The Parties shall intensify their joint work in  the field of standards, technical regulations, 
and conformity assessment procedures with a view to  facilitating access to each other’s markets.  In 
particular, the Parties shall seek to identify trade facilitating bilateral initia tives regarding standards, 
technical regulations, and conformity assessment procedures that are appropriate for particular issues or sectors.  Such initia tives may include cooperation on regulatory issues, such as alignment 
with international standards and use of accred itation to qualify conformity assessment bodies.  
 
Article 7.5 
Conformity Assessment Procedures 
 
1. The Parties recognize that a broad range of mech anisms exists to facilitate the acceptance in a 
Party’s territory of the results of conformity assessment procedures conducted in the other Party’s 
territory.  For example:  
(a) the importing Party may recognize the results  of conformity assessment procedures 
conducted in the territory of the other Party;  
(b) conformity assessment bodies located in each Party’s territory may enter into 
voluntary arrangements to accept the results of the other’s assessment procedures;  
(c) a Party may adopt accreditation procedures for qualifying conformity assessment 
bodies located in the territory of the other Party;   
(d) a Party may designate conformity assessment  bodies located in the territory of the 
other Party; and  
(e) the importing Party may rely on a supplier’s declaration of conformity.  
The Parties shall intensify their exchange of information on these and similar mechanisms.   
 2. Where a Party does not accept the results of a conformity assessment procedure conducted in 
the territory of the other Party, it shall, on request  of the other Party, explain the reasons for its 
decision.  
3. Each Party shall accredit, approve, license, or otherwise recognize conformity assessment 
bodies in the territory of the other Party on terms no less favorable than those it accords to conformity 
assessment bodies in its territory.  Where a Pa rty accredits, approves, licenses, or otherwise 
recognizes a body assessing conformity with a specific t echnical regulation or standard in its territory 
and refuses to accredit, approve, license, or otherwise recognize a body assessing conformity with that technical regulation or standard in the territory of  the other Party, it shall, on request of the other 
Party, explain the reasons for its decision.  
4. Where a Party declines a request from the other Pa rty to engage in nego tiations or concludes 
an agreement on facilitating recogn ition in its territory of the results of conformity assessment WT/REG208/1 
Page 74  
 
procedures conducted by bodies in the other Party’s te rritory, it shall, on request of the other Party, 
explain the reasons for its decision.  
 
Article 7.6 
 
Transparency 
 
 
1. Each Party shall allow its own persons and pers ons of the other Party to participate in the 
development of standards, technical regu lations, and conformity assessment procedures.1  Each Party 
shall permit persons of the other Pa rty to participate in the developm ent of such measures on terms no 
less favorable than those accorded to its own persons.  
2. Each Party shall recommend that non-governme ntal standardizing bodies in its territory 
observe paragraph 1.  
3. In order to enhance the meaningful opportuni ty for persons to provide comments on proposed 
technical regulations and conformity assessment procedures, a Party publishing a notice in accordance 
with Article 2.9 or 5.6 of the TBT Agreement shall:  
(a) include in the notice a statement describing the objective of the proposed technical 
regulation or conformity assessment procedur e and the rationale for the approach the 
Party is proposing;  
(b) transmit the proposal electronically to the other Party through the inquiry point the 
Party has established in accordance with Ar ticle 10 of the TBT Agreement at the 
same time as it notifies WTO Members of the proposal in acco rdance with the TBT 
Agreement; and  
(c) publish, preferably by electronic means, or otherwise make available to the public its 
responses to significant comments it receives from the public or the other Party on the proposed technical regulation or conformity assessment procedure no later than the 
date it publishes the final technical regula tion or conformity assessment procedure.  
Each Party should allow at least 60 days after it transmits a proposal under subparagraph 3(b) for the 
public and the other Party to provide comments in writing on the proposal.   4. Where a Party makes a notification under Article  2.10 or 5.7 of the TBT Agreement, it shall 
at the same time transmit the notification electronically to the other Party through the inquiry point 
referenced in subparagraph 3(b).  
5. On request, each Party shall provide the other Party information regarding the objective of, 
and rationale for, a standard, technical regulation,  or conformity assessment procedure that the Party 
has adopted or is proposing to adopt.  
6. Each Party shall implement this Article as soon as is practicable and in no event later than 
five years after the date of entry into force of this Agreement.     
 
  
                                                     
 
1 A Party may satisfy this obligation through public consultations.    WT/REG208/1 
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Article 7.7  
Coordinators  
1. The Chapter Seven Coordinators designated in Annex 7-A shall work jointly to facilitate 
implementation of this Chapter and cooperation be tween the Parties on matters pertaining to this 
Chapter. The Coordinators shall:  
(a) monitor the implementation and administration of this Chapter;  
(b) promptly address any issue that a Party rai ses related to the development, adoption, 
application, or enforcement of standard s, technical regulations, or conformity 
assessment procedures;  
(c) enhance cooperation in the development a nd improvement of standards, technical 
regulations, and conformity assessment procedures;  
(d) where appropriate, facilitate sectoral cooperation between governmental and non-
governmental conformity assessment bodies in the Parties’ territories;  
(e) facilitate consideration of any sector-sp ecific proposal a Party makes for further 
cooperation under this Chapter;   
(f) exchange information on developments  in non-governmental, regional, and 
multilateral fora related to standards, technical regulations, and conformity 
assessment procedures;   
(g) on request of a Party, consult on any matter arising under this Chapter;  
(h) review this Chapter in light of any developments under the TBT Agreement and 
develop recommendations for amendments to this Chapter in light of those 
developments; and  
(i) take any other steps the Parties consider w ill assist them in implementing this Chapter 
and the TBT Agreement and in facilitating trade between them.   
In carrying out its functions, each Party’s Chapter Se ven Coordinator shall coordinate with interested 
parties in its territory.   
2. The Chapter Seven Coordinators shall communi cate with each other by any method they 
agree is appropriate and shall meet as they agree is necessary.  
Article 7.8 
Information Exchange 
 
 Where a Party requests the other Party to provi de information pursuant to this Chapter, the 
requested Party shall provide it within reasonable period of time and, if possible, by electronic 
means.   
 
 WT/REG208/1 
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Article 7.9  
Definitions 
 
 For purposes of this Chapter, technical regulation, standa rd, conformity assessment 
procedures, non-governmental body , and central government body  have the meanings assigned to 
those terms in Annex 1 of the TBT Agreement.   
 
ANNEX 7-A  
 
Chapter seven coordinators 
 
 
 The Chapter Seven Coordinators shall be:   
(a) in the case of Morocco, the Ministry of  Industry, or its successor; and  
(b) in the case of the United States, the Office of the United States Trade Representative, 
or its successor.  
 
 
CHAPTER EIGHT:  SAFEGUARDS 
 
Article 8.1 
Application Of A Safeguard Measure 
 
 If, as a result of the reduction or elimination of a customs duty under this Agreement, an 
originating good of the other Party is being imported into the territory of a Party in such increased 
quantities, in absolute terms or relative to domest ic production, and under such conditions that the 
imports of such originating good from the other Party constitute a substantial cause of serious injury, 
or threat thereof, to a domestic industry producing a like or directly competitive good, the Party may:  
 
(a) suspend the further reduction of any rate of customs duty on the good provided for 
under this Agreement;  
(b) increase the rate of customs duty on the good to a level not to exceed the lesser of  
(i) the most-favored-nation (MFN) applied rate of duty on the good in effect at 
the time the action is taken, and  
(ii) the MFN applied rate of duty on the good in effect on the day immediately 
preceding the date of entry into force of this Agreement; or  
(c) in the case of a customs duty applied to a good on a seasonal basis, increase the rate 
of duty to a level not to exceed the lesser of  
(i) the MFN applied rate of duty on th e good in effect for the immediately 
preceding corresponding season, and   
(ii) the MFN applied rate of duty on the good in effect on the day immediately 
preceding the date of entry into force of this Agreement.   WT/REG208/1 
 Page 77 
 
 
Article 8.2 
Conditions And Limitations  
1. A Party shall notify the other Party in writing on initiation of an investigation described in 
paragraph 2 and shall consult with the other Party as far in advance of applying a safeguard measure 
as practicable, with a view to reviewing the inform ation arising from the investigation and exchanging 
views on the measure.  
2. A Party shall apply a safeguard measure only following an investigation by the Party’s 
competent authorities in accordance with Articles 3 and 4.2(c) of the Safeguards Agreement, and to 
this end, Articles 3 and 4.2(c) of the Safeguards Ag reement are incorporated into and made a part of 
this Agreement, mutatis mutandis .  
3. In the investigation described in paragraph 2, the Party shall comply with the requirements of 
Article 4.2(a) of the Safeguards Agreement, and to th is end, Article 4.2(a) is incorporated into and 
made a part of this Agreement, mutatis mutandis .  
4. Neither Party may apply a safeguard measure against a good:  
(a) except to the extent and for such time as may be necessary to prevent or remedy 
serious injury and to facilitate adjustment;  
(b) for a period exceeding three years, except in the case provided for under Article 8.3; 
or  
(c) beyond five years after the Party applying the measure must eliminate customs duties 
on that good pursuant to its Schedule to Annex IV (Tariff Elimination), except with the consent of the other Party.  
5. Neither Party may apply a safeguard measure more than once against the same good.  
6. Where the expected duration of the safeguard measure is over one year, the importing Party 
shall progressively liberalize it at regular intervals.  
7. On the termination of the safeguard measure, the rate of customs duty shall be the rate that, 
according to the Party’s Schedule to Annex IV (Tariff Elimination), would have been in effect but for 
the measure.  
Article 8.3 
Extension 
 
 If the competent authorities of a Party determine,  in conformity with the procedures set out in 
Article 8.2, that a safeguard measure continues to be necessary to prevent or remedy serious injury 
and to facilitate adjustment and that there is evid ence that the industry is adjusting, the Party may 
extend the application of the safeguard meas ure for up to an additional two years.  
 
Article 8.4  
Provisional Measures  
 In critical circumstances where delay would cause damage that would be difficult to repair, a 
Party may apply a safeguard measure on a provisio nal basis pursuant to a preliminary determination WT/REG208/1 
Page 78  
 
that there is clear evidence that imports of an originating good from the othe r Party have increased as 
the result of the reduction or elimination of a cust oms duty under this Agreement, and such imports 
constitute a substantial cause of serious injury, or threat thereof, to the domestic industry. The 
duration of any provisional measure shall not exce ed 200 days, during which time the Party shall 
comply with the requirements of Articles 8.2.2 and 8.2.3. The Party shall promptly refund any tariff 
increases if the investigation described in Artic le 8.2.2 does not result in a finding that the 
requirements of Article 8.1 are met.  The duration of  any provisional measure shall be counted as part 
of the period described in Article 8.2.4(b).  
 
Article 8.5  
Compensation 
 
 A Party applying a safeguard measure shall end eavor to provide to the other Party mutually 
agreed trade liberalizing compensation in the form  of concessions having s ubstantially equivalent 
trade effects or equivalent to the value of the add itional duties expected to result from the measure.  If 
the Parties are unable to agree on compensation with in 30 days from the date the Party announces a 
decision to apply the measure, the other Party may take tariff action having trade effects substantially equivalent to the safeguard measure. The Party shall apply the action only for the minimum period 
necessary to achieve the substantially equivalent e ffects and, in any event, only while the safeguard 
measure is being applied.  
 
Article 8.6 
 
Global Safeguard Actions 
 
 Each Party retains its rights and obliga tions under Article XIX of GATT 1994 and the 
Safeguards Agreement.  This Agreement does not c onfer any additional rights or obligations on the 
Parties with regard to actions taken under Article  XIX of GATT 1994 and the Safeguards Agreement.  
 
Article 8.7  
Definitions  
 For purposes of this Chapter:  
 
 competent authorities  means (a) for Morocco, the Ministry of Foreign Trade, and (b) for the 
United States, the United States International Trade Commission;    domestic industry  means, with respect to an imported good, the producers as a whole of the 
like or directly competitive good operating in the terr itory of a Party, or those whose collective output 
of the like or directly competitive good constitut es a major proportion of th e total domestic production 
of that good;  
  safeguard measure  means a measure described in Article 8.1;  
  serious injury  means a significant overall impairment in  the position of a domestic industry;  
 
 substantial cause  means a cause that is important and not less than any other cause; and  
  threat of serious injury means serious injury that, on the b asis of facts and not merely on 
allegation, conjecture, or remote possibility, is clearly imminent.  
  WT/REG208/1 
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CHAPTER NINE:  GOVERNMENT PROCUREMENT 
 
Article 9.1  
Scope And Coverage  
Application of Chapter 
 
1. This Chapter applies to any measure, including  any act or guideline of a Party, regarding 
covered procurement.  
2. For purposes of this Chapter, covered procurement  means a procurement of goods, services, 
or both:  
(a) by any contractual means, including purchase, rental, or lease, with or without an 
option to buy; build-operate-transfer c ontracts; and public works concession 
contracts;  
(b) where the value is estimated, in accordance w ith paragraph 4, to equal or exceed the 
relevant threshold specified in the Annexes;  
(c) that is conducted by a procuring entity; and  
(d) that is not excluded from cove rage by this Agreement.  
3. This Chapter does not apply to:  
(a) non-contractual agreements or any form of assi stance that a Party or a state enterprise 
provides, including grants, loans, equity infusions, fiscal incentives, subsidies, 
guarantees, cooperative agreements, and gove rnment provision of goods and services 
to persons or to state, regional, or local governments;  
(b) purchases funded entirely or partially by international grants, loans, or other 
international assistance, where the provi sion of such assistance is subject to 
conditions inconsistent w ith this Chapter; and  
(c) acquisition of fiscal agency or deposit ory services, liquidation and management 
services for regulated financial institutions, and sale and distribution services for government debt.  
Compliance  
 
4. Each Party shall ensure that its procuring en tities comply with this Chapter in conducting 
covered procurements.  
Valuation  
 
5. In estimating the value of a procurement fo r the purpose of ascertaining whether it is a 
covered procurement, a procuring entity:   
(a) may not prepare, design, or otherwise structure or divide a procurement, in any stage 
of the procurement, in order to avoid th e application of this Chapter; and   WT/REG208/1 
Page 80  
 
(b) shall take into account all forms of re muneration, including any premiums, fees, 
commissions, interest, other revenue stream s that may be provided for under the 
contract, and, where the procurement provides for the possibility of option clauses, the total maximum value of the procurem ent, inclusive of optional purchases.  
Article 9.2 
General Principles 
 
National Treatment and Non-Discrimination  
 
1. With respect to any measure covered by this Chapter, each Party, including its procuring 
entities, shall accord to the goods and services of the other Party, and to the suppliers of the other 
Party of such goods and services, treatment no less favorable than the most favorable treatment the 
Party accords to its own goods, services, and suppliers.  
2. With respect to any measure covered by this Chapter, a Party may not:  
(a) treat a locally established supplier less fa vorably than another locally established 
supplier on the basis of degree of fore ign affiliation or ownership; nor  
(b) discriminate against a locally established supplier on the basis that the goods or 
services offered by that supplier for a particular procurement are goods or services of the other Party.  
Rules of Origin  
 
3. For purposes of procurement covered by this Chap ter, neither Party may apply rules of origin 
to goods imported from the other Party that are different from the rules of origin the Party applies in 
the normal course of trade to imports of the same goods from the other Party.  
Offsets  
 
4. A procuring entity may not seek, take account of, or impose offsets in any stage of a covered 
procurement.  
Measures Not Specific to Procurement  
 
5. Paragraphs 1 and 2 do not apply to measures respecting customs duties or other charges of 
any kind imposed on or in connection with importation,  the method of levying such duties or charges, 
other import regulations, including restrictions and formalities, or measures affecting trade in services 
other than measures governing covered procurement.  
Article 9.3 
Publication Of Procurement Measures 
 
 Each Party shall promptly publish laws, regula tions, judicial decisions, administrative rulings, 
procedures, and other measures of general appli cation specifically governing procurement, and any 
changes to such measures, in officially designa ted electronic or paper media that are widely 
disseminated and readily accessible to the public.  
 
  WT/REG208/1 
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Article 9.4 
Publication Of Notice Of Intended Procur ement And Notice Of Planned Procurement  
Notice of Intended Procurement  
 
1. For each covered procurement, a procuring en tity shall publish in advance a notice inviting 
interested suppliers to submit tenders (“notice of intended procurement”) in an electronic or paper 
medium that is widely available and remains readily accessible to the public for the entire period 
established for tendering for that procurement.  
2. Each notice of intended procurement shall incl ude a description of the intended procurement, 
any conditions for participation, the name of the procuring entity, the address where all documents 
relating to the procurement may be obtained, the d eadline for submission of tenders, and the time for 
delivery of the goods or services being procured.  
Notice of Planned Procurement  
 
3. Each Party shall encourage its procuring entiti es to publish as early as possible in each fiscal 
year a notice regarding each entity’s planned proc urements.  The notice shou ld include the subject 
matter of any planned procurement a nd the estimated date of the publication of the notice of intended 
procurement.    
Article 9.5  
Time Limits For Tendering Process  
1. A procuring entity shall prescribe time limits fo r tendering that allow suppliers sufficient time 
to prepare and submit responsive tenders, taking in to account the nature and complexity of the 
procurement.  Except as provided in paragraph 3, a procuring entity shall prov ide no less than 40 days 
from the date of publication of a notice of intende d procurement to the deadline for submission of 
tenders.   
2. Notwithstanding paragraph 1, a procuring entity may establish a period of less than 40 days, 
provided that the period is sufficiently long to en able suppliers to prepare and submit responsive 
tenders and is in no case less than ten days:  
(a) where the entity has published a separate  notice, including a notice of planned 
procurement under Article 9.4.3, at least 40 days and not more than 12 months in 
advance, and such notice contains a descr iption of the procurement, the time limits 
for the submission of tenders or, where appropr iate, applications for participation in a 
procurement, and the address from which doc uments relating to the procurement may 
be obtained;  
(b) where the entity procures commercial goods or services, except that the procuring 
entity may not rely on this provision if it requires suppliers to satisfy conditions for 
participation; or  
(c) in duly substantiated cases of extreme urge ncy brought about by events unforeseeable 
by the procuring entity, such that a 40-day deadline would result in serious adverse 
consequences to the entity or the relevant Party.  
 WT/REG208/1 
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Article 9.6 
Information On Intended Procurement 
 
Tender Documentation  
 
1. A procuring entity shall provide to an inter ested supplier tender documentation that includes 
all information necessary to permit suppliers to prep are and submit responsive tenders. Unless already 
provided in the notice of intended procurement,  such documentation shall include a complete 
description of:  
(a) the procurement, including the nature, scope, and, where quantifiable, the quantity of 
the goods or services to be procured and any requirements to be fulfilled, including 
any technical specifications, conformity certifi cation, plans, drawings, or instructional 
materials;  
(b) any conditions for participation, information,  or documents that suppliers are required 
to submit;   
(c) all criteria, including all cost factors, to be considered in awarding the contract, and 
the relative importance of each criterion;  
(d) the date, time, and place for th e opening of tenders; and  
(e) any other terms or conditions, including terms of payment, relating to the 
procurement.  
2. A procuring entity shall promptly:  
(a) provide, on request, the tender documentati on to any supplier participating in the 
procurement; and   
(b) reply to any reasonable request for relevant information by a supplier participating in 
the procurement, provided that such information does not give that supplier an advantage over its competitors in the procurement.  
Modifications  
 
3. If, during the course of a procurement, a proc uring entity modifies the criteria or technical 
requirements set out in the notice of intended procurement or tender doc umentation provided to 
participating suppliers, or amends  or reissues a notice or tender do cumentation, the procuring entity 
shall transmit in writing any such modificatio n or amended or reissued notice or tender 
documentation:  
(a) to all suppliers that are participating at th e time the information is amended, if known, 
and, in all other cases, in the same manner as the original information;   
(b) in sufficient time to allow such suppliers to modify a nd submit amended tenders, as 
appropriate; and  
(c) in cases where a notice is reissued, in accord ance with the time limits set out in 
Article 9.5.  
  WT/REG208/1 
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Article 9.7 
Technical Specifications  
1. A procuring entity may not prepare, adopt, or apply any technical specification or prescribe 
any conformity assessment procedure with the pur pose or the effect of creating unnecessary obstacles 
to trade between the Parties.  
2. In prescribing any technical specification for the good or service being procured, a procuring 
entity shall:  
(a) specify the technical specification, wherever appropriate, in terms of performance or 
functional requirements, rather than d esign or descriptive characteristics; and  
(b) base the technical specification on internati onal standards, where such exist and are 
applicable to the procuring entity, except wh ere the use of an international standard 
would fail to meet the procuring entity’ s program requirements or would impose 
more burdens than the use of a government-unique standard.  
3. A procuring entity may not prescribe technical specifications that require or refer to a 
particular trademark or trade name, patent, copyri ght, design or type, specific origin, producer, or 
supplier, unless there is no other sufficiently precise or intelligible way of describing the procurement 
requirements and provided that, in such cases, word s such as “or equivalent” are included in the 
tender documentation.   
4. A procuring entity may not seek or accept, in a manner that would have the effect of 
precluding competition, advice that may be used in preparing or adopting any technical specification 
for a specific procurement from a person that may have  a commercial interest in that procurement.  
5. For greater certainty, this Article is not intended to preclude a procuring entity from 
preparing, adopting, or applying technical speci fications to promote the conservation of natural 
resources or to protect the environment.  
Article 9.8 
Conditions For Participation  
1. Where a procuring entity requires suppliers to sa tisfy conditions for participation, the entity 
shall, subject to the other provisions of this Chapter:  
(a) limit any conditions for participation in a covered procurement to those that are 
essential to ensure that the supplier has the legal, technical, and financial abilities to 
fulfil the requirements and technical specifications of the procurement;  
(b) evaluate a supplier’s financial and technical abilities on the basis of its global 
business activities, including both its activities in the territory of the Party of the supplier, as well as its activities, if any, in the territory of the Party of the procuring 
entity, and may not impose the condition that, in order for a supplier to participate in 
a procurement, the supplier has previously been awarded one or more contracts by a 
procuring entity of that Party or that the supplier has prior work experience in the 
territory of that Party;  WT/REG208/1 
Page 84  
 
(c) base its determination of whether a s upplier has satisfied the conditions for 
participation solely on the conditions that it has specified in advance in notices or 
tender documentation; and  
(d) allow all suppliers that satisfy the conditions  for participation to participate in the 
procurement.  
2. Nothing in this Article shall preclude a pr ocuring entity from excluding a supplier from a 
procurement on grounds such as bankruptcy or false declarations.  
3. Where a procuring entity requires suppliers to sa tisfy conditions for participation, the entity 
shall publish a notice inviting suppliers to apply fo r participation. The entity shall publish the notice 
sufficiently in advance to provide interested supp liers adequate time to pr epare and submit responsive 
applications and for the entity to evaluate and ma ke its determination based on such applications.  
4. A procuring entity may establish a publicly availa ble multi-use list of suppliers that satisfy its 
conditions for participation.  Wher e a procuring entity requires suppliers to qualify for such a list in 
order to participate in a covered procurement, th e entity shall promptly process any application for 
inclusion on the list.  The entity shall allow a supplie r whose application for inclusion on such a list is 
pending to participate in a procurement, provided th at the entity determines that the supplier satisfies 
the conditions for participation and that there is suffi cient time for the procuring entity to complete its 
evaluation of the supplier within the ti me period established for tendering.   
5. A procuring entity shall promptly communicat e to any supplier that has applied for 
participation its decision on whether that supplier ha s satisfied the conditions fo r participation.  Where 
a procuring entity rejects an application for partic ipation or ceases to recognize a supplier as having 
satisfied the conditions for participation, the entity shall promptly inform the supplier and, on request 
of the supplier, promptly provide a written e xplanation of the reasons for its decision.  
Article 9.9 
Limited Tendering 
 
1. Subject to paragraph 2, a procuring entity sh all award contracts by means of open tendering 
procedures, in the course of which any in terested supplier may submit a tender.  
2. Provided that the tendering procedure is not u sed to avoid competition, to protect domestic 
suppliers, or in a manner that discriminates against s uppliers of the other Party, a procuring entity may 
contact a supplier of its choice and may choose not to apply Articles 9.4 through 9.8 and Article 9.10 
in relation to a covered procurement in  any of the following circumstances:  
(a)  where, in response to a prior notice of intended procurement or invitation to tender,  
 
(i) no tenders were submitted;  
(ii) no tenders were submitted that conform to the essential requirements in the 
tender documentation; or  
(iii) no suppliers satisfied the conditions for participation;   
and the entity does not substantially modify the essential requirements of the 
procurement or the conditions for participation;     WT/REG208/1 
 Page 85 
 
 
(b) where the goods or services can be supplied only by a particular supplier and no 
reasonable alternative or substitute goods or services exist because:  
(i) the requirement is for works of art;  
(ii) the procuring entity is obligated to protect patents, copyrights, or other 
exclusive rights, or proprietary information; or  
(iii) there is an absence of competition for technical reasons;   
(c) for additional deliveries of goods or services by  the original supplier that are intended 
either as replacement parts, extensions, or  continuing services for existing equipment, 
software, services, or installations, where a change of supplier would compel the procuring entity to procure goods or services that do not meet requirements of 
interchangeability with existi ng equipment, software, services, or installations;   
(d) for goods purchased on a commodity market;  
(e) where a procuring entity procures a prototype or a first good or service that is 
developed at its request in the course of, and for, a particular contract for research, experiment, study, or original development.  When such contracts have been fulfilled, 
subsequent procurements of goods or services shall be subject to Articles 9.4 through 
9.8 and 9.10; or  
(f) insofar as is strictly necessary where, for reasons of extreme ur gency brought about 
by events unforeseeable by the procuring entity, the goods or services could not be obtained in time by means of an open tendering procedure and the use of an open tendering procedure would result in serious in jury to the entity, the entity’s program 
responsibilities, or the Party.  
3. For each contract awarded under paragraph 2, a procuring entity shall prepare a written report 
that includes the name of the procuring entity, the value and kind of goods or services procured, and a 
statement indicating the circumstances and conditions described in paragraph 2 that justify the use of 
a procedure other than open tendering procedures.  Th e procuring entity shall provide the report to the 
other Party on request.    
 
Article 9.10 
 
Awarding Of Contracts 
 
1. A procuring entity shall require that, in order to  be considered for award, a tender must be 
submitted in writing and must, at the time it is submitted:  
(a) conform to the essential requirements of  the tender documentation and evaluation 
criteria specified in the notices and tender documentation; and   
(b) be submitted by a supplier that has satisfi ed any conditions for participation.  
2. Unless a procuring entity determines that it is not in the public interest to award a contract, 
the entity shall award the contract to a supplier that  the entity has determined to be fully capable of 
undertaking the contract and whose tender is determin ed to be the most advantageous in terms of the 
requirements and evaluation criteria set out in the notices and tender documentation.  WT/REG208/1 
Page 86  
 
3. No procuring entity may cancel a procurement, or terminate or modify a contract it has 
awarded, in order to avoid the obligations of this Chapter.  
Information Provided to Suppliers  
 
4. Subject to Article 9.14, a procuring entity sha ll promptly inform suppliers that have submitted 
tenders of its contract award decision.  A procuri ng entity, on request of a supplier whose tender was 
not selected for award, shall provide the supplie r the reasons for not selecting its tender and the 
relative advantages of the tender selected. 
Publication of Award Information  
 
5. Promptly after awarding a contract in a covere d procurement, a procuring entity shall publish 
a notice that includes at least the following information about the award:  
(a) the name of the entity;  
(b) a description of the goods or services procured;  
(c) the name of the supplier awarded the contract;  
(d) the value of the contract award; and  
(e) where the entity did not use an open tendering procedure, an indication of the 
circumstances justifying the procedure used.  
Maintenance of Records  
 
6. A procuring entity shall maintain records and reports relating to tendering procedures and 
contract awards in covered procur ements, including the reports required by Article 9.9.3, according to 
the practices of each Party, for at least three years after the date a contract is awarded.  
Article 9.11  
Ensuring Integrity In Procurement Practices 
 
 Further to Article 18.5 (Anti-Corruption), each Party shall adopt or maintain procedures to 
declare ineligible for participation in the Party’s pr ocurements, either indefinitely or for a specified 
time, suppliers that the Party has determined to ha ve engaged in fraudulent or illegal action in relation 
to procurement. On request of the other Party, a Pa rty shall identify the suppliers determined to be 
ineligible under these procedures, and, where a ppropriate, exchange info rmation regarding those 
suppliers or the fraudulent or illegal action.  
 
Article 9.12  
Domestic Review Of Supplier Challenges  
1. Each Party shall permit a supplier to challe nge a Party’s compliance with its measures 
implementing this Chapter without prejudice to that  supplier’s participation in ongoing or future 
procurement activities.  Each Party shall ensure that  its review procedures are made publicly available 
in writing, and are timely, transparent, effective, and consistent with the pr inciple of due process.   WT/REG208/1 
 Page 87 
 
 
2. Each Party shall establish or designate at least one impartial administrative or judicial 
authority that is independent of the procuring entity that is the subject of the challenge to receive and 
review challenges that suppliers submit in connec tion with any covered procurement.  Where a body 
other than such an authority initially reviews a cha llenge, the Party shall ensure that the supplier may 
appeal the initial decision to an impartial administrative or judicial authority that is independent of the 
procuring entity that is the subject of the challenge.  
3. Each Party shall authorize the authority that it establishes or designates under paragraph 2 to 
take prompt interim measures, pending the resolution of  a challenge, to ensure that the Party complies 
with its measures implementing this Chapter and to preserve the supplier’s opportunity to participate 
in the procurement, including by suspending the cont ract award or the performance of a contract that 
has already been awarded.  However, in deciding whether to apply an interim measure, each Party 
may take into account any overriding  adverse consequences to the public interest if an interim 
measure were taken.  If a Party decides not to a pply an interim measure, it shall provide a written 
explanation of the grounds for its decision.  
4. Each Party shall ensure that the authority th at it establishes or designates under paragraph 2 
conducts its review in accordance with the following:  
(a) a supplier shall be allowed sufficient time to prepare and submit a written challenge, 
which in no case shall be less than ten da ys from the time when the basis of the 
challenge became known or reasonably should have become known to the supplier;  
(b) the procuring entity shall be required to r espond in writing to the supplier’s challenge 
and provide all relevant documents to the authority;  
(c) the supplier that initiates the challenge sha ll be provided an opportunity to reply to 
the procuring entity’s response before the authority makes a decision on the 
challenge; and  
(d) the authority shall promptly provide decisi ons relating to a supplier’s challenge in 
writing, with an explanation of the grounds for each decision.  
Article 9.13  
Modifications And Rectif ications To Coverage  
1. Either Party may modify its coverage  under this Chapter provided that it:  
(a) notifies the other Party in writing and that Party does not object in writing within 30 
days after the notification; and   
(b) within 30 days after notifying the other Party, offers acceptable compensatory 
adjustments to the other Party to maintain a level of coverage comparable to that 
existing before the modification, except as provided in paragraph 3.  
2. Either Party may make rectifications of a pur ely formal nature to its coverage under this 
Chapter, or minor amendments to its Schedule to Annex 9-A-1, 9-A-2, or 9-A-3, provided that it 
notifies the other Party in writing and the other Party does not object in writing within 30 days after 
the notification.  A Party that makes such a re ctification or minor amendment need not offer 
compensatory adjustments to the other Party.  
3. A Party need not offer compensatory adjustment s where the Parties agree that the proposed 
modification covers a procuring entity over which th e Party has effectively eliminated its control or WT/REG208/1 
Page 88  
 
influence.  Where the Parties do not agree that gove rnment control or influe nce has been effectively 
eliminated, the objecting Party may request further information or consulta tions with a view to 
clarifying the nature of any government control or  influence and reaching agreement on the procuring 
entity’s continued coverage under this Chapter.  
4. The Joint Committee shall modify the relevant Annex to reflect any agreed modification, 
technical rectification, or minor amendment.  
Article 9.14 
Non-Disclosure Of Information 
 
1. A Party, including its procuring entities and revi ew authority referred to in Article 9.12, shall 
not disclose confidential information that a pers on provides in the course of a procurement or 
challenge without the authorization of the person th at provided the information.  A procuring entity 
shall treat tenders in confidence.   
2. Nothing in this Chapter shall be construed to require a Party, including its procuring entities, 
to provide confidential information the disclosure of which would:  
(a) impede law enforcement;  
(b) prejudice fair competition between suppliers;  
(c) prejudice the legitimate commercial interest s of particular suppliers or persons, 
including the protection of intellectual property; or  
(d) otherwise be contrary to the public interest.  
Article 9.15 
 
Exceptions  
 
1. Provided that such measures are not applied in  a manner that would constitute a means of 
arbitrary or unjustifiable discrimination between th e Parties where the same conditions prevail or a 
disguised restriction on trade between the Parties, nothing in this Chapter shall be construed to 
prevent a Party from adopting or maintaining measures:  
(a) necessary to protect public morals, order, or safety;  
(b) necessary to protect human, animal, or plant life or health;  
(c) necessary to protect intellectual property; or  
(d) relating to goods or services of handicapped persons, of philanthropic institutions, or 
of prison labor.  
2. The Parties understand that pa ragraph 1(b) includes environmental measures necessary to 
protect human, animal, or plant life or health.  
 
