RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG91/3
22 June 2000
(00-2544)
Committee on Regional Trade Agreements Original:  English
FREE TRADE AGREEMENT BETWEEN
THE EFTA STATES AND MOROCCO
Communication from the Parties to the Agreement
The following communication has been received from the EFTA States and the Permanent
Mission of Morocco, with the request that it be distributed to the WTO Members.
_______________
I. BACKGROUND INFORMATION TO THE AGREEMENT
1. Membership and Dates of Signature, Ratification and Entry into Force
The Parties to the Agreement are the States of the European Free Trade Association (EFTA)
(Iceland, Liechtenstein, Norway and Switzerland) on the one hand, and Morocco, on the other.  The
Agreement applies to the customs territories of the Parties.
The Agreement and the bilateral agricultural arrangements were signed on 19 June 1997, and
entered into force on 1 December 1999.
The Agreement and the bilateral agricultural arrangements, as the instruments creating the
Free Trade Area between the EFTA States and Morocco, were notified to the Council for Trade in
Goods on 20 January 2000 in accordance with Article XXIV:7(a) of GATT 1994.
2. Type of Agreement
The Agreement creates a free-trade area in conformity with the definition set out in
Article XXIV:8 (b) of GATT 1994.  While the Agreement does not contain a transitional period for
the EFTA States for the abolition of duties and other restrictions on trade, Morocco has a transitional
period not exceeding  12 years  for certain products.  The bilateral agricultural arrangements introduce
substantial liberalization of trade in basic agricultural goods.
3. Scope
The free-trade area established by the Agreement and the bilateral agricultural arrangements
provide the framework for future trade relations between the EFTA States and Morocco.
The Agreement covers trade in industrial products (Chapters 25 to 97 of the
Harmonized System, HS), fish and other marine pr oducts (Annex II: HS Chapters 3, 15 and 16) and
processed agricultural products (Protocol A).  The products covered are products originating in the
EFTA States or in Morocco according to the rules of origin set out in Protocol B of the Agreement.WT/REG91/3
Page 2
The products excluded from the coverage of the Agreement (Annex I to the Agreement) are
products originally falling within Chapters 1 to  24 ("agricultural products") in the nomenclature
preceding the Harmonised Description and Coding Sy stem, but which were transferred at the time of
its introduction HS Chapters 25 to 97 ("industrial products").  These products listed in Annex I are
thus products which are excluded from the application of the provisions of the Agreement relating toindustrial products.  However, they may be covered by the bilateral agricultural arrangements or by
the protocol on processed agricultural products (Protocol A).  The EFTA States apply the same
system in their relations with the European Community.
4. Trade Data
Trade data, including trade flows and trade coverage, can be found at Annex.  More recent
data on trade coverage for the year1998 will be made available at a later stage.
II. TRADE PROVISIONS
1. Import Restrictions
1.1 Duties and charges
On the entry into force of the Agreement the EFTA States have abolished all customs duties
on imports and any charges having equivalent effect on products originating in Morocco in
accordance with Article 4.2.  Under Article 4.3, Morocco is to progressively abolish customs duties
on imports and charges having equivalent effect on products originating in an EFTA State as indicated
below:
Table to Annex III Time schedule
A 3 years
B 12 years
C 12 years
D The products contained in Table D are to be re-examined and a tariff
dismantling schedule established by the Joint Committee three years after the
entry into force of the Agreement.
E For the products listed in Table E, no tariff dismantling is set out. These
arrangements are to be re-examined by the Joint Committee.
F Morocco is to eliminate all reference prices on products listed in Table F in
accordance with its obligations in the WTO, in particular the Agreement on
Customs Valuation, at the latest three years after the entry into force of theAgreement.
The reason for the dismantling periods is the sensitive nature of the products concerned.
1.2 Quantitative restrictionsArticle 8.1 stipulates that no new quantitative restrictions on imports and measures having
equivalent effect are to be introduced in trade between the Parties.  The EFTA States have abolishedquantitative restrictions on imports and measures having equivalent effect on the entry into force of
the Agreement in accordance with Article 8.2.  Article 8.3 provides Morocco with the right to
maintain quantitative restrictions on a limited number of products as set out in Annex IV.  These
arrangements are to be re-examined by the Joint Committee.WT/REG91/3
Page 3
2. Export Restrictions
2.1 Duties and charges
No new customs duties on exports or charges having equivalent effect are to be introduced in
trade between the Parties in accordance with Article 7.1.  Under Article 7.2, the Parties abolished all
customs duties on exports and charges having equivalent effect on the date of the entry into force of
the Agreement.
