WORLD TRADE
ORGANIZATIONWT/REG112/1
8 November 2000
(00-4723)
Committee on Regional Trade Agreements Original:  English/
      French
EURO-MEDITERRANEAN AGREEMENT BETWEEN THE
EUROPEAN COMMUNITIES AND MOROCCO
Communication from the Parties to the Agreement
The following text reproduces the Agreement2 between the European Communities and
Morocco.
_______________
EURO-MEDITERRANEAN AGREEMENT ESTABLISHING AN ASSOCIATION
BETWEEN THE EUROPEAN COMMUNITIES AND THEIR MEMBER STATES, OF THE
ONE PART, AND THE KINGDOM OF MOROCCO, OF THE OTHER PART
The Kingdom of Belgium, the Kingdom of Denm ark, the Federal Republic of Germany, the
Hellenic Republic, the Kingdom of Spain, the French Republic, Ireland, the Italian Republic, the
Grand Duchy of Luxembourg, the Kingdom of the Netherlands, the Republic of Austria, the
Portuguese Republic, the Republic of Finland, th e Kingdom of Sweden, the United Kingdom of Great
Britain and Northern Ireland,
Contracting Parties to the Treaty establishing the European Community and the Treaty establishing
the European Coal and Steel Community,
hereinafter referred to as the "Member States", and
The European Community, the European Coal and Steel Community, hereinafter referred to
as "the Community",
of the one part, and
The Kingdom of Morocco , hereinafter referred to as "Morocco",
of the other part,Considering the proximity and interdependence which historic links and common values have
established between the Community, its Member States and Morocco;
                                                     
1 The Annexes and Protocols thereto have been submitted to the Secretariat for consultation by
interested Members (Office 3006).  They are also available at the Europa web site, http://www.euromed.net/key-
docs/association_agreements/morocco.htm.WT/REG112/1
Page 2
Considering that the Community, its Member States and Morocco wish to strengthen those
links and to establish lasting relations, based on reciprocity, solidarity, partnership and co-
development;
Considering  the importance which the Parties attach to the principles of the United Nations
Charter, particularly the observance of human rights and political and economic freedom, which form
the very basis of the association;
Considering  recent political and economic developments both on the European continent and
in Morocco, and the resulting common responsibilities  with regard to the stability, security and
prosperity of the Euro-Mediterranean region;
Considering the considerable progress made by Morocco and its people towards achieving
their objectives of full integration of the Moroccan economy into the world economy and participation
in the community of democratic nations;
Conscious , on the one hand, of the importance of relations in an overall Euro-Mediterranean
context and, on the other, of the objective of integration between the countries of the Maghreb;
Desirous of fully achieving the objectives of the association between them by implementing
the relevant provisions of this Agreement to bring the levels of economic and social development of
the Community and Morocco closer to each other;
Conscious  of the importance of this Agreement, which is based on reciprocity of interests,
mutual concessions, cooperation and dialogue;
Desirous  of establishing and developing political consultation on bilateral and international
issues of mutual interest;
Taking account  of the Community's willingness to provide Morocco with decisive support in
its endeavours to bring about economic reform and adjustment and social development;
Considering  the commitment of both the Commun ity and Morocco to free trade, in
compliance with the rights and obligations arising out of the General Agreement on Tariffs and Trade(GATT) in its post-Uruguay Round form;
Desirous  of establishing cooperation, sustained by regular dialogue, on economic, social and
cultural issues in order to achieve better mutual understanding;
Convinced  that this Agreement provides a suitable framework for the development of a
partnership based on private initiative, a landmark option selected by both the Community and
Morocco, and that it will create a climate conducive to economic, trade and investment relations
between them, a consideration which offers vital backing for economic restructuring and
technological modernisation,
Have agreed as follow:
Article 1
1. An association is hereby established between the Community and its Member States, of the
one part, and Morocco, of the other part.WT/REG112/1
Page 3
2. The aims of this Agreement are to:
- provide an appropriate framework for politic al dialogue between the Parties, allowing
the development of close relations in all areas they consider relevant to such dialogue,
- establish the conditions for the gradual liberalisation of trade in goods, services and
capital,
- promote trade and the expansion of harmonious economic and social relations
between the Parties, notably through dialogue and cooperation, so as to foster the
development and prosperity of Morocco and its people,
- encourage integration of the Maghreb countries by promoting trade and cooperation
between Morocco and other countries of the region,
- promote economic, social, cultural and financial cooperation.
Article 2
Respect for the democratic principles and fundamental human rights established by the
Universal Declaration of Human Rights shall inspire the domestic and external policies of the
Community and of Morocco and shall constitute an essential element of this Agreement.
TITLE I
Political Dialogue
Article 3
1. A regular political dialogue shall be established between the Parties. It shall help build lasting
links of solidarity between the partners which will contribute to the prosperity, stability and security
of the Mediterranean region and bring about a climate of understanding and tolerance between
cultures.
2. Political dialogue and cooperation are intended in particular to:
(a) facilitate rapprochement between the Parties through the development of better
mutual understanding and regular coordination on international issues of commoninterest;
(b) enable each Party to consider the position and interests of the other;(c) contribute to consolidating security and stability in the Mediterranean region and in
the Maghreb in particular;
(d) help develop joint initiatives.
Article 4
Political dialogue shall cover all issues of common interest to the Parties, in particular the
conditions required to ensure peace, security and regional development through support for
cooperation, notably within the Maghreb group of countries.WT/REG112/1
Page 4
Article 5
Political dialogue shall be established at regular intervals and whenever necessary notably:
(a) at ministerial level, principally within the Association Council;
(b) at the level of senior officials representing Morocco, on the one hand, and the Council
Presidency and the Commission on the other;
(c) taking full advantage of all diplomatic channels including regular briefings,
consultations on the occasion of international meetings and contacts betweendiplomatic representatives in third countries;
(d) where appropriate, by any other means which would make a useful contribution to
consolidating dialogue and increasing its effectiveness.