  WT/REG208/1 
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Article 9.16  
Definitions  
 For purposes of this Chapter:  
 
 build-operate-transfer contract an d public works concession contract  mean any 
contractual arrangement, the primary purpose of which is to provide for the construction or 
rehabilitation of physical infrastructure, plant, build ings, facilities, or other government-owned works, 
and under which, as consideration for a supplier’s ex ecution of a contractual arrangement, a procuring 
entity grants to the supplier, for a specified peri od, temporary ownership or a right to control and 
operate, and demand payment for the use of, such  works for the duration of the contract;  
 
 commercial goods and services  means goods and services of a type that are sold or offered 
for sale to, and customarily purchased by, non-go vernmental buyers for non-governmental purposes; 
it includes goods and services with modifications cu stomary in the commercial marketplace, as well 
as minor modifications not customarily available in the commercial marketplace;  
 
 conditions for participation  means any financial or other guaranty that a supplier must 
provide, and any registration, qualifi cation, or other requirements or conditions that a supplier must 
fulfill, to participate in a procurement;    
 
 in writing  or written  means any worded or numbered expression that can be read, 
reproduced, and later communicated, and includes elect ronically transmitted and stored information;  
  offsets means any conditions or undertakings that require use of domestic content, domestic 
suppliers, the licensing of technology, technology transfer, investment, counter-trade, or similar 
actions to encourage local development or to im prove a Party’s balance-of-payments accounts;    
 
 procuring entity  means an entity listed in Annex 9-A-1, 9-A-2, or 9-A-3;  
 
 services includes construction services, unless otherwise specified;  
 
 supplier means a person that provides or could provide goods or services to a procuring 
entity; and  
 
 technical specification  means a tendering requirement that:  
 
(a) sets out the characteristics of:  
(i) goods to be procured, including quality,  performance, safety, and dimensions, 
or the processes and methods for their production; or   
(ii) services to be procured, or the processes or methods for their provision, 
including any applicable administrative provisions; or   
(b) addresses terminology, symbols, packaging,  marking, or labelling requirements, as 
they apply to a good or service.  
 
   WT/REG208/1 
Page 90  
 
CHAPTER TEN:  INVESTMENT 
 
Section A: Investment 
 
Article 10.1 
Scope And Coverage  
 This Chapter applies to measures adopted or maintained by a Party relating to:   
 
(a) investors of the other Party;  
(b) covered investments; and  
(c) with respect to Articles 10.8 and 10.10, all i nvestments in the territory of the Party.  
Article 10.2  
Relation To Other Chapters  
1. In the event of any inconsistency between this  Chapter and another Chapter, the other Chapter 
shall prevail to the extent of the inconsistency.   2. A requirement by a Party that a service supplier of the other Party post a bond or other form 
of financial security as a condition of the cross-border supply of a service does not of itself make this 
Chapter applicable to measures adopted or mainta ined by the Party relating to such cross-border 
supply of the service. This Chapter applies to measur es adopted or maintained by the Party relating to 
the posted bond or financial security, to the extent that su ch bond or financial security is a covered 
investment.  
 
3. This Chapter does not apply to measures adopted  or maintained by a Party to the extent that 
they are covered by Chapter Twelve (Financial Services).  
 
Article 10.3  
National Treatment 
 
1. Each Party shall accord to investors of the ot her Party treatment no less favorable than that it 
accords, in like circumstances, to its own investor s with respect to the establishment, acquisition, 
expansion, management, conduct, operation, and sale or other di sposition of investments in its 
territory.    
2. Each Party shall accord to covered investment s treatment no less favorable than that it 
accords, in like circumstances, to investments in its territory of its own investors with respect to the 
establishment, acquisition, expansion, management , conduct, operation, and sale or other disposition 
of investments.   
3. The treatment to be accorded by a Party under paragraphs 1 and 2 means, with respect to a 
regional level of government, treatment no less favor able than the most favorable treatment accorded, 
in like circumstances, by that regional level of government to investors, and to investments of 
investors, of the Party of which it forms a part.    
  WT/REG208/1 
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Article 10.4 
Most-Favored-Nation Treatment  
1. Each Party shall accord to investors of the ot her Party treatment no less favorable than that it 
accords, in like circumstances, to investors of any non-Party with respect to the establishment, 
acquisition, expansion, management , conduct, operation, and sale or other disposition of investments 
in its territory.    
2. Each Party shall accord to covered investment s treatment no less favorable than that it 
accords, in like circumstances, to investments in its territory of investor s of any non-Party with 
respect to the establishment, acquisition, expans ion, management, conduct, operation, and sale or 
other disposition of investments.  
Article 10.5 
Minimum Standard Of Treatment1 
 
1. Each Party shall accord to covered investme nts treatment in accordance with customary 
international law, including fair and equita ble treatment and full protection and security.  
2. For greater certainty, paragraph 1 prescribes  the customary international law minimum 
standard of treatment of aliens as the minimum st andard of treatment to be afforded to covered 
investments.  The concepts of “fair and equitable treatment” and “full protection and security” do not 
require treatment in addition to or beyond that whic h is required by that standard, and do not create 
additional substantive rights. The oblig ation in paragraph 1 to provide:  
(a) “fair and equitable treatment” includes the ob ligation not to deny justice in criminal, 
civil, or administrative adjudicatory proceed ings in accordance with the principle of 
due process embodied in the principal legal systems of the world; and  
(b) “full protection and security” requires each Party to provide the level of police 
protection required under customary international law.  
3. A determination that there has been a breach of another provision of this Agreement, or of a 
separate international agreement, does not establish that there has been a breach of this Article.  
4. Notwithstanding Article 10.12.5(b), each Party sh all accord to investors of the other Party, 
and to covered investments, non-discriminatory tr eatment with respect to measures it adopts or 
maintains relating to losses suffered by investments in  its territory owing to armed conflict or civil 
strife.   
5. Notwithstanding paragraph 4, if an investor of  a Party, in the situations referred to in 
paragraph 4, suffers a loss in the territory of the other Party resulting from:   
(a) requisitioning of its covered investment or part thereof by the latter’s forces or 
authorities; or  
(b) destruction of its covered investment or part thereof by the latter’s forces or 
authorities, which was not required by the necessity of the situation,  
                                                      
1 Article 10.5 shall be interpreted in accordance with Annex 10-A. WT/REG208/1 
Page 92  
 
the latter Party shall provide the investor restitution,  compensation, or both, as appropriate, for such 
loss. Any compensation shall be prompt, adequate , and effective in accordance with Article 10.6.2 
through 10.6.4, mutatis mutandis .  
 
6. Paragraph 4 does not apply to existing measures re lating to subsidies or grants that would be 
inconsistent with Article 10. 3 but for Article 10.12.5(b).  
Article 10.6 
Expropriation And Compensation
2 
1. Neither Party may expropriate or nationalize a c overed investment either directly or indirectly 
through measures equivalent to expropriation or nationalization (“expropriation”), except:  
(a) for a public purpose;  
(b) in a non-discriminatory manner;  
(c) on payment of prompt, adequate, a nd effective compensation; and   
(d) in accordance with due process of law and Article 10.5.1 through 10.5.3.  
2. The compensation referred to  in paragraph 1(c) shall:  
(a) be paid without delay;  
(b) be equivalent to the fair market value of  the expropriated investment immediately 
before the expropriation took place (“ the date of expropriation”);  
(c) not reflect any change in value occurr ing because the intended expropriation had 
become known earlier; and   
(d) be fully realizable and freely transferable.  
3. If the fair market value is denominated in a freely usable currency, the compensation referred 
to in paragraph 1(c) shall be no less than the fair  market value on the date of expropriation, plus 
interest at a commercially reasonable rate for th at currency, accrued from the date of expropriation 
until the date of payment.  
4. If the fair market value is denominated in a currency that is not freely usable, the 
compensation referred to in paragraph 1(c) – conve rted into the currency of payment at the market 
rate of exchange prevailing on the date  of payment – shall be no less than:  
(a) the fair market value on the date of expropriation, converted into a freely usable 
currency at the market rate of exchange3 prevailing on that date, plus  
(b) interest, at a commercially reasonable rate for that freely usable currency, accrued 
from the date of expropriation until the date of payment.  
                                                      
2 Article 10.6 shall be interpreted in accordance with Annexes 10-A and 10-B. 
3 For purposes of this paragraph and Article 10.7.2, Morocco’s foreign exchange system in effect on 
the date of signature of this Agreem ent yields an exchange rate comparable to a “market rate of exchange.”  WT/REG208/1 
 Page 93 
 
 
5. This Article does not apply to the issuance of compulsory licenses granted in relation to 
intellectual property rights in accordance with the TR IPS Agreement, or to the revocation, limitation, 
or creation of intellectual property rights, to the exte nt that such issuance, revocation, limitation, or 
creation is consistent with Chapter Fifteen (Intellectual Property Rights).4 
Article 10.7 
Transfers  
1. Each Party shall permit all transfers relating to  a covered investment to be made freely and 
without delay into and out of its territory. Such transfers include:  
(a) contributions to capital;  
(b) profits, dividends, capital gains, and proceeds from the sale of all or any part of the 
covered investment or from the partial or complete liquidation of the covered 
investment;  
(c) interest, royalty payments, management fees, and technical assistance and other fees;  
(d) payments made under a contract, including a loan agreement;  
(e) payments made pursuant to Article 10.5. 4 and 10.5.5 and Article 10.6; and  
(f) payments arising out of a dispute.  
2. Each Party shall permit transfers relating to a covered investment to be made in a freely 
usable currency at the market rate of exch ange prevailing at the time of transfer.  
3. Each Party shall permit returns in kind relati ng to a covered investment to be made as 
authorized or specified in a written agreement be tween the Party and a covered investment or an 
investor of the other Party.  
4. Notwithstanding paragraphs 1 through 3, a Party may prevent a transfer through the equitable, 
non-discriminatory, and good faith appl ication of its laws relating to:  
(a) bankruptcy, insolvency, or the protection of the rights of creditors;  
(b) issuing, trading, or dealing in securiti es, futures, options, or derivatives;  
(c) criminal or penal offenses;   
(d) financial reporting or record keeping of  transfers when necessary to assist law 
enforcement or financial regulatory authorities; or  
(e) ensuring compliance with orders or judgments in judicial or administrative 
proceedings.  
 
                                                      
4 For greater certainty, the refere nce to the TRIPS Agreement in para graph 5 includes any waiver in 
force between the Parties of any prov ision of that agreement granted by WTO Members in accordance with the 
WTO Agreement . WT/REG208/1 
Page 94  
 
Article 10.8  
Performance Requirements 
 
1. Neither Party may, in connection with th e establishment, acquisition, expansion, 
management, conduct, operation, or sale or other dispos ition of an investment of an investor of a Party 
or of a non-Party in its territory, impose or enfo rce any requirement or enforce any commitment or 
undertaking:5  
(a) to export a given level or percentage of goods or services;  
(b) to achieve a given level or per centage of domestic content;   
(c) to purchase, use, or accord a preference to  goods produced in its territory, or to 
purchase goods from persons in its territory;  
(d) to relate in any way the volume or value of  imports to the volume or value of exports 
or to the amount of foreign exchange infl ows associated with such investment;   
(e) to restrict sales of goods or services in its territory that such investment produces or 
supplies by relating such sales in any way to the volume or value of its exports or foreign exchange earnings;  
(f) to transfer a particular technology, a production process, or other proprietary 
knowledge to a person in its territory; or  
(g) to supply exclusively from the territory of  the Party the goods that such investment 
produces or the services that it supplies to a specific regional market or to the world 
market.  
2. Neither Party may condition the receipt or contin ued receipt of an advantage, in connection 
with the establishment, acquisition, expansion, ma nagement, conduct, operation, or sale or other 
disposition of an investment in its territory of an investor of a Party or of a non-Party, on compliance 
with any requirement: train or employ workers, cons truct or expand particular facilities, or carry out 
research and development, in its territory.   
(a) to achieve a given level or per centage of domestic content;   
(b) to purchase, use, or accord a preference to  goods produced in its territory, or to 
purchase goods from persons in its territory;   
(c) to relate in any way the volume or value of  imports to the volume or value of exports 
or to the amount of foreign exchange inflow s associated with such investment; or   
(d) to restrict sales of goods or services in its territory that such investment produces or 
supplies by relating such sales in any way to the volume or value of its exports or 
foreign exchange earnings.  
3.  (a)  Nothing in paragraph 2 shall be c onstrued to prevent a Party from conditioning the 
receipt or continued receipt of an advantage,  in connection with an investment in its 
territory of an investor of a Party or of  a non-Party, on compliance with a requirement 
                                                     
 
5 For greater certainty, a condition fo r the receipt or continued receipt of an advantage referred to in 
paragraph 2 does not constitute a “commitment or undertaking” for the purposes of paragraph 1.  WT/REG208/1 
 Page 95 
 
 
to locate production, supply a service, train or employ workers, construct or expand particular facilities, or carry out research and development, in its territory. 
  (b)  Paragraph 1(f) does not apply:   
(i) when a Party authorizes use of an in tellectual property right in accordance 
with Article 31 of the TRIPS Agreement, or to measures requiring the disclosure of proprietary information th at fall within the scope of, and are 
consistent with, Article 39 of the TRIPS Agreement;
6  or  
(ii) when the requirement is imposed or the commitment or undertaking is 
enforced by a court, administrative tribunal, or competition authority to 
remedy a practice determined after judicial or administrative process to be anticompetitive under the Party’s competition laws.
7 
 
 (c)  Provided that such measures are not app lied in an arbitrary or unjustifiable manner, 
and provided that such measures do not constitute a disguised restriction on 
international trade or investment, paragraphs 1(b), (c), and (f), and 2(a) and (b), shall 
not be construed to prevent a Party from adopting or maintaining measures, including environmental measures:  
 
(i) necessary to secure compliance with laws and regulations that are not 
inconsistent with this Agreement;   
(ii) necessary to protect human, animal, or plant life or health; or   
(iii) related to the conservation of living  or non-living exhaustible natural 
resources.  
 (d)  Paragraphs 1(a), (b), and (c), and 2(a) and (b), do not apply to qualification 
requirements for goods or services with respect to export promotion and foreign aid 
programs.  
  (e)  Paragraphs 1(b), (c), (f), and (g), and 2(a) and (b), do not apply to procurement.  
   (f)  Paragraphs 2(a) and (b) do not apply to requirements imposed by an importing Party 
relating to the content of goods necessary to qualify for preferential tariffs or 
preferential quotas.  
 4. For greater certainty, paragraphs 1 and 2 do not apply to any requirement other than the 
requirements set out in those paragraphs.  
5. This Article does not preclude enforcement of  any commitment, undertaking, or requirement 
between private parties, where a Party did not im pose or require the commitment, undertaking, or 
requirement.   
 
 
                                                     
 
6 For greater certainty, the references to the TRIPS Agreement in paragraph 3(b)(i) include any waiver 
in force between the Parties of any provision of that agreement granted by WTO Members in  accordance with 
the WTO Agreement. 
7 The Parties recognize that a patent doe s not necessarily confer market power. WT/REG208/1 
Page 96  
 
Article 10.9 
Senior Management And Boards Of Directors 
 
1. Neither Party may require that an enterprise of th at Party that is a covered investment appoint 
to senior management positions natural pe rsons of any particular nationality.  
2. A Party may require that a majority of the board of directors, or any committee thereof, of an 
enterprise of that Party that is a covered investment, be of a particular nationality, or resident in the 
territory of the Party, provided that the require ment does not materially impair the ability of the 
investor to exercise control over its investment.  
Article 10.10 
Investment And Environment  
 Nothing in this Chapter shall be construed to  prevent a Party from adopting, maintaining, or 
enforcing any measure otherwise consistent with this  Chapter that it considers appropriate to ensure 
that investment activity in its territory is undertaken  in a manner sensitive to environmental concerns.   
 
Article 10.11 
 
Denial Of Benefits  
1. A Party may deny the benefits of this Chapter to an investor of the other Party that is an 
enterprise of such other Party and to investments of  that investor if persons of a non-Party own or 
control the enterprise and the denying Party:  
(a) does not maintain diplomatic relations with the non-Party; or  
(b) adopts or maintains measures with respect to the non-Party or a person of the non-
Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of this Chapte r were accorded to the enterprise or to its 
investments.  
2. A Party may deny the benefits of this Chapter to an investor of the other Party that is an 
enterprise of such other Party and to investments of  that investor if the enterprise has no substantial 
business activities in the territory of the other Party and persons of a non-Party, or of the denying 
Party, own or control the enterprise.  
Article 10.12 
Non-Conforming Measures 
 
1. Articles 10.3, 10.4, 10.8, and 10.9 do not apply to:  
(a) any existing non-conforming measure that  is maintained by a Party at:  
(i) the central level of government, as set out by that Party in its Schedule to 
Annex I,  
  WT/REG208/1 
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(ii) a regional level of government, as set out  by that Party in its Schedule to 
Annex I, or  
(iii) a local level of government;  
(b) the continuation or prompt renewal of an y non-conforming measure referred to in 
subparagraph (a); or  
(c) an amendment to any non-conforming measure referred to in subparagraph (a) to the 
extent that the amendment does not decr ease the conformity of the measure, as it 
existed immediately before the amendment, with Article 10.3, 10.4, 10.8, or 10.9.  
2. Articles 10.3, 10.4, 10.8, and 10.9 do not apply to any measure that a Party adopts or 
maintains with respect to sectors, subsectors, or ac tivities, as set out in its  Schedule to Annex II.  
3. Neither Party may, under any measure adopted after the date of entry into force of this 
Agreement and covered by its Schedul e to Annex II, require an investor of the other Party, by reason 
of its nationality, to sell or otherwise dispose of  an investment existing at the time the measure 
becomes effective.  
4. Articles 10.3 and 10.4 do not apply to any measure that is an exception to, or derogation from, 
the obligations under Article 15.1.5 (General Provisi ons) as specifically provided in that Article.  
5. Articles 10.3, 10.4, and 10.9 do not apply to:  
(a) procurement; or    
(b) subsidies or grants provided by a Party, including government-supported loans, 
guarantees, and insurance.  
Article 10.13 
Special Formalities And Information Requirements  
1. Nothing in Article 10.3 shall be construed to prevent a Party from adopting or maintaining a 
measure that prescribes special formalities in co nnection with covered investments, such as a 
requirement that investors be residents of the Part y or that covered investments be legally constituted 
under the laws or regulations of the Party, provided  that such formalities do not materially impair the 
protections afforded by a Party to investors of the other Party and covered investments pursuant to 
this Chapter.   
2. Notwithstanding Articles 10.3 and 10.4, a Party may require an investor of the other Party, or 
a covered investment, to provide in formation concerning that investment solely for informational or 
statistical purposes.  The Party shall protect any confidential business information from any disclosure 
that would prejudice the competitive position of the i nvestor or the covered investment.  Nothing in 
this paragraph shall be constr ued to prevent a Party from otherwise obtaining or disclosing 
information in connection with the equitabl e and good faith application of its law.  
 
 
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Section B: Investor-State Dispute Settlement 
 
Article 10.14 
Consultation And Negotiation  
 In the event of an investment dispute, the cl aimant and the respondent should initially seek to 
resolve the dispute through consultation and nego tiation, which may include the use of non-binding, 
third-party procedures.   
Article 10.15 
Submission Of A Claim To Arbitration 
 
1. In the event that a disputing party considers th at an investment dispute cannot be settled by 
consultation and negotiation:  
 (a)  the claimant, on its own behalf, may subm it to arbitration under this Section a claim  
 
(i) that the respondent has breached  
   (A) an obligation under Section A,  
    (B)  an investment authorization, or       (C)  an investment agreement;  
 
  and   
(ii) that the claimant has incurred loss or damage by reason of, or arising out of, 
that breach; and  
 (b) the claimant, on behalf of an enterprise of  the respondent that is a juridical person that 
the claimant owns or controls directly or  indirectly, may submit to arbitration under 
this Section a claim  
   (i)  that the respondent has breached   
   (A) an obligation under Section A,  
    (B)  an investment authorization, or       (C)  an investment agreement;  and  
 
  (ii)  that the enterprise has incurred loss or damage by reason of, or arising out of, 
 that breach.  
 
2. At least 90 days before submitting any claim to ar bitration under this Section, a claimant shall 
deliver to the respondent a written notice of its intent ion to submit the claim to arbitration (“notice of 
intent”).  The notice shall specify: 
(a) the name and address of the claimant and, where a claim is submitted on behalf of an 
enterprise, the name, address, and place of incorporation of the enterprise;   WT/REG208/1 
 Page 99 
 
 
(b) for each claim, the provision of this Agreement, investment authorization, or 
investment agreement alleged to have been breached and any other relevant 
provisions;  
(c) the legal and factual basis for each claim; and   
(d) the relief sought and the approximate amount of damages claimed.  
3. Provided that six months have elapsed since the events giving rise to the claim, a claimant 
may submit a claim referred to in paragraph 1:  
(a) under the ICSID Convention and the ICSID Rules of Procedures for Arbitration 
Proceedings, provided that both the res pondent and the non-di sputing Party are 
parties to the ICSID Convention;  
(b) under the ICSID Additional Facility Rules, pr ovided that either the respondent or the 
non-disputing Party is a party to the ICSID Convention;  
(c) under the UNCITRAL Arbitration Rules; or  
(d) if the claimant and respondent agree, to an y other arbitration institution or under any 
other arbitration rules.  
4. A claim shall be deemed  submitted to arbitration under this Section when the claimant’s 
notice of or request for arbitration (“notice of arbitration”):   
(a) referred to in paragraph 1 of  Article 36 of the ICSID Convention is received by the 
Secretary-General;  
(b) referred to in Article 2 of Schedule C of  the ICSID Additional Facility Rules is 
received by the Secretary-General;  
(c) referred to in Article 3 of the UNCITRAL Arbitration Rules, together with the 
statement of claim referred to in Article 18 of the UNCITRAL Arbitration Rules, are received by the respondent; or  
(d) referred to under any other arbitral ins titution or arbitral rules selected under 
paragraph 3(d) is received by the respondent.  
A claim asserted by the claimant for the first time af ter such notice of arbitration is submitted shall be 
deemed submitted to arbitration under this Section on the date of its receipt under the applicable 
arbitral rules.  
 
5. The arbitration rules applicable under paragraph 3, and in effect on the date the claim or 
claims were submitted to arbitration under this S ection, shall govern the arbitration except to the 
extent modified by this Agreement.  
6. The claimant shall provide with the notice of arbitration:  
(a) the name of the arbitrator that the claimant appoints; or  
(b) the claimant’s written consent for the Secretary-General to appoint that arbitrator.  
 WT/REG208/1 
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Article 10.16 
Consent Of Each Party To Arbitration 
 
1. Each Party consents to the submission of a claim to arbitration under this Section in 
accordance with this Agreement.  
2. The consent under paragraph 1 and the submission of  a claim to arbitration under this Section 
shall satisfy the requirements of:  
(a) Chapter II of the ICSID Convention (Juris diction of the Centre) and the ICSID 
Additional Facility Rules for written consent of the parties to the dispute; and  
(b) Article II of the New York Convention for an “agreement in writing.”  
Article 10.17 
Conditions And Limitations On Consent Of Each Party  
1. No claim may be submitted to arbitration under this Section if more than three years have 
elapsed from the date on which the claimant first acquired, or should have first acquired, knowledge 
of the breach alleged under Article 10.15.1 and know ledge that the claimant (for claims brought under 
Article 10.15.1(a)) or the enterprise (for claims br ought under Article 10.15.1(b)) has incurred loss or 
damage.  
2. No claim may be submitted to arbitr ation under this Section unless:  
(a) the claimant consents in writing to arbitr ation in accordance with the procedures set 
out in this Agreement; and  
(b) the notice of arbitration is accompanied,  
(i) for claims submitted to arbitration unde r Article 10.15.1(a), by the claimant’s 
written waiver, and   
(ii) for claims submitted to arbitration under Article 10.15.1(b), by the claimant’s 
and the enterprise’s written waivers  
of any right to initiate or continue befo re any administrative tribunal or court under 
the law of either Party, or other disput e settlement procedures, any proceeding with 
respect to any measure alleged to constitut e a breach referred to in Article 10.15.  
 
3. Notwithstanding paragraph 2(b), the claimant (for claims brought under Article 10.15.1(a)) 
and the claimant or the enterp rise (for claims brought under Ar ticle 10.15.1(b)) may initiate or 
continue an action that seeks interim injunctive re lief and does not involve the payment of monetary 
damages before a judicial or administrative tribunal of the respondent, provided that the action is brought for the sole purpose of preserving the claimant ’s or the enterprise’s rights and interests during 
the pendency of the arbitration.  In no case should such  relief, if granted, be dispositive of the issues 
in dispute before the tribunal or suspe nd the proceedings before the tribunal.  
   WT/REG208/1 
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Article 10.18 
Selection Of Arbitrators  
1. Unless the disputing parties agree otherwise, th e tribunal shall comprise three arbitrators, one 
arbitrator appointed by each of the disputing pa rties and the third, who shall be the presiding 
arbitrator, appointed by agreement of the disputing parties.   
2. The Secretary-General shall serve as appointin g authority for an arbitration under this 
Section.  
3. If a tribunal has not been constituted within 75 da ys from the date that a claim is submitted to 
arbitration under this Section, the Secretary-General,  on the request of a disputing party, shall appoint, 
in his or her discretion, the arbitrator or arbitrators not yet appointed.  
4. For purposes of Article 39 of the ICSID Conventio n and Article 7 of Schedule C to the ICSID 
Additional Facility Rules, and without prejudice to an objection to an arbitrator on a ground other than 
nationality:  
(a) the respondent agrees to the appointment of  each individual member of a tribunal 
established under the ICSID Convention or the ICSID Additional Facility Rules;  
(b) a claimant referred to in Article 10.15.1 (a) may submit a claim to arbitration under 
this Section, or continue a claim, under the ICSID Convention or the ICSID 
Additional Facility Rules, only on condition that the claimant agrees in writing to the appointment of each individual member of the tribunal; and   
(c) a claimant referred to in Article 10.15.1 (b) may submit a claim to arbitration under 
this Section, or continue a claim, under the ICSID Convention or the ICSID 
Additional Facility Rules, only on condition that the claimant and the enterprise agree 
in writing to the appointment of each individual member of the tribunal.   
Article 10.19 
Conduct Of The Arbitration 
 
1. The disputing parties may agree on the legal place of any arbitration under the arbitral rules 
applicable under Article 10.15.3. If the disputing pa rties fail to reach agreement, the tribunal shall 
determine the place in accordance with the applicable arbitral rules, pr ovided that the place shall be in 
the territory of a State that is a party to the New York Convention.  
2. The non-disputing Party may make oral and writte n submissions to the tribunal regarding the 
interpretation of this Agreement.  
3. The tribunal shall have the authority to accept and consider amicus curiae submissions from a 
person or entity that is not a disputing party.   
4. Without prejudice to a tribunal’s authority to address other objections as a preliminary 
question, a tribunal shall address and decide as a pr eliminary question any objection by the respondent 
that, as a matter of law, a claim submitted is not a claim for which an award in favor of the claimant may be made under Article 10.25.   
(a) Such objection shall be submitted to the tr ibunal as soon as possible after the tribunal 
is constituted, and in no event later than th e date the tribunal fixes for the respondent WT/REG208/1 
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to submit its counter-memorial (or, in th e case of an amendment to the notice of 
arbitration, the date the tribunal fixes for the respondent to submit its response to the amendment).    
(b) On receipt of an objection under this pa ragraph, the tribunal shall suspend any 
proceedings on the merits, establish a schedule for considering the objection 
consistent with any schedule it has establis hed for considering any other preliminary 
question, and issue a decision or award on the objection, stating the grounds therefore.  
(c) In deciding an objection under this paragra ph, the tribunal shall assume to be true 
claimant’s factual allegations in support of  any claim in the notice of arbitration (or 
any amendment thereof) and, in disput es brought under the UNCITRAL Arbitration 
Rules, the statement of claim referred to in Article 18 of the UNCITRAL Arbitration Rules. The tribunal may also consider any relevant facts not in dispute.  
(d) The respondent does not waive any objection as to competence or any argument on 
the merits merely because the respondent did or did not raise an objection under this 
paragraph or make use of the expedite d procedure set out in paragraph 5.  
5. In the event that the respondent so requests with in 45 days after the tribunal is constituted, the 
tribunal shall decide on an expedited basis an obj ection under paragraph 4 and any objection that the 
dispute is not within the tribunal’s competence.  The tribunal shall suspend any proceedings on the 
merits and issue a decision or award on the objection( s), stating the grounds therefor, no later than 150 
days after the date of the request. However, if a disputing party requests a hearing, the tribunal may 
take an additional 30 days to issue the decisi on or award. Regardless of whether a hearing is 
requested, a tribunal may, on a showing of extraordinary cause, delay issuing its decision or award by an additional brief period, which may not exceed 30 days.  
6. When it decides a respondent’s objection under paragraph 4 or 5, the tribunal may, if 
warranted, award to the prevailing disputing party reasonable costs and attorney’s fees incurred in 
submitting or opposing the objection.  In determining whether such an award is warranted, the 
tribunal shall consider whether either the clai mant’s claim or the r espondent’s objection was 
frivolous, and shall provide the disputing par ties a reasonable opportunity to comment.  
7. A respondent may not assert as a defense, count erclaim, right of set-off, or for any other 
reason that the claimant has received or will receive  indemnification or other compensation for all or 
part of the alleged damages pursuant to  an insurance or guarantee contract.  
8. The tribunal may order an interim measure of pr otection to preserve the rights of a disputing 
party, or to ensure that the tribunal’s jurisdicti on is made fully effective, including an order to 
preserve evidence in the possession or control of a disputing party or to protect the tribunal’s 
jurisdiction. The tribunal may not order attachment or enjoin the application of a measure alleged to 
constitute a breach referred to in Article 10.15.  For purposes of this paragraph, an order includes a 
recommendation.  
9.  (a) In any arbitration conducted under this S ection, at the request of a disputing party, a 
tribunal shall, before issuing a decision or award on liability, transmit its proposed 
decision or award to the disputing parties and to the non-disputing Party. Within 60 
days after the tribunal transmits its proposed  decision or award, the disputing parties 
may submit written comments to the tribuna l concerning any aspect of its proposed 
decision or award. The tribunal shall c onsider any such comments and issue its 
decision or award not later than 45 days after the expiration of the 60-day comment 
period.   WT/REG208/1 
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 (b)  Subparagraph (a) shall not apply in any arbitration conducted pursuant to this Section 
for which an appeal has been made available pursuant to paragraph 10 or 
Annex 10-D.  
 10. If a separate regional or mu ltilateral agreement concerning investment enters into force 
between the Parties that establishes an appellate body for purposes of reviewing awards rendered by 
tribunals constituted pursuant to international trade or investment arrangements to hear investment 
disputes, the Parties shall strive to reach an agre ement that would have su ch appellate body review 
awards rendered under Article 10.25 in arbitrations commenced after the  regional or multilateral 
agreement enters into force between the Parties.  
 
Article 10.20 
Transparency Of Arbitral Proceedings 
 
1. Subject to paragraphs 2 and 4, the respondent shall, after receiving the following documents, 
promptly transmit them to the non-disputing Pa rty and make them available to the public:  
(a) the notice of intent;  
(b) the notice of arbitration;  
(c) pleadings, memorials, and briefs submitted to the tribunal by a disputing party and 
any written submissions submitted pursuant to Article 10.19.2 and 10.19.3 and 
Article 10.24;  
(d) minutes or transcripts of hearings of the tribunal, where available; and   
(e) orders, awards, and decisions of the tribunal.  
2. The tribunal shall conduct hearings open to the public and shall determine, in consultation 
with the disputing parties, the appropriate logistical  arrangements.  However, any disputing party that 
intends to use information designated as protected  information in a hearing shall so advise the 
tribunal. The tribunal shall make a ppropriate arrangements to protect the information from disclosure.  
3. Nothing in this Section requires a respondent to disclose protected information or to furnish 
or allow access to information that it may with hold in accordance with Article 21.2 (Essential 
Security) or Article 21.5 (Disclosure of Information).  
4. Any protected information that is submitted to  the tribunal shall be protected from disclosure 
in accordance with the following procedures:  
(a) Subject to subparagraph (d), neither the disputing parties nor the tribunal shall 
disclose to the non-disputing Party or to the public any protected information where 
the disputing party that provided the info rmation clearly designates it in accordance 
with subparagraph (b);  
(b) Any disputing party claiming that certain information constitutes protected 
information shall clearly designate the information at the time it is submitted to the 
tribunal;  
 WT/REG208/1 
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(c) A disputing party shall, at the time it submits a document containing information 
claimed to be protected information, subm it a redacted version of the document that 
does not contain the information.  Only the redacted version shall be provided to the 
non-disputing Party and made public in  accordance with paragraph 1; and  
(d) The tribunal shall decide any objection re garding the designation of information 
claimed to be protected information.  If th e tribunal determines that such information 
was not properly designated, the disputi ng party that submitted the information may 
(i) withdraw all or part of its submission containing such information, or (ii) agree to resubmit complete and redacted documents with corrected designations in accordance 
with the tribunal’s determination and subpa ragraph (c).  In either case, the other 
disputing party shall, whenever necessary, resubmit complete and redacted 
documents which either remove the inform ation withdrawn under (i) by the disputing 
party that first submitted the information or  redesignate the information consistent 
with the designation under (ii) of the disputing party that first submitted the information.     
5. Nothing in this Section requires a respondent to withhold from the public information 
required to be disclosed by its laws.   
Article 10.21  
Governing Law 
 
1. Subject to paragraph 3, when a claim is  submitted under Article 10.15.1(a)(i)(A) or 
Article 10.15.1(b)(i)(A), the tri bunal shall decide the issues in dispute in accordance with this 
Agreement and applicable rules of international law.  
2. Subject to paragraph 3 and the other terms of this Section, when a claim is submitted under 
Article 10.15.1(a)(i)(B) or (C), or Article 10.15.1 (b)(i)(B) or (C), the tribunal shall apply:  
(a) the rules of law specified in the pertinent investment authorization or investment 
agreement, or as the disputing parties may agree otherwise; or  
(b) if the rules of law have not been specified or agreed otherwise:  
(i) the law of the respondent, including its rules on the conflict of laws;8 and  
(ii) such rules of international law as may be applicable.  
3. A decision of the Joint Committee declaring its interpretation of a provision of this 
Agreement under Article 19.2 (Joint Committee) sha ll be binding on a tribunal, and any decision or 
award issued by a tribunal must be consistent with that decision.  
Article 10.22 
Interpretation Of Annexes  
1. Where a respondent asserts as a defense that the me asure alleged to be a breach is within the 
scope of an entry set out in Annex I or Annex II,  the tribunal shall, on request of the respondent, 
request the interpretation of the Joint Committee on the issue.  The Joint Committee shall submit in 
                                                      
8 The law of the respondent  means the law that a domestic court or tribunal of proper jurisdiction 
would apply in the same case.  WT/REG208/1 
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writing any decision declaring its interpretation unde r Article 19.2 (Joint Committee) to the tribunal 
within 60 days of delivery of the request.  
2. A decision issued by the Joint Committee under paragraph 1 shall be binding on the tribunal, 
and any decision or award issued by the tribunal must  be consistent with that decision. If the Joint 
Committee fails to issue such a decision within 60 days, the tribunal shall decide the issue.  
Article 10.23  
Expert Reports  
 Without prejudice to the appointment of other kinds of experts where authorized by the 
applicable arbitration rules, a tribunal, at the request of a disputing party or, unless the disputing 
parties disapprove, on its own initiative, may appoint one  or more experts to report to it in writing on 
any factual issue concerning envir onmental, health, safety, or other scientific matters raised by a 
disputing party in a proceeding, subject to such  terms and conditions as the disputing parties may 
agree.  
 