2.2 Quantitative restrictionsArticle 8.1 stipulates that no new quantitative restrictions on exports and measures having
equivalent effect are to be introduced in trade between the Parties.  The EFTA States have abolished
quantitative restrictions on exports and measures having equivalent effect on the date of entry into
force of the Agreement according to Article 8.2.  Article 8.3 provides Morocco with the right to
maintain quantitative restrictions on a limited number of products as set out in Annex IV.  These
arrangements are to be re-examined by the Joint Committee.
3. Rules of Origin
Protocol B of the Agreement lays down the rules of origin.  In general, origin is confirmed
when:
- the good is wholly obtained or produced in the territory of a Party; or- each of the non-originating materials used in the production of the good undergoes an
applicable change in tariff classification set out in the specific rule for that good(detailed in Annex II  to Protocol B), and the good satisfies any other applicable
requirement set out in that rule, as a result of production occurring in the territory of a
Party; and
- the good satisfies other particular circumstances as set out in Protocol B of the
Agreement.
The rules of origin enable bila teral cumulation of origin between the Parties, i.e. materials
originating in a Party shall be considered as materi als originating in the other Party when incorporated
into a product obtained there.
4. Standards
4.1 Technical barriers to trade (TBT)
Article 11 provides for the Parties to co-operate in the field of technical regulations, standards
and conformity assessment.  Immediate consultations in the Joint Committee are to be held in caseone Party considers another to have created technical obstacles to trade.  Draft technical regulations
are to be notified in accordance with the provisions of the WTO TBT Agreement.
4.2 Sanitary and phytosanitary measures (SPS)
In accordance with Article 12.3, the Parties are to apply their regulations in sanitary and
phytosanitary matters in a non-discriminatory fashion and are not to introduce any new measures that
have the effect of unduly obstructing trade.WT/REG91/3
Page 4
5. Safeguard Measures
There are no specific provisions in the Agreement related to global safeguard actions, thus the
WTO provisions will apply.  Article 25 of the Agr eement lays down the procedures for the application
of safeguards between the Parties.  Direct consultations are to be held between the Parties prior to theinitiating of safeguard measures.  The Agreement permits the application of safeguard measures in the
following areas:
- Rules of competition concerning undertakings (Art. 17);
- State-aid (Art. 18);
- Dumping (Art. 19);
- Emergency action on imports of particular products (Art. 20);- Re-export and serious shortage (Art. 22);
- Fulfilment of obligations (Art. 32).
In accordance with Article 25.4, safeguard measures taken need to be notified immediately to
the other Parties and the Joint Committee.  The measures  shall be restricted, with regard to their extent
and duration, to what is strictly necessary and shall only rectify the situation leading to the safeguard
measure.  Priority shall be given to measures that will least disturb the functioning of the Agreement
and shall only affect the FTA Partners.  When conditions no longer justify the maintenance of
safeguard measures, these measures are to be relaxed, substituted or abolished.
In the case of balance of payments difficulties, Article 23 gives the right to Parties to adopt
restrictive measures in accordance with the conditions established under the GATT 1994 and the
Understanding on the Balance-of-Payments provisions of the GATT 1994.  If possible, Parties are to
inform the other Parties and the Joint Committee prior to their introduction.
Structural Adjustment Measures
Article 21 contains provisions on structural adjustment measures which entail an element of
asymmetry in favour of Morocco.  Morocco may take exceptional measures in the form of increased
import duties concerning infant industries or sectors undergoing restructuring or facing serious
difficulties, particularly where they produce important social problems.  The Article specifies the
criteria for applying such measures which shall not exceed three years, unless otherwise agreed by theJoint Committee.  The Article further stipulates that the application of exceptional measures is limited
to an eight-year period.
6. Anti-dumping and Countervailing Measures
Article 19 of the Agreement stipulates that if a Party finds that dumping has taken place
within the meaning of Article VI of the GATT 1994 in  trade relations governed by the Agreement, it
may take appropriate measures in accordance with the Agreement on Implementation of Article VI of
the GATT 1994 and in accordance with the procedures laid down for the application of safeguard
measures.
7. Subsidies and State-aid
In accordance with Article 18, any aid granted by a Party or through State resources which
distorts or threatens to distort competition by favouring certain undertakings or the production ofcertain goods in trade between the EFTA States and Morocco is incompatible with the proper
functioning of the Agreement.WT/REG91/3
Page 5
Any practice contrary to these provisions is to be assessed on the basis of established criteria
set out in Annex IV to the Agreement.  Rules ensuring transparency of State-aid measures are also
included in the Article.  If a practice is consider ed incompatible with the Agreement, the Agreement
gives the right to take appropriate measures in accordance with Article 25.