TITLE II
Free Movement of Goods
Article 6
The Community and Morocco shall gradually establish a free trade area over a transitional
period lasting a maximum of 12 years starting from the date of the entry into force of this Agreement
in accordance with the provisions of this Agreement and in conformity with those of the 1994 GeneralAgreement on Tariffs and Trade and the other multilateral agreements on trade in goods annexed to
the Agreement establishing the WTO, hereinafter referred to as "GATT".
CHAPTER I
Industrial Products
Article 7
The provisions of this chapter shall apply to  products originating in the Community and
Morocco with the exception of the products referred to in Annex II to the Treaty establishing the
European Community.
Article 8
No new customs duties on imports nor charges having equivalent effect shall be introduced in
trade between the Community and Morocco.
Article 9
Products originating in Morocco shall be imported into the Community free of customs duties
and charges having equivalent effect.WT/REG112/1
Page 5
Article 10
1. The provisions of this chapter shall not preclude the retention by the Community of an
agricultural component on imports of the goods originating in Morocco listed in Annex 1.
The agricultural component shall reflect differences between the price on the Community
market of the agricultural products considered as being used in the production of such goods and the
price of imports from third countries where the total cost of the said basic products is higher in the
Community.  The agricultural component may take the form of a fixed amount or an ad valorem duty.
Such differences shall be replaced, where appropriate, by specific duties based on tariffication of the
agricultural component or by ad valorem duties.
The provisions of Chapter II applicable to agricultural products shall apply mutatis mutandis
to the agricultural component.
2. The provisions of this chapter shall not preclude the separate specification by Morocco of an
agricultural component in the import duties in for ce on the products listed in Annex 2 originating in
the Community. The agricultural component may take the form of a fixed amount or an ad valorem
duty.
The provisions of Chapter II applicable to agricultural products shall apply mutatis mutandis
to the agricultural component.
3. In the case of the products shown in Annex 2, List 1, originating in the Community, Morocco
shall apply upon the entry into force of this Agreement import duties and charges having equivalent
effect no greater than those in force on 1 January 1995, within the limits of the tariff quotas shown in
that list.
During elimination of the industrial component of the duties pursuant to paragraph 4, the level
of the duties to be applied in respect of the products for which the tariff quotas are to be abolished
may not be higher than the level of the duties in force on 1 January 1995.
4. In the case of the products in Annex 2, List 2, originating in the Community, Morocco shall
eliminate the industrial component of the duties in accordance with the provisions laid down in
Article 11(2) of this Agreement in respect of products in Annex 3.
In the case of the products in Annex 2, Lists 1 and 3, originating in the Community, Morocco
shall eliminate the industrial component of the duties in accordance with the provisions laid down in
Article 11(3) of this Agreement in respect of products in Annex 4.
5. The agricultural components applied pursuant to paragraphs 1 and 2 may be reduced where,
in trade between the Community and Morocco, the charge applicable to a basic agricultural product is
reduced or where such reductions are the result of mutual concessions relating to processed
agricultural products.
6. The reduction referred to in paragraph 5, the list of products concerned and, where
appropriate, the tariff quotas within which the reduction applies shall be established by the
Association Council.WT/REG112/1
Page 6
Article 11
1. Customs duties and charges having equivalent effect applicable on import into Morocco of
products originating in the Community other than those listed in Annexes 3, 4, 5 and 6 shall be
abolished upon the entry into force of this Agreement.
2. Customs duties and charges having equivalent effect applicable on import into Morocco of
the products originating in the Community listed in Annex 3 shall be progressively abolished in
accordance with the following timetable:
- On the date of entry into force of this Agreement each duty and charge shall be
reduced to 75 % of the basic duty;
- One year after the date of entry into force of this Agreement each duty and charge
shall be reduced to 50 % of the basic duty;
- Two years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 25 % of the basic duty;
- Three years after the date of entry into force of this Agreement the remaining duties
shall be abolished.
3. Customs duties and charges having equivalent effect applicable on import into Morocco of
the products originating in the Community listed in Annex 4 shall be progressively abolished in
accordance with the following timetables:
- Three years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 90 % of the basic duty;
- Four years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 80 % of the basic duty;
- Five years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 70 % of the basic duty;
- Six years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 60 % of the basic duty;
- Seven years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 50 % of the basic duty;
- Eight years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 40 % of the basic duty;
- Nine years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 30 % of the basic duty;
- Ten years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 20 % of the basic duty;
- Eleven years after the date of entry into force of this Agreement each duty and charge
shall be reduced to 10 % of the basic duty;WT/REG112/1
Page 7
- Twelve years after the date of entry into force of this Agreement the remaining duties
shall be abolished.
4. In the event of serious difficulties for a given product, the timetable for the list in Annex 4
may be reviewed by the Association Committee by common accord on the understanding that theschedule for which the review has been requested may not be extended in respect of the product
concerned beyond the maximum transitional period of 12 years. If the Association Committee has not
taken a decision within 30 days of its application to review the timetable, Morocco may suspend the
timetable provisionally for a period which may not exceed one year
5. For each product the basic duty to which the successive reductions laid down in paragraphs 2
and 3 are to be applied shall be that actually applied vis-à-vis the Community on 1 January 1995.
6. If, after 1 January 1995, any tariff reduction is applied on an erga omnes basis, the reduced
duties shall replace the basic duties referred to in paragraph 5 as from the date when such reductions
are applied.
7. Morocco shall communicate its basic duties to the Community.
Article 12
1. Morocco hereby undertakes to eliminate the reference prices applied on 1 July 1995 to the
products listed in Annex 5 at the latest three years after this Agreement enters into force.