Article 10.24 
 
Consolidation  
1. Where two or more claims have been submitted separately to arbitra tion under Article 10.15.1 
and the claims have a question of law or fact in common and arise out of the same events or 
circumstances, any disputing party may seek a cons olidation order in accord ance with the agreement 
of all the disputing parties sought to be covered by the order or the terms of paragraphs 2 through 10.  
2. A disputing party that seeks a consolidation order under this Article shall deliver, in writing, a 
request to the Secretary-General and to all the dis puting parties sought to be covered by the order and 
shall specify in the request:  
(a) the names and addresses of all the disputing par ties sought to be covered by the order;  
(b) the nature of the order sought; and  
(c) the grounds on which the order is sought.  
3. Unless the Secretary-General finds within 30 da ys after receiving a request under paragraph 2 
that the request is manifestly unfounded, a tr ibunal shall be established under this Article.  
4. Unless all the disputing parties sought to be c overed by the order agree otherwise, a tribunal 
established under this Article shall comprise three arbitrators:   
(a) one arbitrator appointed by agreement of the claimants;    
(b) one arbitrator appointed by the respondent; and  
(c) the presiding arbitrator appointed by the S ecretary-General, provided, however, that 
the presiding arbitrator shall not be a national of either Party.  
5. If, within 60 days after the Secretary-Genera l receives a request made under paragraph 2, the 
respondent fails or the claimants fail to appoint an  arbitrator in accordance with paragraph 4, the 
Secretary-General, on the request of any disputing party sought to be covered by the order, shall 
appoint the arbitrator or arbitrators not yet appointed.  If the respondent fails to appoint an arbitrator, WT/REG208/1 
Page 106  
 
the Secretary-General shall appoint a national of the disputing Party, and if the claimants fail to appoint an arbitrator, the Secretary-General shall appoint a national of the non-disputing Party.  
6. Where a tribunal established under this Article is sat isfied that two or more claims that have 
been submitted to arbitration under Article 10.15.1  have a question of law or fact in common, and 
arise out of the same events or circumstances, the tr ibunal may, in the interest of fair and efficient 
resolution of the claims, and after hearing the disputing parties, by order:  
(a) assume jurisdiction over, and hear and determine together, all or part of the claims;   
(b) assume jurisdiction over, and hear and determine one or more of the claims, the 
determination of which it believes would assist in the resolution of the others; or  
(c) instruct a tribunal previously established un der Article 10.18 to assume jurisdiction 
over, and hear and determine together, all or part of the claims, provided that  
(i) that tribunal, at the request of any cl aimant not previously a disputing party 
before that tribunal, shall be reconstitu ted with its original members, except 
that the arbitrator for the claimants sh all be appointed pursuant to paragraphs 
4(a) and 5; and  
(ii) that tribunal shall decide whether any prior hearing shall be repeated.  
7. Where a tribunal has been established under this Article, a claimant th at has submitted a claim 
to arbitration under Article 10.15.1 and that has not  been named in a request made under paragraph 2 
may make a written request to the tribunal that it be included in any order made under paragraph 6, 
and shall specify in the request:  
(a) the name and address of the claimant;  
(b) the nature of the order sought; and  
(c) the grounds on which the order is sought.  
The claimant shall deliver a copy of its  request to the Secretary-General.  
8. A tribunal established under this Article shall conduct its proceedings in accordance with the 
UNCITRAL Arbitration Rules, except as modified by this Section.  
9. A tribunal established under Article 10.18 shall not have jurisdiction to decide a claim, or a 
part of a claim, over which a tribunal establishe d or instructed under this Article has assumed 
jurisdiction.  
10. On application of a disputing party, a tri bunal established under this Article, pending its 
decision under paragraph 6, may order that the proceedings of a tribunal established under 
Article 10.18 be stayed, unless the latter tri bunal has already adjourned its proceedings.  
Article 10.25  
Awards 
 
1. Where a tribunal makes a final award against a respondent, the tribunal may award, separately 
or in combination, only:   WT/REG208/1 
 Page 107 
 
 
(a) monetary damages and interest, as appropriate; and  
(b) restitution of property, in which case the aw ard shall provide that the respondent may 
pay monetary damages and interest, as appropriate, in lieu of restitution.  
A tribunal may also award costs and attorney’s  fees in accordance with this Section and the 
applicable arbitration rules.  
 
2. Subject to paragraph 1, where a claim is subm itted to arbitration under Article 10.15.1(b):  
(a) an award of restitution of property shall provide that restitution be made to the 
enterprise;  
(b) an award of monetary damages and interest , as appropriate, shall provide that the sum 
be paid to the enterprise; and   
(c) the award shall provide that it is made without prejudice to any right that any person 
may have in the relief under applicable domestic law.  
3. A tribunal may not award punitive damages.   
4. An award made by a tribunal shall have no binding force except between the disputing parties 
and in respect of the particular case.  
5. Subject to paragraph 6 and the applicable review  procedure for an interim award, a disputing 
party shall abide by and comply with an award without delay.   
6. A disputing party may not seek enforcement of a final award until:   
(a) in the case of a final award made under the ICSID Convention   
(i) 120 days have elapsed from the date th e award was rendered and no disputing 
party has requested revision or annulment of the award; or   
(ii) revision or annulment proceedings have been completed; and  
(b) in the case of a final award under the ICSID Additional Facility Rules, the 
UNCITRAL Arbitration Rules, or the rules selected pursuant to Article 10.15.3(d)  
(i) 90 days have elapsed from the date th e award was rendered and no disputing 
party has commenced a proceeding to revise, set aside, or annul the award; or  
(ii) a court has dismissed or allowed an application to revise, set aside, or annul 
the award and there is no further appeal.  
7. Each Party shall provide for the enfor cement of an award in its territory.  
8. If the respondent fails to abide by or comply with a final award, on delivery of a request by 
the non-disputing Party, a panel shall be establishe d under Article 20.7 (Establishment of Panel).  The 
requesting Party may seek in such proceedings:  
(a) a determination that the failure to abide by or comply with the final award is 
inconsistent with the obligati ons of this Agreement; and   WT/REG208/1 
Page 108  
 
(b) in accordance with Article 20.9.2 (Panel  Report), a recommendation that the 
respondent abide by or comply with the final award.   
9. A disputing party may seek enforcement of an arbitration award under the ICSID Convention 
or the New York Convention regardless of whether proceedings have been ta ken under paragraph 8.  
10. A claim that is submitted to arbitration under this Section shall be considered to arise out of a 
commercial relationship or transaction for purposes of Article I of the New York Convention.  
Article 10.26  
Service Of Documents 
 
 Delivery of notice and other documents on a Party shall be made to the place named for 
that Party in Annex 10-C.  
 
Section C: Definitions  
Article 10.27  
Definitions  
 For purposes of this Chapter:  
 
 Centre  means the International Centre for Settle ment of Investment Disputes (“ICSID”) 
established by the ICSID Convention;  
 
 claimant means an investor of a Party that is a part y to an investment dispute with the other 
Party;  
 
 disputing parties means the claimant and the respondent;  
 
 disputing party  means either the claimant or the respondent;  
 
 enterprise means an enterprise as defined in Article 1.3 (Definitions), and a branch of an 
enterprise;  
 
 enterprise of a Party means an enterprise constituted or organized under the law of a Party, 
and a branch located in the territory of a Pa rty and carrying out business activities there;  
 
 freely usable currency  means “freely usable currency” as determined by the International 
Monetary Fund under its Articles of Agreement ;  
 
 ICSID Additional Facility Rules  means the Rules Governing the Additional Facility for the 
Administration of Proceedings by the Secretariat of the International Centre for Settlement of 
Investment Disputes;  
 
 ICSID Convention means the Convention on the Settleme nt of Investment Disputes between 
States and Nationals of Other States, done at Washington, March 18, 1965;  
 
 investment  means every asset that an investor owns or  controls, directly or indirectly, that 
has the characteristics of an investment, including  such characteristics as the commitment of capital or  WT/REG208/1 
 Page 109 
 
 
other resources, the expectation of gain or profit, or  the assumption of risk.  Forms that an investment 
may take include:   
(a) an enterprise;  
(b) shares, stock, and other forms of equ ity participation in an enterprise;  
(c) bonds, debentures, other debt instruments, and loans;
9 
 
(d) futures, options, and other derivatives;  
(e) turnkey, construction, management, pr oduction, concession, revenue-sharing, and 
other similar contracts;  
(f) intellectual property rights;  
(g) licenses, authorizations, permits, and sim ilar rights conferred pursuant to domestic 
law;10 11and 
(h) other tangible or intangible, movable or immovable property, and related property 
rights, such as leases, mortgages, liens, and pledges;  
 investment agreement  means a written agreement12 that takes effect on or after the date of 
entry into force of this Agreement between a national authority13 of a Party and a covered investment 
or an investor of the other Party that grants the covered investment or investor rights:  
 
(a) with respect to natural resources or other asset s that a national authority controls; and  
(b) upon which the covered investment or the inv estor relies in establishing or acquiring a 
covered investment other than the written agreement itself;  
 investment authorization14 means an authorization that the foreign investment authority of a 
Party grants to a covered investment or an investor of the other Party;  
                                                      
9 Some forms of debt, such as bonds, debentures, and long-term notes, are more likely to have the 
characteristics of an investment, while other forms of debt , such as claims to paymen t that are immediately due 
and result from the sale of goods or services, are less likely to have such characteristics. 
10 Whether a particular type of license, authorization, permit, or similar instrument (including a 
concession, to the extent that it has the nature of such an instrument) has the characteristics of an investment 
depends on such factors as the nature and extent of the rights that the holder has under the law of the Party.  Among the licenses, authorizations, permits, and similar instruments that do not have the characteristics of an 
investment are those that do not create any rights prot ected under domestic law.  For greater certainty, the 
foregoing is without prejudice to whether any asset associated with the license, authorization, permit, or similar instrument has the character istics of an investment. 
11 The term “investment” does not include an order or  judgment entered in a ju dicial or administrative 
action. 
12 “Written agreement” refers to an agreement in writing, executed by both parties, that creates an 
exchange of rights and obligations, binding on both parties under the law applicable under Article 10.21.2.  For 
greater certainty, (a) a unilateral act of an administrativ e or judicial authority, such as a permit, license, or 
authorization issued by a Party solely in its regulatory capacity or a decree, order,  or judgment; and (b) an 
administrative or judicial consent decree or orde r, shall not be considered a written agreement. 
13 For purposes of this definition, “national authority” means an authority at the central level of 
government. 
14 For greater certainty, actions taken by a Party to enforce laws of general application, such as 
competition laws, are not encompassed within this definition. WT/REG208/1 
Page 110  
 
 investor of a non-Party means, with respect to a Party, an investor that concretely attempts 
to make, is making, or has made an investment in the territory of that Party, that is not an investor of 
either Party;   
 investor of a Party means a Party or state enterprise thereo f, or a national or an enterprise of 
a Party, that concretely attempts to make, is making,  or has made an investment in the territory of the 
other Party; provided, however, that a natural pe rson who is a dual national shall be deemed to be 
exclusively a national of the State of his or her dominant and effective nationality;  
  New York Convention means the United Nations Convention on the Recognition and 
Enforcement of Foreign Arbitral Awards , done at New York, June 10, 1958;  
  non-disputing Party  means the Party that is not a party to an investment dispute;  
 
 protected information means confidential business information or information that is 
privileged or otherwise protected from disclosure under a Party’s law;   
 
 respondent means the Party that is a party to an investment dispute;  
 
 Secretary-General means the Secretary-General of ICSID;  and  
  UNCITRAL Arbitration Rules  means the arbitration rules of the United Nations 
Commission on International Trade Law.    
ANNEX 10-A  
 
Customary International Law
 
 The Parties confirm their shared understanding that “customary international law” generally 
and as specifically referenced in Article 10.5 and Annex 10-B results from a general and consistent 
practice of States that they follow from a sense of le gal obligation.  With rega rd to Article 10.5, the 
customary international law minimum standard of treatment of aliens refers to all customary international law principles that protect the economic rights and interests of aliens.  
 
 
ANNEX 10-B  
 
Expropriation
 
 The Parties confirm their shared understanding that:  
 
1. Article 10.6.1 is intended to reflect customary international law concerning the obligation of 
States with respect to expropriation.  
2. An action or a series of actions by a Pa rty cannot constitute an expropriation unless it 
interferes with a tangible or intangible property right or property interest in an investment.  
3. Article 10.6.1 addresses two situations. The first is direct expropriation, where an investment 
is nationalized or otherwise directly expropriated th rough formal transfer of title or outright seizure.   WT/REG208/1 
 Page 111 
 
 
4. The second situation addressed by Ar ticle 10.6.1 is indirect exprop riation, where an action or 
series of actions by a Party has an effect equivalent  to direct expropriation without formal transfer of 
title or outright seizure.  
(a) The determination of whether an action or series of actions by a Party, in a specific fact 
situation, constitutes an indirect expropr iation, requires a case-by-case, fact-based 
inquiry that considers, among other factors:  
(i) the economic impact of the government action, although the fact that an 
action or series of actions by a Party has an adverse effect on the economic value of an investment, standing alone,  does not establish that an indirect 
expropriation has occurred;  
(ii) the extent to which the government acti on interferes with distinct, reasonable 
investment-backed expectations; and  
(iii) the character of the government action.  
(b) Except in rare circumstances, non-discriminatory regulatory actions by a Party that 
are designed and applied to protect legitim ate public welfare objectives, such as 
public health, safety, and the environment, do not constitute indirect expropriations.  
 
ANNEX 10-C  
 
Service Of Documents On A Party Under Section B
 
Morocco 
 
 Notices and other documents in disputes under Section B shall be served on Morocco by 
delivery to:  
 Directorate for Legal Affairs and Treaties  
Ministry of Foreign Affairs and Cooperation  
Rabat  Kingdom of Morocco  
 
United States 
 
 Notices and other documents in disputes unde r Section B shall be served on the United 
States by delivery to:   
Executive Director (L/EX)  
Office of the Legal Adviser  
Department of State  Washington, D.C.  20520  United States of America   
 
   WT/REG208/1 
Page 112  
 
ANNEX 10-D  
 
Possibility Of A Bilateral Appellate Mechanism
 
 Within three years after the date of entry in to force of this Agreement, the Parties shall 
consider whether to establish a bilateral appellate  body or similar mechanism to review awards 
rendered under Article 10.25 in arbitrations comme nced after they establish the appellate body or 
similar mechanism.  
ANNEX 10-E  
 
Submission Of A Claim To Arbitration  
Morocco  
 If an investor of the United States, or an ente rprise of Morocco that is a juridical person that 
the investor owns or controls directly or indir ectly, initiates proceedings before a court of Morocco 
alleging a breach by Morocco of an obligation under Section A, an i nvestment authorization, or an 
investment agreement, the investor may not submit that alleged breach to ar bitration under Section B 
either:  
 
(a) on its own behalf under Ar ticle 10.15.1(a), or  
(b) on behalf of the enterprise under Article 10.15.1(b),  
unless at least one year has elapsed from the da te the court proceedings were initiated.  
 
CHAPTER ELEVEN:  CROSS-BORDER TRADE IN SERVICES 
 
Article 11.1 
Scope And Coverage  
1. This Chapter applies to measures adopted or maintained by a Party affecting cross-border 
trade in services by service suppliers of the other Pa rty. Such measures include measures affecting:  
(a) the production, distribution, marketing, sale, and delivery of a service;  
(b) the purchase or use of, or payment for, a service;  
(c) the access to and use of distribution, trans port, or telecommunications networks and 
services in connection with the supply of a service;  
(d) the presence in its territory of a service supplier of the other Party; and  
(e) the provision of a bond or other form of financial security as a condition for the 
supply of a service.  
2. For purposes of this Chapter, measures adopted or maintained by a Party means measures 
adopted or maintained by:  
(a) central, regional, or local governments and authorities; and   WT/REG208/1 
 Page 113 
 
 
(b) non-governmental bodies in the exercise of powers delegated by central, regional, or 
local governments or authorities.  
3. Articles 11.4, 11.7, and 11.8 shall also apply to measures by a Party affecting the supply of a 
service in its territory by a covered investment.1 
4. This Chapter does not apply to:  
(a) financial services as defined in Article 12.19 (Definitions), except as provided in 
paragraph 3;  
(b) air services, including domestic and international air transportation services, whether 
scheduled or non-scheduled, and related services in support of air services, other than:  
(i) aircraft repair and maintenance services during which an aircraft is 
withdrawn from service; and  
(ii) specialty air services;  
(c) government procurement; or  
(d) subsidies or grants provided by a Party, including government-supported loans, 
guarantees, and insurance.  
5. This Chapter does not impose any obligation on a Party with respect to a national of the other 
Party seeking access to its employment market, or empl oyed on a permanent basis in its territory, and 
does not confer any right on that national w ith respect to that access or employment.  
6. This Chapter does not apply to services supplie d in the exercise of governmental authority 
within the territory of each respective Party.  
Article 11.2 
National Treatment 
 
1. Each Party shall accord to service suppliers of the other Party treatment no less favorable than 
that it accords, in like circumstance s, to its own service suppliers.  
2. The treatment to be accorded by a Party under paragraph 1 means, with respect to a regional 
level of government, treatment no less favorable than  the most favorable treat ment accorded, in like 
circumstances, by that regional level of government to service suppliers of the Party of which it forms 
a part.  
Article 11.3 
Most-Favored-Nation Treatment  
 Each Party shall accord to service suppliers of the other Party treatment no less favorable than 
that it accords, in like circumstances, to service suppliers of a non-Party.  
 
                                                      
1 The Parties understand that nothing in this Chapter, including this paragraph, shall be subject to 
investor-state dispute settlement pursuant to Section B of Chapter Ten (Investment). WT/REG208/1 
Page 114  
 
Article 11.4  
 
Market Access 
 
 1. Neither Party may adopt or maintain, either on the basis of a regional subdivision or on the 
basis of its entire territory, measures that:  
(a) impose limitations on:  
(i) the number of service suppliers whether in the form of numerical quotas, 
monopolies, exclusive service suppliers, or the requirement of an economic 
needs test;  
(ii) the total value of service transactions or assets in the form of numerical 
quotas or the requirement of an economic needs test;  
(iii) the total number of service operations or on the total quantity of services 
output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test;
2 or  
(iv) the total number of natural persons that  may be employed in a particular 
service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test; or  
(b) restrict or require specific types of legal entity or joint venture through which a 
service supplier may supply a service.  
Article 11.5 
Local Presence 
 
 Neither Party may require a service supplier of  the other Party to establish or maintain a 
representative office or any form of enterprise, or to  be resident, in its territory as a condition for the 
cross-border supply of a service.  
 
Article 11.6 
Non-Conforming Measures  
1. Articles 11.2, 11.3, 11.4, and 11.5 do not apply to:  
(a) any existing non-conforming measure that  is maintained by a Party at:  
(i) the central level of government, as set out by that Party in its Schedule to 
Annex I;  
(ii) a regional level of government, as set out  by that Party in its Schedule to 
Annex I; or  
(iii) a local level of government;  
                                                      
2 This paragraph does not cover measures of a Party that limit inputs for the supply of services.  WT/REG208/1 
 Page 115 
 
 
(b) the continuation or prompt renewal of an y non-conforming measure referred to in 
subparagraph (a); or  
(c) an amendment to any non-conforming measure referred to in subparagraph (a) to the 
extent that the amendment does not decr ease the conformity of the measure, as it 
existed immediately before the amendment, with Articles 11.2, 11.3, 11.4, or 11.5.  
2. Articles 11.2, 11.3, 11.4, and 11.5 do not apply to any measure that a Party adopts or 
maintains with respect to sectors, sub-sectors, or  activities set out in its Schedule to Annex II.  
3. Annex 11-A sets out specific commitments by the Parties.  
Article 11.7 
Domestic Regulation  
1. Where a Party requires authorization for the supply of a service, the Party’s competent 
authorities shall, within a reasonable period afte r the submission of an application considered 
complete under its laws and regulations, inform  the applicant of the decision concerning the 
application. At the request of the applicant, th e competent authorities of the Party shall provide, 
without undue delay, information concerning the stat us of the application. This obligation shall not 
apply to authorization requirements that are within the scope of Article 11.6.2.  
2. With a view to ensuring that measures relating to qualification requirements and procedures, 
technical standards, and licensing requirements do not constitute unnecessary barriers to trade in 
services, each Party shall endeavor to ensure, as appr opriate for individual sectors, that such measures 
are:  
(a) based on objective and transparent criteria, such as competence and the ability to 
supply the service;  
(b) not more burdensome than necessary to en sure the quality of the service; and  
(c) in the case of licensing procedures, not in th emselves a restriction on the supply of 
the service.  
3. If the results of the negotiations related to Artic le VI:4 of GATS (or the results of any similar 
negotiations undertaken in other multila teral fora in which both Parties participate) enter into effect, 
this Article shall be amended, as appropriate, afte r consultations between the Parties, to bring those 
results into effect under this Agreement.  The Pa rties agree to coordinate  on such negotiations, as 
appropriate.  
Article 11.8  
Transparency In Development And Application Of Regulations  
 Further to Chapter Eighteen (Transparency):  
 1. Each Party shall establish or maintain appropr iate mechanisms for responding to inquiries 
from interested persons regarding its regulations relating to the subject matter of this Chapter.
3 4 
                                                      
3 For greater certainty, such regulations include regulations establishing or applying to licensing 
authorization or criteria . WT/REG208/1 
Page 116  
 
2. If a Party does not provide advance notice of and opportunity for comment on proposed 
regulations relating to the subject matter of this Chapter pursuant to Article 18.1.2 (Publication), it 
shall, to the extent possible, address in writing the reasons therefore.  
3. At the time it adopts final regulations relating to  the subject matter of this Chapter, a Party 
shall, to the extent possible, including on request , address in writing substantive comments received 
from interested persons with respect  to the proposed regulations.    
4. To the extent possible, each Party shall allo w reasonable time between publication of final 
regulations relating to the subject matter of  this Chapter and their effective date.  
Article 11.9 
Mutual Recognition 
 
1. For the purposes of the fulfillment, in whole or in part, of its standards or criteria for the 
authorization, licensing, or certification of servi ces suppliers, and subject to the requirements of 
paragraph 4, a Party may recognize the education or experience obtained, requirements met, or 
licenses or certifications granted in a particular country, including the other Party and non-Parties. 
Such recognition, which may be achieved through harmonization or otherwise, may be based on an 
agreement or arrangement with the country c oncerned or may be accorded autonomously.  
2. Where a Party recognizes, autonomously or by agreement or arrangement, the education or 
experience obtained, requirements met, or licenses or  certifications granted in the territory of a non-
Party, nothing in Article 11.3 shall be construed to  require the Party to accord such recognition to the 
education or experience obtained, requirements me t, or licenses or certifications granted in the 
territory of the other Party.  
3. A Party that is a party to an agreement or arra ngement of the type referred to in paragraph 1, 
whether existing or future, shall afford adequate oppor tunity for the other Party, if the other Party is 
interested, to negotiate its accession to such an  agreement or arrangement or to negotiate a 
comparable one with it.  Where a Party accords recognition autonomously, it shall afford adequate 
opportunity for the other Party to demonstrate that education, experience, licenses, or certifications 
obtained or requirements met in that other Party’s territory should be recognized.  
4. Neither Party may accord recognition in a manner that would constitute a means of 
discrimination between countries in the application of  its standards or criteria for the authorization, 
licensing, or certification of services suppliers, or a disguised restriction on trade in services.  
5. Annex 11-B applies to measures adopted or mainta ined by a Party relating to the licensing or 
certification of professional service suppliers as set out in that Annex.  
Article 11.10 
Transfers And Payments  
1. Each Party shall permit all transfers and paym ents relating to the cross-border supply of 
services to be made freely and without delay into and out of its territory.  
                                                                                                                                                                     
4 Morocco’s implementation of its obligation to establish appropriate mechanisms for small 
administrative agencies may need to take into  account resource and budget constraints.  WT/REG208/1 
 Page 117 
 
 
2. Each Party shall permit such transfers and pa yments relating to the cross-border supply of 
services to be made in a freely usable currency at th e market rate of exchange prevailing at the time of 
transfer.  
3. Notwithstanding paragraphs 1 and 2, a Party may prevent a transfer or payment through the 
equitable, non-discriminatory, and good faith  application of its laws relating to:  
(a) bankruptcy, insolvency, or the protection of the rights of creditors;  
(b) issuing, trading, or dealing in securiti es, futures, options, or derivatives;  
(c) financial reporting or record keeping of transfers, when n ecessary to assist law 
enforcement or financial regulatory authorities;  
(d) criminal or penal offenses; or  
(e) ensuring compliance with orders or judgments in judicial or administrative 
proceedings.  
Article 11.11  
Denial Of Benefits  
1. A Party may deny the benefits of this Chapter to a service supplier of the other Party if the 
service is being supplied by an enterprise owned or  controlled by persons of a non-Party, and the 
denying Party:  
(a) does not maintain diplomatic relations with the non-Party, or  
(b) adopts or maintains measures with respect to the non-Party or a person of the non-
Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of this Ch apter were accorded to the enterprise.  
2. A Party may deny the benefits of this Chapter to a service supplier of the other Party if the 
service is being supplied by an enterprise that h as no substantial business activities in the territory of 
the other Party and the enterprise is owned or cont rolled by persons of a non-Party or of the denying 
Party.  
Article 11.12  
Implementation 
 
 The Parties shall meet annually, and as otherw ise agreed, on any issues of mutual interest 
arising from the implementation of this Chapter.   
Article 11.13 
 
Definitions 
 
 
 For purposes of this Chapter:   cross-border trade in services or cross-border supply of services  means the supply of a 
service:  
 WT/REG208/1 
Page 118  
 
(a) from the territory of one Party into th e territory of the other Party;   
(b) in the territory of one Party by a person of th at Party to a person of the other Party; or  
(c) by a national of a Party in the territory of the other Party;  
but does not include the supply of a service in the territory of a Party by a covered investment;  
 
 enterprise  means an enterprise as defined in Article 1.3 (Definitions), and a branch of an 
enterprise;  
 
 enterprise of a Party  means an enterprise constituted or organized under the law of a Party, 
and a branch located in the territory of a Pa rty and carrying out business activities there;  
  professional services  means services, the supply of which requires specialized 
post-secondary education, or equivale nt training or experience, and for which the right to practice is 
granted or restricted by a Party, but does not in clude services supplied by trades-persons or vessel and 
aircraft crew members;  
  service supplied in the exercise of governmental authority  means any service that is 
supplied neither on a commercial basis, nor in co mpetition with one or more service suppliers;  
 
 service supplier of a Party  means a person of that Party that seeks to supply or supplies a 
service;
5 and  
  specialty air services  means any non-transportation air servi ces, such as aerial fire-fighting, 
sightseeing, spraying, surveying, mapping, photog raphy, parachute jumping, glider towing, and 
helicopter-lift for logging and constr uction, and other airborne agricultural, industrial, and inspection 
services.  
  
ANNEX 11-A  
 
Express Delivery Services
 
1. The Parties affirm that measures affecting express delivery services are subject to the 
provisions of this Agreement.  
2. For purposes of this Agreement, express deliver y services means the collection, transport, and 
delivery of documents, printed matter, parcels, goo ds, or other items on an expedited basis, while 
tracking and maintaining control of these items th roughout the supply of the service. Express delivery 
services do not include (1) air transport services, (2 ) services supplied in the exercise of governmental 
authority, or (3) maritime transport services.  
3. The Parties express their desire to maintain at  least the level of market openness for express 
delivery services they provide on the date of signature of this Agreement.  
4. Morocco shall not adopt any new restriction on the supply of express delivery services after 
the date of signature of this Agreement.  
                                                      
5 The Parties understand that for the purposes of Articles 11.2 and 11.3, “service suppliers” has the 
same meaning as “services and service supplie rs” as used in Article s II and XVII of GATS .  WT/REG208/1 
 Page 119 
 
 
5. International express delivery services, and domestic express delivery services for letters and 
other materials in excess of one kilogram, are not within the scope of Morocco’s postal monopoly.  Morocco confirms that it does not intend to direct revenues from its postal monopoly to benefit these services.  
ANNEX 11-B  
 
Professional Services
 
Development Of Professional Standards 
1. The Parties shall encourage the relevant bodi es in their respective territories to develop 
mutually acceptable standards and criteria for licensing and certification of professional service 
suppliers and to provide recommendations on mu tual recognition to the Joint Committee.  
2. The standards and criteria referred to in paragr aph 1 may be developed with regard to the 
following matters:  
(a) education – accreditation of schools or academic programs;  
(b) examinations – qualifying examinations for licensing;  
(c) experience – length and nature of experience required for licensing;  
(d) conduct and ethics – standards of professional conduct and the nature of disciplinary 
action for non-conformity with those standards;  
(e) professional development and re-certificati on – continuing educ ation and ongoing 
requirements to maintain professional certification;  
(f) scope of practice – extent of, or limitations on, permissible activities;  
(g) local knowledge – requirements for knowle dge of such matters as local laws, 
regulations, language, geogra phy, or climate; and  
(h) consumer protection – including alternativ es to residency requirements, such as 
bonding, professional liability insurance, and c lient restitution funds, to provide for 
the protection of consumers.  
3. On receipt of a recommendation referred to in paragraph 1, the Joint Committee shall review 
the recommendation within a reasonable period to de termine whether it is consistent with this 
Agreement.  Based on the Joint Committee’s revi ew, each Party shall encourage its respective 
competent authorities, where appropriate, to implem ent the recommendation within a mutually agreed 
time.  
Temporary Licensing  
 
4. Where the Parties agree, each Party shall enc ourage the relevant bodies in its territory to 
develop procedures for the temporary licensing of pr ofessional service suppliers of the other Party.  
Review  
5. At least once every three years, or annually at either Party’s request, the Joint Committee 
shall review the implementation of this Annex.  WT/REG208/1 
Page 120  
 
CHAPTER TWELVE:  FINANCIAL SERVICES 
 
Article 12.1 
Scope And Coverage 
 
1. This Chapter applies to measures adopted or maintained by a Party relating to:  
(a) financial institutions of the other Party;  
(b) investors of the other Party, and investments of such investors, in financial 
institutions in the Party’s territory; and  
(c) cross-border trade in financial services.  
2. Chapters Ten (Investment) and Eleven (Cross-Bo rder Trade in Services) apply to measures 
described in paragraph 1 only to the extent that such Chapters or Articles of such Chapters are 
incorporated into this Chapter.  
(a) Articles 10.6 (Expropriation and Compensation) , 10.7 (Transfers), 10.10 (Investment 
and Environment), 10.11 (Denial of Bene fits), 10.13 (Special Formalities and 
Information Requirements), and 11.11 (Denial of Benefits) are hereby incorporated 
into and made a part of this Chapter.  
(b) Section B of Chapter Ten (Investor-State Di spute Settlement) is hereby incorporated 
into and made a part of this Chapter so lely for claims that a Party has breached 
Articles 10.6 (Expropriation and Compensation) , 10.7 (Transfers), 10.11 (Denial of 
Benefits), or 10.13 (Special Formaliti es and Information Requirements), as 
incorporated into this Chapter.  
(c) Article 11.10 (Transfers and Pa yments) is incorporated into and made a part of this 
Chapter to the extent that cross-border trade in financial services is subject to 
obligations pursuant to Article 12.5.  
3. This Chapter does not apply to measures adopt ed or maintained by a Party relating to:  
(a) activities or services forming part of a public retirement plan or statutory system of 
social security; or  
(b) activities or services conducted for the account  or with the guarantee or using the 
financial resources of the Party, including its public entities,  
except that this Chapter shall apply if a Party allo ws any of the activities or services referred to in 
subparagraphs (a) or (b) to be conducted by its financial instituti ons in competition with a public 
entity or a financial institution.  
Article 12.2  
National Treatment  
1. Each Party shall accord to investors of the ot her Party treatment no less favorable than that it 
accords to its own investors, in like circumstances,  with respect to the establishment, acquisition, 
expansion, management, conduct, operation, and sale or other disposition of financial institutions and 
investments in financial institutions in its territory.   WT/REG208/1 
 Page 121 
 