8. Sector-specific Provisions
8.1 Agriculture
The Agreement covers trade in processed agricultural products (Protocol A).  Due to the
different agricultural policies of the EFTA States , the individual EFTA States (Iceland, Norway and
Switzerland) and Morocco have concluded bilateral agricultural arrangements that also form part of
the instruments creating the free trade area.  These arrangements, which take the form of exchanges of
letters between the respective Parties, provide for duty-free or preferential treatment on agricultural
products.  The bilateral agricultural arrangements contain specific rules of origin, generally based on
the “wholly-obtained” criteria.
8.2 FishTrade in fish and other marine products are covered in Annex II to the Agreement.  The
EFTA countries have committed themselves to substa ntially liberalising all the trade in these products
under the Agreement as of the entry into force of the Agreement.  Switzerland, including
Liechtenstein, may maintain customs duties on imports of fresh water fish and some other products.
Morocco has been granted transitional periods between four to nine years and exceptions, as outlined
below.  For certain products, Morocco has established duty-free import quotas until they are phased
out together with the customs duties on these products.
Tables under Article 3
to Annex IITime schedule
2 4 years
3 6 years
4 9 years
5 Annual duty-free import quotas: 5 years/9 years
6 Reduction of customs duties to 2.5 per cent ad valorem  upon the entry into
force of the Agreement (with some exceptions)
7 Reduction of customs duties for products originating in an EFTA State to
40 per cent ad valorem  upon the entry into force of the Agreement
9. Other
9.1 Customs co-operation
The basis for co-operation in the customs field is provided for in Title 5 of Protocol B referred
to in Article 3 of the Agreement.  The areas of co-operation include communication of stamps and
addresses, verification of movement certificates EU R.1 and invoice declarations, dispute settlement,
penalties and free zones.
9.2 Intellectual property rights
Article 16 commits the Parties to grant and ensure adequate, effective and non-discriminatory
protection of intellectual property rights, including measures for the enforcement of such rights
against infringement thereof, counterfeiting and piracy, according to international law and Annex V toWT/REG91/3
Page 6
the Agreement.  Exemptions from treatment no less favourable than that accorded to the Parties’
nationals must be in accordance with the TRIPS Agreement.  At the request of any Party, the
provisions can be reviewed to further improve the level of protection.
9.3 Public procurementAccording to Article 15, liberalization of public procurement markets on the basis of
non-discrimination and reciprocity is considered an integral objective of the Agreement.  The Joint
Committee is to elaborate rules to ensure such liberalization, taking into account developments under
the auspices of the WTO.
9.4 State monopoliesUnder Article 10, the EFTA States are to ensure that any state monopoly of a commercial
character be adjusted, so that no discrimination regarding the conditions under which goods are
procured and marketed exists between nationals of the Parties and that they are to be procured and
marketed in accordance with commercial considerati ons.  Exceptions are listed in Protocol C to the
Agreement.  Morocco is to progressively adjust an y state monopoly of a commercial character so that,
at the latest, at the end of the fifth year following the entry into force of the Agreement, no
discrimination will exist between the Parties.
9.5 CompetitionArticle 17 contains provisions relating to rules of competition concerning undertakings.  The
Article stipulates the practices considered incompa tible with the functioning of the Agreement in so
far as they affect trade between the Parties.  If a Party considers that a given practice is incompatible
with the provisions set out, it may take appropriate  measures in accordance with the procedures for
the application of safeguard measures.
9.6 Internal taxationIn accordance with Article 13, the Parties are to apply any internal taxes and other charges
and regulations in accordance with  Article III of the GATT 1994.  Th e provision further states that
exporters may not benefit from repayment of internal taxation in excess of the amount of direct orindirect taxation imposed on products exported to the territory of one of the Parties.
9.7 Payments and transfersArticle 14 provides for freedom of payments and transfers relating to trade in the territory of
the Party where the creditor resides.  The Article further includes a commitment to refrain from any
exchange or administrative restrictions on grant, repayment or acceptance of credits covering
commercial transactions.
9.8 Evolutionary clauseThe Agreement contains an evolutionary clause allowing the Parties to review the Agreement
in light of developments in international economic relations, and to consider the extension of
co-operation to areas not covered by the Agreement.WT/REG91/3
Page 7
III. GENERAL PROVISIONS OF THE AGREEMENT
1. Exceptions and Reservations
Article 9 allows the Parties to impose prohibitions or restrictions on imports, exports or goods
in transit justified on grounds of public morality, public policy or public security; the protection of
health and life of humans, animals or plants and the environment;  the protection of national treasures
possessing artistic, historic or archaeological value; the protection of intellectual property; rules
related to gold or silver; or the conservation of exhaustible natural resources.