In cases in which such reference prices are applied to textiles and clothing, those prices shall
be progressively eliminated over a period of three years dating from the entry into force of this
Agreement. The pace at which elimination of the reference prices takes place shall ensure thatproducts originating in the Community retain a margin of preference of at least 25 % over the
reference prices which Morocco applies on an erga omnes basis. If that margin of preference cannot
be maintained, Morocco shall apply a tariff reduct ion to products originating in the Community. That
tariff reduction must not be lower than 5 % of the customs duties and charges having equivalent effect
in force on the date on which that reduction is due to be made.
If Morocco's commitments under the GATT provide for a shorter period for the elimination of
import reference prices, that shorter period shall be applicable.
2. The provisions of Article 11 shall not apply to the products appearing in Annex 6, Lists 1
and 2, without prejudice to the following:
(a) in the case of the products on List 1, the provisions of Article 19(2) shall apply only
after the transitional period has elapsed. However, they may be made to apply sooner
by a decision of the Association Council;
(b) the arrangements applying to the products on Lists 1 and 2 shall be re-examined by
the Association Council three years after this Agreement's entry into force.
At the time of that re-examination, the Association Council shall establish a tariff-
dismantling timetable for the products appearing in Annex 6, apart from those of
subheading 6309 00.WT/REG112/1
Page 8
Article 13
The provisions concerning the abolition of customs duties on imports shall also apply to
customs duties of a fiscal nature.
Article 14
1. Exceptional measures of limited duration which derogate from the provisions of Article 11
may be taken by Morocco in the form of an increase or reintroduction of customs duties.
These measures may only concern infant industries, or certain sectors undergoing
restructuring or facing serious difficulties, particularly where these difficulties produce major socialproblems.
Customs duties on imports applicable in Morocco to products originating in the Community
introduced by these measures may not exceed 25 % ad valorem and shall maintain an element of
preference for products originating in the Commun ity.  The total value of imports of the products
which are subject to these measures may not exceed 15 % of total imports of industrial products from
the Community during the last year for which statistics are available.
These measures shall be applied for a period not exceeding five years unless a longer duration
is authorised by the Association Committee.  They shall cease to apply at the latest on the expiry of
the maximum transitional period of 12 years.
No such measures may be introduced in respect of a product if more than three years have
elapsed since the elimination of all duties and quantitative restrictions or charges or measures having
equivalent effect concerning that product.
Morocco shall inform the Association Committee of any exceptional measures it intends to
take and, at the request of the Community, consultations shall be held on such measures and the
sectors to which they apply before they are implemented.  When taking such measures Morocco shall
provide the Committee with a timetable for the elimination of the customs duties introduced under
this Article.  This timetable shall provide for a phasing-out of these duties in equal annual instalments
starting at the latest two years after their introduction.  The Association Committee may decide on adifferent timetable.
2. By way of derogation from the fourth subparagraph of paragraph 1, the Association
Committee may exceptionally, in order to take account of the difficulties involved in setting up a new
industry, authorise Morocco to maintain the measures already taken pursuant to paragraph 1 for amaximum period of three years beyond the 12 year transitional period.
CHAPTER II
Agricultural and Fishery Products
Article 15
The provisions of this chapter shall apply to the products originating in the Community and
Morocco listed in Annex II to the Treaty establishing the European Community.WT/REG112/1
Page 9
Article 16
The Community and Morocco shall gradually implement greater liberalisation of their
reciprocal trade in agricultural and fishery products.
Article 17
1. Agricultural and fishery products originating in Morocco shall benefit on import into the
Community from the provisions set out in Protocols 1 and 2 respectively.
2. Agricultural products originating in the Community shall benefit on import into Morocco
from the provisions set out in Protocol 3.
Article 18
1. From 1 January 2000, the Community and Morocco shall assess the situation with a view to
determining the liberalisation measures to be applied by the Community and Morocco with effectfrom 1 January 2001 in accordance with the objective set out in Article 16.
2. Without prejudice to the provisions of paragraph 1 and taking account of the patterns of trade
in agricultural products between the Parties and the particular sensitivity of such products, the
Community and Morocco will examine on a regular basis in the Association Council, product by
product and on a reciprocal basis, the possibilities of granting each other further concessions.
CHAPTER III
Common Provisions
Article 19
1. No new quantitative restriction on imports or measure having equivalent effect shall be
introduced in trade between the Community and Morocco.
2. Quantitative restrictions on imports and measures having equivalent effect in trade between
Morocco and the Community shall be abolished upon the entry into force of this Agreement.
3. The Community and Morocco shall apply to the other's exports neither customs duties nor
charges having equivalent effect nor quantitative restrictions or measures of equivalent effect.
Article 20
1. Should specific rules be introduced as a result of implementation of their agricultural policies
or modification of their existing rules, or should the provisions on the implementation of theiragricultural policies be modified or developed, the Community and Morocco may modify the
arrangements laid down in this Agreement in respect of the products concerned.
The Party carrying out such modification shall inform the Association Committee thereof.  At
the request of the other Party, the Association Committee shall meet to take appropriate account ofthat Party's interests.WT/REG112/1
Page 10
2. If the Community or Morocco, in applying paragraph 1, modifies the arrangements made by
this Agreement for agricultural products, they shal l accord imports originating in the other Party an
advantage comparable to that provided for in this Agreement.
3. Any modification of the arrangements made by this Agreement shall be the subject, at the
request of the other Contracting Party, of consultations within the Association Council.
Article 21
Products originating in Morocco shall not enjoy more favourable treatment when imported
into the Community than that applied by Member States among themselves.
The provisions of this Agreement shall apply without prejudice to the provisions of Council
Regulation (EEC) No 1911/91 of 26 June 1991 on the application of the provisions of Community
law to the Canary Islands.