 
2. Each Party shall accord to financial institutions  of the other Party and to investments of 
investors of the other Party in financial institutions  treatment no less favorable than that it accords to 
its own financial institutions, and to  investments of its own investors in financial institutions, in like 
circumstances, with respect to the establishment, acquisition, expansion, management, conduct, 
operation, and sale or other disposition of financial institutions and investments.  
3. For purposes of the national treatment obligations  in Article 12.5.1, a Party shall accord to 
cross-border financial service suppliers of the other Party treatment no less favorable than that it 
accords to its own financial service suppliers, in like circumstances, with respect to the supply of the 
relevant service.  
Article 12.3  
Most-Favored-Nation Treatment  
1. Each Party shall accord to investors of the other Party, financial instituti ons of the other Party, 
investments of investors in financial institutions, and cross-border financial service suppliers of the 
other Party treatment no less favorable than that it  accords to the investors, financial institutions, 
investments of investors in financial institutions, and cross-border financial service suppliers of a non-
Party, in like circumstances.  
2. A Party may recognize prudential measures of a non-Party in the application of measures 
covered by this Chapter.  Such recognition may be:  
(a) accorded unilaterally;  
(b) achieved through harmonization or other means; or  
(c) based upon an agreement or arrangement with the non-Party.  
3. A Party according recognition of prudential measures under paragraph 2 shall provide 
adequate opportunity to the other Party to demonstr ate that circumstances exist in which there are or 
would be equivalent regulation,  oversight, implementation of re gulation, and, if appropriate, 
procedures concerning the sharing of information between the Parties.  
4. Where a Party accords recognition of pruden tial measures under paragraph 2(c) and the 
circumstances set out in paragraph 3 exist, the Pa rty shall provide adequate opportunity to the other 
Party to negotiate accession to the agreement or a rrangement, or to negotiate a comparable agreement 
or arrangement.  
Article 12.4  
Market Access For Financial Institutions  
 Neither Party may adopt or maintain, with resp ect to financial institutions of the other Party 
or investors of the other Party in such institutions, either on the basis of a regional subdivision or on the basis of its entire territory, measures that:   
(a) impose limitations on  
(i) the number of financial institutions whether in the form of numerical quotas, 
monopolies, exclusive service suppliers, or the requirement of an economic 
needs test;  WT/REG208/1 
Page 122  
 
(ii) the total value of financial service tr ansactions or assets in the form of 
numerical quotas or the requirement of an economic needs test;  
(iii) the total number of financial service operations or on the total quantity of 
financial services output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test;
1 or  
(iv) the total number of natural persons that  may be employed in a particular 
financial service sector or that a financ ial institution may employ and who are 
necessary for, and directly related to, the supply of a specific financial service 
in the form of numerical quotas or the requirement of an economic needs test; 
or  
(b) restrict or require specific types of legal entity or joint venture through which a 
financial institution may supply a service.  
Article 12.5 
Cross-Border Trade  
1. Each Party shall permit, under terms and conditions that accord national treatment, 
cross-border financial service suppliers of the other Party to supply the services specified in Annex 12-A.  
2. Each Party shall permit persons located in its te rritory, and its nationals wherever located, to 
purchase financial services from cross-border financial service suppliers of the other Party located in 
the territory of the other Party.  This obligation does not require a Party to permit such suppliers to do 
business or solicit in its territory.  Each Party may define “doing business” and “solicitation” for 
purposes of this obligation, provided that those defi nitions are not inconsistent with paragraph 1.  
3. Without prejudice to other means of prudential regulation of cross-border trade in financial 
services, a Party may require the registration of cro ss-border financial service suppliers of the other 
Party and of financial instruments.   
Article 12.6 
New Financial Services
2 
 
1. Each Party shall permit a financial institution of the other Party, on request or notification to 
the relevant regulator, where require d, to supply any new financial ser vice that the Party would permit 
its own financial institutions, in like circumstances,  to supply under its domestic law, provided that 
the introduction of the new financial service does not require the Party to adopt a new law or modify 
an existing law.  
2. A Party may determine the institutional and ju ridical form through which the new financial 
service may be supplied and may require authoriza tion for the supply of the service. Where a Party 
would permit the new financial service and author ization is required, the decision shall be made 
within a reasonable time and authorization ma y only be refused for prudential reasons.  
                                                      
1 This clause does not cover measures of a Party that limit inputs for the supply of financial services.   
2 The Parties understand that nothing in Article 12. 6 prevents a financial institution of a Party from 
applying to the other Party to consider authorizing the supply of a financial service that is supplied in neither 
Party’s territory.  Such application shall be subject to th e law of the Party to which the application is made and, 
for greater certainty, shall not be subject to the obligations of Article 12.6.  WT/REG208/1 
 Page 123 
 
 
Article 12.7  
Treatment Of Certain Information  
 Article 21.5 (Disclosure of Information) does not  apply to this Chapter.  Nothing in this 
Chapter shall be construed to require a Party to furnish or allow access to:   
(a) information related to the financial affair s and accounts of individual customers of 
financial institutions or cross-borde r financial service suppliers; or  
(b) any confidential information the disclosur e of which would impede law enforcement 
or otherwise be contrary to the public in terest or prejudice legitimate commercial 
interests of particular enterprises.  
Article 12.8 
Senior Management And Boards Of Directors 
 
1. Neither Party may require financial institutions of  the other Party to engage individuals of any 
particular nationality as senior manage rial or other essential personnel.  
2. Neither Party may require that more than a minor ity of the board of directors of a financial 
institution of the other Party be composed of nationals  of the Party, persons residing in the territory of 
the Party, or a combination thereof.  
Article 12.9 
Non-Conforming Measures  
1. Articles 12.2 through 12.5 and 12.8 do not apply to:  
(a) any existing non-conforming measure that is maintained by a Party at  
(i) the central level of government, as set out by that Party in Section A of its 
Schedule to Annex III;  
(ii) a regional level of government, as set out by that Party in Section A of its 
Schedule to Annex III; or  
(iii)  a local level of government;  
 
(b) the continuation or prompt renewal of an y non-conforming measure referred to in 
subparagraph (a); or  
(c) an amendment to any non-conforming measure referred to in subparagraph (a) to the 
extent that the amendment does not decr ease the conformity of the measure, as it 
existed immediately before the amendment, with Articles 12.2, 12.3, 12.4, or 12.8.  
2. Articles 12.2 through 12.5 and 12.8 do not apply to any measure that a Party adopts or 
maintains with respect to sectors, subsectors, or activities set out in Section B of its Schedule to 
Annex III.  
3. Annex 12-B sets out certain specific commitments by each Party.  WT/REG208/1 
Page 124  
 
4. A non-conforming measure set out in a Party’s Schedule to Annex I or II as a measure to 
which Article 10.3 (National Treatment), 10.4 (M ost-Favored-Nation Treat ment), 11.2 (National 
Treatment), 11.3 (Most-Favored-Nation Treatment), or 11.4 (Market Access) does not apply shall be 
treated as a non-conforming measure to which Article 12.2, Article 12.3, or Article 12.4, as the case may be, does not apply, to the extent that the m easure, sector, sub-sector, or activity set out in the 
Schedule of non-conforming measures is covered by this Chapter.  
Article 12.10 
Exceptions 
 
1. Notwithstanding any other provision of this Chap ter or Chapters Ten (Investment), Thirteen 
(Telecommunications), or Fourteen (Electronic Commerce), including specifically Article 13.16 (Telecommunications, Relationship to Other Chapters ), and Article 11.1 (Scope and Coverage) with 
respect to the supply of financial services in the te rritory of a Party by a covered investment, neither 
Party shall be prevented from adopting or maintain ing measures for prudential reasons,3 including for 
the protection of investors, depositors, policy holders, or persons to whom a fiduciary duty is owed by 
a financial institution or cross-border financial service  supplier, or to ensure the integrity and stability 
of the financial system. Where such measures do not  conform with the provisions of this Agreement 
referred to in this paragraph, they shall not be used as a means of avoiding the Party’s commitments 
or obligations under such provisions.  
2. Nothing in this Chapter or Chapters Ten (I nvestment), Thirteen (Telecommunications), or 
Fourteen (Electronic Commerce), including specifically Article 13.16 (Telecommunications, Relationship to Other Chapters), and Article 11.1 (S cope and Coverage) with respect to the supply of 
financial services in the territory of a Party by a covered investment applies to non-discriminatory 
measures of general application take n by any public entity in pursuit of monetary and related credit 
policies or exchange rate policies. This paragr aph shall not affect a Party’s obligations under 
Article 10.8 (Performance Requirements) with respect to measures covered by Chapter Ten 
(Investment), or under Article 10.7 (Transfers) or Article 11.10 (Transfers and Payments).  
3. Notwithstanding Articles 10.7 (Transfers) a nd 11.10 (Transfers and Payments), as 
incorporated into this Chapter, a Party may prev ent or limit transfers by a financial institution or 
cross-border financial service supplier to, or for the bene fit of, an affiliate of or person related to such 
institution or supplier, through the equitable, non- discriminatory, and good faith application of 
measures relating to maintenance of the safety, soundness, integrity, or financial responsibility of financial institutions or cross-bor der financial service suppliers. This paragraph does not prejudice any 
other provision of this Agreement that pe rmits a Party to restrict transfers.  
4. For greater certainty, nothing in this Chapter shall be construed to prevent the adoption or 
enforcement by a Party of measures necessary to secu re compliance with laws or regulations that are 
not inconsistent with this Chapter, including those relating to the prevention of deceptive and 
fraudulent practices or to deal with the effects of a default on financial services  contracts, subject to 
the requirement that such measures are not applie d in a manner that would constitute a means of 
arbitrary or unjustifiable discrimination between  countries where like conditions prevail, or a 
disguised restriction on investment in financial in stitutions or cross-border trade in financial services, 
as covered by this Chapter.  
 
                                                     
 
3 It is understood that the term “prudential reasons”  includes the maintenance of the safety, soundness, 
integrity, or financial responsibility of individual financial institutions or cross-border financial service 
suppliers.    WT/REG208/1 
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Article 12.11 
Transparency  
1. The Parties recognize that tran sparent regulations and policies governing the activities of 
financial institutions and cross-bor der financial service suppliers are important in facilitating access of 
foreign financial institutions and foreign cross- border financial service suppliers to, and their 
operations in, each other’s market.  Each Party commits to promote regulatory transparency in 
financial services.   
2. In lieu of Article 18.1.2 (Publication), each Party shall, to the extent practicable,  
(a) publish in advance any regulations of gene ral application relating to the subject 
matter of this Chapter that it proposes to adopt; and  
(b) provide interested persons and the other Party a reasonable opportunity to comment 
on such proposed regulations.  
3. At the time it adopts final regulations of genera l application relating to the subject matter of 
this Chapter, each Party should, to the extent practicable, address in writing substantive comments 
received from interested persons with respect to the proposed regulations.  
4. To the extent practicable, each Party should allow reasonable time between publication of 
such final regulations and their effective date.  
5. Each Party shall ensure that the rules of gene ral application adopted or maintained by self-
regulatory organizations of the Party are promptly published or otherwise made available in such a 
manner as to enable interested persons  to become acquainted with them.  
6. Each Party shall maintain or establish appropr iate mechanisms for responding to inquiries 
from interested persons regarding me asures of general application relati ng to the subject matter of this 
Chapter.  
7. Each Party’s regulatory authorities shall make available to interested persons the 
requirements, including any documentation required,  for completing applications relating to the 
supply of financial services.  
8. On the request of an applicant, a Party’s regulat ory authority shall inform the applicant of the 
status of its application.  If the authority requ ires additional information from the applicant, it shall 
notify the applicant without undue delay.  
9. A Party’s regulatory authority shall make an administrative decision on a completed 
application of an investor in a financial institution,  a financial institution, or a cross-border financial 
service supplier of the other Party relating to the supply of a financial service within 120 days, and 
shall promptly notify the applicant of the decision.  An application shall not be considered complete 
until all relevant hearings are held and all neces sary information is received.  Where it is not 
practicable for a decision to be made within 120 days, the regulatory authority shall notify the 
applicant without undue delay an d shall endeavor to make the decision within a reasonable time 
thereafter.  
 
 WT/REG208/1 
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Article 12.12 
Self-Regulatory Organizations 
 
 Where a Party requires a financial institution or a cross-border financial service supplier of 
the other Party to be a member of, participate in , or have access to, a self-regulatory organization to 
provide a financial service in or into its territory, the Party shall ensure observance of the obligations 
of Articles 12.2 and 12.3 by such self-regulatory organization.   
Article 12.13  
Payment And Clearing Systems 
 
 Under terms and conditions that accord national treatment, each Party shall grant financial 
institutions of the other Party access to payment and clearing systems operated by public entities, and 
to official funding and refinancing facilities availabl e in the normal course of ordinary business. This 
paragraph is not intended to confer access to the Party’s lender of last resort facilities.  
 
Article 12.14 
Domestic Regulation  
 Each Party shall ensure that all measures of general application to wh ich this Chapter applies 
are administered in a reasonable, objective, and impartial manner.   
 
Article 12.15 
Expedited Availability Of Insurance Services  
 The Parties recognize the importance of mainta ining and developing regulatory procedures to 
expedite the offering of insurance services by licensed suppliers.  
 
Article 12.16 
Consultations  
1. A Party may request consultations with the other Party regarding any matter arising under this 
Agreement that affects financial services.  The othe r Party shall give sympathetic consideration to the 
request.  The Parties shall report the results of th eir consultations to the Subcommittee on Financial 
Services.  
2. Consultations under this Article shall include  officials of the authorities specified in 
Annex 12-D.  
3. Nothing in this Article shall be construed to  require regulatory authorities participating in 
consultations under paragraph 1 to disclose informati on or take any action that would interfere with 
specific regulatory, supervisory, administrative, or enforcement matters.   
4. Nothing in this Article shall be construed to re quire a Party to derogate  from its relevant law 
regarding sharing of information among financial re gulators or the requirements of an agreement or 
arrangement between financial authorities of the Parties.  
  WT/REG208/1 
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Article 12.17 
Dispute Settlement  
1. Chapter Twenty (Dispute Settlement) applies as modi fied by this Article to the settlement of 
disputes arising under this Chapter.  
2. When a Party claims that a dispute arises under this Chapter, Article 20.7 (Establishment of 
Panel) shall apply, except that, unless the Parties agree otherwise, the panel shall be composed 
entirely of individuals meeting the qualifications in paragraph 3.  
3. Financial services panelists shall:  
(a) have expertise or experience in financial services law or practice, which may include 
the regulation of financial institutions;  
(b) be chosen strictly on the basis of objectiv ity, reliability, and sound judgment; and  
(c) meet the qualifications set out in Article 20. 7.5(b) and (c) (Establishment of Panel).  
4. Notwithstanding Article 20.11 (Non-Implementati on), where a panel finds a measure to be 
inconsistent with this Agreement a nd the measure under dispute affects:  
(a) only the financial services sector, the complaining Party may suspend benefits only in 
the financial services sector;  
(b) the financial services sector and any other sector, the complaining Party may suspend 
benefits in the financial services sector that have an effect equivalent to the effect of 
the measure in the Party’s financial services sector; or  
(c) only a sector other than the financial serv ices sector, the complaining Party may not 
suspend benefits in the financial services sector.  
Article 12.18 
Investor-State Dispute Settlement In Financial Services  
1. Where an investor of a Party submits a claim under Section B of Chapter Ten (Investor-State 
Dispute Settlement) against the other Party and th e respondent invokes Article 12.10 (Exceptions), on 
request of the respondent, the tribunal shall re fer the matter in writing to the Subcommittee on 
Financial Services for a decision.  The tribunal may not proceed pending receipt of a decision or report under this Article.  
2. In a referral pursuant to paragraph 1, the Subc ommittee on Financial Services shall decide the 
issue of whether and to what extent Article 12.10 (E xceptions) is a valid defense to the claim of the 
investor.  The Subcommittee shall transmit a copy of  its decision to the tribunal and to the Joint 
Committee.  The decision shall be binding on the tribunal.  
3. Where the Subcommittee on Financial Services ha s not decided the issue within 60 days of 
the receipt of the referral under para graph 1, the respondent or the Party of the claimant may refer the 
issue to a panel under Chapter Twenty (Dispute Se ttlement).  The panel shall be constituted in 
accordance with Article 12.17.  The panel shall tran smit its final report to the Subcommittee and to 
the tribunal.  The report shall be binding on the tribunal.  WT/REG208/1 
Page 128  
 
4. Where the issue has not been referred to a pane l pursuant to paragraph 3 within 10 days of the 
expiration of the 60-day period referred to in para graph 3, the tribunal may proceed to decide the 
matter.  
5. For purposes of this Article, tribunal  means a tribunal established pursuant to Section B of 
Chapter Ten (Investor-State Dispute Settlement).  
 
Article 12.19  
 
Definitions 
 
 
 For purposes of this Chapter:  
  cross-border financial service supplier of a Party  means a person of a Party that is engaged 
in the business of supplying a financial service with in the territory of the Party and that seeks to 
supply or supplies a financial service through the cross-border supply of such services;  
 
 cross-border trade in financial services or cross-border supply of financial services  
means the supply of a financial service:  
 
(a) from the territory of one Party into the territory of the other Party,  
(b) in the territory of one Party by a person of th at Party to a person of the other Party, or  
(c) by a national of one Party in the territory of the other Party,   
but does not include the supply of a financial service in  the territory of a Party by an investment in 
that territory;  
 
 financial institution  means any financial intermediary or other enterprise that is authorized to 
do business and regulated or supervised as a financia l institution under the law of the Party in whose 
territory it is located;  
 
 financial institution of the other Party  means a financial institution, including a branch, 
located in the territory of a Party that is controlled by persons of the other Party;  
 
 financial service  means any service of a financial natu re.  Financial services include all 
insurance and insurance-related services, and a ll banking and other financial services (excluding 
insurance), as well as services incidental or auxilia ry to a service of a financial nature. Financial 
services include the following activities:  
 
Insurance and insurance-related services  
 
(a) Direct insurance (including co-insurance):  
(i) life,  
(ii) non-life;  
(b) Reinsurance and retrocession;  
(c) Insurance intermediation, such as brokerage and agency; and   WT/REG208/1 
 Page 129 
 
 
(d) Services auxiliary to insurance, such as consultancy, actuarial, risk assessment, and 
claim settlement services.  
Banking and other financial services (excluding insurance)  
(e) Acceptance of deposits and other repayable funds from the public;  
(f) Lending of all types, including consumer credit, mortgage credit, factoring, and 
financing of commercial transactions;  
(g) Financial leasing;  
(h) All payment and money transmission servi ces, including credit, charge and debit 
cards, travelers checks, and bankers drafts;  
(i)  Guarantees and commitments;  
(j)  Trading for own account or for account of  customers, whether on an exchange, in an 
over-the-counter market or otherwise, the following:  
(i) money market instruments (including ch ecks, bills, certificates of deposits);  
(ii) foreign exchange;  
(iii) derivative products including, but no t limited to, futures and options;  
(iv) exchange rate and interest rate instru ments, including products such as swaps, 
forward rate agreements;  
(v) transferable securities;  
(vi) other negotiable instruments and financial assets, including bullion;  
(k) Participation in issues of all kinds of securities, including underwriting and placement 
as agent (whether publicly or privately) and provision of services related to such 
issues;  
(l)  Money broking;  (m) Asset management, such as cash or portfolio management, all forms of collective 
investment management, pension fund mana gement, custodial, depository, and trust 
services;  
(n)  Settlement and clearing services for fina ncial assets, including securities, derivative 
products, and other negotiable instruments;  
(o)  Provision and transfer of financial info rmation, and financial data processing and 
related software by suppliers of other financial services;  
(p)  Advisory, intermediation, and other aux iliary financial services on all the activities 
listed in subparagraphs (e) through (o), including credit reference and analysis, 
investment and portfolio research and advi ce, advice on acquisitions and on corporate 
restructuring and strategy;  WT/REG208/1 
Page 130  
 
 financial service supplier of a Party  means a person of a Party that is engaged in the 
business of supplying a financial service within the territory of that Party;  
 
 investment means “investment” as defined in Article 10.27 (Definitions), except that, with 
respect to “loans” and  “debt instrume nts” referred to in that Article:  
 
(a) a loan to or debt instrument issued by a financial institution is an investment only 
where it is treated as regulatory capital by the Party in whose territory the financial 
institution is located; and  
(b) a loan granted by or debt instrument owned by a financial institution, other than a loan 
to or debt instrument of a financial institu tion referred to in subpara graph (a), is not an 
investment;  
For greater certainty, a loan granted by or debt instrument owned by a cross-border financial service 
supplier, other than a loan to or debt instrument i ssued by a financial institution, is an investment if 
such loan or debt instrument meets the criteria for investments set out in Article 10.27 (Definitions);  
 
 investor of a Party  means a Party or state enterprise thereof, or a person of a Party, that 
concretely attempts to make, is making, or has made an investment in the territory of the other Party; 
provided, however, that a natural person who is a dua l national shall be deemed  to be exclusively a 
national of the State of his or her dominant and effective nationality;   
 
 new financial service  means a financial service not supplied in the Party’s territory that is 
supplied within the territory of the other Party, a nd includes any new form of delivery of a financial 
service or the sale of a financial product that is not sold in the Party’s territory;  
 
 person of a Party  means “person of a Party” as defined in Article 1.3 (Definitions) and, for 
greater certainty, does not include a branch of an enterprise of a non-Party;  
 
 public entity  means a central bank or monetary aut hority of a Party, or any financial 
institution owned or controlled by a Party; and  
 
 self-regulatory organization  means any non-governmental bod y, including any securities or 
futures exchange or market, clearing agency, or ot her organization or association, that exercises its 
own or delegated regulatory or s upervisory authority over financial service suppliers or financial 
institutions.  
 
 
ANNEX 12-A  
 
Cross-Border Trade
 
Insurance and insurance-related services  
 
1. For the United States, Article 12.5.1 applies to the cross-border supply of or trade in financial 
services as defined in subparagraph (a) of the defin ition of cross-border supply of financial services in 
Article 12.19 with respect to:  
(a) insurance of risks relating to:   
  WT/REG208/1 
 Page 131 
 
 
(i) maritime shipping and commercial av iation and space launching and freight 
(including satellites), with such insurance to cover any or all of the following: 
the goods being transported, the vehicle transporting the goods, and any liability arising therefrom; and   
(ii) goods in international transit;  
(b) reinsurance and retrocession, services aux iliary to insurance as referred to in 
subparagraph (d) of the definition of fina ncial service, and insurance intermediation 
such as brokerage and agency as referred to in subparagraph (c) of the definition of 
financial service.   
2. For the United States, Article 12.5.1 applies to the cross-border supply of or trade in financial 
services as defined in paragraph (c) of the definitio n of cross-border supply of financial services in 
Article 12.19 with respect to insurance services.  
3. For Morocco, Article 12.5.1 applies to the cross- border supply of or trade in financial services 
as defined in subparagraph (a) of the definition of cross-border supply of financial services in 
Article 12.19:  
(a) with respect to insurance of risks relating to:  
(i) maritime shipping and commercial av iation and space launching and freight 
(including satellites), with such insurance to cover any or all of the following: 
the goods being transported, the vehicle transporting the goods, and any liability arising therefrom;  
(ii) goods in international transit; and  
(iii) brokerage of insurance described in clauses (i) and (ii);   
no later than two years after the date of entry into force of this Agreement; and  
(b) with respect to reinsurance and retrocession and brokerage of reinsurance, upon entry 
into force of this Agreement.  
4. For Morocco, Article 12.5.1 applies to the cross- border supply of or trade in financial services 
as defined in paragraph (c) of the definition of cross-border supply of financial services in 
Article 12.19 with respect to insurance services desc ribed in paragraph 3 on the dates indicated in 
paragraph 3.  
Banking and other financial services (excluding insurance)  
 
5. For the United States, Article 12.5.1 applies with respect to the provision and transfer of 
financial information and financ ial data processing and related software as referred to in 
subparagraph (o) of the definiti on of financial service and adviso ry and other auxiliary services, 
excluding intermediation, relating to banking an d other financial services as referred to in 
subparagraph (p) of the defin ition of financial service.  
6. For Morocco, Article 12.5.1 applies with respect to the provision and transfer of financial 
information and financial data pr ocessing and related software as re ferred to in subparagraph (o) of 
the definition of financial service and advisory an d other auxiliary services, excluding intermediation 
and advice on acquisitions and on corporate restruct uring and strategy, rela ting to banking and other 
financial services as referred to in subparagra ph (p) of the definition of financial service.  WT/REG208/1 
Page 132  
 
ANNEX 12-B  
 
Specific Commitments
 
United States – Expedited Availability of Insurance  
 
 Recognizing the principles of federalism under the U.S. Constitution, the history of state 
regulation of insurance in the United States, and the McCarran-Ferguson Act, the United States 
welcomes the efforts of the National Association of Insurance Commissioners (“NAIC”) relating to 
the availability of insurance services as expressed in the NAIC’s “Stateme nt of Intent:  The Future of 
Insurance Regulation,” including the initiatives on speed-to-market intentions and regulatory re-
engineering (under Part II of the Statement of Intent).  
 Morocco – Expedited Availability of Insurance  
 
 Morocco reaffirms the transparency, rapidity , and efficiency of its procedures regarding 
introduction and distribution of products issued by in surance companies in its territory.  In particular, 
Morocco deems any product to be approved unless it is disapproved within 30 days. Morocco imposes 
no limitations on the number or frequency of product introductions. As part of the work program of 
the Subcommittee on Financial Services, Morocco will be open to further discussions of the need for 
continuing review of products other than those sold to individuals (including life insurance), small- or 
medium-sized businesses, or compulsory insurance.  
 Morocco – Future Consultation and Implementing Actions Regarding Non-Insurance Financial 
Services  
 
 To follow up on discussions that took place dur ing the negotiation of this Agreement with 
respect to non-insurance financial services, Mo rocco and the United States agree as follows:  
 
1. Morocco shall begin consultations , in the context of the Subc ommittee on Financial Services, 
and shall consider liberalizing changes w ith respect to the following two areas:  
(a)  Morocco’s current requirement that ope rations of banks incorporated abroad and 
functioning as branches in Morocco be limited by the amount of capital effectively allocated by those institutions to their operations in Morocco ( dotation en capital ). 
Morocco and the United States agree that any liberalizing change to this requirement 
would apply to new bank branches establishe d after the change becomes effective and 
would not apply in the case of the conversion to a branch by a foreign bank operating 
through a subsidiary in Morocco, where that  subsidiary is systemically important.
4   
Among possible approaches to liberalizing this requirement, the following two are noted:  
 
(i) allowing a foreign branch bank to opera te based on the capital of its parent 
company through a multiplying coefficient of the branch’s paid-in capital in 
Morocco, and  
 
                                                     
 
4 For example, a bank with assets comprising one percent or less of the total assets of the Moroccan 
banking sector would not be considered systemically important.  WT/REG208/1 
 Page 133 
 
 
(ii) allowing a foreign branch bank to opera te based on the capital of its parent 
company, up to an amount that would be limited to the average of total capital of the banks operating in Morocco , as calculated at the end of the 
prior year.   
(b)  Morocco’s current prohibition on the holding of non-Moroccan securities by 
Moroccan mutual funds.  Mo rocco and the United States agree that any such change 
to this prohibition would be implemente d at a pace to be determined.  Among 
possible approaches to liberalizing this prohibition, the following two examples are 
noted:  
 
(i) Morocco considers that a possible first step would be to permit five percent 
of the total amount of securities to be  invested in non-Moroccan securities; 
and  
(ii) the United States considers that a possible first step would be to permit 25 
percent of the total amount of securities to be invested in non-Moroccan securities.  
2. Morocco agrees that it will decide, by no later th an three years from the date of entry into 
force of this Agreement, to take action to implem ent liberalizing changes with respect to one of the 
above two areas.  
 
ANNEX 12-C  
 
Implementation Of Article 12.11 
 
 The Parties recognize that Moro cco’s implementation of the oblig ations of paragraphs 2, 3, 
and 4 of Article 12.11 may require changes to its  process for issuing regulations.  Morocco shall 
implement the obligations of paragr aphs 2, 3, and 4 of Article 12.11 no later than two years after the 
date of entry into force of this Agreement.  Morocco shall implement Ar ticle 12.11.2 within its 
constitutional framework.  
 
 
ANNEX 12-D  
 
Authorities Responsible For Financial Services  
 The authority of each Party responsible for financial services is:  
 
(a) for Morocco, the Ministry of Finance; and  
(b) for the United States, the Department of the Treasury for banking and other financial 
services and the Office of the United States Trade Representative, in coordination with the Department of Commerce and ot her agencies, for insurance services.  
 
  
 
  WT/REG208/1 
Page 134  
 
CHAPTER THIRTEEN:  TELECOMMUNICATIONS  
 
Article 13.1  
Scope And Coverage 
 
1. This Chapter applies to:  
(a) measures relating to access to and use of  public telecommunications services;  
(b) measures relating to obligations of suppliers of public telecommunications services, 
including major suppliers;  
(c) other measures relating to public telecomm unications networks or services; and  
(d) measures relating to the provision of value-added services.   
2. Except to ensure that enterprises operating br oadcast stations and cable systems have 
continued access to and use of public telecommunicati ons services, this Chapter does not apply to any 
measure relating to broadcast or cable distri bution of radio or television programming.  
3. Nothing in this Chapter shall be construed to:  
(a) require a Party, or require a Party to compel any enterprise, to establish, construct, 
acquire, lease, operate, or provide tel ecommunications networks or services not 
offered to the public generally;  
(b) require a Party to compel any enterprise excl usively engaged in the broadcast or cable 
distribution of radio or television programm ing to make available its broadcast or 
cable facilities as a public telecommunications network; or  
(c) prevent a Party from adopting or enforcing new or existing telecommunications laws 
or regulations that are not inconsistent with this Chapter.  
Article 13.2 
Access To And Use Of Public Telecommunications Services  
1. Each Party shall ensure that service suppliers of  the other Party have access to and use of any 
public telecommunications service, including leased ci rcuits, offered in its territory or across its 
borders, on reasonable and non-discriminatory terms and conditions, including as set out in 
paragraphs 2 through 6.  
2. Each Party shall ensure that service supp liers of the other Party are permitted to:1 
(a) purchase or lease and attach terminal or ot her equipment that interfaces with a public 
telecommunications network;  
(b) provide services to individual or multiple end-users over leased circuits;  
                                                      
1 For Morocco, subparagraphs (b) through (e) apply only  to service suppliers in its territory classified 
as suppliers of public telecommunications services or suppliers of value-added services.  WT/REG208/1 
 Page 135 
 
 
(c) connect owned2 or leased circuits with public telecommunications networks and 
services in the territory, or across the borders, of that Party or with circuits leased or 
owned by another service supplier;  
(d) perform switching, signaling, processi ng, and conversion functions; and  
(e) use operating protocols of their choice in the supply of any service, other than as 
necessary to ensure the availability of te lecommunications transport networks and 
services to the public generally .  
3. Each Party shall ensure that enterprises of th e other Party may use public telecommunications 
services for the movement of information in its territory or across its borders and for access to information contained in databases or otherwise stor ed in machine-readable form in the territory of 
either Party.  
4. Notwithstanding paragraph 3, a Party may take such measures as are necessary to:  
(a) ensure the security and confidentiality of messages, or   
(b) protect the privacy of non-public personal data of subscribers to public 
telecommunications services,  
provided that such measures are not applied in a ma nner that would constitute a means of arbitrary or 
unjustifiable discrimination or disguised restriction on trade in services.  
5. Each Party shall ensure that no condition is imposed on access to and use of public 
telecommunications transport networks and services, other than as necessary to:  
(a) safeguard the public service responsibilities of suppliers of public 
telecommunications transport networks and services, in particular their ability to 
make their networks or services ava ilable to the public generally;  
(b) protect the technical integrity of public telecommunications transport networks or 
services; or  
(c) ensure that service suppliers of the other Party do not supply services unless 
permitted pursuant to commitments in this Agreement.  
6. Provided that they satisfy the criteria set out in paragraph 5, conditions for access to and use 
of public telecommunications transpor t networks and services may include:  
(a) a requirement to use specified technical interfaces, including interface protocols, for 
interconnection with such networks and services;  
(b) requirements, where necessary, for th e inter-operability of such services;  
(c) type approval of terminal or other equi pment that interfaces with the network and 
technical requirements relating to the attachme nt of such equipment to such networks;  
(d) restrictions on interconnection of private leas ed or owned circuits with such networks 
or services or with circuits leased or owned by another service supplier; or  
                                                     
 
2 In Morocco, only a licensed telecommunications supplier is permitted to own circuits. WT/REG208/1 
Page 136  
 
(e) notification, registration, and licensing.  
Article 13.3  
 
Obligations Relating To Suppliers Of  Public Telecommunications Services
3 
 
 
Interconnection  
 
1.  (a)  Each Party shall ensure that supplie rs of public telecommunications services in its 
territory provide, directly or indirectly,4 interconnection with the suppliers of public 
telecommunications services of the other Party within the same territory.   
 
(b)  In carrying out subparagraph (a), each Pa rty shall ensure that suppliers of public 
telecommunications services in its territory take reasonable steps to protect the confidentiality of commercially sensitive info rmation of, or relating to, suppliers and 
end-users of public telecommunications services obtained as a result of 
interconnection arrangements and only use such information for the purpose of 
providing these services.   
 