Article 26 contains security exceptions allowing the Parties to take measures to prevent the
disclosure of information related to security in terests and for the protection of essential security
interests or the implementation of international obligations or national policies for cases specified in
the Article.
2. Accession
Any State, being a Member of the European Free Trade Association, may accede to the
Agreement, provided that the Joint Committee decides to approve its accession, to be negotiated
between the acceding State and the Parties concerned.
3. Dispute Settlement
The Agreement includes an arbitration procedure for disputes between the Parties relating to
the understanding and interpretation of the Agreement.  Disputes, which have not been settled within
six months, may be subject to arbitration by means of written notification from one Party to the other.
Provisions on the constitution and functioning of the Arbitral Tribunal are provided for in theAgreement.  The tribunal is to settle the dispute in accordance with international law and the decisions
of the Arbitral Tribunal are binding upon the Parties to the dispute.
4. Relation with Other Trade Agreements
The Parties commit themselves to ensure the co nsistency of the Agreement with their rights
and obligations under the WTO.  Under the Agreement the Parties extend to each other treatment noless favourable than that granted under the WTO.
5. Institutional Framework
The Agreement establishes a Joint Committee which is to supervise and administer the
Agreement.  Information shall be exchanged an d consultations can be held within the Joint
Committee.  The Joint Committee can take decisions in cases provided for by the Agreement or make
recommendations.  The Joint Committee is to review the removal of further obstacles to trade
between the EFTA States.WT/REG91/3
Page 8
ANNEX
EFTA Countries Trade with Morocco
1995 1996 1997 1998 1995/96 1996/97 1997/98
In thousand US $ Percentage change
IMPORTS
Iceland 425 600 401 518 41.1 -33.1 29.1
Norway 30,042 34,092 39,293 31,350 13.5 15.3 -20.2
Switzerland 44,389 37,883 36,465 45,440 -14.7 -3.7 24.6
EFTA 74,856 72,575 76,160 77,308 -3.0 4.9 1.5
Share in EFTA's total
imports0.07 0.06 0.07 0.06
EXPORTS
Iceland 0 42 898 24 -- -- -97.3
Norway 14,815 10,249 9,926 13,009 -30.8 -3.2 31.1
Switzerland 90,376 88,469 86,681 87,334 -2.1 -2.0 0.8
EFTA 105,181 98,760 97,505 100,367 -6.1 -1.3 2.9
Share in EFTA's total
exports0.08 0.07 0.08 0.08
IMPORTS & EXPORTS
Iceland 425 642 1,299 542 51.1 102.4 -58.3
Norway 44,857 44,341 49,219 44,358 -1.2 11.0 -9.9
Switzerland 134,765 126,352 123,146 132,774 -6.2 -2.5 7.8
EFTA 180,047 171,334 173,664 177,674 -4.8 1.4 2.3
Share in EFTA's total
trade0.08 0.07 0.07 0.07
-- no information/no calculation/no trade.
1 0.0231
134587
0102030405060708090
Iceland Norway SwitzerlandEFTA Countries Trade with Morocco 
(1998 - in million US dollars)
Imports
ExportsWT/REG91/3
Page 9
EFTA States Imports from Morocco, 1997
Country Product listTotal
importsDuty free Reduced
dutyWithout
concessionDuty free Reduced
dutyWithout
concession
In thousand US dollars In per cent
Iceland Annex II 1.4 1.4                 -                 - 100.0                 -                 -
Protocol A in agric. 0.4 0.2 0.2                 - 45.8 54.2                 -
Bilateral Agreement 94.8 94.8                 -                 - 100.0                 -                 -
Other agriculture 1.4                 -                 - 1.4                 -                 - 100.0
Total agriculture 98.0 96.4 0.2 1.4 98.3 0.2 1.5
Protocol A in
industrial0.3 0.3 0.0                 - 100.0 0.0                 -
Annex I 0.0                 -                 -                 -                 -                 -                 -
Other industry 302.8 302.8                 -                 - 100.0                 -                 -
Total industry 303.2 303.2 0.0 0.0 100.0 0.0 0.0
Total 401.2 399.6 0.2 1.4 99.6 0.1 0.4
Norway Annex II 2,328.8 2,328.8                 -                 - 100.0                 -                 -
Protocol A in agric. 80.5 1.6 78.9                 - 2.0 98.0                 -
Bilateral Agreement 17,963.4 16,829.0 1,134.4                 - 93.7 6.3                 -
Other agriculture 7.0                 -                 - 7.0                 -                 - 100.0