Article 22
1. The two Parties shall refrain from any measures or practice of an internal fiscal nature
establishing, whether directly or indirectly, discrimination between the products of one Party and like
products originating in the territory of the other Party.
2. Products exported to the territory of one of the Parties may not benefit from repayment of
indirect internal taxation in excess of the amount of indirect taxation imposed on them directly or
indirectly.
Article 23
1. This Agreement shall not preclude the maintenance or establishment of customs unions, free
trade areas or arrangements for frontier trade in so far as they do not have the effect of altering the
trade arrangements provided for in this Agreement.
2. Consultations between the Parties shall take place within the Association Committee
concerning agreements establishing customs unions or free trade areas and, where appropriate, onother major issues related to their respective trade policies with third countries. In particular in the
event of a third country acceding to the Community, such consultations shall take place so as to
ensure that account is taken of the mutual intere sts of the Community and Morocco stated in this
Agreement.
Article 24
If one of the Parties finds that dumping is taking place in trade with the other Party within the
meaning of Article VI of the General Agreement on Tariffs and Trade, it may take appropriate
measures against this practice in accordance with the Agreement relating to the application of ArticleVI of the General Agreement on Tariffs and Trade, related internal legislation and the conditions and
procedures laid down in Article 27 of this Agreement.
Article 25
Where any product is being imported in such increased quantities and under such conditions
as to cause or threaten to cause:WT/REG112/1
Page 11
- serious injury to domestic producers of like or directly competitive products in the
territory of one of the Contracting Parties;  or
- serious disturbances in any sector of the economy or difficulties which could bring
about serious deterioration in the economic situation of a region,
the Community or Morocco may take appropriate measures under the conditions and in accordance
with the procedures laid down in Article 27.
Article 26
Where compliance with the provisions of Article 19(3) leads to:(i) re-export to a third country of a product against which the exporting Party maintains
quantitative export restrictions, export duties or measures or charges having
equivalent effect;  or
(ii) a serious shortage, or threat thereof, of a product essential to the exporting Party,
and where the situations referred to above give rise, or are likely to give rise, to major difficulties for
the exporting Party, that Party may take appropriate measures under the conditions and in accordance
with the procedures laid down in Article 27.  The measures shall be non-discriminatory and shall beeliminated when conditions no longer justify their maintenance.
Article 27
1. In the event of the Community or Morocco subjecting imports of products liable to give rise
to the difficulties referred to in Article 25 to an administrative procedure having as its purpose the
rapid supply of information on trade flow trends, it shall inform the other Party.
2. In the cases specified in Articles 24, 25 and 26, before taking the measures provided for
therein or, in cases to which paragraph 3(d) of this Article applies, as soon as possible, the
Community or Morocco, as the case may be, shall supply the Association Committee with all relevant
information with a view to seeking a solution acceptable to the two Parties.
In the selection of measures, priority shall be given to those which least disturb the
functioning of this Agreement.
The safeguard measures shall be immediately notified to the Association Committee by the
Party concerned and shall be the subject of periodic consultations, particularly with a view to their
abolition as soon as circumstances permit.
3. For the implementation of paragraph 2, the following provisions shall apply:
(a) as regards Article 24, the exporting Party shall be informed of the dumping case as
soon as the authorities of the importing Party have initiated an investigation. When no
end has been put to the dumping within the meaning of Article VI of the General
Agreement on Tariffs and Trade or no other satisfactory solution has been reached
within 30 days of the matter being referred, the importing Party may adopt theappropriate measures;WT/REG112/1
Page 12
(b) as regards Article 25, the difficulties arising from the situation referred to in that
Article shall be referred for examination to the Association Committee, which may
take any decision needed to put an end to such difficulties.
If the Association Committee or the exporting Party has not taken a decision putting
an end to the difficulties or no other satisfactory solution has been reached within 30
days of the matter being referred, the importing Party may adopt the appropriate
measures to remedy the problem. These measures shall not exceed the scope of what
is necessary to remedy the difficulties which have arisen;
(c) as regards Article 26, the difficulties arising from the situations referred to in that
Article shall be referred for examination to the Association Committee.
The Association Committee may take any decision needed to put an end to the
difficulties.  If it has not taken such a decision within 30 days of the matter being
referred to it, the exporting Party may apply appropriate measures to exports of the
product concerned;
(d) where exceptional circumstances requiring immediate action make prior information
or examination, as the case may be, impossible, the Community or Morocco,
whichever is concerned, may, in the situations specified in Articles 24, 25 and 26,
apply forthwith the precautionary measures strictly necessary to deal with thesituation and shall inform the other Party immediately thereof.
Article 28
This Agreement shall not preclude 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; the protection of national treasures of artistic, historic or
archaeological value or the protection of intellectual, industrial and commercial property or rules
relating to gold and silver.  Such prohibitions or restrictions shall not, however, constitute a means of
arbitrary discrimination or a disguised restriction on trade between the Parties.
Article 29
The concept of "originating products" for the purposes of implementing this title and the
methods of administrative cooperation relati ng thereto are laid down in Protocol 4.
Article 30
The Combined Nomenclature of goods shall be applied to the classification of goods in trade
between the two Parties.WT/REG112/1
Page 13
TITLE III
Right of Establishment and Services
Article 31
1. The Parties agree to widen the scope of this Agreement to cover the right of establishment of
one Party's firms on the territory of the other and liberalisation of the provision of services by one
Party's firms to consumers of services in the other.
2. The Association Council will make recommendations for achieving the objective described in
paragraph 1.
In making such recommendations, the Association Council will take account of past
experience of implementation of reciprocal most-favoured-nation treatment and of the respective
obligations of each Party under the General Agreement on Trade in Services annexed to the
Agreement establishing the WTO, hereinafter referred to as the "GATS", particularly those in ArticleV of the latter.