Resale  
 
2.  Each Party shall ensure that suppliers of pub lic telecommunications services in its territory do 
not impose unreasonable or discriminatory conditions or limitations on the resale of these services.
5 
 
Number Portability  
 
3. Each Party shall ensure that suppliers of public telecommunications services in its territory 
provide number portability to the extent technically  feasible, and on reasonable terms and conditions.6 
 Dialing Parity  
 
4. Each Party shall ensure that suppliers of public telecommunications services in its territory 
provide dialing parity to supplie rs of public telecommunications services of the other Party.  
Article 13.4 
Additional Obligations Relating To Major Supp liers Of Public Telecommunications Services
7 
Treatment by Major Suppliers  
 
1. Each Party shall ensure that major suppliers  in its territory accord suppliers of public 
telecommunications services of the other Party treat ment no less favorable than such major suppliers 
accord to their subsidiaries, their affiliates, or non-affiliated service suppliers regarding:  
                                                      
3 This Article is subject to Annex 13-A. 
4 For Morocco, indirect interconnection means through another supplier of public telecommunications 
services in the same territory. 
5 For Morocco, resale is offered on a commercial basis, subject to commercially negotiated terms and 
conditions. 
6 Paragraph 3 shall apply to Morocco when it implements pending regulations. 
7 This Article is subject to Annex 13-B.  WT/REG208/1 
 Page 137 
 
 
(a) the availability, provisioning, rates, or quality of like public telecommunications 
services; and  
(b) the availability of technical inte rfaces necessary for interconnection.  
Competitive Safeguards  
 
2.  (a) Each Party shall maintain appropr iate measures for the purpose of preventing 
suppliers that, alone or together, are a majo r supplier in its territory from engaging in 
or continuing anticompetitive practices.  
  (b)  The anticompetitive practices referred to in subparagraph (a) include in particular:  
 
(i) engaging in anticompetitive cross-subsidization;  
(ii) using information obtained from compe titors with anti-competitive results; 
and  
(iii) not making available, on a timely basis, to suppliers of public 
telecommunications services, technical information about essential facilities 
and commercially relevant information th at are necessary for them to provide 
services.  
Unbundling of Network Elements  
 
3. Each Party shall provide its telecommunica tions regulatory body the authority to require 
major suppliers in its territory to offer access to network elements on an unbundled basis on terms and 
conditions, and at cost-oriented rates, that are r easonable, non-discriminatory, and transparent for the 
supply of public telecommunications services.
8 
 
Interconnection   
4. (a)  General Terms and Conditions  
 
Each Party shall ensure that major suppliers in its territory provide interconnection for the facilities and equipment of suppliers of public 
telecommunications services of the other Party:  
 
(i) at any technically feasible point in the major supplier’s network;  
(ii) under non-discriminatory terms, conditi ons (including technical standards 
and specifications), and rates;  
(iii) of a quality no less favorable than that  provided by such major suppliers for 
their own like services, for like services of non-affiliated service suppliers, or 
for their subsidiaries or other affiliates;  
(iv) in a timely fashion, on terms, conditions (including technical standards and 
specifications), and cost-oriented rates that are transparent, reasonable, having regard to economic feasibility, and sufficiently unbundled so that 
                                                     
 
8 Paragraph 3 shall apply to Morocco when it implements pending regulations. WT/REG208/1 
Page 138  
 
suppliers need not pay for network com ponents or facilities that they do not 
require for the service to be provided; and  
(v) on request, at points in addition to the network termination points offered to 
the majority of users, subject to charges that reflect the cost of construction of 
necessary additional facilities.  
(b)  Options for Interconnecting with Major Suppliers  
  Each Party shall ensure that suppliers of public telecommunications services of the 
other Party may interconnect their facilities and equipment with those of major suppliers in its territory pursuant to at least one of the following options:  
 
(i) a reference interconnection offer or a nother standard interconnection offer 
containing the rates, terms, and cond itions that the major suppliers offer 
generally to suppliers of public telecommunications services; or  
(ii) the terms and conditions of an existi ng interconnection agreement or through 
negotiation of a new interconnection agreement.  
(c) Public Availability of Interconnection Offers  
 Each Party shall require major suppliers in  its territory to make publicly available 
reference interconnection offers or other standard interconnection offers containing 
the rates, terms, and conditions that the majo r suppliers offer generally to suppliers of 
public telecommunications services.  
(d) Public Availability of Procedures for Interconnection Negotiations  
Each Party shall make publicly ava ilable the applicable procedures for 
interconnection negotiations with ma jor suppliers in its territory.  
(e) Public Availability of Interconnection Agre ements Concluded with Major Suppliers  
(i) Each Party shall require major suppliers in its territory to file all 
interconnection agreements to wh ich they are party with its 
telecommunications regulatory body.
9 
 
(ii) Each Party shall make publicly availabl e interconnection agreements in force 
between major suppliers in its terr itory and other suppliers of public 
telecommunications services in its territory.  
Provisioning and Pricing of Leased Circuits Services  
 
5.  (a)  Each Party shall ensure that major s uppliers in its territory provide enterprises of the 
other Party leased circuits services that are public telecommunications services on 
terms and conditions, and at rates, that are reasonable and non-discriminatory.   
 
(b)  In carrying out subparagraph (a), each Party shall provide its telecommunications 
regulatory body the authority to require majo r suppliers in its territory to offer leased 
                                                      
9 In the United States, this obligation may be satisfied by requiring filing with a state regulatory 
authority.   WT/REG208/1 
 Page 139 
 
 
circuits services that are public telecomm unications services to enterprises of the 
other Party at capacity-based, cost-oriented prices.  
 
Co-location  
 
6.  (a) Subject to subparagraphs (b) and (c), ea ch Party shall ensure that major suppliers in 
its territory provide to suppliers of public telecommunications services of the other Party physical co-location of equipment necessary for interconnection on terms and 
conditions, and at cost-oriented rates, th at are reasonable, non-discriminatory, and 
transparent.    
 
(b)  Where physical co-location is not practi cal for technical reasons or because of space 
limitations, each Party shall ensure that major suppliers in its territory  
 
(i) provide an alternative solution or  
(ii) facilitate virtual co-location,  
on terms and conditions, and at cost-ori ented rates, that are reasonable, non-
discriminatory, and transparent.   
(c)  Each Party may determine through it s law or regulations which premises are 
subject to subparagraphs (a) and (b).  
 
Access to Rights-of-Way  
 7.  Each Party shall endeavor to ensure that majo r suppliers in its territory afford access to their 
poles, ducts, conduits, and rights-of-way to supplie rs of public telecommunications services of the 
other Party on terms and conditions, and at rat es, that are reasonable and non-discriminatory.  
 
Article 13.5 
Submarine Cable Systems And Satellite Services 
 
1. Each Party shall ensure that any enterprise that it authorizes to operate a submarine cable 
system in its territory as a public teleco mmunications service accords reasonable and 
non-discriminatory treatment with r espect to access to that system (including landing facilities) to 
suppliers of public telecommunicati ons services of the other Party.   
2. Each Party shall ensure that an y enterprise that it authorizes to provide satellite services in its 
territory as a public telecommunications service acco rds reasonable and non-discriminatory treatment 
with respect to access to those ser vices by suppliers of public telecommunications services of the 
other Party.   
Article 13.6 
 
Conditions For The Supply Of Value-Added Services 
 
1. Neither Party may require an enterprise in its  territory that it classifies as a supplier of 
value-added services and that supplies those ser vices over facilities that it does not own to:  
(a) supply those services to the public generally;  WT/REG208/1 
Page 140  
 
(b) cost-justify its rates for those services;  
(c) file a tariff for those services;  
(d) interconnect its networks with any partic ular customer for the supply of those 
services; or  
(e) conform with any particular standard or technical regulation for interconnection other 
than for interconnection to a public telecommunications network.  
2. Notwithstanding paragraph 1, a Party may take  the actions described in paragraph 1 to 
remedy a practice of a supplier of value-added services that the Party has found in a particular case to be anticompetitive under its law or regulations, or to  otherwise promote competition or safeguard the 
interests of consumers.  
Article 13.7 
Independent Regulatory Bodies And Privatization 
 
1. Each Party shall ensure that its telecommunica tions regulatory body is separate from, and not 
accountable to, any supplier of public telecommunica tions services. To this end, each Party shall 
ensure that its telecommunications regulatory body does not hold a financial interest or maintain an 
operating role in any such supplier.  
2. Each Party shall ensure that the decisions  and procedures of its telecommunications 
regulatory body are impartial with respect to all inte rested persons.  To this end, each Party shall 
ensure that any financial interest that it holds in  a supplier of public telecommunications services does 
not influence the decisions and procedures of  its telecommunications regulatory body.  
3. Each Party shall maintain the absence of or eliminate as soon as feasible national government 
ownership in any supplier of public telecommunica tions services.  Where a Party has an ownership 
interest in a supplier of public telecommunications  services and intends to reduce or eliminate its 
interest, it shall notify the other Party of its intention as soon as possible.  
Article 13.8  
Universal Service  
 Each Party shall administer any universal  service obligation that it maintains in a 
transparent, non-discriminatory, and competitively ne utral manner and shall ensure that its universal 
service obligation is not more burdensome than necessary for the kind of universal service that it has defined.   
Article 13.9 
Licensing Process 
 
1. When a Party requires a supplier of public te lecommunications services to have a license, the 
Party shall make publicly available:  
(a) all the licensing criteria and procedures it applies;  
(b) the time it normally requires to reach a d ecision concerning an application for a 
license; and   WT/REG208/1 
 Page 141 
 
 
(c) the terms and conditions of all licenses it has issued.  
2. Each Party shall ensure that, on request, an app licant receives the reasons for its denial of a 
license.  
Article 13.10 
Allocation And Use Of Scarce Resources  
1. Each Party shall administer its procedures for the allocation and use of scarce 
telecommunications resources, including frequencies,  numbers, and rights-of-way, in an objective, 
timely, transparent, and non-discriminatory manner.  
2. Each Party shall make publicly available the current state of allocated frequency bands but 
shall not be required to provide detailed iden tification of frequencies allocated for specific 
government uses.  
3. Decisions on allocating and assigning spectrum and frequency management are not measures 
that are per s e inconsistent with Article 11.4 (Market Access), which is applied to Chapter Ten 
(Investment) through Article 11.1.3 (Scope and Coverage).  Accordi ngly, each Party retains the right 
to exercise its spectrum and frequency management policies, which may affect the number of suppliers of public telecommunications services, pr ovided that this is done in a manner that is 
consistent with the provisions of this Agreement.   The Parties also retain the right to allocate 
frequency bands taking into account  existing and future needs and spectrum availability.  
Article 13.11 
Enforcement
  
 Each Party shall provide its competent author ity with the authority to enforce the Party’s 
measures relating to the obligations set out in Articl es 13.2 through 13.5.  Such authority shall include 
the ability to impose effective sanctions, which may include financial penalties, injunctive relief (on 
an interim or final basis), or the modification, suspension, and revocation of licenses.   
Article 13.12 
Resolution Of Telecommunications Disputes 
 
 Further to Articles 18.3 (Administrative Pro ceedings) and 18.4 (Review and Appeal), each 
Party shall ensure the following:    
Recourse to Telecommunications Regulatory Bodies  
 
 (a)  (i) Enterprises of the other Party may seek review by a telecommunications 
 regulatory body or other relevant body of the Party to resolve disputes  regarding the Party’s measures relating to a matter set out in Articles 13.2 
 through 13.5.  
 
(ii)  Suppliers of public telecommunications  services of the other Party that have 
requested interconnection with a major supplier in the Party’s territory may 
seek review, within a reasonable and publicly specified period after the WT/REG208/1 
Page 142  
 
supplier requests interconnection, by  its telecommunications regulatory 
body
10 to resolve disputes regarding the terms, conditions, and rates for 
interconnection with such major supplier.  
Reconsideration  
 
(b)  Any enterprise that is aggrieved or w hose interests are adversely affected by a 
determination or decision of its telecomm unications regulatory body may petition the 
body to reconsider that determination or decision.  Neither Party may permit such a 
petition to constitute grounds for non-compliance with the determination or decision 
of the telecommunications regulatory body unless an appropriate authority stays the 
determination or decision.  
 
Judicial Review 
  
(c)  Any enterprise that is aggrieved or w hose interests are adversely affected by a 
determination or decision of its teleco mmunications regulatory body may obtain 
judicial review of the determination or decision by an impartial and independent 
judicial authority.  
 
Article 13.13 
Transparency  
 Further to Article 18.1 (Publication), each Party shall ensure that:  
 
(a) rulemakings, including the basis for such ru les, of its telecommunications regulatory 
body and end-user tariffs filed with it s telecommunications regulatory body are 
promptly published or otherwise made available to all interested persons;  
(b) interested persons are provided with ad equate advance public notice of and the 
opportunity to comment on any rulemaking that its telecommunications regulatory body proposes; and  
(c) its measures relating to public telecommunications services are made publicly 
available, including measures relating to:  
(i) tariffs and other terms and conditions of service;  
(ii) procedures relating to judicial a nd other adjudicatory proceedings;  
(iii) specifications of technical interfaces;  
(iv) conditions for attaching terminal or other equipment to the public 
telecommunications network; and  
(v) notification, permit, registration, or licensing requirements, if any.  
 
 
                                                     
 
10 The United States may comply with this obligation by providing for review by a state regulatory 
authority.  WT/REG208/1 
 Page 143 
 
 
Article 13.14 
Flexibility In The Choice Of Technologies  
 Neither Party may prevent suppliers of pub lic telecommunications services from choosing the 
technologies that they use to supply their service s, including commercial mobile wireless services, 
except that a Party shall be free to establish a nd apply spectrum and frequency management policies 
and other measures necessary to satisfy legitimate public policy interests, such as a requirement to 
comply with technical specifica tions and national frequency tables .  
 
Article 13.15 
Forbearance  
 The Parties recognize the importance of relying on market forces to provide wide choices in 
the supply of telecommunications services.  To th is end, each Party may forbear from applying a 
regulation to a service that the Party classifies as a public telecommunications service, if its telecommunications regulatory body determines that:  
 
(a) enforcement of the regulation is not necessary to prevent unreasonable or 
discriminatory practices;  
(b) enforcement of the regulation is not necessar y for the protection of consumers; and  
(c) forbearance is consistent with the public interest, including promoting and enhancing 
competition between suppliers of pub lic telecommunications services.  
Article 13.16  
Relationship To Other Chapters 
 
 In the event of any inconsistency between this Chapter and another Chapter, this Chapter shall 
prevail to the extent of the inconsistency.  
 
Article 13.17 
 
Definitions  
 For purposes of this Chapter:  
 
 co-location (physical)  means physical access to space in order to install, maintain, or repair 
equipment at premises owned or controlled and used by a major supplier to supply public 
telecommunications services;    
 co-location (virtual) means the ability to lease and control equipment of a major supplier of 
public telecommunications services for the purpose of  interconnecting with that supplier or accessing 
its unbundled network elements;  commercial mobile services means public telecommunications 
services supplied through mobile wireless means;    cost-oriented means based on cost, and may include a reasonable profit, and may involve 
different cost methodologies for different facilities or services;  
 WT/REG208/1 
Page 144  
 
 dialing parity  means the ability of an end-user to use an equal number of digits to access a 
like public telecommunications ser vice, regardless of which pub lic telecommunications service 
supplier the end-user chooses;  
 
 end-user means a final consumer of or final subscriber to a public telecommunications 
service;   
  enterprise  means an enterprise as defined in Article 1.3 (Definitions), and a branch of an 
enterprise;   
 essential facilities  means facilities of a public telecommunications network or service that:  
 
(a) are exclusively or predominantly supplied by a single or limited number of suppliers, 
and  
(b) cannot feasibly be economically or technically substituted in order to supply a service;  
 interconnection  means linking with suppliers providing public telecommunications services 
in order to allow the users of one supplier to comm unicate with users of another supplier and to access 
services provided by another supplier;  
 
 leased circuits  means facilities between designated terminating points of a public 
telecommunications network leased to a user by a supplier of public telecommunications services, 
excluding any switching functionality controlled by the user;  
  major supplier  means a supplier of public telecommunications services that has the ability to 
materially affect the terms of participation (having regard to price and supply) in the relevant market 
for public telecommunications services as a result of:  
 
(a) control over essential facilities or   
(b) use of its position in the market;  
 network element  means a facility or equipment used in supplying a public 
telecommunications service, including features, f unctions, and capabilities provided by means of that 
facility or equipment;  
 
 non-discriminatory  means treatment no less favorable than that accorded to any other user of 
like public telecommunications services in like circumstances;    number portability  means the ability of end-users of public telecommunications services to 
retain, at the same location, existing telephone numbe rs without impairment of quality, reliability, or 
convenience when switching between the same cate gory of suppliers of public telecommunications 
services;    public telecommunications service  means any telecommunications service that a Party 
requires, explicitly or in effect, to be offere d to the public generally. Such services may include, 
inter alia , telephone and data transmission typically i nvolving customer-supplied information between 
two or more points without any end-to-end change  in the form or content of the customer’s 
information.  Public telecommunications services in  the territory of the United States do not include 
value-added services;  
  WT/REG208/1 
 Page 145 
 
 
 reference interconnection offer  means an interconnection offe r extended by a major supplier 
and filed with or approved by a telecommunications regulatory body11 that is sufficiently detailed to 
enable a supplier of public telecommunications servi ces that is willing to accept its rates, terms, and 
conditions to obtain interconnection without having to engage in negotia tions with the major supplier;  
 
 supplier of public telecommunications services  means any supplier of public  
telecommunications services;12 
  telecommunications  means the transmission and reception of signals by any electromagnetic 
means, including by photonic means;   
 
 telecommunications regulatory body  means a national body responsible for the regulation 
of telecommunications;    user means a service consumer or a service supplier; and  
 
 value-added services  means services that add value to telecommunications services through 
enhanced functionality . With respect to the United States, these are services as defined in 47 U.S.C. § 
153 (20). With respect to Morocco, these are services as defined in Dahir No. 24-96, Law for Posts 
and Telecommunications.
13 
 
 
ANNEX 13-A  
  For purposes of this Chapter, paragraphs 2 through 4 of Article 13. 3 do not apply to the 
United States with respect to suppliers of commercia l mobile services.  In addition, a state regulatory 
authority of the United States may exempt a rura l local exchange carrier, as defined in Section 
251(f)(2) of the Communications Act of 1934, as amended, from the obligations contained in 
paragraphs 2 through 4 of Article 13.3.    
ANNEX 13-B 
 
1. Article 13.4 does not apply to the United States with respect to a rural telephone company, as 
defined in section 3(37) of the Communications Act of 1934, as amended, unless a state regulatory authority orders that the requirements described in  that Article be applied to the company.  In 
addition, a state regulatory authority may exempt a rural local exchange carrier, as defined in section 
251(f)(2) of the Communications Act of 1934, as amended, from the obligations contained in 
Article 13.4.  
2. For purposes of this Chapter, Article 13.4 does not  apply to the United States with respect to 
suppliers of commercial mobile services.   
 
 
 
 
                                                     
 
11 For purposes of applying this definition with respect to the United States, this body may be a state 
regulatory authority. 
12 For greater certainty, suppliers of  public telecommunications services in the territory of Morocco are 
subject to the licensing regime of Dahir  No. 24-96, Law for Posts and Telecommunications. 
13 Suppliers of value-added services in the territory  of Morocco are subject to Morocco’s declaration 
regime. WT/REG208/1 
Page 146  
 
CHAPTER FOURTEEN:  ELECTRONIC COMMERCE 
 
Article 14.1  
General 
 
 The Parties recognize the economic growth and opportunity that electronic commerce 
provides, the importance of avoiding barriers to its use and development, and the applicability of the 
WTO Agreement to measures affecting electronic commerce.     
Article 14.2 
Electronic Supply Of Services 
 
 The Parties affirm that measures affecting th e supply of a service using electronic means are 
subject to the obligations contained in the relevant  provisions of Chapters Ten (Investment), Eleven 
(Cross-Border Trade in Services), and Twelve (Fin ancial Services), subject to any exceptions or 
non-conforming measures set out in this Agreement that are applicable to such obligations.  
 
Article 14.3 
Digital Products  
1. Neither Party may apply customs duties, fees, or  other charges on or in connection with the 
importation or exportation of digital products by electronic transmission.1 
2. Each Party shall determine the customs value of  an imported carrier medium bearing a digital 
product of the other Party based on the cost or valu e of the carrier medium alone, without regard to 
the cost or value of the digital product stored on the carrier medium.  
3. (a) Neither Party may accord less favorable treatment to digital products created, 
produced, published, stored, transmitted, cont racted for, commissioned, or first made 
available on commercial terms in the territory  of the other Party than it accords to like 
digital products created, produced, published,  stored, transmitted, contracted for, 
commissioned, or first made available on commercial terms in the territory of a non-
Party.  
(b)  Neither Party may accord less favorable treatment to digital products whose author, 
performer, producer, developer, or distributor  is a person of the other Party than it 
accords to like digital products whose aut hor, performer, producer, developer, or 
distributor is a person of a non-Party.  
 
4. Neither Party may accord less favorable treatment to a digital product transmitted 
electronically than it accords to other like di gital products transmitted electronically  
(a) on the basis that  
(i) the digital product receiving less favorable treatment is created, produced, 
published, stored, transmitted, contracted for, commissioned, or first made 
available on commercial terms in the territory of the other Party, or  
                                                      
1 For greater certainty, paragraph 1 does not preclude a Party from imposing internal taxes or other 
internal charges on digital products, provided that these are imposed in a manner consistent with this 
Agreement.    WT/REG208/1 
 Page 147 
 
 
(ii) the author, performer, producer, developer, or distributor of such digital 
products is a person of the other Party;2 
 
or  
 (b) so as otherwise to afford protection to the other like digital products that are created, 
produced, published, stored, transmitted, cont racted for, commissioned, or first made 
available on commercial terms in its territory.  
5. Paragraphs 3 and 4 do not apply to measures adopted or  maintained in accordance with 
Articles 10.12 (Non-Conforming Measures), 11.6 (Non-Conforming Measures), and  
12.9 (Non-Conforming Measures).  
 
Article 14.4 
Definitions 
 
 For purposes of this Chapter:  
 
 carrier medium  means any physical object capable of storing a digital product by any 
method now known or later devel oped, and from which a digital product can be perceived, 
reproduced, or communicated, directly or indirectly, including an optical medium, a floppy disk, and a magnetic tape;    digital products  means computer programs, text, vide o, images, sound recordings, and other 
products that are digitally encoded, regardless of whether they are fixed on a carrier medium or 
transmitted electronically;
3  
 
 electronic means  means employing computer processing;  
 
 electronic commerce means the production, distribution, marketing, sales, or delivery of 
products or services through electronic means; and     electronic transmission or transmi tted electronically  means the transfer of digital products 
using any electromagnetic or photonic means.  
 
 
CHAPTER 15:  INTELLECTUAL PROPERTY RIGHTS  
 
Article 15.1 
General Provisions 
 
1. Each Party shall, at a minimum, give effect to this Chapter.  
International Agreements and Recommendations  
 
2. Each Party shall ratify or accede to the following agreements:  
                                                      
2 For greater certainty, recognizing the Parties’ obj ective to promote trade between them, the obligation 
to accord no less favorable treatment to  the digital product applies only if one or more of the activities listed in 
paragraph 4(a)(i) occur in the territory of the other Party, or one or more persons listed in paragraph 4(a)(ii) is a 
person of the other Party. 
3 For greater certainty, digital products do not include digitized representations of financial instruments. WT/REG208/1 
Page 148  
 
(a) the Patent Cooperation Treaty  (1970), as amended in 1979;  
(b) the Convention Relating to the Distribution of Programme-Carrying Signals 
Transmitted by Satellite  (1974);  
(c) the Protocol Relating to the Madrid Ag reement Concerning the International 
Registration of Marks  (1989);  
(d) the Budapest Treaty on the International Recognition of the Deposit of 
Microorganisms for the Purposes of Patent Procedure  (1977), as amended in 1980;   
(e) the International Convention for the Protection of New Varieties of Plants  (1991) 
(UPOV Convention);  
(f) the Trademark Law Treaty  (1994);  
(g) the WIPO Copyright Treaty  (1996); and  
(h) the WIPO Performances and Phonograms Treaty  (1996).  
3. Each Party shall make all reasonable efforts to  ratify or accede to the following agreements:  
(a) the Patent Law Treaty  (2000); and  
(b) the Hague Agreement Concerning the International Registration of Industrial Designs 
(1999).  
More Extensive Protection and Enforcement 
  
4. A Party may provide more extensive protection for, and enforcement of, intellectual property 
rights under its law than this Chapter requires, provi ded that the additional protection and enforcement 
is not inconsistent with this Chapter.   
National Treatment  
 
5. In respect of all categories of intellectual prope rty covered in this Chapter, each Party shall 
accord to nationals
1 of the other Party treatment no less fa vorable than that it accords to its own 
nationals with regard to the protection2 and enjoyment of such intellectual property rights and any 
benefits derived from such rights.  
6. A Party may derogate from paragraph 5 in re lation to its judicial and administrative 
procedures, including requiring a national of anot her Party to designate an address for service of 
process in its territory, or to appoint an agent in  its territory, provided that such derogation:  
(a) is necessary to secure compliance with laws and regulations that are not inconsistent 
with this Chapter; and  
                                                      
1 For purposes of Articles 15.1.5, 15.1.6, 15.3.1, and 15.7.1, a “national of a Party” shall also mean, in 
respect of the relevant right, entities of that Party that would meet the criteria for eligibility for protection 
provided for in the agreements listed in Article 15.1.2 and the TRIPS Agreement. 
2 For purposes of this paragraph, “protection” incl udes matters affecting the availability, acquisition, 
scope, maintenance, and enforcement of intellectual prop erty rights, as well as matters affecting the use of 
intellectual property rights specifically covered by this Chapter.  Further, for purposes of this paragraph, 
“protection” also includes the pr ohibition on circumvention of effectiv e technological measures set out in 
Article 15.5.8 and the rights and obligations concerning rights management information set out in Article 15.5.9.  WT/REG208/1 
 Page 149 
 
 
(b) is not applied in a manner that would constitute a disguised restriction on trade .  
7. Paragraph 5 does not apply to procedures pr ovided in multilateral agreements concluded 
under the auspices of the World Intellectual Property Organization (WIPO) in relation to the acquisition or maintenance of intellectual property rights.  
Application of Agreement to Existing Subject Matter and Prior Acts  
 
8. Except as it provides otherwise,  including in Article 15.5.6, this Chapter gives rise to 
obligations in respect of all subject matter existing at  the date of entry into force of this Agreement, 
that is protected on that date in the territory of th e Party where protection is claimed, or that meets or 
comes subsequently to meet the criteria for protection under this Chapter.  
9. Except as otherwise provided in this Chapter, including Article 15.5.6, a Party shall not be 
required to restore protection to subject matter that on  the date of entry into force of this Agreement 
has fallen into the public domain in its territory.   
10. This Chapter does not give rise to obligations in  respect of acts that occurred before the date 
of entry into force of this Agreement.  
Transparency  
 
11. Further to Article 18.1 (Publication), and w ith the object of making the protection and 
enforcement of intellectual property rights as transp arent as possible, each Part y shall ensure that all 
laws, regulations, and procedures concerning the pr otection or enforcement of intellectual property 
rights shall be in writing and shall be published,
3 or where publication is not practicable made 
publicly available, in a national language in such a manner as to enable governments and right holders 
to become acquainted with them.  Nothing in th is paragraph shall require a Party to disclose 
confidential information which would impede law enfo rcement or otherwise be contrary to the public 
interest or would prejudice the legitimate commercia l interests of particular enterprises, public or 
private.   
Article 15.2 
Trademarks  
1. Neither Party may require, as a condition of regi stration, that signs be visually perceptible, 
nor may a Party deny registration of a trademark solely on the ground that the sign of which it is 
composed is a sound or a scent.  
2. Each Party shall provide that trademarks  shall include certification marks.   
3. Each Party shall ensure that its measures ma ndating the use of the term customary in common 
language as the common name for a good or service (“common name”), including, inter alia , 
requirements concerning the relative size, placement, or style of use of the trademark in relation to the 
common name, do not impair the use or effectiveness of trademarks used in relation to such good or 
service.  
4. Each Party shall provide that the owner of a registered trademark shall have the exclusive 
right to prevent all third parties not having the owner’s consent from using in the course of trade 
identical or similar signs, including geographical i ndications, for goods or services that are related to 
                                                      
3 For greater certainty, a Party may satisfy the requirement to publish a law, regulation, or procedure by 
making it available to the public on the Internet.  WT/REG208/1 
Page 150  
 
those goods or services in respect of which the owne r’s trademark is registered, where such use would 
result in a likelihood of confusion.  In case of th e use of an identical sign, including a geographical 
indication, for identical goods or services, a lik elihood of confusion sh all be presumed.    
5. Each Party may provide limited exceptions to th e rights conferred by a trademark, including a 
geographical indication, such as fair use of descriptive terms, provided that such exceptions take 
account of the legitimate interest of the owne r of the trademark and of third parties.   
6. Article 6bis of the Paris Convention for the Protection of Industrial Property  (1967) shall 
apply , mutatis mutandis , to goods or services that are not identical  or similar to those identified by a 
well-known trademark,
4 whether registered or not, provided that use of that trademark in relation to 
those goods or services would indicate a connection between those goods or services and the owner of 
the trademark and provided that the interests of th e owner of the trademark are likely to be damaged 
by such use.  
7. Each Party shall provide a system for the regi stration of trademarks, which shall include:  
(a) providing to the applicant a communication in writing, which may be provided 
electronically, of the reasons for a refusal to register a trademark;  
(b) an opportunity for the applicant to resp ond to communications from the trademark 
authorities, to contest an initial refusal, and to appeal judicially a final refusal to register;  
(c) an opportunity for interested parties to oppose a trademark application or to seek 
cancellation of a trademark after it has been registered; and  
(d) a requirement that decisions in oppositi on or cancellation proceedings be reasoned 
and in writing.  
8. Each Party shall provide:  
(a) an electronic means for applying for, processing, registering, and maintaining 
trademarks, and   
(b) a publicly available electronic database, in cluding an online database, of trademark 
applications and registrations.   
9. Each Party shall provide that:  
(a) each registration, or publication that concerns  a trademark application or registration, 
that indicates goods or services shall indicate the goods or services by their names, grouped according to the classes of th e classification established by the Nice 
Agreement Concerning the International Cla ssification of Goods and Services for the 
Purposes of the Registration of Marks  (1979), as revised and amended (“Nice 
Classification”).  
(b) goods or services may not be considered as being similar to each other solely on the 
ground that, in any registration or publication, they appear in the same class of the Nice Classification.  Conversely, each Party shall provide that goods or services may 
not be considered as being dissimilar from each other solely on the ground that, in 
                                                     
 
4 In determining whether a trademark is well known, the reputation of the trad emark need not extend 
beyond the sector of the public that normally deals with the relevant goods or services.  WT/REG208/1 
 Page 151 
 
 
any registration or publication, they a ppear in different classes of the Nice 
Classification.  
10. Each Party shall provide that initial regist ration and each renewal of registration of a 
trademark shall be for a term of no less than ten years.  
11. Neither Party may require recordation of trad emark licenses to establish the validity of the 
license, to assert any rights in a tr ademark, or for other purposes.   
Article 15.3 
Geographical Indications  
Procedures with Respect to Geographical Indications 
 
1. If a Party provides the means to apply for protection or petition for recognition of 
geographical indications, it shall:  
(a) accept those applications and petitions wit hout requiring intercession by a Party on 
behalf of its nationals;  
(b) process those applications or petitions, as re levant, with a minimum of formalities.  
(c) ensure that its regulations governing fili ng of those applications or petitions, as 
relevant, are readily available to the public and set out clearly the procedures for these 
actions;  
(d) make available contact information sufficien t to allow the general public to obtain 
guidance concerning the procedures for f iling applications or petitions and the 
processing of those applications or petitions  in general; and to allow applicants, 
petitioners, or their representatives to ascertain the status of, and to obtain procedural 
guidance concerning, specific a pplications and petitions; and  
(e) ensure that applications or petitions, as relevant, for geographical indications are 
published for opposition, a nd provide procedures for opposing geographical 
indications that are the subject of applications or petitions.  Each Party shall also 
provide procedures to cancel a registration resu lting from an application or a petition.  
Relationship to Trademarks 
 
2. Each Party shall provide that each of the fo llowing shall be a ground for refusing protection 
or recognition of a geographical indication:  
(a) the geographical indication is likely to be c onfusingly similar to a trademark that is 
the subject of a good-faith pending a pplication or registration; and  
(b) the geographical indication is confusingly similar to a pre-existing trademark, the 
rights to which have been acquired in the territory of the Party through use in good faith.  
 
  WT/REG208/1 
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Definition  
 
3.  For purposes of this Chapter, geographical indications  means indications that identify a 
good as originating in the territory of a Party, or a region or locality in that territory, where a given quality, reputation, or other characteristic of the good is essentially attributable to its geographical 
origin.
5 Any sign or combination of signs (such as wo rds, including geographical and personal names, 
as well as letters, numerals, figurative elements, and colors, including single colors), in any form 
whatsoever, shall be eligible to be a geographical indication.  
 