Total agriculture 20,379.7 19,159.5 1,213.3 7.0 94.0 6.0 0.0
Protocol A in ind. 0.0 0.0 0.0                 - 0.0 0.0                 -
Annex I 0.0                 -                 - 0.0                 -                 - 0.0
Other industry 18,913.4 18,913.4                 -                 -            100.0                 -
Total industry 18,913.4 18,913.4 0.0 0.0 100.0 0.0 0.0
Total 39,293.1 38,072.9 1,213.3 7.0 96.9 3.1 0.0
Switzerland Annex II 1,730.4 1,730.4                 - 0.0 100.0                 - 0.0
Protocol A in agric. 42.0 21.3 20.7                 - 50.7 49.3                 -
Bilateral Agreement 9,286.5 5,945.2 3,341.3                 - 64.0 36.0                 -
Other agriculture 122.6                 -                 - 122.6                 -                 - 100.0
Total agriculture 11,181.4 7,696.9 3,362.0 122.6 68.8 30.1 1.1
Protocol A in ind. 56.1 56.1 0.0                 - 100.0 0.0                 -
Annex I 0.0                 -                 - 0.0                 -                 - 0.0
Other industry 25,227.8 25,227.8                 -                 - 100.0                 -                 -
Total industry 25,283.9 25,283.9 0.0 0.0 100.0 0.0 0.0
Total 36,465.4 32,980.8 3,362.0 122.6 90.4 9.2 0.3
- No listWT/REG91/3
Page 10
EFTA States Exports into Morocco, 19971
Total
exportsDuty free Reduced
dutyWithout
concessionDuty free Reduced
dutyWithout
concession Country Product-list
In thousand US dollars In per cent
Iceland Annex II 0.0 0.0 0.0                 - 0.0 0.0                 -
Protocol A in agric. 0.0 0.0 0.0                 - 0.0 0.0                 -
Bilateral Agreement 0.0                 -                 -                 -                 -                 -                 -
Other agriculture 0.0                 -                 - 0.0                 -                 - 0.0
Total agriculture 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Protocol A in ind. 0.0                 - 0.0                 -                 - 0.0                 -
Annex III Tabs D, E 0.0                 -                 - 0.0                 - 0.0
Other industry 898.3 898.3                 -                 - 100.0                 -                 -
Total industry 898.3 898.3 0.0 0.0 100.0                 - 0.0
Total 898.3 898.3 0.0 0.0 100.0 0.0 0.0
Norway Annex II 70.5 70.5 0.0                 - 100.0 0.0                 -
Protocol A in agric. 0.0 0.0 0.0                 - 0.0 0.0                 -
Bilateral Agreement 0.0                 -                 - 0.0                 -                 - 0.0
Other agriculture 326.1                 -                 - 326.1                 -                 - 100.0
Total agriculture 396.5 70.5 0.0 326.1 17.8 0.0 82.2
Protocol A in ind. 0.0                 - 0.0                 -                 - 0.0                 -
Annex III Tabs D, E 0.0                 -                 - 0.0                 -                 - 0.0
Other industry 9,529.1 9,529.1                 -                 - 100.0                 -                 -
Total industry 9,529.1 9,529.1 0.0 0.0 100.0 0.0 0.0
Total 9,925.6 9,599.5 0.0 326.1 96.7 0.0 3.3
Switzerland Annex II 31.6 31.6 0.0                 - 100.0 0.0                 -
Protocol A in agric. 388.7 0.0 388.7                 - 0.0 100.0                 -
Bilateral Agreement 1,272.7                 - 1,272.7                 -                 - 100.0                 -
Other agriculture 119.3                 -                 - 119.3                 -                 - 100.0
Total agriculture 1,812.3 31.6 1,661.4 119.3 1.7 91.7 6.6
Protocol A in ind. 1.3                 - 1.3                 -                 - 100.0                 -
Annex III Tabs D, E 27.2                 -                 - 27.2                 -                 - 100.0
Other industry 84,839.8 84,839.8                 -                 - 100.0                 -                 -
Total industry 84,868.3 84,839.8 1.3 27.2 100.0 0.0 0.0
Total 86,680.7 84,871.4 1,662.7 146.5 97.9 1.9 0.2
- No list
__________
                                                     
1 On the exports into Morocco the Annex II-list, the Protocol A-list and Annex III are the same for
the EFTA countries.  Only Switzerland has a Bilateral Agreement with Morocco.