3. The Association Council will make a first assessment of the achievement of this objective no
later than five years after this Agreement enters into force.
4. Without prejudice to the provisions of para graph 3, the Association Council shall, once this
Agreement is in force, examine the international maritime transport sector with a view to making
appropriate recommendations for liberalisation measures.  The Association Council shall take account
of the results of GATS negotiations on this matter subsequent to the end of the Uruguay Round.
Article 32
1. At the outset, each of the Parties shall reaffirm its obligations under the GATS, particularly
the obligation to grant reciprocal most-favoured-nation treatment in the service sectors covered by
that obligation.
2. In accordance with the GATS, such treatment shall not apply to:
(a) advantages granted by either Party under the terms of an agreement of the type
defined in Article V of the GATS or to measures taken on the basis of such an
agreement;
(b) other advantages granted in accordance with the list of exemptions from most-
favoured-nation treatment annexed by either Party to the GATS.WT/REG112/1
Page 14
TITLE IV
Payments, Capital, Competition and other Economic Provisions
CHAPTER I
Current Payments and Movement of Capital
Article 33
Subject to the provisions of Article 35, the Parties undertake to allow all current payments for
current transactions to be made in a freely convertible currency.
Article 34
1. With regard to transactions on the capital account of balance of payments, the Community
and Morocco shall ensure, from the entry into force of this Agreement, that capital relating to directinvestments in Morocco in companies formed in a ccordance with current laws can move freely and
that the yield from such investments and any profit stemming therefrom can be liquidated and
repatriated.
2. The Parties shall consult each other with a view to facilitating, and fully liberalising when the
time is right, the movement of capital between the Community and Morocco.
Article 35
Where one or more Member States of the Community, or Morocco, is in serious balance of
payments difficulties, or under threat thereof, the Community or Morocco, as the case may be, may, in
accordance with the conditions established under the GATT and Articles VIII and XIV of the Articles
of Agreement of the International Monetary Fund, adopt restrictions on current transactions which
shall be of limited duration and may not go beyond what is strictly necessary to remedy the balance of
payments situation. The Community or Morocco, as the case may be, shall inform the other Party
forthwith and shall submit to it as soon as possible a timetable for the elimination of the measures
concerned.
CHAPTER II
Competition and Other Economic Provisions
Article 36
1. The following are incompatible with the proper functioning of this Agreement, in so far as
they may affect trade between the Community and Morocco:
(a) all agreements between undertakings, decisions by associations of undertakings and
concerted practices between undertakings which have as their object or effect the
prevention, restriction or distortion of competition;
(b) abuse by one or more undertakings of a dominant position in the territories of the
Community or of Morocco as a whole or in a substantial part thereof;WT/REG112/1
Page 15
(c) any official aid which distorts or threatens to distort competition by favouring certain
undertakings or the production of certain goods, with the exception of cases in which
a derogation is allowed under the Treaty establishing the European Coal and Steel
Community.
2. Any practices contrary to this Article shall be assessed on the basis of criteria arising from the
application of the rules of Articles 85, 86 and 92 of the Treaty establishing the European
Community(1) and, in the case of products falling within the scope of the European Coal and Steel
Community, the rules of Articles 65 and 66 of the Treaty establishing that Community, and the rules
relating to State aid, including secondary legislation.
3. The Association Council shall, within five y ears of the entry into force of this Agreement,
adopt the necessary rules for the implementation of paragraphs 1 and 2.
Until these rules are adopted, the provisions of the Agreement on interpretation and
application of Articles VI, XVI and XXIII of th e General Agreement on Tariffs and Trade shall be
applied as the rules for the implementation of paragraph 1(c) and related parts of paragraph 2.
4. (a) For the purposes of applying the provisions of paragraph 1(c), the Parties recognise
that during the first five years after the entr y into force of this Agreement, any State
aid granted by Morocco shall be assessed taking into account the fact that Morocco
shall be regarded as an area identical to those areas of the Community described inArticle 92(3)(a) of the Treaty establishing the European Community.
During the same period of time, Morocco may exceptionally, as regards ECSC steel
products, grant State aid for restructuring purposes provided that:
- it leads to the viability of the recipient firms under normal market conditions
at the end of the restructuring period,
- the amount and intensity of such aid are strictly limited to what is absolutely
necessary in order to restore such viability and are progressively reduced,
- the restructuring programme is linked to a comprehensive plan for
rationalising capacity in Morocco.
The Association Council shall, taking into account the economic situation of
Morocco, decide whether the period should be extended every five years.
(b) Each Party shall ensure transparency in the area of official aid, inter alia, by reporting
annually to the other Party on the total amount and the distribution of the aid given
and by providing, upon request, information on aid schemes. Upon request by one
Party, the other Party shall provide information on particular individual cases of
official aid.
5. With regard to products referred to in Chapter II of Title II:
- the provisions of paragraph 1(c) do not apply,
- any practices contrary to paragraph 1(a) shall be assessed according to the criteria
established by the Community on the basis of Articles 42 and 43 of the Treaty
establishing the European Community, and in particular those established in Council
Regulation (EEC) No 26/62.WT/REG112/1
Page 16
6. If the Community or Morocco considers that a particular practice is incompatible with the
terms of paragraph 1, and:
- is not adequately dealt with under the implementing rules referred to in paragraph 3,
or
- in the absence of such rules, and if such practice causes or threatens to cause serious
prejudice to the interest of the other Party or material injury to its domestic industry,
including its services industry,
it may take appropriate measures after consultation within the Association Committee or after 30
working days following referral to that Committee.