Article 15.4  
Domain Names On The Internet  
1. In order to address the problem of trademark cyber-piracy, each Party shall require that the 
management of its country-code top-level domain (“ccTLD”) provide an appropriate procedure for 
the settlement of disputes, based on the principl es established in the Uniform Domain-Name Dispute-
Resolution Policy.    
2. Each Party shall require that the management of its ccTLD provide online public access to a 
reliable and accurate database of contact info rmation for domain-name registrants.   
Article 15.5 
Copyright And Related Rights  
1. Each Party shall provide that authors,  performers, and producers of phonograms6 have the 
right7 to authorize or prohibit all reproductions  of their works, performances, and phonograms,8 in any 
manner or form, permanent or temporary (including  temporary storage in electronic form).    
2. Each Party shall provide to authors, performers, and producers of phonograms the right to 
authorize or prohibit the importation into that Party’ s territory of copies of the work, performance, or 
phonogram that are made without authorization, or  made outside that Party’s territory with the 
authorization of the author, performer, or producer of the phonogram.  
3. Each Party shall provide to authors, performers, and producers of phonograms the right to 
authorize the making available to the public of the original and copies of their works, performances, 
and phonograms through sale or othe r transfer of ownership.  
4. In order to ensure that no hierarchy is estab lished between rights of authors, on the one hand, 
and rights of performers and producers of phonogram s, on the other hand, each Party shall provide 
that in cases where authorization is needed from both the author of a work embodied in a phonogram 
and a performer or producer owning rights in the phonogram, the need for the authorization of the 
author does not cease to exist because the authorizati on of the performer or producer is also required.  
Likewise, each Party shall establish that in cases wh ere authorization is needed from both the author 
of a work embodied in a phonogram and a performer  or producer owning rights in the phonogram, the 
                                                      
5 For greater certainty, the term “originating”, as us ed in this Chapter, does not have the meaning 
ascribed to the term originating good in Article 1.3 (Definitions). 
6 “Authors, performers, and pr oducers of phonograms” includes any successors in interest. 
7 With respect to copyrights and related rights in this Chapter, the “right to authorize or prohibit” and 
the “right to authorize” refer to exclusive rights. 
8 With respect to copyrights and related rights in  this Chapter, a “perfo rmance” means a performance 
fixed in a phonogram unless otherwise specified.  WT/REG208/1 
 Page 153 
 
 
need for the authorization of the performer or producer does not cease to exist because the 
authorization of the author is also required.  
5. Each Party shall provide that, where the te rm of protection of a work (including a 
photographic work), performance, or phonogram is to be calculated:  
(a) on the basis of the life of a natural person, th e term shall be not less than the life of 
the author and 70 years after the author’s death; and  
(b) on a basis other than the life of a natural person, the term shall be  
(i) not less than 70 years from the end of the calendar year of the first authorized 
publication of the work, performance, or phonogram, or   
(ii) failing such authorized publication with in 50 years from the creation of the 
work, performance, or phonogram, not less than 70 years from the end of the 
calendar year of the creation of the work, performance, or phonogram.  
6. Each Party shall apply Article 18 of the Berne Convention for the Protection of Literary and 
Artistic Works (1971) (Berne Convention) and Artic le 14.6 of the TRIPS Agreement, mutatis 
mutandis , to the subject matter, rights, and obligations  in this Article and Articles 15.6 and 15.7.  
7. Each Party shall provide that for copyright a nd related rights, any person acquiring or holding 
any economic right in a work, performance, or phonogram:  
(a) may freely and separately transfer that right by contract; and  
(b) by virtue of a contract, including contracts of employment underlying the creation of 
works, performances, and phonograms,  shall be able to exercise that right in that 
person’s own name and  enjoy fully th e benefits derived from that right.  
8.  (a)  In order to provide adequate legal pr otection and effective lega l remedies against the 
 circumvention of effective technological measures that authors, performers, and 
 producers of phonograms use in connection w ith the exercise of their rights and that 
 restrict unauthorized acts in respect of their works, performances, and phonograms, 
 each Party shall provide that any person who:  
 
(i) circumvents without authority any effective technological measure that 
controls access to a protected work, performance, phonogram, or other subject matter; or   
(ii) manufactures, imports, distributes, offers to the public, provides, or otherwise 
trafficks in devices, products, or com ponents, or offers to the public or 
provides services, that:  
   (A)  are promoted, advertised, or marketed for the purpose of 
 circumvention of any effective technological measure,  
     (B) have only a limited commercially significant purpose or use other 
   than to circumvent any effective technological measure, or  
    (C)  are primarily designed, produced, or performed for the purpose of 
 enabling or facilitating the circumvention of any effective  technological measure, shall be liable and subject to the remedies set WT/REG208/1 
Page 154  
 
 out in Article 15.11.14. Each Party shall provide for criminal  procedures and penalties to be app lied when any person, other than a 
 nonprofit library, archive, educational institution, or public  noncommercial broadcasting entit y, is found to have engaged 
 willfully and for purposes of commercial advantage or private 
 financial gain in any of the foregoing activities.   
  (b)  In implementing subparagraph (a), neither Party shall be obligated to require that the 
design of, or the design and selection of parts and components for, a consumer electronics, telecommunications, or computing product provide for a response to any 
particular technological measure, so long as the product  does not otherwise violate 
any measures implementing subparagraph (a).  
  (c)  Each Party shall provide that a violati on of a measure implementing this  paragraph is 
a separate civil or criminal offense, indepe ndent of any infringement that might occur 
under the Party’s law on copyright and related rights.  
  (d)  Each Party shall confine exceptions and limitations to any measures implementing 
subparagraph (a) to the following activities,  which shall be applied to relevant 
measures in accordance with subparagraph (e):  
 
(i) noninfringing reverse engineering activ ities with regard to a lawfully 
obtained copy of a computer program, carried out in good faith with respect to particular elements of that comput er program that have not been readily 
available to the person engaged in th ose activities, for the sole purpose of 
achieving interoperability of an independently created computer program 
with other programs;  
(ii) noninfringing good faith activities, carried  out by an appropriately qualified 
researcher who has lawfully obtained a copy, unfixed performance, or display of a work, performance, or phonogram and who has made a good faith effort 
to obtain authorization for such activiti es, to the extent necessary for the sole 
purpose of research consisting of identifying and analyzing flaws and 
vulnerabilities of technologies for scrambling and descrambling of 
information;   
(iii) the inclusion of a component or part for the sole purpose of preventing the 
access of minors to inappropriate onlin e content in a technology, product, 
service, or device that itself is not prohibited under the measures 
implementing subparagraph (a)(ii);  
(iv) noninfringing good faith activities that are authorized by the owner of a 
computer, computer system, or computer network for the sole purpose of testing, investigating, or correcting the security of that computer, computer system, or computer network;  
(v) noninfringing activities for the sole purpose of identifying and disabling a 
capability to carry out undisclosed collection or dissemination of personally 
identifying information reflecting the on line activities of a natural person in a 
way that has no other effect on the ability  of any person to gain access to any 
work;   WT/REG208/1 
 Page 155 
 
 
(vi) lawfully authorized activities carried out by government employees, agents, 
or contractors for the purpose of la w enforcement, intelligence, essential 
security, or similar governmental purposes; and  
(vii) access by a nonprofit library, archive, or  educational institution to a work not 
otherwise available to it, for the sole purpose of making acquisition 
decisions; and  
(viii) noninfringing uses of a work, performan ce, or phonogram in a particular 
class of works, performances, or phonograms when an actual or likely adverse impact on those noninfringing uses is demonstrated in a legislative or administrative proceeding by substantial evidence; provided that any 
limitation or exception adopted in relian ce upon this clause shall have effect 
for a period of not more than three y ears from the date of conclusion of such 
proceeding.  
 (e) The exceptions and limitations to any measures implementing subparagraph (a) for 
the activities set forth in subparagraph (d) may only be applied as follows, provided 
that they do not impair the adequacy of legal protection or the effectiveness of legal 
remedies against the circumvention of effective technological measures:  
 
(i) Measures implementing subparagraph (a)(i) may be subject to exceptions and 
limitations with respect to each activ ity set forth in subparagraph (d).  
(ii) Measures implementing subparagraph (a)(ii), as they apply to effective 
technological measures that control access to a work, performance, or 
phonogram, may be subject to exceptions  and limitations with respect to 
activities set forth in subparagraph (d)(i), (ii), (iii), (iv), and (vi).  
(iii) Measures implementing subparagraph (a)(ii), as they apply to effective 
technological measures that protect any copyright or any rights related to 
copyright, may be subject to exceptions and limitations with respect to 
activities set forth in subparagraph (d)(i) and (vi).  
 (f)  For purposes of this paragraph, effective technological measure  means any 
 technology, device, or component that, in the normal course of its operation, controls 
 access to a protected work, performance,  phonogram, or other protected subject 
 matter, or protects any copyright or any rights related to copyright.  
 
9. In order to provide adequate and effectiv e legal remedies to protect rights management 
information:   
(a) each Party shall provide that any person who without authority, and knowing, or, with 
respect to civil remedies, having reasonabl e grounds to know, that it would induce, 
enable, facilitate, or conceal an infringement of any copyright or related right,   
(i) knowingly removes or alters any rights management information;   
(ii) distributes or imports for distribution rights management information 
knowing that the rights management info rmation has been removed or altered 
without authority; or  
 WT/REG208/1 
Page 156  
 
(iii) distributes, imports for distribution, broadcasts, communicates, or makes 
available to the public copies of works, performances, or phonograms, knowing that rights management inform ation has been removed or altered 
without authority,  
shall be liable and subject to the remedies set out in Article 15.11.14.  Each Party shall 
provide for criminal procedures and penalties to  be applied when any person, other than a 
nonprofit library, archive, educational institu tion, or public nonc ommercial broadcasting 
entity, is found to have e ngaged willfully and for purposes of commercial advantage or 
private financial gain in any of the foregoing activities.  
(b) Each Party shall confine exceptions and limitations to measures implementing 
subparagraph (a) to lawfully authorized  activities carried out by government 
employees, agents, or contractors for the purpose of law enforcement, intelligence, 
essential security, or similar government purposes.   
(c) For purposes of this paragraph, rights management information  means:   
(i) information that identifies a work, performance, or phonogram; the author of 
the work, the performer of the pe rformance, or the producer of the 
phonogram; or the owner of any right in the work, performance, or phonogram;   
(ii) information about the terms and conditions of the use of the work, 
performance, or phonogram; or  
(iii) any numbers or codes that represent such information,   
when any of these items is attached to  a copy of the work, performance, or 
phonogram or appears in connection with the communication or making available of a work, performance, or phonogram to the public.    
(d) For greater certainty, nothing in this paragraph obligates a Party to require the owner 
of any right in the work, performance, or  phonogram to attach rights management 
information to copies of the work, performance, or phonogram, or to cause rights 
management information to appear in c onnection with a communication of the work, 
performance, or phonogram to the public.  
10. Each Party shall issue appropriate laws, or ders, regulations, or administrative or executive 
decrees mandating that its agencies use computer so ftware only as authorized by the right holder.  
These measures shall actively regulate the acquisiti on and management of software for government 
use.  
 11. (a) With respect to this Article and Articles 15.6, and 15.7, each Party shall confine 
limitations or exceptions to exclusive rights to certain special cases that do not conflict with a normal exploitation of th e work, performance, or phonogram, and do 
not unreasonably prejudice the legitimate interests of the right holder .  
 
(b)  Notwithstanding subparagra ph (a) and Article 15.7.3(b), neither Party may permit the 
retransmission of television signals (wheth er terrestrial, cable, or satellite) on the 
Internet without the authorization of the right holder or right holders of the content of the signal, if any, and of the signal.  
 
  WT/REG208/1 
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Article 15.6 
Copyright  
 Without prejudice to Articles 11(1)(ii), 11 bis(1)(i) and (ii), 11 ter(1)(ii), 14(1)(ii), and 14 bis(1) 
of the Berne Convention, each Party shall provide to authors the exclusive right to authorize or prohibit the communication to the public of their work s, by wire or wireless means, including the 
making available to the public of their works in such a way that members of the public may access 
these works from a place and at a time individually chosen by them.  
 
Article 15.7 
Related Rights 
 
1. Each Party shall accord the rights provided for in this Chapter with respect to performers and 
producers of phonograms to the performers and pr oducers of phonograms who are nationals of the 
other Party and to performances or phonograms first published or fixed in the territory of the other 
Party.  A performance or phonogram shall be consider ed first published in the territory of a Party in 
which it is published within 30 days of its original publication.9 
 
2. Each Party shall provide to performers the right to authorize or prohibit:  
(a) the broadcasting and communication to the public of their unfixed performances, 
except where the performance is alr eady a broadcast performance, and  
(b) the fixation of their unfixed performances.  
3.  (a) ach Party shall provide to performers and producers of phonograms the right to 
authorize or prohibit the broadcasting or any communication to the public of their 
performances or phonograms, by wire or wireless means, including the making available to the public of those perform ances and phonograms in such a way that 
members of the public may access them from a place and at a time individually chosen by them.    
 
 (b)  Notwithstanding subparagra ph (a) and Article 15.5.11, the application of this right to 
traditional free over-the-air ( i.e., noninteractive) broadcasting, and exceptions or 
limitations to this right for such activity, sh all be a matter of each Party’s law.    
  (c)  Each Party may adopt limitations to this right in respect of other noninteractive 
transmissions in accordance with Article 15. 5.11, provided that the limitations do not 
prejudice the right of the performer or producer of phonograms to obtain equitable remuneration.  
 4. Neither Party may subject the enjoyment and exercise of the rights of performers and 
producers of phonograms provided for in this Chapter to any formality.  
 
5. For purposes of this Article and Article 15.5, the following definitions apply with respect to 
performers and producers of phonograms:   
(a) broadcasting  means the transmission to the public by wireless means or satellite of 
sounds or sounds and images, or repr esentations thereof, including wireless 
transmission of encrypted signals where the means for decrypting are provided to the 
                                                     
 
9 For purposes of this Article, “fixation” includes th e finalization of the master tape or its equivalent. WT/REG208/1 
Page 158  
 
public by the broadcasting organization or with its consent; “broadcasting” does not 
include transmissions over computer networks or any transmissions where the time and place of reception may be individually chosen by members of the public;  
(b) communication to the public of a performance or a phonogram means the 
transmission to the public by any medium, ot her than by broadcasting, of sounds of a 
performance or the sounds or the representa tions of sounds fixed in a phonogram.  
For purposes of paragraph 3, “communication to the public” includes making the sounds or representations of sounds fixed in  a phonogram audible to the public;  
(c) fixation  means the embodiment of sounds, or of the representations thereof, from 
which they can be perceived, reproduced, or communicated through a device;  
(d) performers  means actors, singers, musicians, dancers, and other persons who act, 
sing, deliver, declaim, play in, interpret,  or otherwise perform literary or artistic 
works or expressions of folklore;   
(e) phonogram  means the fixation of the sounds of a performance or of other sounds, or 
of a representation of sounds, other than in the form of a fixation incorporated in a 
cinematographic or other audiovisual work;  
(f) producer of a phonogram  means the person who, or the legal entity which, takes the 
initiative and has the responsibility for the first fixation of the sounds of a performance or other sounds, or the representations of sounds; and  
(g) publication of a performance or a phonogram means the offering of copies of the 
performance or the phonogram to the public, w ith the consent of the right holder, and 
provided that copies are offered to the public in reasonable quantity.  
Article 15.8 
Protection Of Encrypted Program-Carrying Satellite Signals 
 
1. Each Party shall make it a criminal offense:  
(a) to manufacture, assemble, modify, import, export, sell, lease, or otherwise distribute a 
tangible or intangible device or system, knowing or having reason to know that the 
device or system is primarily of assistance in decoding an encrypted program-
carrying satellite signal without the authorization of the lawful distributor of such 
signal; and  
(b) willfully to receive or further distribute a program-carrying signal that originated as 
an encrypted satellite signal knowing th at it has been decoded without the 
authorization of the lawful distributor of the signal.  
2. Each Party shall provide for civil remedies, including compensatory damages, for any person 
injured by any activity described in paragraph 1, including any person that holds an interest in the 
encrypted programming signal or its content.  
 
   WT/REG208/1 
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Article 15.9 
Patents  
1. Each Party may only exclude from patentability in ventions, the prevention within its territory 
of the commercial exploitation of which is necessary to protect ordre public  or morality, including to 
protect human, animal, or plant life or health or to avoid serious prejudice to the environment, 
provided that such exclusion is not made merely  because the exploitation is prohibited by law.  
2. Each Party shall make patents availa ble for the following inventions:   
(a) plants, and  
(b) animals.    
In addition, the Parties confirm that patents shall be available for any new uses or methods of using a 
known product, including new uses of a known product for the treatment of humans and animals.    
 
3. Each Party may provide limited exceptions to  the exclusive rights conferred by a patent, 
provided that such exceptions do not unreasonably c onflict with a normal exploitation of the patent 
and do not unreasonably prejudice the legitimate inter ests of the patent owner, taking account of the 
legitimate interests of third parties.  
4. Each Party shall provide that the exclusive right  of the patent owner to prevent importation of 
a patented product, or a product that results from pa tented process, without the consent of the patent 
owner shall not be limited by the sale or distribution of that product outside its territory.10 
 
 5. Each Party shall provide that a patent may be revoked only on grounds that would have 
justified a refusal to grant the patent.  A Party may also provide that fraud, misrepresentation, or 
inequitable conduct may be the basis for revoking a patent or holding a patent unenforceable. Where a 
Party provides proceedings that permit a third party to oppose the grant of a patent, a Party shall not 
make such proceedings available before the grant of the patent.    
 6. Consistent with paragraph 3, if  a Party permits a third person to use the subject matter of a 
subsisting patent to generate in formation necessary to support an a pplication for marketing approval 
of a pharmaceutical product, that Party shall provide that any product produced under such authority 
shall not be made, used, or sold in its territo ry other than for purposes related to generating 
information to meet requirements for approval to  market the product, and if the Party permits 
exportation, the Party shall provide that the produc t shall only be exported outside its territory for 
purposes of meeting marketing approval  requirements of that Party.  
7. Each Party, at the request of the patent owner, shall adjust the term of a patent to compensate 
for unreasonable delays that occur in granting th e patent.  For purposes of this paragraph, an 
unreasonable delay shall at least include a delay in the issuance of the patent of more than four years 
from the date of filing of the application in the terr itory of the Party, or two years after a request for 
examination of the application, whichever is later.   Periods attributable to actions of the patent 
applicant need not be included in the determination of such delays.  
8. Each Party shall disregard information contained in public disclosures used to determine if an 
invention is novel or has an inventive step
11 if the public disclosure:  
                                                      
10 A Party may limit application of this paragraph to cases where the patent owner has placed 
restrictions on importation by contract or other means. WT/REG208/1 
Page 160  
 
(a) was made or authorized by, or derive d from, the patent applicant, and  
(b) occurred within 12 months prior to the date of  filing of the application in the territory 
of the Party.  
9. Each Party shall provide patent applicants with at least one opportunity to make amendments, 
corrections, and observations in conn ection with their applications.  
10. Each Party shall provide that a disclosure of a claimed invention shall be considered to be 
sufficiently clear and complete if it provides inform ation that allows the invention to be made and 
used by a person skilled in the art, without un due experimentation, as of the filing date.  
11. Each Party shall provide that a claimed invention:  
(a) is sufficiently supported by its disclosure if the disclosure reasonably conveys to a 
person skilled in the art that the applicant was in possession of the claimed invention, 
as of the filing date, and  
(b) is industrially applicable if it has a speci fic, substantial, and credible utility.  
Article 15.10  
Measures Related To Certain Regulated Products 
 
1. If a Party requires, as a condition of approving  the marketing of a new pharmaceutical or 
agricultural chemical product, the submission of:  
(a) safety and efficacy data, or  
(b) evidence of prior approval of the product in another territory that requires such 
information,  
the Party shall not permit third persons not having the consent of the person providing the information 
to market a product on the basis of the approval gr anted to the person submitting that information for 
at least five years for pharmaceutical products an d ten years for agricultural chemical products from 
the date of approval in the Party’s territory. For pur poses of this paragraph, a new product is one that 
contains a new chemical entity that has not been  previously approved in the Party’s territory.12 
 
2. If a Party requires the submission of   
(a) new clinical information that is essential to the approval of a pharmaceutical product 
(other than information relate d to bioequivalency), or  
(b) evidence of prior approval of the product in another territory that requires such new 
information,  
                                                                                                                                                                     
11 For purposes of this Article, “inventive step” sh all be treated as synonymous with the term “non-
obvious.” 
12 As of the date of signature of this Agreement, neither Party permits third persons not having the 
consent of the person providing such information to market a product on the basis of such information submitted 
in another territory or evidence of prior approval of the product in another territory.  In addition, when a product 
is subject to a system of marketing approval pursuant to this paragraph and is also subject to a patent in the territory of a Party, that Party may not alter the term  of protection that it provides in accordance with this 
paragraph in the event that the patent protection terminates  before the end of the term of protection specified in 
Article 10.1.  WT/REG208/1 
 Page 161 
 
 
 the Party shall not permit third persons not having the consent of the person providing the 
information to market a pharmaceutical product on the basis of such new information or the 
approval granted to the person submitting such information for at least three years from the date of approval in the Party.  A Party may limit such protection to new clinical information 
the origination of which involves considerable effort.
13 
 
3. With respect to patents covering pharmaceutical products, each Party shall make available an 
extension of the patent term to compensate the patent owner for unreasonable curtailment of the 
effective patent term as a result of the marketing approval process.  
4. With respect to any pharmaceutical product that  is subject to a patent, and where a Party 
permits authorizations to be granted or applicati ons to be made to market a pharmaceutical product 
based on information previously submitted concerning the safety and efficacy of a product, including 
evidence of prior marketing approval by persons othe r than the person that previously submitted such 
information, that Party:  
(a) shall implement measures in its marketi ng approval process to prevent such other 
persons from marketing a product covered by a patent during the term of that patent, 
unless by consent or with the acquiescence of the patent owner,14 and  
(b) if it allows applications15 to be made to market a product during the term of a patent 
covering that product, shall provide that the patent owner shall be notified of the 
identity of any such other person who request s marketing approval to enter the market 
during the term of a patent notified to or identified by the approving authority as 
covering that product.  
Article 15.11 
Enforcement Of Intellectual Property Rights  
General Obligations  
 
1. Further to Article 18.1 (Publication), each Party sh all provide that final judicial decisions and 
administrative rulings of general application pert aining to the enforcement of intellectual property 
rights shall be in writing and shall state any relevant findings of fact and the reasoning or the legal basis on which the decisions or rulings are based. E ach Party shall provide that such decisions or 
rulings shall be published
16 or, where publication is not practicab le, otherwise made available to the 
public in a national language in such a manner as to  enable governments and right holders to become 
acquainted with them.  
                                                      
13 As of the date of signature of this Agreement, neither Party permits third persons not having the 
consent of the person providing such new information to market a product on the basis of such information 
submitted in another territory or evidence of prior approval of the product in another territory.  In addition, when 
a product is subject to a system of marketing approval pursuant to this paragraph and is also subject to a patent 
in the territory of a Party, that Party may not alter the te rm of protection that it provid es in accordance with this 
paragraph in the event that the patent protection terminates  before the end of the term of protection specified in 
Article 10.2. 
14 Each Party may limit such measures to patents claiming the product and patents covering approved 
indications. 
15 The Parties understand that as of the date of signature of this Agreemen t Morocco does not allow 
such applications to be made, except in cases that are co nsistent with Article 15.9.6 , which is commonly referred 
to as the “Bolar provision.”   
16 For greater certainty, a Party may satisfy the requirement for publication by making the decision or 
ruling available to the public on the Internet. WT/REG208/1 
Page 162  
 
2. Each Party shall publicize information on its e fforts to provide effective enforcement of 
intellectual property rights in its civil, administra tive, and criminal system, including any statistical 
information that the Party may collect for such pur pose. Nothing in this paragraph shall require a 
Party to disclose confidential information that would impede law enforcement or otherwise be 
contrary to the public interest or would prejudice the legitimate commercial interests of particular 
enterprises, public or private.  
3. The Parties understand that a decision that a Party makes on the distribution of enforcement 
resources shall not excuse that Party fr om complying with this Chapter.  
4. In civil, administrative, and criminal proceedings involving copyright or related rights, each 
Party shall provide for a presumption that, in the ab sence of proof to the contrary, the person whose 
name is indicated as the author, producer, perform er, or publisher of the work, performance, or 
phonogram in the usual manner is the designated right holder in such work, performance, or 
phonogram.  Each Party shall also provide for a presumption that, in the absence of proof to the contrary, the copyright or related right  subsists in such subject matter.  
Civil and Administrative Procedures and Remedies   
 
5. Each Party shall make available to right holders
17 civil judicial procedures concerning the 
enforcement of any intellectual property right.  
6. Each Party shall provide that:  
(a) in civil judicial proceedings, its judicial authorities shall have the authority to order 
the infringer to pay the right holder:  
(i) damages adequate to compensate for th e injury the right holder has suffered 
as a result of the infringement and,   
(ii) at least in the case of copyright or related rights infringement and trademark 
counterfeiting, the profits of the infringer that are attributable to the infringement and that are not taken into account in computing the amount of the damages referred to in clause (i); and  
(b) in determining damages for infringement of intellectual property rights, its judicial 
authorities shall consider, inter alia,  the value of the infringed-on good or service, 
measured by the suggested retail price or other legitimate measure of value submitted 
by the right holder.  
7. In civil judicial proceedings, each Party shall, at least with respect to works, phonograms, and 
performances protected by copyright or related rights, and in cases of trademark counterfeiting, 
establish or maintain pre-established damages, whic h shall be available on the election of the right 
holder.  Pre-established damages shall be in an am ount sufficient to constitute a deterrent to future 
infringements and to compensate fully the right holder for the harm caused by the infringement.  In civil judicial proceedings concerning patent infringe ment, each Party shall provide that its judicial 
authorities, except in exceptional circumstances, sh all have the authority to increase damages to an 
amount that is up to three times the amount of the injury found or assessed.   
                                                     
 
17 For purposes of this Article, “right holder” incl udes exclusive licensees as well as federations and 
associations having the legal standing  and authority to assert such righ ts.  “Exclusive licensee” includes the 
exclusive licensee of any one or more  of the exclusive intellectual property rights encompassed in a given 
intellectual property.  WT/REG208/1 
 Page 163 
 
 
8. Each Party shall provide that its judicial au thorities, except in exceptional circumstances, 
shall have the authority to order, at the conclusi on of civil judicial proceedings concerning copyright 
or related rights infringement and trademark counterfe iting, that the prevailing party shall be awarded 
payment of court costs or fees and reasonable attorney ’s fees by the losing party.  Further, each Party 
shall provide that its judicial authorities, at least in exceptional circumstances, shall have the authority 
to order, at the conclusion of civil judicial proceedings concerning patent infringement, that the 
prevailing party shall be awarded payment of reasonable attorney’s fees by the losing party.18  
9. In civil judicial proceedings concerning co pyright or related rights infringement and 
trademark counterfeiting, each Party shall provide that  its judicial authorities shall have the authority 
to order the seizure of suspected infringing goods, an y related materials and im plements, and, at least 
for trademark counterfeiting, documentary evidence relevant to the infringement.  
10. Each Party shall provide that:  
(a) in civil judicial proceedings, at the right holder’s request, goods that have been found 
to be pirated or counterfeit shall be dest royed, except in exceptional circumstances;  
(b) its judicial authorities shall have the author ity to order that materials and implements 
that have been used in the manufacture or creation of the pirated or counterfeit goods 
be, without compensation of any sort, promptly destroyed or, in exceptional circumstances, without compensation of any so rt, disposed of outside the channels of 
commerce in such a manner as to minimize the risks of further infringements; and  
(c) in regard to counterfeit trademarked goods , the simple removal of the trademark 
unlawfully affixed shall not be sufficient to permit the release of goods into the 
channels of commerce.  
11. Each Party shall provide that in civil judici al proceedings concerning the enforcement of 
intellectual property rights, its judicial authorities shall have the authority to order the infringer to provide any information that the infringer possesses regarding any person involved in any aspect of 
the infringement and regarding the means of pr oduction or distribution channel of such goods, 
including the identification of third persons i nvolved in the production and distribution of the 
infringing goods or services or in their channels of distribution, and to provide this information to the 
right holder.    
12. Each Party shall provide that its judicial authorities have the authority to:  
(a) fine or imprison, in appropriate cases, a party to a litigation who fails to abide by 
valid orders issued by such authorities; and  
(b) impose sanctions on parties to a litigation, their counsel, experts, or other persons 
subject to the court’s jurisdiction, for vi olation of judicial orders regarding the 
protection of confidential information pr oduced or exchanged in a proceeding.  
13. To the extent that any civil remedy can be ordered as a result of administrative procedures on 
the merits of a case, each Party shall provide that such procedures conform to principles equivalent in 
substance to those set out in this Chapter.  
14. In civil judicial proceedings concerning the act s described in Articles 15.5.8 and 15.5.9, each 
Party shall provide that its judicial authorities shall have the authority to order or award at least:  
                                                     
 
18 Neither Party shall be required to apply this paragr aph to actions for (a) infringement by a Party, or 
(b) infringement authorized by a Party. WT/REG208/1 
Page 164  
 
(a) provisional measures, including seizure of devices and products suspected of being 
involved in the prohibited activity;  
(b) the opportunity for the right holder to elect between actual damages it suffered (plus 
any profits attributable to the prohibited activity not taken into account in computing 
those damages) or pre-established damages;  
(c) payment to the prevailing right holder at the conclusion of civil judicial proceedings 
of court costs and fees, and reasonable atto rney’s fees, by the party engaged in the 
prohibited conduct; and  
(d) destruction of devices and products found to be involved in the prohibited activity.  
 Neither Party may make damages available ag ainst a nonprofit library, archive, educational 
institution, or public noncommercial broadcasti ng entity that sustains the burden of proving 
that it was not aware and had no reason to believe that its acts constituted a prohibited activity.   
 
15. In civil judicial proceedings concerning the en forcement of intellectual property rights, each 
Party shall provide that its judicial authorities shall have the authority to order a party to desist from 
an infringement, in order, inter alia , to prevent, immediately after th ey clear customs, the entry into 
the channels of commerce in the jurisdiction of those authorities of imported goods that involve the infringement of an intellectual property right, or to prevent their exportation.  
16. In the event that a Party’s judicial or other authorities appoint technical or other experts in 
civil proceedings concerning the enforcement of intellectual property rights and require that the 
parties to the litigation bear the costs of such expert s, the Party should seek to ensure that such costs 
are closely related, inter alia , to the quantity and nature of work to be performed and do not 
unreasonably deter recourse to such proceedings.  
Provisional Measures  
 
17. Parties shall act on requests for relief inaudita altera parte  expeditiously, and shall, except in 
exceptional circumstances, generally exec ute such requests within ten days.  
18. Each Party shall provide that its judicial authorities have the authority to require the plaintiff 
to provide any reasonably available evidence in orde r to satisfy themselves with a sufficient degree of 
certainty that the plaintiff’s right is being infringed or that such infringement is imminent, and to order 
the plaintiff to provide a reasonable security or equi valent assurance set at a level sufficient to protect 
the defendant and to prevent abuse, and so as not to  unreasonably deter recourse to such procedures.  
19. In proceedings concerning the grant of provisi onal measures in relation to enforcement of a 
patent, each Party shall provide for a rebutta ble presumption that the patent is valid.  
Special Requirements Related to Border Measures  
 
20. Each Party shall provide that any right holder initiating procedures for its competent 
authorities to suspend release of suspected counte rfeit or confusingly similar trademark goods, or 
pirated copyright goods
19 into free circulation is required to provide adequate evidence to satisfy the 
                                                      
19 For purposes of paragraphs 20 through 25:  
 
 (a) counterfeit trademark goods  means any goods, including packaging, bearing 
 without authorization a trademark that is id entical to the trademar k validly registered  WT/REG208/1 
 Page 165 
 
 
competent authorities that, under the laws of the country of importation, there is prima facie an infringement of the right holder’s intellectual prope rty right and to supply sufficient information that 
may reasonably be expected to be within the right  holder’s knowledge to make the suspected goods 
reasonably recognizable by its competent authorities.  The requirement to provide sufficient information shall not unreasonably deter recourse to  these procedures. Each Party shall provide that 
the application to suspend the release of goods shall remain in force for a period of not less than one 
year from the date of application, or the period that  the good is protected by copyright or the relevant 
trademark registration, whichever is shorter.  
21. Each Party shall provide that its competent au thorities shall have the authority to require a 
right holder initiating procedures to suspend the re lease of suspected counterfeit or confusingly 
similar trademark goods, or pirated copyright goods, to provide a reasonable security or equivalent 
assurance sufficient to protect the defendant and the competent authorities and to prevent abuse.  Each 
Party shall provide that such security or equivale nt assurance shall not unreasonably deter recourse to 
these procedures.  Each Party may provide that such security may be in the form of a bond 
conditioned to hold the importer or owner of th e imported merchandise harmless from any loss or 
damage resulting from any suspension  of the release of goods in th e event the competent authorities 
determine that the article is not an infringing good.  
22. Where its competent authorities have made a determination that goods  are counterfeit or 
pirated, a Party shall grant its competent authorities the authority to inform the right holder of the names and addresses of the consignor, the importer, and the consignee, and of the quantity of the 
goods in question.  
23. Each Party shall provide that its competent authorities may initiate border measures ex officio , 
with respect to imported, exported, or in-transit merchandise suspected of infringing an intellectual 
property right, without the need for a formal complaint from a private party or right holder.    
24. Each Party shall provide that goods that have b een determined to be pirated or counterfeit by 
its competent authorities shall be destroyed, excep t in exceptional circumstances.  In regard to 
counterfeit trademark goods, the simple removal of the trademark unlawfully affixed shall not be 
sufficient to permit the release of the goods into th e channels of commerce.  In no event shall the 
competent authorities be authorized, except in excep tional circumstances, to permit the exportation of 
counterfeit or pirated goods or to permit such goo ds to be subject to other customs procedures.  
25. Where an application fee or merchandise storag e fee is assessed in connection with border 
measures to enforce an intellectual property right, each  Party shall provide that such fee shall not be 
set at an amount that unreasonably deters recourse to these measures.  
Criminal Procedures and Remedies  
 
26.  (a)  Each Party shall provide for criminal  procedures and penalties to be applied at least 
in cases of willful trademark counterfeiting or copyright or related rights piracy on a 
                                                                                                                                                                    
 
 in respect of such goods, or that cannot be distinguished in its essential aspects from 
 such a trademark, and that thereby infrin ges the rights of the owner of the trademark 
 in question under the law of the country of importation; and  
 
 (b) pirated copyright goods  means any goods that are copies made without the consent 
 of the right holder or person duly authorized by the right holder in the country of  production and which are made directly or indirectly from an article where the 
 making of that copy would have constituted an infringement of a copyright or a 
 related right under the law of the country of importation.  WT/REG208/1 
Page 166  
 
commercial scale.  Willful copyright or related rights piracy on a commercial scale 
includes  
 
(i) significant willful copyright or related rights infringements that have no 
direct or indirect motivation of financial gain, and  
(ii) willful infringements for purposes of  commercial advantage or private 
financial gain.  
Each Party shall treat willful importation or exportation of counterfeit or pirated goods as 
unlawful activities subject to criminal penalties to the same extent as the trafficking or 
distribution of such goods in domestic commerce .  
 