In the case of practices incompatible with paragraph 1(c) of this Article, such appropriate
measures may, where the GATT applies thereto, only be adopted in accordance with the procedures
and under the conditions laid down by the General Agreement on Tariffs and Trade and any otherrelevant instrument negotiated under its auspices which is applicable between the Parties.
7. Notwithstanding any provisions to the contrary adopted in accordance with paragraph 3, the
Parties shall exchange information taking into a ccount the limitations imposed by the requirements of
professional and business secrecy.
Article 37
The Member States and Morocco shall progressively adjust, without affecting commitments
made under the GATT, any State monopolies of a commercial character so as to ensure that, by theend of the fifth year following the entry into forc e of this Agreement, no discrimination regarding the
conditions under which goods are procured and marketed exists between nationals of the Member
States and of Morocco. The Association Committee will be informed about the measures adopted to
implement this objective.
Article 38
With regard to public enterprises and enterprises which have been granted special or
exclusive rights, the Association Council shall ensu re, from the fifth year following the entry into
force of this Agreement, that no measure which disturbs trade between the Community and Morocco
in a manner which runs counter to the interests of the Parties is adopted or maintained. This provision
shall not impede the performance in fact or in law of the specific functions assigned to thoseenterprises.
Article 39
1. The Parties shall provide suitable and effective protection of intellectual, industrial and
commercial property rights, in line with the high est international standards. This shall encompass
effective means of enforcing such rights.
2. Implementation of this Article and of Annex 7 shall be regularly assessed by the Parties. If
difficulties which affect trade arise in connection with intellectual, industrial and commercial property
rights, either Party may request urgent consultations to find mutually satisfactory solutions.WT/REG112/1
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Article 40
1. The Parties shall take appropriate steps to promote the use by Morocco of Community
technical rules and European standards for industrial and agri-food products and certification
procedures.
2. Using the principles set out in paragraph 1 as a basis, the Parties shall, when the
circumstances are right, conclude agreements for the mutual recognition of certifications.
Article 41
1. The Parties shall set as their objective a reciprocal and gradual liberalisation of public
procurement contracts.
2. The Association Council shall take the steps necessary to implement paragraph 1.
TITLE V
Economic Cooperation
Article 42
Objectives
1. The Parties undertake to step up economic cooperation in their mutual interest and in the
spirit of partnership which is at the root of this Agreement.
2. The objective of economic cooperation shall be to support Morocco's own efforts to achieve
sustainable economic and social development.
Article 43
Scope
1. Cooperation will be targeted first and foremost at areas of activity suffering the effects of
internal constraints and difficulties or affected by the process of liberalising Morocco's economy as a
whole, and more particularly by the liberalisa tion of trade between Morocco and the Community.
2. Similarly, cooperation shall focus on areas likely to bring the economies of the Community
and Morocco closer together, particularly those which will generate growth and employment.
3. Cooperation shall foster economic integration within the Maghreb using any measures likely
to further such relations within the region.
4. Preservation of the environment and ecological balances shall constitute a central component
of the various fields of economic cooperation.
5. Where appropriate, the Parties shall determine by agreement other fields of economic
cooperation.WT/REG112/1
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Article 44
Methods
Economic cooperation shall involve methods including:(a) regular economic dialogue between the two Parties covering all aspects of
macroeconomic policy;
(b) communication and exchanges of information;(c) advice, use of the services of experts and training;(d) joint ventures;(e) assistance with technical, administrative and regulatory matters.
Article 45
Regional cooperation
In order to make the most of this Agreement, the Parties shall foster all activities which have
a regional impact or involve third countries, notably:
(a) intra-regional trade within the Maghreb;
(b) environmental matters;
(c) the development of economic infrastructure;(d) research in science and technology;(e) cultural matters;(f) customs matters;(g) regional institutions and the establishment of common or harmonised programmes
and policies.
Article 46
Education and training
The aim of cooperation shall be to:(a) find ways to bring about a significant improvement in education and training,
including vocational training;
(b) place special emphasis on giving the female population access to education, including
technical training, higher education and vocational training;WT/REG112/1
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(c) encourage the establishment of lasting links between specialist bodies on the Parties'
territories in order to pool and exchange experience and methods.
Article 47
Scientific, Technical and Technological Cooperation
The aim of cooperation shall be to:
(a) encourage the establishment of permanent links between the Parties' scientific
communities, notably by means of:
- providing Morocco with access to Community research and technological
development programmes in accordance with Community rules governing
non-Community countries' involvement in such programmes,
- Moroccan participation in networks of decentralised cooperation,- promoting synergy in training and research;
(b) improve Morocco's research capabilities;
(c) stimulate technological innovation and the transfer of new technology and know-how;
(d) encourage all activities aimed at establishing synergy at regional level.
Article 48
Environment
The aim of cooperation shall be to prevent deterioration of the environment, to improve the
quality of the environment, to protect human health and to achieve rational use of natural resources
for sustainable development.
The Parties undertake to cooperate in areas including:
(a) soil and water quality;(b) the consequences of development, particularly industrial development (especially
safety of installations and waste);
(c) monitoring and preventing pollution of the sea.
Article 49
Industrial Cooperation
The aim of cooperation shall be to:
(a) encourage cooperation between the Parties' economic operators, including
cooperation in the context of access for Morocco to Community business networks
and decentralised cooperation networks;WT/REG112/1
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(b) back the effort to modernise and restructure Morocco's public and private sector
industry (including the agri-food industry);
(c) foster an environment which favours private initiative, with the aim of stimulating and
diversifying output for the domestic and export markets;
(d) make the most of Morocco's human resources and industrial potential through better
use of policy in the fields of innovation and research and technological development;
(e) facilitate access to credit to finance investment.
Article 50
Promotion and Protection of Investment
The aim of cooperation shall be to create a favourable climate for flows of investment, and to
use the following in particular:
(a) the establishment of harmonised and simplified procedures, co-investment machinery
(especially to link small and medium-sized enterprises) and methods of identifying
and providing information on investment opportunities;
(b) the establishment, where appropriate, of a legal framework to promote investment,
chiefly through the conclusion by Morocco and the Member States of investment
protection agreements and agreements preventing double taxation.
Article 51
Cooperation in standardisation and conformity assessment
The Parties shall cooperate in developing:(a) the use of Community rules in standardisation, metrology, quality control and
conformity assessment;
(b) the updating of Moroccan laboratories, leading eventually to the conclusion of mutual
recognition agreements for conformity assessment;
(c) the bodies responsible for intellectual, industrial and commercial property and for
standardisation and quality in Morocco.
Article 52
Approximation of legislation
Cooperation shall be aimed at helping Morocco to bring its legislation closer to that of the
Community in the areas covered by this Agreement.WT/REG112/1
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Article 53
Financial services
The aim of cooperation shall be to achieve closer common rules and standards in areas
including the following:
(a) bolstering and restructuring Morocco's financial sectors;(b) improving accounting, auditing, supervision and regulation of financial services and
financial monitoring in Morocco.
Article 54
Agriculture and Fisheries
The aim of cooperation shall be to:(a) modernise and restructure agriculture and fisheries through methods including the
modernisation of infrastructure and equipment, the development of packaging and
storage techniques and the improvement of private distribution and marketing chains;
(b) diversify output and external markets;
(c) achieve cooperation in health, plant health and growing techniques.
Article 55
Transport
The aim of cooperation shall be to:(a) achieve the restructuring and modernisation of road, rail, port and airport
infrastructure of common interest, in correlation with major trans-Europeancommunication routes;
(b) define and apply operating standards comparable to those found in the Community;(c) bring equipment up to Community standards, particularly where multimodal
transport, containerisation and transhipment are concerned;
(d) gradually improve road, maritime and multimodal transit and the management of
ports, airports, sea and air traffic and railways.
Article 56
Telecommunications and Information Technology
Cooperation shall focus on:(a) telecommunications in general;WT/REG112/1
Page 22
(b) standardisation, conformity testing and certification for information technology and
telecommunications;
(c) dissemination of new information technologies, particularly in relation to networks
and the interconnection of networks (ISDN - integrated services digital networks -and EDI - electronic data interchange);
(d) stimulating research on and development of new communication and information
technology facilities to develop the market in equipment, services and applications
related to information technology and to communications, services and installations.
Article 57
Energy
Cooperation shall focus on:
(a) renewable energy;
(b) promoting the saving of energy;(c) applied research relating to networks of databases linking the two Parties' economic
and social operators;
(d) backing efforts to modernise and develop energy networks and the interconnection of
such networks with Community networks.
Article 58
Tourism
The aim of cooperation shall be to develop tourism, particularly with regard to:(a) catering management and quality of service in the various fields connected with
catering;
(b) development of marketing;(c) promotion of tourism for young people.
Article 59
Cooperation in Customs Matters
1. The aim of cooperation shall be to ensure fair trade and compliance with trade rules. It shall
focus on:
(a) simplifying customs checks and procedures;
(b) the use of the single administrative document and creating a link between the
Community and Moroccan transit systems.WT/REG112/1
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2.  Without prejudice to other forms of cooperation provided for in this Agreement, and
particularly those provided for in Articles 61 and 62, the Contracting Parties' administrative
authorities shall provide mutual assistance in accordance with the terms of Protocol 5.
Article 60
Cooperation in Statistics
The aim of cooperation shall be to bring the methods used by the Parties closer together and
to put to use data on all areas covered by this Agreement for which statistics can be collected.
Article 61
Money laundering
1. The Parties agree on the need to work towards and cooperate on preventing the use of their
financial systems to launder the proceeds of criminal activities in general and drug trafficking inparticular.
2. Cooperation in this area shall include administrative and technical assistance with the purpose
of establishing suitable standards against money laundering equivalent to those adopted by the
Community and international fora in this field, including the Financial Action Task Force (FATF).
Article 62
Combating Drug Use and Trafficking
1. The aim of cooperation shall be to:
(a) improve the effectiveness of policies and measures to prevent and combat the
production and supply of and trafficking in narcotics and psychotropic substances;
(b) eliminate illicit consumption of such products.
2. The Parties shall together set out appropriate strategies and methods of cooperation, in
accordance with their own legislation, to attain those objectives. For any action which is not
conducted jointly, there shall be consultations and close coordination.
Such action may involve the appropriate public and private sector institutions and
international organisations, in collaboration with the Government of the Kingdom of Morocco and the
relevant authorities in the Community and the Member States.
3. Cooperation shall take the following forms in particular:
(a) the establishment or expansion of clinics/hostels and information centres for the
treatment and rehabilitation of drug addicts;
(b) the implementation of prevention, information, training and epidemiological research
projects;
(c) the establishment of standards for preventing diversion of precursors and other
essential ingredients for the illicit manufacture of narcotics and psychotropicWT/REG112/1
Page 24
substances, which are equivalent to those adopted by the Community and the
appropriate international authorities, particularly the Chemicals Action Task Force
(CATF);
(d) the planning and implementation of programmes providing alternatives to the illicit
cultivation of narcotic plants in areas where such cultivation occurs.
Article 63
The two Parties shall together establish the procedures needed to achieve cooperation in the
fields covered by this title.
TITLE VI
Cooperation in Social and Cultural Matters
CHAPTER I
Workers
Article 64
1. The treatment accorded by each Member State to workers of Moroccan nationality employed
in its territory shall be free from any discrimination based on nationality, as regards working
conditions, remuneration and dismissal, relative to its own nationals.