(b) Specifically, each Party shall provide:  
(i) remedies that include sentences of imprisonment as well as monetary fines 
sufficient to provide a deterrent to fu ture infringements, consistent with a 
policy of removing the infringer’s monetary incentive, and shall further establish policies or guidelines that enc ourage judicial authorities to impose 
those remedies at levels sufficient to provide a deterrent to future 
infringements;   
(ii) that its judicial authorities shall have the authority to order the seizure of 
suspected counterfeit or pirated goods, an y related materials and implements 
used in the commission of the offense,  any assets traceable to the infringing 
activity, and any documentary evidence re levant to the offense.  Each Party 
shall provide that items that are subj ect to seizure pursuant to any such 
judicial order need not be individually identified, so long as they fall within general categories specified in the order;  
(iii) that its judicial authorities shall have the authority, among other measures, to 
order the forfeiture of any assets traceab le to the infringing activity and shall, 
except in exceptional cases, order the forfeiture and destruction of all 
counterfeit or pirated goods, and, at leas t with respect to willful copyright or 
related rights piracy, order the forfeiture and destruction of materials and implements that have been used in the creation of infringing goods. Each 
Party shall further provide that such forfeiture and destruction shall occur 
without compensation of any kind to the defendant; and  
(iv) that its authorities may initiate legal action ex officio  with respect to the 
offenses described in this Chapter, w ithout the need for a formal complaint 
by a private party or right holder.  
27. Party shall also provide for criminal proce dures and penalties to be applied in the following 
cases, even absent willful trademark counterfeiting or copyright piracy:  
(a) knowing trafficking in counterfeit labels a ffixed or designed to be affixed to: a 
phonogram, a copy of a computer program, documentation or packaging for a 
computer program, or a copy of a motion picture or other audiovisual work; and   
(b) knowing trafficking in counterfeit documentation or packaging for a computer 
program.    WT/REG208/1 
 Page 167 
 
 
Limitations on Liability for Service Providers  
 
28. For the purpose of providing enforcement pro cedures that permit effective action against any 
act of copyright infringement covered by this Ch apter, including expeditious remedies to prevent 
infringements and criminal and civil remedies, e ach Party shall provide, consistent with the 
framework set out in this Article:   
(a) legal incentives for service providers to cooperate with copyright
20 owners in deterring 
the unauthorized storage and transmission of copyrighted materials; and  
(b) limitations in its law regarding the scope  of remedies available against service 
providers for copyright infringements that they  do not control, initiate, or direct, and 
that take place through systems or networks controlled or operated by them or on their 
behalf, as set forth in this subparagraph.21 
(i) These limitations shall preclude moneta ry relief, and provide reasonable 
restrictions on court-ordered relief to co mpel or restrain certain actions, for 
the following functions, and shall be confined to those functions:22  
   (A)  transmitting, routing, or provi ding connections for material without 
    modification of its content, or the intermediate and transient storage 
    of such material in the course thereof;      (B)  caching carried out through an automatic process;   
  (C)  storage at the direction of a user of material residing on a system or 
 network controlled or operated by or for the service provider; and  
    (D)  referring or linking users to an online location by using information     location tools, including hyperlinks and directories.   
(ii) These limitations shall apply only where the service provider does not initiate 
the chain of transmission of the material and does not select the material or its recipients (except to the extent that  a function described in clause (i)(D) in 
itself entails some form of selection).  
(iii) Qualification by a service provider for the limitations as to each function in 
clause (i)(A) through (D) shall be co nsidered separately from qualification 
for the limitations as to each other function, in accordance with the conditions for qualification set forth in clauses (iv) through (vii).   
(iv) With respect to functions referred to in  clause (i)(B), the limitations shall be 
conditioned on the service provider:   
   (A)  permitting access to cached mate rial in significant part only to users 
    of its system or network who have met conditions on user access to 
    that material;   
                                                     
 
20 For purposes of this paragraph, “copyright” includes related rights. 
21 This subparagraph is without prejudice to the availability of defenses to copyright infringement that 
are of general applicability.   
22 Either Party may request consultations with the other Party to consider how to address under this 
paragraph functions of a similar nature that a Party identifie s after the date of entry into force of this Agreement. WT/REG208/1 
Page 168  
 
  (B)  complying with rules concerning the refreshing, reloading, or other 
 updating of the cached material when specified by the person making  the material available online in accordance with a generally accepted 
 industry standard data communications protocol for the system or  network through which that person makes the material available;  
 
  (C)  not interfering with technology  consistent with industry standards 
 accepted in the Party’s territory used  at the originating site to obtain 
 information about the use of the material, and not modifying its  content in transmission to subsequent users; and  
 
  (D)  expeditiously removing or disabling access, on receipt of an effective 
 notification of claimed infringement, to cached material that has been  removed or access to which has been disabled at the originating site.  
 
(v) With respect to functions referred to in  clause (i)(C) and (D), the limitations 
shall be conditioned on the service provider:  
   (A)  not receiving a financial benef it directly attributable to the infringing 
  activity, in circumstances where it has the right and ability to control 
  such activity;  
 
  (B)  expeditiously removing or disabling access to the material residing 
 on its system or network on obt aining actual knowledge of the 
 infringement or becoming aware of facts or circumstances from  which the infringement was apparent, such as through effective  notifications of claimed infringement in accordance with clause 
 (ix);and  
    (C)  publicly designating a representa tive to receive such notifications.  
 
(vi) Eligibility for the limitations in this s ubparagraph shall be conditioned on the 
service provider:  
  (A)  adopting and reasonably implementing a policy that provides for 
 termination in appropriate circum stances of the accounts of repeat 
 infringers; and    
   (B)  accommodating and not interferi ng with standard technical measures 
 accepted in the Party’s territory th at protect and identify copyrighted 
 material, that are developed through an open, voluntary process by a  broad consensus of copyright owners and service providers, that are  available on reasonable and nondiscriminatory terms, and that do not  impose substantial costs on service providers or substantial burdens 
 on their systems or networks.  
 
(vii) Eligibility for the limitations in this subparagraph may not be conditioned on 
the service provider monitoring its service, or affirmatively seeking facts indicating infringing activity, except to the extent consistent with such technical measures.  
  WT/REG208/1 
 Page 169 
 
 
(viii) If the service provider qualifies for the limitations with respect to the function 
referred to in clause (i)(A), court-ordered relief to compel or restrain certain actions shall be limited to termina ting specified accounts, or to taking 
reasonable steps to block access to a specific, non-domestic online location. If the service provider qualifies for the lim itations with respect to any other 
function in clause (i), court-ordered relief to compel or restrain certain actions 
shall be limited to removing or di sabling access to the infringing material, 
terminating specified accounts, and other remedies that a court may find necessary, provided that such other remedies are the least burdensome to the service provider among comparably effective forms of relief.  Each Party 
shall provide that any such relief shal l be issued with due regard for the 
relative burden to the service provider and harm to the copyright owner, the technical feasibility and effectiven ess of the remedy and whether less 
burdensome, comparably effective en forcement methods are available.  
Except for orders ensuring the preservation of evidence, or other orders 
having no material adverse effect on the operation of the service provider’s 
communications network, each Party sha ll provide that such relief shall be 
available only where the service provider has received notice of the court order proceedings referred to in this  subparagraph and an opportunity to 
appear before the judicial authority.  
(ix) For purposes of the notice and take down process for the functions referred to 
in  clauses (i)(C) and (D), each Party shall establish appropriate procedures 
for effective notifications of claime d infringement, and effective counter-
notifications by those whose material is removed or disabled through mistake or misidentification.  Each Party sha ll also provide for monetary remedies 
against any person who makes a knowi ng material misrepresentation in a 
notification or counter-notification that causes injury to any interested party 
as a result of a service provider relying on the misrepresentation.   
(x) If the service provider removes or disab les access to material in good faith 
based on claimed or apparent infringeme nt, each Party shall provide that the 
service provider shall be exempted from liability for any resulting claims, provided that, in the case of material residing on its system or network, it 
takes reasonable steps promptly to notify the person making the material 
available on its system or network that  it has done so and, if such person 
makes an effective counter-notification and is subject to jurisdiction in an 
infringement suit, to restore the material online unless the person giving the original effective notification seeks judicial relief within a reasonable time.    
(xi) Each Party shall establish an administ rative or judicial procedure enabling 
copyright owners who have given effective notification of claimed 
infringement to obtain expeditiously from a service provider information in its possession identifying the alleged infringer.  
(xii) For purposes of the function referred to in clause (i)(A), service provider  
means a provider of transmission, routing, or connections for digital online 
communications without modification of their content between or among 
points specified by the user of material of the user’s choosing, and for purposes of the functions referred to in clause (i)(B) through (D), service 
provider  means a provider or operator of facilities for online services or 
network access.  
 WT/REG208/1 
Page 170  
 
Article 15.12 
Transitional Provisions 
 
 Each Party shall:   
 
(a) implement the obligations set out in Article 15.4 within one year of the date of entry 
into force of this Agreement, and shall im plement the obligations set out in Article 
15.11.28 by January 1, 2006, and  
(b) ratify or accede to the agreements listed in paragraph 2(d), (e), and (f) of Article 15.1 
by January 1, 2006.  
 
CHAPTER SIXTEEN:  LABOR  
 
Article 16.1 
Statement Of Shared Commitment  
1. The Parties reaffirm their obligations as memb ers of the International Labor Organization 
(“ILO”) and their commitments under the ILO Declaration on Fundamental Principles and Rights at 
Work and its Follow-up (1998)  (“ILO Declaration”). Each Party sha ll strive to ensure that such labor 
principles and the internationally recognized labor rights set forth in Article 16.7 are recognized and 
protected by its law.  
2. The Parties recognize the right of each Party to adopt or modify its labor laws and standards. 
Each Party shall strive to ensure that it provides fo r labor standards consistent with the internationally 
recognized labor rights set forth in Article 16.7 and shall strive to improve those standards in that 
light.  
Article 16.2 
Application And Enforcement Of Labor Laws  
1.  (a)  Neither Party shall fail to effectiv ely enforce its labor laws, through a sustained 
or recurring course of action or inaction, in a manner affecting trade between the 
Parties, after the date of entry into force of this Agreement.  
 
(b)  The Parties recognize that each Party retains the right to exercise discretion with 
respect to investigatory, prosecutorial, regulatory, and compliance matters and to 
make decisions regarding the allocation of resources to enforcement with respect to 
other labor matters determined  to have higher priorities. Accordingly, the Parties 
understand that a Party is in compliance with subparagraph (a) where a course of 
action or inaction reflects a reasonable exercise of such discretion, or results from a bona fide  decision regarding the allocation of resources.  
 
2. Each Party recognizes that it is inappropriate to encourage trade or i nvestment by weakening 
or reducing the protections afforded in domestic labor  laws.  Accordingly, each Party shall strive to 
ensure that it does not waive or otherwise derogate  from, or offer to waive or otherwise derogate 
from, such laws in a manner that weakens or reduces adherence to th e internationally recognized labor 
rights referred to in Article 16.7 as an encouragem ent for trade with the other Party, or as an  WT/REG208/1 
 Page 171 
 
 
encouragement for the establishment, acquisition, expa nsion, or retention of an investment in its 
territory.    
Article 16.3  
Procedural Guarantees And Public Awareness 
 
1. Each Party shall provide for appropriate access by  persons with a legally recognized interest 
in a particular matter to impartial and independent administrative, quasi-judicial, or judicial tribunals 
for the enforcement of its labor laws.  
2. Each Party shall provide for fair, equitable, and transparent proceedings for the enforcement 
of its labor laws.  To this end, each Party shall pr ovide that such proceedings  comply with due process 
of law, are open to the public, ex cept where the administration of justice otherwise requires, and do 
not entail unwarranted delays.    
3. Each Party shall provide that final decisions on the merits of the case in such proceedings are 
in writing and state the reasons on which the decisi ons are based; made available without undue delay 
to the parties to the proceedings and, consistent with its law, to the public; based on information or 
evidence in respect of which the parties were offe red the opportunity to be heard; and subject to 
review and, where warranted, correction, in accordance with domestic law.  
4. Each Party shall provide that the parties to  such proceedings may seek remedies (such as 
orders, compliance agreements, fines, penalties, injunctions, or emergency workplace closures) to 
ensure the enforcement of their rights under its labor laws.    
5. Each Party shall promote public awareness of its labor laws, including by:  
(a) ensuring that information related to its labor laws and enforcement and compliance 
procedures is publicly available; and   
(b) encouraging education of the pub lic regarding its labor laws.  
Article 16.4 
Institutional Arrangements  
1. Each Party shall designate an office within its la bor ministry that shall serve as a contact point 
with the other Party and the public for purposes of implementing this Chapter. Each Party’s contact 
point shall provide for the submission, receipt, and consideration of public communications on matters related to this Chapter and shall make such  communications available to the other Party and, 
as appropriate, the public.  Each Party shall re view such communications, as appropriate, in 
accordance with domestic procedures.  
2. Each Party may convene a national labor advi sory committee, compri sing members of its 
public, including representatives of its labor and bus iness organizations and other persons, to advise it 
on the implementation of this Chapter.  
3. Each formal decision of the Parties concerning the implementation of this Chapter shall be 
made public, unless the Parties agree otherwise.   
4. The Parties, when they consider it appropriate, shall jointly prepare reports on matters related 
to the implementation of this Chapter and shall make such reports public.  WT/REG208/1 
Page 172  
 
Article 16.5 
Labor Cooperation 
 
1. Recognizing that cooperation provides enhanced  opportunities to promote respect for core 
labor standards embodied in the ILO Declaration and compliance with ILO Convention No. 182 
Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child 
Labour (1999)  (“ILO Convention 182”), and to furt her advance other common commitments 
regarding labor matters, the Parties hereby estab lish a Labor Cooperation Mechanism, as set out in 
Annex 16-A.  
2. The Parties may undertake cooperative activiti es under the Labor Cooperation Mechanism 
relating to labor matters of common interest, such as:  promoting fundamental rights and their 
effective application; eliminating the worst fo rms of child labor; enhancing labor-management 
relations; improving working cond itions; developing unemploymen t assistance programs and other 
social safety net programs; encouraging human -resource development and life-long learning; and 
utilizing labor statistics.  
Article 16.6 
Labor Consultations  
1. A Party may request consultations with the other Party regarding any matter arising under this 
Chapter by delivering a written request to the c ontact point that the other Party has designated 
pursuant to Article 16.4.1. The Parties shall begin co nsultations promptly after delivery of the request.  
2. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of the 
matter and may seek advice or assistance from any person or body they deem appropriate.  
3. If the consultations fail to resolve the matter, and if a subcommittee on labor affairs has been 
established pursuant to Article 19.2 (Joint Committ ee), either Party may refer the matter to the 
subcommittee by delivering a written notificati on to the other Party’s contact point. The 
subcommittee shall convene within 30 days after a Party delivers a notification, unless the Parties 
agree otherwise. If the Parties have not established a subcommittee by the date a Party delivers a notification, they shall do so during the 30-day peri od described in this paragraph. The subcommittee 
shall endeavor to resolve the matter expediti ously, including, where appropriate, by consulting 
governmental or non-governmental experts and having recourse to such procedures as good offices, conciliation, or mediation.  
4. If a Party considers that the other Party has fa iled to carry out its obligations under Article 
16.2.1(a), the Party may request consultations pursuan t to paragraph 1 or Article 20.5 (Consultations).  
(a) If a Party requests consultations pursuant to Article 20.5 at a time when the Parties 
are engaged in consultations on the same  matter pursuant to paragraph 1 or the 
subcommittee is endeavoring to resolve the matter pursuant to paragraph 3, the 
Parties shall discontinue their efforts to resolve the matter under this Article.  Once 
consultations have begun pursuant to Artic le 20.5, no consultations on the same 
matter may be entered into pursuant to this Article.  
(b) If a Party requests consultations pursuant to Article 20.5 more than 60 days after the 
delivery of a request for consultations pursua nt to paragraph 1, the Parties may agree 
at any time to refer the matter to the Joint Committee pursuant to Article 20.6 
(Referral to the Joint Committee).   WT/REG208/1 
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5. Neither Party may have recourse to dispute settlement under this Agreement for any matter 
arising under any provision of this Chapter other than Article 16.2.1(a).  
Article 16.7 
Definitions  
 For purposes of this Chapter:  
 
 labor laws  means a Party’s statutes or regulations, or  provisions thereof, that are directly 
related to the following internationally recognized labor rights:   
(a) the right of association;  
(b) the right to organize and bargain collectively;  
(c) a prohibition on the use of any form of forced or compulsory labor;  
(d) labor protections for children and young people, including a minimum age for the 
employment of children and the prohibition and elimination of the worst forms of child labor; and  
(e) acceptable conditions of work with respect to minimum wages, hours of work, and 
occupational safety and health.  
 For greater certainty, nothing in this Agreemen t shall be construed to impose obligations on 
either Party with regard to establishing the level of minimum wages. 
  statutes or regulations  means:  
 
(a) for Morocco, dahirs , acts of the Moroccan Parliament, decrees, or administrative 
regulations; and  
(b) for the United States, acts of Congress or regulations promulgated pursuant to an act 
of Congress that are enforceable by action of the federal government.  
 
ANNEX 16-A  
 
Labor Cooperation Mechanism 
 
Establishment of a Labor Cooperation Mechanism  
 
1. Recognizing that bilateral c ooperation provides enhanced opportunities for the Parties to 
improve labor standards and to further advance co mmon commitments with respect to labor matters, 
including the ILO Declaration and ILO Conventio n 182, the Parties have established a Labor 
Cooperation Mechanism.  
Principal Functions and Organization  
 
2. Officials of the Parties’ labor ministries and other appropriate agencies and ministries shall 
carry out the work of the Labor Cooperation Mechanism by developing and pursuing cooperative 
activities on labor matters, including by working jointly to:  WT/REG208/1 
Page 174  
 
(a) establish priorities for cooperative activities on labor matters;  
(b) develop specific cooperative activities in  accord with such priorities;  
(c) exchange information regarding labo r law and practice in each Party;  
(d) exchange information on ways to improve la bor law and practice, including best labor 
practices;  
(e) advance understanding of, respect for, and e ffective implementation of the principles 
reflected in the ILO Declaration;  
(f) promote full compliance with ILO Convention 182;   
(g) seek support from international organizati ons and agencies, in advancement of 
common commitments with respect to labor matters; and  
(h) develop recommendations of actions to be taken by each Party for consideration by 
the Joint Committee.  
3. The contact points designated under Article 16.4.1 shall support the work of the Labor 
Cooperation Mechanism.  
Cooperative Activities  
 
4. The Parties may undertake cooperative activ ities through the Labor Cooperation Mechanism 
on any labor matter they consider appropriate, including on:  
(a) fundamental rights and their effective application:  legislation and practice related 
to the core elements of the ILO Declaration (freedom of association and the effective recognition of the right to collective bargaini ng, elimination of all forms of forced or 
compulsory labor, the effective abolition of child labor, and the elimination of 
discrimination in respect of employment and occupation);  
(b) worst forms of child labor:  legislation and practice related to compliance with ILO 
Convention 182;  
(c) labor relations:   forms of cooperation among workers, management, and 
governments, including the resolution of disputes;  
(d) working conditions:  hours of work, minimum wages,  and overtime; occupational 
safety and health; prevention of and co mpensation for work-related injuries and 
illness; and employment conditions;  
(e) unemployment assistance programs and other social safety net programs;  
(f) human resource development and life-long learning:  workforce development and 
employment training; worker adjustment programs; programs, methodologies, and 
experiences regarding productivity improve ment; and use of technologies; and  
(g) labor statistics:  development of methods for the Part ies to generate comparable labor 
market statistics in a timely manner.  
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Implementation of Cooperative Activities  
 
5. The Parties may carry out cooperative activ ities undertaken by the Labor Cooperation 
Mechanism through any form they consider appropriate, including by:  
(a) arranging study visits and other exch anges between government delegations, 
professionals, and specialists;  
(b) exchanging information on standards, regul ations, procedures, and best practices, 
including through the exchange of pe rtinent publications and monographs;  
(c) organizing joint conferences, seminars, workshops, meetings, training sessions, and 
outreach and education programs;  
(d) developing collaborative projects or demonstrations;  
(e) undertaking joint research projects, studies, and reports, including by engaging 
independent experts;  
(f) drawing on the expertise of academic and ot her institutions in their territories in 
developing and implementing cooperative programs and by encouraging cooperation 
between these institutions on technical labor issues; and  
(g) engaging in technical exchanges and cooperation.  
6. In identifying areas for cooperation and carryi ng out cooperative activities, the Parties shall 
consider views of their respective worker and employer representatives.  
 
CHAPTER SEVENTEEN:  ENVIRONMENT 
 
Objectives  
 
 The objectives of this Chapter are to contribute to  the Parties’ efforts to ensure that trade and 
environmental policies are mutually supportive, to pr omote the optimal use of resources in accordance 
with the objective of sustainable development, a nd to strive to strengthen the links between the 
Parties’ trade and environmental policies and pr actices, including through environmental cooperation 
activities aimed at capacity building.   
 
Article 17.1  
Levels Of Protection  
 Recognizing the right of each Party to establis h its own levels of domestic environmental 
protection and its own environmenta l development priorities, and to adopt or modify accordingly its 
environmental laws and policies, each Party shall en sure that its own envir onmental laws and policies 
provide for and encourage high levels of environm ental protection and shall strive to continue to 
improve those laws and policies.  
 
 
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Article 17.2 
Application And Enforcement Of Environmental Laws 
 
1.  (a) Neither Party shall fail to effectiv ely enforce its environmental laws, through a 
sustained or recurring course of action or inaction, in a manner affecting trade between the Parties, after the date of entry into force of this Agreement.  
 
(b)  The Parties recognize that each Party retains the right to exercise discretion with 
respect to investigatory, prosecutorial, regulatory, and compliance matters and to 
make decisions regarding the allocation of resources to enforcement with respect to 
other environmental matters determined to have higher priorities. Accordingly, the 
Parties understand that a Party is in comp liance with subparagraph (a) where a course 
of action or inaction reflects a reasonable exercise of such discretion, or results from a bona fide decision regarding the allocation of resources.  
 
2. Each Party recognizes that it is inappropriate to encourage trade or i nvestment by weakening 
or reducing the protections afforded in domestic e nvironmental laws.  Accordingly, each Party shall 
strive to ensure that it does not waive or otherwi se derogate from, or offer to waive or otherwise 
derogate from, such laws in a manner that weakens or reduces the protections afforded in those laws 
as an encouragement for trade with the other Part y, or as an encouragement for the establishment, 
acquisition, expansion, or retention of  an investment in its territory.  
 3. Nothing in this Chapter shall be construe d to empower a Party’s authorities to undertake 
environmental law enforcement activities in  the territory of the other Party.  
 
Article 17.3 
Environmental Cooperation 
 
1. The Parties recognize the importance of strengthening capacity to protect the environment 
and to promote sustainable development in concert with strengthening bilateral trade and investment 
relations.    
2. The Parties are committed to expanding their cooperative relationship, recognizing that 
cooperation is important for furthering their shared environmental goals and objectives set out in this 
Chapter, including the development and im provement of environmental protection.  
3. The Parties are committed to undertaking coopera tive environmental activities, in particular 
those involving their relevant government agenci es, pursuant to a United States-Morocco Joint 
Statement on Environmental Cooperation (“Joint Statem ent”) developed by the Parties, and in other 
fora. Activities undertaken pursuant to the Joint Stat ement shall be coordinated and reviewed by the 
Working Group on Environmental Cooperation or any ot her such entity established thereunder for this 
purpose, in accordance with  the Joint Statement.  
4. The Parties shall consider establishing additi onal cooperative mechanis ms, as appropriate, 
including an agreement on environmental coopera tion, taking into account relevant regional 
cooperative initiatives.  
5. The Parties recognize the continuing importance of  environmental cooperation in other fora.  
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6. Each Party shall, as appropriate, share inform ation with the other Party and the public 
regarding its experience in assessing and taking into  account the positive and negative environmental 
effects of trade agreements and policies.  In add ition, each Party may share its experience related to 
the implementation of this Chapter, including  experience related to incentives and voluntary 
mechanisms set out in Article 17.5.  
7. The Parties recognize that strengthening thei r cooperative relationship on environmental 
matters can encourage increased bilateral trade and investment in environmental goods and services.   
Article 17.4 
Procedural Matters  
1. Each Party shall ensure that judicial, quasi -judicial, or administrative proceedings are 
available under its law to sanction or remedy  violations of its environmental laws.  
(a) Such proceedings shall be fair, equitable, a nd transparent and, to this end, shall be 
open to the public, except where the administ ration of justice otherwise requires, and 
shall comply with due process of law.  
(b) Each Party shall provide appropriate and effective sanctions or remedies for a 
violation of its environmental laws that:  
(i) take into consideration the nature and gravity of the violation, any economic 
benefit the violator has derived from the violation, the economic condition of 
the violator, and other relevant factors; and  
(ii) may include compliance agreements, penalties, fines, imprisonment, 
injunctions, closure of facilities, and th e cost of containing or cleaning up 
pollution.  
2. Each Party shall ensure that interested pers ons may request the Party’s competent authorities 
to investigate alleged violations of  its environmental laws, and that its competent authorities give such 
requests due consideration in accordance with its law.  
3. Each Party shall provide for appropriate access by  persons with a legally recognized interest 
under its law in a particular matter to pr oceedings referred to in paragraph 1.  
4. Each Party shall provide appropr iate and effective access to remedies, in accordance with its 
law, which may include the right:  
(a) to sue a person subject to the Party’s ju risdiction for damages under its environmental 
laws;  
(b) to seek sanctions or remedies such as mone tary penalties, emergency closures, or 
orders to mitigate the consequences of violations of its environmental laws;  
(c) to request the Party’s competent authorities to take appropriate action to enforce its 
environmental laws in order to protect th e environment or to avoid environmental 
harm; or  
 WT/REG208/1 
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(d) to seek injunctions where a person suffers, or  may suffer, loss, damage, or injury as a 
result of conduct by another person subject to the Party’s jurisdiction that is contrary to the Party’s environmental laws or th at constitutes tortious conduct that harms 
human health or the environment.  
Article 17.5 
 
Complementary Mechanisms To Enhance Environmental Performance 
 
1. The Parties recognize that incentives and ot her flexible and voluntary mechanisms can 
contribute to the achievement and maintenance of high levels of environmental protection, 
complementing the procedures set out in Article 17.4.   As appropriate and in accordance with its law, 
each Party shall encourage the development of such mechanisms, which may include:  
(a) mechanisms that facilitate voluntary action to protect or enhance the environment, 
such as:  
(i) partnerships involving businesses, local communities, non-governmental 
organizations, government agencies, or scientific organizations;  
(ii) voluntary guidelines for environmental performance; or  
(iii) sharing of information and expertise among government agencies, interested 
parties, and the public concerning:  methods for achieving high levels of environmental protection, voluntary environmental auditing and reporting, ways to use resources more efficiently or reduce environmental impacts, environmental monitoring, and collection of baseline data; or  
(b) incentives, including market-based incentiv es where appropriate, to encourage 
conservation, restoration, enhancement, and protection of natural resources and the 
environment, such as public recognition of facilities or enterprises that are superior environmental performers, or programs for ex changing or trading permits, credits, or 
other instruments to help achieve environmental goals efficiently.  
2. As appropriate, and in accordance with its  law, each Party shall encourage:  
(a) the development and improvement of pe rformance goals and standards used in 
measuring environmental performance; and  
(b) flexible means to achieve such goals and meet such standards, including through 
mechanisms identified in paragraph 1.  
Article 17.6 
Opportunities For Public Participation 
 
1. Recognizing that opportunities for public participation can facilitate the sharing of best 
practices and the development of innovative approaches to issues of interest to the public, each Party 
shall ensure that procedures exist for dialogue w ith its public concerning the implementation of this 
Chapter, including opportunities for its public to:  
(a) suggest matters to be discussed at the meetings of the Joint Committee or, if a 
subcommittee on environmental affairs has b een established pursuant to Article 19.2 
(Joint Committee), meetings of the subcommittee; and   WT/REG208/1 
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(b) provide, on an ongoing basis, views, re commendations, or advice on matters related 
to the implementation of this Chapter.  Each Party shall make these views, recommendations, or advice available to the other Party and the public.  
2. Each Party may convene, or consult an existi ng, national advisory committee, comprising 
representatives of both its environmental and business organizations and other members of its public, 
to advise it on the implementation of  this Chapter, as appropriate.  
3. Each Party shall make best efforts to respond favorably to requests for discussions by persons 
of the Party regarding its implementation of this Chapter.  
4. Each Party shall take into account, as appropr iate, public comments and recommendations it 
receives regarding cooperative environmental activitie s undertaken pursuant to the Joint Statement.  
Article 17.7 
Environmental Consultations 
 
1. A Party may request consultations with the other Party regarding any matter arising under this 
Chapter by delivering a written request to the cont act point designated by the other Party for this 
purpose. The Parties shall begin consultations  promptly after delivery of the request.  
2. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of the 
matter and may seek advice or assistance from any person or body they deem appropriate.  
3. If the consultations fail to resolve the matter, and if a subcommittee on environmental affairs 
has been established pursuant to Article 19.2 (Joint  Committee), either Party may refer the matter to 
the subcommittee by delivering a written notification to the other Party’s contact point.  The subcommittee shall convene within 30 days after a Party delivers a notification, unless the Parties 
agree otherwise.  If the Joint Committee has not es tablished the subcommittee by the date a Party 
delivers a notification, it shall do so during the 30 -day period described in this paragraph.  The 
subcommittee shall endeavor to resolve the matte r expeditiously, including, where appropriate, by 
consulting governmental or non-governmental expert s and by having recourse to such procedures as 
good offices, conciliation, or mediation.  
4. If a Party considers that the other Party has failed to carry out its obligations under 
Article 17.2.1(a), the Party may request consultati ons under paragraph 1 or pursuant to Article 20.5 
(Consultations).  
(a) If a Party requests consultations pursuant to Article 20.5 at a time when the Parties 
are engaged in consultations on the sa me matter under paragraph 1 or the 
subcommittee is endeavoring to resolve the matter under paragraph 3, the Parties 
shall discontinue their efforts to resolve the matter under this Article. Once consultations have begun unde r Article 20.5, no consultations on the same matter 
may be entered into under this Article.  
(b) If a Party requests consultations pursuant to  Article 20.5 more than 60 days after 
delivery of a request for consultations under paragraph 1, the Parties may agree at any 
time to refer the matter to the Joint Comm ittee pursuant to Article 20.6 (Referral to 
the Joint Committee).  
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5. Neither Party may have recourse to dispute settlement under this Agreement for any matter 
arising under any provision of this Chapter other than Article 17.2.1(a).  
Article 17.8 
Relationship To Environmental Agreements 
 
1. The Parties recognize that multilateral environmen tal agreements to which they are both party 
play an important role, globally and domestically , in protecting the environment and that their 
respective implementation of these agreements is cr itical to achieving the environmental objectives of 
these agreements.   
2. Accordingly, the Parties shall continue to seek  means to enhance the mutual supportiveness of 
multilateral environmental agreements to which they  are both party and trade agreements to which 
they are both party.  The Parties shall consult re gularly with respect to negotiations in the WTO 
regarding multilateral environmenta l agreements and on the extent to which the outcome of those 
negotiations may affect this Agreement.  
Article 17.9  
Definitions  
 For purposes of this Chapter:  
 
 environmental law  means any statute or regulation of a Party, or provision thereof, the 
primary purpose of which is the protection of the environment, or the prevention of a danger to 
human, animal, or plant life or health, through:  
 
(a) the prevention, abatement, or control of the release, discharge, or emission of 
pollutants or environmental contaminants;  
(b) the control of environmentally hazardous or toxic chemicals, substances, materials, 
and wastes, and the dissemination of information related thereto; or  
(c) the protection or conservation of wild fl ora or fauna, including endangered species, 
their habitat, and specially protected natural areas,  
in areas with respect to which a Party exercises s overeignty, sovereign rights, or jurisdiction, 
but does not include any statute or regulation, or provision thereof, directly related to worker 
safety or health; and      statute or regulation  means:  
(a) for Morocco, dahir , an act of the Moroccan Parliament, decree, or administrative 
regulation; and   
(b) for the United States, an act of Congress or regulation promulgated pursuant to an act 
of Congress that is enforceable by action of the federal government.  
 
  
 
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CHAPTER EIGHTEEN:  TRANSPARENCY 
 
Article 18.1  
Publication  
1. Each Party shall ensure that its laws, regulati ons, procedures, and administrative rulings of 
general application respecting any matter covered by this Agreement are promptly published or 
otherwise made available in such a manner as to en able interested persons and the other Party to 
become acquainted with them.  
2. To the extent possible, and within its constitutional framework, each Party shall:  
(a) publish in advance any such measures that it proposes to adopt;1 and  
(b) provide interested persons and the other Party a reasonable opportunity to comment 
on such proposed measures.  
3. Paragraph 2(a) shall apply to Morocco beginning on e year after the date of entry into force of 
this Agreement.  
Article 18.2: 
Notification And Provision Of Information  
1. To the maximum extent possible, each Party sha ll notify the other Party of any proposed or 
actual measure that the Party considers might materi ally affect the operation of this Agreement or 
otherwise substantially affect the other Party’s interests under this Agreement.  
2. On request of the other Party, a Party sha ll promptly provide information and respond to 
questions pertaining to any proposed or actual measure  that the other Party considers might affect the 
operation of this Agreement or otherwise affect its interests under this Agreement, regardless of 
whether the other Party has been prev iously notified of that measure.  
Article 18.3  
Administrative Proceedings  
 With a view to administering in a consistent , impartial, and reasonable manner all measures 
of general application affecting ma tters covered by this Agreement, each Party shall ensure, in its 
administrative proceedings applying measures referre d to in Article 18.1.1 to particular persons, 
goods, or services of the other Party in specific cases, that:   
(a) wherever possible, persons of the other Party that are directly affected by a 
proceeding are provided reasonable notice, in accordance with the Party’s procedures, 
when a proceeding is initiated, including a d escription of the nature of the proceeding, 
a statement of the legal authority under which the proceeding is initiated, and a 
general description of any issues in controversy;  
                                                     
 
1 For greater certainty, a Party could satisfy this re quirement through such m echanisms as publishing 
the proposed measure in a journal of national circulati on or making the proposed measure available to the public 
on the Internet. WT/REG208/1 
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(b) such persons are afforded a reasonable opportunity to present facts and arguments in 
support of their positions prior to any fina l administrative action, when time, the 
nature of the proceeding, and the public interest permit; and  
(c) its procedures are in accordance with its law.  
Article 18.4 
Review And Appeal 
 
1. Each Party shall establish or maintain judicial , quasi-judicial, or administrative tribunals or 
procedures for the purpose of the prompt review  and, where warranted, correction of final 
administrative actions regarding matters covered by th is Agreement. Such tribunals shall be impartial 
and independent of the office or authority entrus ted with administrative enforcement and shall not 
have any substantial interest in the outcome of the matter.  
2. Each Party shall ensure that, in such tribunals or procedures, the parties to the proceeding are 
provided with the right to:  
(a) a reasonable opportunity to support or defend their respective positions; and  
(b) a decision based on the evidence and submi ssions of record or, where required by 
law, the record compiled by the administrative authority.  
3. Each Party shall ensure, subject to appeal or fu rther review as provided in its law, that such 
decisions shall be implemented by, and shall govern  the practice of, the office or authority with 
respect to the administrative action at issue.  
Article 18.5 
Anti-Corruption  
1. The Parties reaffirm their continuing reso lve to eliminate bribery and corruption in 
international trade and investment.  
2. Each Party shall adopt or maintain the necessary legislative or other measures to establish that 
it is a criminal offense under its law, in matters affecting international trade or investment, for:  
(a) a public official of the Party or a person  who performs public functions for the Party 
intentionally to solicit or accept, directly or  indirectly, any article of monetary value 
or other benefit, such as a favor, promise, or advantage, for himself or for another person, in exchange for any act or om ission in the performance of his public 
functions;  
(b) any person subject to the jurisdiction of the Party intentionally to offer or grant, 
directly or indirectly, to a public official  of the Party or a person who performs public 
functions for the Party any article of moneta ry value or other benefit, such as a favor, 
promise, or advantage, for himself or for another person, in exchange for any act or omission in the performance of his public functions;  
 
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(c) any person subject to the jurisdiction of the Party intentionally to offer, promise, or 
give any undue pecuniary or other advantag e, directly or indirectly, to a foreign 
official, for that official or for another pers on, in order that the official act or refrain 
from acting in relation to the performance of official duties, in order to obtain or retain business or other improper advantage in the conduct of international business; 
and  
(d) any person subject to the jurisdiction of the Party to aid or abet, or to conspire in, the 
commission of any of the offenses described in subparagraphs (a) through (c).  
3. Each Party shall make the commission of an  offense described in paragraph 2 liable to 
sanctions that take into account the gravity of the offense.    
4. Each Party shall strive to adopt or maintain appropriate measures to protect persons who, in 
good faith, report acts of bribery described in paragraph 2.  
5. The Parties recognize the importance of regi onal and multilateral initiatives to eliminate 
bribery and corruption in international trade and investment.  The Parties shall work jointly to 
encourage and support appropriate initiatives in relevant international fora.    
Article 18.6 
Definitions 
 
 For purposes of this Chapter:  
 
 act or refrain from acting in relation to the performance of official duties  includes any 
use of the official’s position, whether or not w ithin the official’s authorized competence;  
  administrative ruling of gen eral application  means an administrative ruling or 
interpretation that applies to all persons and fact situ ations that fall generally within its ambit and that 
establishes a norm of conduct but does not include:  
 
(a) a determination or ruling made in an administrative or quasi-judicial proceeding that 
applies to a particular person, good, or servi ce of the other Party in a specific case; or  
 (b) a ruling that adjudicates with respect to a particular act or practice;  
 
 foreign official  means any person holding a legislative, administrative, or judicial office of a 
foreign country, at any level of government, whether appointed or elected; any person exercising a public function for a foreign country at any level of government, including for a public agency or 
public enterprise; and any official or agent of a public international organization;  
 
 public function  means any temporary or permanent, paid  or honorary activity, performed by 
a natural person in the name of a Party or in the servi ce of a Party, such as procurement, at the central 
level of government; and  
 
 public official  means any official or employee of a Party at the central level of government, 
whether appointed or elected.   
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CHAPTER NINETEEN:  ADMINISTRATION OF THE AGREEMENT  
 
Article 19.1  
Contact Points 
 
1. Each Party shall designate a contact point or points to facilitate communications between the 
Parties on any matter covered by this Agreement.  
2. On request of the other Party, a Party’s contact  point shall identify the office or official 
responsible for the matter and assist, as necessary, in  facilitating communications with the other Party.  
Article 19.2 
Joint Committee  
1. The Parties hereby establish a Joint Committee to supervise the implementation of this 
Agreement and to review the trade relationship between the Parties.  
(a) The Joint Committee shall comprise officials of each Party and shall be chaired by 
officials of (i) the Office of the United States Trade Representative and (ii) the 
Ministry of Foreign Affairs and Cooperation of the Kingdom of Morocco.  
(b) The Joint Committee may establish and delegate responsibilities to ad hoc and 
standing subcommittees or work ing groups and seek the advi ce of interested persons.  
(c) The Joint Committee shall determine the responsibilities and objectives of such 
subcommittees or working groups and supervise their work.   
2. The Joint Committee shall:  
(a) review the general functioning of this Agreement;  
(b) review and consider specific matters relate d to the operation and implementation of 
this Agreement in the light of its objectives;  
(c) facilitate the avoidance and settlement of disputes arising under this Agreement, 
including through consultations pursuant to  Chapter Twenty (Dispute Settlement);  
(d) consider and adopt any amendment or other modification to this Agreement, subject 
to completion of necessary approval procedures by each Party;  
(e) issue interpretations of this Agreement, including as provided in Articles  10.21 
(Governing Law) and 10.22 (Interpretation of Annexes);  
(f) consider ways to further enhance trade re lations between the Parties and to promote 
the objectives of this Agreement, includi ng through cooperation and assistance; and  
(g) take such other action as the Parties may agree.  
3. The Joint Committee shall establish its own rules of procedure.  All decisions of the Joint 
Committee shall be taken by consensus.  
4. Unless the Parties agree otherwise, the Joint Committee shall convene:   WT/REG208/1 
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(a) in regular session every year, with such sessions  to be held alternately in the territory 
of each Party; and  
(b) in special session within 30 days of the requ est of a Party, with such special sessions 
to be held in the territory of the other Party or at such location as the Parties may 
agree.   
5. Recognizing the importance of openness and transparency, the Parties affirm their respective 
practices of considering the views of members of the public in order to draw on a broad range of 
perspectives in the implementa tion of this Agreement.  
6. Each Party shall treat any confidential informa tion exchanged in relation to a meeting of the 
Joint Committee on the same basis as th e Party providing the information.  
 
CHAPTER TWENTY:  DISPUTE SETTLEMENT 
 
Article 20.1  
Cooperation  
 The Parties shall endeavor to agree on the inte rpretation and application of this Agreement, 
and shall make every attempt through cooperation and consultations to arrive at a mutually 
satisfactory resolution of any matter that might affect its operation.   
Article 20.2 
Scope Of Application 
 
 Except as otherwise provided in this Agreement or  as the Parties agree otherwise, this Chapter 
shall apply with respect to the avoidance or settl ement of all disputes betw een the Parties regarding 
the interpretation or application of this Agre ement or wherever a Party considers that:  
 
(a) a measure of the other Party is inconsistent with its obligations under this Agreement;  
(b) the other Party has otherwise failed to carry out its obligations under this Agreement; 
or  
(c) a benefit the Party could reasonably have expected to accrue to it under Chapter Two 
(Market Access for Goods), Chapter Five (Rules of Origin), Chapter Nine (Government Procurement), Chapter Eleven  (Cross-Border Trade in Services), or 
Chapter Fifteen (Intellectual Property Rights) is  being nullified or impaired as a result 
of a measure that is not inconsistent with this Agreement, except that neither Party 
may invoke this subparagraph with respect to a benefit under Chapter Eleven (Cross-
Border Trade in Services) or Chapter Fi fteen (Intellectual Property Rights) if the 
measure is subject to an exception under Article 21.1 (General Exceptions).  
Article 20.3 
Administration Of Dispute Settlement Proceedings 
 
 Each Party shall designate an office that sh all be responsible for providing administrative 
assistance to panels established under Article 20.7. E ach Party shall be responsible for the operation 
and costs of its designated office and shall notify the other Party of its location.  WT/REG208/1 
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Article 20.4 
Choice Of Forum 
 
1. Where a dispute regarding any matter aris es under this Agreem ent and under the WTO 
Agreement, or any other agreement to which both Pa rties are party, the complaining Party may select 
the forum in which to settle the dispute.  
2. The complaining Party shall notify the other Party in writing of its intention to bring a dispute 
to a particular forum before doing so.  
3. Once the complaining Party has selected a particul ar forum, the forum selected shall be used 
to the exclusion of other possible fora.  
4. For the purposes of this paragraph, a Party sha ll be deemed to have selected a forum when it 
has requested the establishment of, or referre d a matter to, a dispute settlement panel.  
Article 20.5 
Consultations  
1. Either Party may request consultations with the other Party with respect to any matter 
described in Article 20.2 by delivering written notif ication to the other Party.  If a Party requests 
consultations, the other Party shall reply promptly to the request for consultations and enter into 
consultations in good faith.  
2. In consultations under this Article, a Party ma y request the other Party to make available 
personnel of its government agencies or other regul atory bodies who have expertise in the matter 
subject to consultations.  
3. Each Party shall:  
(a) provide sufficient information in the consu ltations to enable a full examination of 
how the matter subject to consultations might  affect the operation of this Agreement; 
and  
(b) treat any confidential information exchange d in the course of consultations on the 
same basis as the Party pr oviding the information.  
4. Promptly after requesting or receiving a request  for consultations pursuant to this Article, 
each Party shall solicit and consider the views of  interested nongovernmental entities on the matter in 
order to draw on a broad range of perspectives.  
Article 20.6 
Referral To The Joint Committee  
 If the consultations fail to resolve a matter with in 60 days of the delivery of a Party’s request 
for consultations under Article 20.5, or 20 days wher e the matter concerns pe rishable goods, either 
Party may refer the matter to the Joint Committee by delivering written notification to the other Party.  
The Joint Committee shall endea vor to resolve the matter.  
 
  WT/REG208/1 
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Article 20.7 
Establishment Of Panel  
1. If the Joint Committee has not resolved a matter within 60 days after delivery of the 
notification described in Article 20.6, within 30 da ys where the matter concerns perishable goods, or 
within such other period as the Parties may agree,  the complaining Party may refer the matter to a 
dispute settlement panel by delivering writte n notification to the other Party.  
2. Neither Party may refer a matter concerning an y proposed measure to a dispute settlement 
panel.  
3. Unless the Parties agree otherwise:  
(a) The panel shall have three members.  
(b) Each Party shall appoint one panelist, in c onsultation with the other Party, within 30 
days after the matter has been referred to a pa nel.  If a Party fails  to appoint a panelist 
within such period, a panelist shall be sel ected by lot from the reserve list established 
under paragraph 4 to serve as the pane list appointed by that Party.  
(c) The Parties shall endeavor to agree on a third panelist who shall serve as chair.  
(d) If the Parties are unable to agree on the chai r within 30 days after the second panelist 
has been appointed, the chair shall be selected by lo t from the reserve list established 
under paragraph 4.  
(e) The date of establishment of the panel shall be the date on which the chair is 
appointed.  
4. By the date of entry into force of this Agreem ent, the Parties shall establish a reserve list of 
eight individuals who are willing and able to serve as panelists.  Individuals on the reserve list shall be 
appointed by agreement of the Parties for a minimum term of three years, and shall remain on the list 
until the Parties establish a new reserve list.   
5. Individuals appointed to a panel pursuant to pa ragraph 3 or to the reserve list pursuant to 
paragraph 4 shall:  
(a) be chosen strictly on the basis of objectivit y, reliability, and so und judgment and have 
expertise or experience in law, international trade, or the resolution of disputes arising 
under international trade agreements;  
(b) be independent of, and not be affiliated with or take instructions from, either Party; 
and  
(c) comply with a code of conduct to  be established by the Parties.  
In addition, panelists other than those chosen by  lot from the reserve list shall have, as appropriate, 
expertise or experience relevant to the subject matter that is under dispute.  
 6. The Joint Committee shall review the operation and effectiveness of this Article not later than 
five years after the Agreement enters into force, or at such later time as the Parties may agree.  
 WT/REG208/1 
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Article 20.8 
Rules Of Procedure 
 
1. The Parties shall establish by the date of entry into force of this Agreement model rules of 
procedure, which shall ensure:  
(a) a right to at least one hearing before the panel and that, subject to subparagraph (f), 
such hearings shall be open to the public;  
(b) an opportunity for each Party to provi de initial and rebuttal submissions;  
(c) that each Party’s written submissions, written versions of its oral statement, and 
written responses to a request or questions fro m the panel shall be made available to 
the public within ten days after they ar e submitted, subject to subparagraph (f);  
(d) that the panel shall consider requests from nongovernmental entities located in the 
Parties’ territories to provide written views regarding the dispute that may assist the 
panel in evaluating the submissions and arguments of the Parties;  
(e) a reasonable opportunity for each Party to submit comments on the initial report 
presented pursuant to Article 20.9.1; and  
(f) the protection of confidential information.  
2. Unless the Parties agree otherwise, the panel shall follow the model rules of procedure and 
may, after consulting the Parties, adopt additional ru les of procedure not inconsistent with the model 
rules.  
3. On request of a Party, or on its own initiativ e, the panel may seek information and technical 
advice from any person or body that it deems appr opriate, provided that the Parties so agree and 
subject to such terms and conditions as the Parties may agree.  
Article 20.9 
Panel Report  
1. Unless the Parties agree otherwise, the panel shall, within 180 days after the chair is 
appointed, present to the Parties an initial report containing findings of fact, and its determination as 
to whether:  
(a) the measure at issue is inconsistent w ith the obligations of this Agreement;  
(b) a Party has otherwise failed to carry out its obligations under this Agreement; or  
(c) the measure at issue is causing nullificati on or impairment in the sense of Article 
20.2(c);  
as well as any other determination requested by the Parties with regard to the dispute.  
2. The panel shall base its report on the releva nt provisions of the Agreement and the 
submissions and arguments of the Parties.  The panel may, at the request of the Parties, make recommendations for the resolution of the dispute.   WT/REG208/1 
 Page 189 
 
 
3. After considering any written comments by th e Parties on the initial report, the panel may 
modify its report and make any further examination it considers appropriate.  
4. The panel shall present a final report to the Par ties within 45 days of presentation of the initial 
report, unless the Parties agree otherwise.  The Pa rties shall make the final report public within 15 
days thereafter, subject to the protection of confidential information.  
Article 20.10 
Implementation Of The Final Report  
1 On receipt of the final report of a panel, the Parties shall agree on the resolution of the 
dispute, which normally shall conform with the dete rminations and recommendations, if any, of the 
panel.  
 
2 If, in its final report, the panel determines that  a Party has not conformed with its obligations 
under this Agreement or that a Party’s measure is causing nullification or impairment in the sense of 
Article 20.2(c), the resolution, whenever possible, shall be to eliminate the non-conformity or the 
nullification or impairment.  
 
Article 20.11 
Non-Implementation  
1. If a panel has made a determination of the type  described in Article 20.10.2, and the Parties 
are unable to reach agreement on a resolution pursuant  to Article 20.10.1 with in 45 days of receiving 
the final report, or such other period as the Parties ag ree, the Party complained against shall enter into 
negotiations with the other Party with a view to  developing mutually acceptable compensation.  
2. If the Parties:  
(a) are unable to agree on compensation within 30 days after the period for developing 
such compensation has begun, or  
(b) have agreed on compensation or on a resolution pursuant to Article 20.10.1 and the 
complaining Party considers that the other Pa rty has failed to observe the terms of the 
agreement,  
the complaining Party may at any time thereafter pr ovide written notice to the other Party that it 
intends to suspend the application to the other Party of benefits of equivalent  effect. The notice shall 
specify the level of benefits that the Party pr oposes to suspend. Subject to paragraph 5, the 
complaining Party may begin suspending benefits 30 days after the later of the date on which it 
provides notice under this paragraph or the panel i ssues its determination under paragraph 3, as the 
case may be.  
 
3. If the Party complained against considers that:   
(a) the level of benefits that the other Party has proposed to be suspended is manifestly 
excessive; or  
(b) it has eliminated the non-conformity or the nullification or impairment that the panel 
has found,  WT/REG208/1 
Page 190  
 
it may, within 30 days after the complaining Part y provides notice under paragraph 2, request that the 
panel be reconvened to consider the matter.  The Pa rty complained against shall deliver its request in 
writing to the other Party. The panel shall reconve ne as soon as possible after delivery of the request 
and shall present its determination to the Parties w ithin 90 days after it reconvenes to review a request 
under subparagraph (a) or (b), or within 120 days fo r a request under subparagraphs (a) and (b). If the 
panel determines that the level of benefits proposed  to be suspended is manifestly excessive, it shall 
determine the level of bene fits it considers to be of equivalent effect.  
 4. The complaining Party may suspend benefits up to the level the panel has determined under 
paragraph 3 or, if the panel has not determined the level, the level the Party has proposed to suspend 
under paragraph 2, unless the panel ha s determined that the Party comp lained against has eliminated 
the non-conformity or the nullification or impairment.  
5. The complaining Party may not suspend benefits  if, within 30 days after it provides written 
notice of intent to suspend benefits or, if the pa nel is reconvened under para graph 3, within 20 days 
after the panel provides its determination, the Part y complained against provides written notice to the 
other Party that it will pay an annual monetary ass essment.  The Parties shall consult, beginning no 
later than ten days after the Party complained against provides notice, with a view to reaching 
agreement on the amount of the assessment.  If the Par ties are unable to reach an agreement within 30 
days after consultations begin, the amount of the asse ssment shall be set at a level, in U.S. dollars, 
equal to 50 percent of the level of the benefits the panel has determined unde r paragraph 3 to be of 
equivalent effect or, if the panel has not determ ined the level, 50 percent of the level that the 
complaining Party has proposed to suspend under paragraph 2.  
6. Unless the Joint Committee decides otherwise, a monetary assessment shall be paid to the 
complaining Party in U.S. currency, or in an e quivalent amount of Moroccan currency, in equal, 
quarterly installments beginning 60 da ys after the Party complained against gives notice that it intends 
to pay an assessment.  Where th e circumstances warrant, the Join t Committee may decide that an 
assessment shall be paid into a fund established by  the Joint Committee and expended at the direction 
of the Joint Committee for appropriate initiatives to f acilitate trade between the Parties, including by 
further reducing unreasonable trade barriers or by assisting a Party in carrying out its obligations 
under the Agreement.  
7. If the Party complained against fails to pay a monetary assessment, the complaining Party 
may suspend the application to the Party compla ined against of benefits in accordance with 
paragraph 4.  
8. This Article shall not apply with respect to a matter described in Article 20.12.1.  
Article 20.12 
Non-Implementation In Certain Disputes 
 
1. If, in its final report, a panel determines that  a Party has not conformed with its obligations 
under Article 16.2.1(a) (Application and Enforc ement of Labor Laws) or Article 17.2.1(a) 
(Application and Enforcement of Envir onmental Laws), and the Parties:  
(a) are unable to reach agreement on a resoluti on pursuant to Article 20.10.1 within 45 
days of receiving the final report; or  
(b) have agreed on a resolution pursuant to Article 20.10.1 and the complaining Party 
considers that the other Party has failed to  observe the terms of the agreement,   WT/REG208/1 
 Page 191 
 
 
the complaining Party may at any time thereafter request that the panel be reconvened to impose an annual monetary assessment on the other Party.  The complaining Party shall deliver its request in 
writing to the other Party. The panel shall reconvene  as soon as possible after delivery of the request.  
2. The panel shall determine the amount of the m onetary assessment in U.S. dollars within 90 
days after it reconvenes under paragraph 1. In de termining the amount of the assessment, the panel 
shall take into account:  
(a) the bilateral trade effects of the Party’s failure  to effectively enforce the relevant law;  
(b) the pervasiveness and duration of the Part y’s failure to effectively enforce the 
relevant law;  
(c) the reasons for the Party’s failure to e ffectively enforce the relevant law;  
(d) the level of enforcement that could reasona bly be expected of the Party given its 
resource constraints;  
(e) the efforts made by the Party to begin remedying the non-enforcement after the final 
report of the panel; and  
(f) any other relevant factors.  
The amount of the assessment shall not exceed 15 milli on U.S. dollars annually, adjusted for inflation 
as specified in Annex 20-A.   3. On the date on which the panel determines the amount of the monetary assessment under 
paragraph 2, or at any other time thereafter, the complaining Party may provide notice in writing to 
the Party complained against demanding payment of the monetary assessment.  The monetary 
assessment shall be payable in U.S. currency, or in an equivalent amount of Moroccan currency, in 
equal, quarterly installments beginning 60 days after the complaining Part y provides such notice.  
4. Assessments shall be paid into a fund est ablished by the Joint Committee and shall be 
expended at the direction of the Joint Committee fo r appropriate labor or environmental initiatives, 
including efforts to improve or enhance labor or environmental law enforcement, as the case may be, 
in the territory of the Party complained against, c onsistent with its law. In deciding how to expend 
monies paid into the fund, the Joint Committee shall consider the views of interested persons in each 
Party’s territory.  
5. If the Party complained against fails to pa y a monetary assessment, and if the Party has 
created and funded an escrow account to ensure paymen t of any assessments against it, the other Party 
shall, before having recourse to any other meas ure, seek to obtain the funds from the account.  
6. If the complaining Party cannot obtain the funds  from the other Party’s escrow account within 
30 days of the date on which payment is due, or if  the other Party has not created an escrow account, 
the complaining Party may take ot her appropriate steps to collect the assessment or otherwise secure 
compliance.  These steps may include suspending ta riff benefits under the Agreement as necessary to 
collect the assessment, while bearing in mind the Agreement’s objective of eliminating barriers to 
bilateral trade and while seeking to av oid unduly affecting par ties or interests not party to the dispute.  
 
 WT/REG208/1 
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Article 20.13 
Compliance Review 
 
1 Without prejudice to the procedures set out in Article 20.11.3, if the Party complained against 
considers that it has eliminated the non-conformity or the nullification or impairment that the panel 
has found, it may refer the matter to the panel by providing written notice to the other Party. The 
panel shall issue its report on the matter within 90  days after the Party complained against provides 
notice.   2 If the panel decides that the Party complained  against has eliminated the non-conformity or 
the nullification or impairment, the complaining Pa rty shall promptly reinstate any benefits it has 
suspended under Article 20.11 or 20.12 and the Part y complained against shall no longer be required 
to pay any monetary assessment it has agreed to pa y under Article 20.11.5 or that has been imposed 
on it under Article 20.12.   
Article 20.14 
Five-Year Review 
 
 The Joint Committee shall review the operation and effectiveness of Articles 20.11 and 20.12 
not later than five years after the Agreement enters in to force, or within six months after benefits have 
been suspended or monetary assessments have been imposed in five proceedings initiated under this 
Chapter, whichever occurs first.   
Article 20.15 
Private Rights 
 
 Neither Party may provide for a right of acti on under its law against the other Party on the 
ground that a measure of the other Party is  inconsistent with this Agreement.  
 
 
ANNEX 20-A  
 
Inflation Adjustment Formula For Monetary Assessments  
1. An annual monetary assessment imposed befo re December 31, 2005, shall not exceed 15 
million U.S. dollars.  
2. Beginning January 1, 2006, the 15 million U.S. dollars annual cap shall be adjusted for 
inflation in accordance with paragraphs 3 through 5.  
3. The period used for the accumulated inflation adjustment shall be calendar year 2004 through 
the most recent calendar year preceding the one in which the assessment is owed.  
4. The relevant inflation rate shall be the U.S. inflation rate as measured by the Producer Price 
Index for Finished Goods published by th e U.S. Bureau of Labor Statistics.  
    WT/REG208/1 
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5. The inflation adjustment shall be estimat ed according to the following formula:  
$15 million x (1+ Πi) = A  
 Πi = accumulated U.S. inflation rate from calendar year 2004 through the most 
recent calendar year preceding the one in which the assessment  is owed.  
 
A =  cap for the assessment for the year in question.  
 
 
CHAPTER TWENTY-ONE:  EXCEPTIONS 
 
Article 21.1 
General Exceptions 
 
1 For purposes of Chapters Two through Seven (National Treat ment and Market Access for 
Goods, Agriculture, Textiles and Apparel, Rules of  Origin, Customs Administration, and Technical 
Barriers to Trade), Article XX of GATT 1994 and its interpretive notes are incorporated into and 
made part of this Agreement, mutatis mutandis .  
 
2 For purposes of Chapters Eleven, Thirteen, and Fourteen1 (Cross-Border Trade in Services, 
Telecommunications, and Electronic Commerce), Artic le XIV of GATS (including its footnotes) is 
incorporated into and made part of this Agreement.   
Article 21.2 
Essential Security 
 
 Nothing in this Agreemen t shall be construed:  
 
(a) to require a Party to furnish or allow access to any information the disclosure of 
which it determines to be contrary to its essential security interests; or  
(b) to preclude a Party from applying measure s that it considers necessary for the 
fulfillment of its obligations with respect  to the maintenance or restoration of 
international peace or security or the protec tion of its own essential security interests.  
 For greater certainty, measures that a Party considers necessary for the protection of its own 
essential security interests may include, inter alia , measures relating to the production of or traffic in 
arms, ammunition, and implements of war and to  such traffic and transactions in other goods, 
materials, services, and technology undertaken direc tly or indirectly for the purpose of supplying a 
military or other security establishment.  
 
Article 21.3 
Taxation  
1. Except as set out in this Article, nothing in this  Agreement shall apply to taxation measures.  
                                                      
1 This Article is without prejudice to whether digital products should be classified as goods or services.  WT/REG208/1 
Page 194  
 
2. Nothing in this Agreement shall affect the ri ghts and obligations of either Party under any 
existing or future tax convention. In the event of  any inconsistency between  this Agreement and any 
tax convention, the provisions of such convention shall prevail to the extent of such inconsistency.  In 
the case of the Convention Between the Government of the United States of America and the Kingdom 
of Morocco for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect 
to Taxes on Income , the competent authorities of the Parties,  as defined in that convention, are 
exclusively responsible for determining whether any inconsistency exists betw een this Agreement and 
that convention.  
3. Notwithstanding paragraph 2:  
(a) Article 2.2 (Market Access – National Treatment) and such other provisions of this 
Agreement as are necessary to give effect  to that Article shall apply to taxation 
measures to the same extent as do es Article III of GATT 1994; and  
(b) Article 2.10 (Market Access – Export Tax es) shall apply to taxation measures.  
4. Subject to paragraph 2:  
(a) Article 11.2 (Cross-Border Trade in Services – National Treatment) and Article 12.2 
(Financial Services – National Treatment) shall apply to taxation measures on 
income, capital gains, or on the taxable cap ital of corporations that relate to the 
purchase or consumption of particular services, except that nothing in this subparagraph shall prevent a Party from conditioning the receipt or continued receipt of an advantage relating to the purchase or consumption of particular services on 
requirements to provide the service in its territory; and  
(b) Articles 10.3 (Investment – National Treatment) and 10.4 (Investment – Most-
Favored-Nation Treatment), Articles 11.2 (Cross-Border Trade in Services – National Treatment) and 11.3 (Cross-Border Trad e in Services – Most-Favored-Nation 
Treatment), and Articles 12.2 (Financial Services – National Treatment) and 12.3 (Financial Services – Most-Favored-Nation Treatment) shall apply to all taxation 
measures other than those on income, capita l gains, or on the taxable capital of 
corporations, taxes on estates, inheritances, gi fts, and generation-skipping transfers,  
except that nothing in those Articles shall apply:  
 
(c) any most-favored-nation obligation with resp ect to an advantage accorded by a Party 
pursuant to a tax convention;  
(d) to a non-conforming provision of any existing taxation measure;  
(e) to the continuation or prompt renewal of  a non-conforming provision of any existing 
taxation measure;  
(f) to an amendment to a non-conforming provi sion of any existing taxation measure to 
the extent that the amendment does not d ecrease its conformity, at the time of the 
amendment, with any of those Articles;  
(g) to the adoption or enforcement of any taxation measure aimed at ensuring the 
equitable or effective imposition or coll ection of taxes (as permitted by Article 
XIV(d) of GATS); or  
  WT/REG208/1 
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(h) to a provision that conditions the receipt, or continued receipt, of an advantage 
relating to the contributions to, or income  of, pension trusts or pension plans on a 
requirement that the Party maintain conti nuous jurisdiction over the pension trust or 
pension plan.  
5. Subject to paragraph 2 and without prejudice to the rights and obligations of the Parties under 
paragraph 3, paragraphs 2, 3, and 4 of Article 10.8 (Investment – Performance Requirements) shall 
apply to taxation measures.2 
6. Article 10.6 (Expropriation and Compensation) and Article 10.15 (Submission of a Claim to 
Arbitration) shall apply to a taxation measure alle ged to be an expropriation or a breach of an 
investment agreement or investment  authorization.  However, no investor may invoke Article 10.6 as 
the basis of a claim where it has b een determined pursuant to this paragraph that the measure is not an 
expropriation.  An investor that seeks to invoke Ar ticle 10.6 with respect to a taxation measure must 
first refer to the competent authorities at the time th at it gives notice of intent under Article 10.15.2 
the issue of whether the measure involves an exprop riation.  If the competent authorities do not agree 
to consider the issue or, having agreed to consider  it, fail to agree that the measure is not an 
expropriation within a period of six months of such  referral, the investor may submit its claim to 
arbitration under Article 10.15.  
7. For purposes of paragraph 6, competent authorities  means (a) in the case of Morocco, the 
minister in charge of finances or his delegate (Dir ector General of Taxes); and (b) in the case of the 
United States, the Assistant Secretary of the Treasury (Tax Policy).  
Article 21.4  
Disclosure Of Information  
 Nothing in this Agreement sha ll be construed to require a Part y to furnish or allow access to 
information the disclosure of which would impede law enforcement or would be contrary to the 
Party’s law protecting personal privacy or the fina ncial affairs and accounts of individual customers 
of financial institutions.  
Article 21.5  
Balance Of Payments Measures On Trade In Goods  
 Should a Party decide to impose measures for balance of payments purposes, it shall do so 
only in accordance with that Party’s rights a nd obligations under GA TT 1994, including the 
Declaration on Trade Measures Taken for Balance of Payments Purposes  (1979 Declaration) and the 
Understanding on the Balance of Payments Provisions of the GATT 1994 (BOP Understanding). In 
adopting such measures, the Party shall immediately consult with the other Party and shall not impair 
the relative advantages accorded to the goods of the other Party under this Agreement.3 
 
 
 
  
                                                     
 
2 For greater certainty, nothing in paragraphs 2, 3, and 4 of Article 10.8 (Investment – Performance 
Requirements) shall be construed to pr event a Party from conditioning the r eceipt or continued receipt of a tax 
advantage for income earned from the export of any goods or services, in connection with an investment in its territory of an investor of a Party or of a non-Party,  on compliance with a requir ement that such income be 
denominated in a foreign currency and received in its territory. 
3 For greater certainty, this Article applies to bala nce of payments measures imposed on trade in goods. WT/REG208/1 
Page 196  
 
CHAPTER TWENTY-TWO:  FINAL PROVISIONS 
 
Article 22.1 
Annexes 
 
 The Annexes to this Agreement constitute an integral part of this Agreement.  
 
Article 22.2  
 
Amendments  
 The Parties may agree, in writing, to amend th is Agreement.  An amendment shall enter into 
force after the Parties complete any necessary appr oval procedures, on such date as the Parties may 
agree.  
Article 22.3  
Amendment Of The WTO Agreement  
 If any provision of the WTO Agreement that the Parties have incorporated into this 
Agreement is amended, the Parties shall consult w ith a view to amending the relevant provision of 
this Agreement, as appropriate, in  accordance with Article 22.2.  
 
Article 22.4  
Development Strategies  
 At the request of either Party, the Parties sh all consult to consider strategies and policies for 
developing and promoting new ec onomic activities in a Party’s territory that would contribute to 
realizing the objectives of this Agreement.   
Article 22.5  
Accession 
 
1. Any country or group of countries may accede to  this Agreement subject to such terms and 
conditions as may be agreed between such country or countries and the Parties and following approval 
in accordance with the applicable legal procedures of each country.  
 2. This Agreement shall not apply as between any Party and any acceding country or group of 
countries if, at the time of the accession, either  does not consent to such application.  
 
Article 22.6 
Entry Into Force And Termination 
 
1. This Agreement shall enter into force on the first day of the third month after the date on 
which the Parties exchange written notifications certi fying that they have completed their respective 
legal procedures or such other date as the Parties may agree.  
 2. Either Party may terminate this Agreement on 180-days written notice to the other Party.  
 
  WT/REG208/1 
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Article 22.7  
Authentic Texts  
 The English and Arabic texts of this Agreem ent are equally authentic, and the French text 
shall be equally authentic upon an exchange of di plomatic notes confirming its conformity with the 
English and Arabic texts.  
 
 
 IN WITNESS WHEREOF , the undersigned, being duly authorized by their respective 
Governments, have signe d this Agreement.  
 
 DONE at Washington, D.C., in duplicate, this fifteenth day of June, 2004.  
   
FOR THE GOVERNMENT OF THE    FOR THE GOVERNMENT OF 
THE UNITED STATES OF AMERICA    KINGDOM OF MOROCCO 
 
__________