2. All Moroccan workers allowed to undertake paid employment in the territory of a Member
State on a temporary basis shall be covered by the provisions of paragraph 1 with regard to working
conditions and remuneration.
3. Morocco shall accord the same treatment to workers who are nationals of a Member State and
employed in its territory.
Article 65
1. Subject to the provisions of the following paragraphs, workers of Moroccan nationality and
any members of their families living with them shall enjoy, in the field of social security, treatment
free from any discrimination based on nationality relative to nationals of the Member States in whichthey are employed.
The concept of social security shall cover th e branches of social security dealing with
sickness and maternity benefits, invalidity, old-age and survivors' benefits, industrial accident and
occupational disease benefits and death, unemployment and family benefits.
These provisions shall not, however, cause the other coordination rules provided for in
Community legislation based on Article 51 of the EC Treaty to apply, except under the conditions set
out in Article 67 of this Agreement.
2. All periods of insurance, employment or residence completed by such workers in the various
Member States shall be added together for the purpose of pensions and annuities in respect of old-age,
invalidity and survivors' benefits and family, sickness and maternity benefits and also for that of
medical care for the workers and for members of their families resident in the Community.WT/REG112/1
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3. The workers in question shall receive family allowances for members of their families who
are resident in the Community.
4. The workers in question shall be able to tran sfer freely to Morocco, at the rates applied by
virtue of the legislation of the debtor Member State or States, any pensions or annuities in respect of
old age, survivor status, industrial accident or occupational disease, or of invalidity resulting fromindustrial accident or occupational disease, except in the case of special non-contributory benefits.
5. Morocco shall accord to workers who are nationals of a Member State and employed in its
territory, and to the members of their families, trea tment similar to that specified in paragraphs 1, 3
and 4.
Article 66
The provisions of this chapter shall not apply to  nationals of the Parties residing or working
illegally in the territory of their host countries.
Article 67
1. Before the end of the first year following the entry into force of this Agreement, the
Association Council shall adopt provisions to implement the principles set out in Article 65.
2. The Association Council shall adopt detailed rules for administrative cooperation providing
the necessary management and monitoring guarantees for the application of the provisions referred to
in paragraph 1.
Article 68
The provisions adopted by the Association Council in accordance with Article 67 shall not
affect any rights or obligations arising from b ilateral agreements linking Morocco and the Member
States where those agreements provide for more favourable treatment of nationals of Morocco or of
the Member States.
CHAPTER II
Dialogue in Social Matters
Article 69
1. The Parties shall conduct regular dialogue on any social matter which is of interest to them.
2. Such dialogue shall be used to find ways to achieve progress in the field of movement of
workers and equal treatment and social integration for Moroccan and Community nationals residing
legally in the territories of their host countries.
3. Dialogue shall cover in particular all issues connected with:
(a) the living and working conditions of the migrant communities;
(b) migration;WT/REG112/1
Page 26
(c) illegal immigration and the conditions governing the return of individuals who are in
breach of the legislation dealing with the right to stay and the right of establishment
in their host countries;
(d) schemes and programmes to encourage equal treatment between Moroccan and
Community nationals, mutual knowledge of cultures and civilisations, the furthering
of tolerance and the removal of discrimination.
Article 70
Dialogue on social matters shall be conducted at the same levels and in accordance with the
same procedures as provided for in Title I of th is Agreement, which can itself provide a framework
for that dialogue.
CHAPTER III
Cooperation in the Social Field
Article 71
1. With a view to consolidating cooperation betwee n the Parties in the social field, projects and
programmes shall be carried out in any area of interest to them.
Priority will be afforded to the following projects:(a) reducing migratory pressure, in particular by improving living conditions, creating
jobs and developing training in areas from which emigrants come;
(b) resettling those repatriated because of their illegal status under the legislation of the
state in question;
(c) promoting the role of women in the economic and social development process
through education and the media in step with Moroccan policy on the matter;
(d) bolstering and developing Morocco's family planning and mother and child protection
programmes;
(e) improving the social protection system;(f) enhancing the health cover system;(g) implementing and financing exchange and leisure programmes for mixed groups of
Moroccan and European young people residing in the Member States, with a view topromoting mutual knowledge of their respective cultures and fostering tolerance.
Article 72
Cooperation schemes may be carried out in coordination with Member States and relevant
international organisations.WT/REG112/1
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Article 73
A working party shall be set up by the Association Council by the end of the first year
following the entry into force of this Agreement. It  shall be responsible for the continuous and regular
evaluation of the implementation of Chapters I to III.
CHAPTER IV
Cooperation on Cultural Matters
Article 74
1. In order to boost mutual knowledge and understanding, taking account of activities already
carried out, the Parties shall undertake - while respecting each other's culture - to provide a firmer
footing for lasting cultural dialogue and to promote continuous cultural cooperation between them,
without ruling out a priori any field of activity.
2. In putting together cooperation projects and programmes and carrying out joint activities, the
Parties shall place special emphasis on young people, on written and audio-visual means of expression
and communication, and on the protection of their heritage and the dissemination of culture.
3. The Parties agree that cultural cooperation programmes already under way in the Community
or in one or more of its Member States may be extended to Morocco.
TITLE VII
Financial Cooperation
Article 75
With a view to full attainment of this Agreement's objectives, financial cooperation shall be
implemented for Morocco in line with the appropriate financial procedures and resources.
These procedures shall be adopted by mutual agreement between the Parties by means of the
most suitable instruments once this Agreement enters into force.
In addition to the areas covered by the Titles V and VI of this Agreement, cooperation shall
entail:
- facilitating reforms aimed at modernising the economy,- updating economic infrastructure,- promoting private investment and job creation activities,- taking into account the effects on the Moroccan economy of the progressive
introduction of a free trade area, in particular where the updating and restructuring ofindustry is concerned,
- flanking measures for policies implemented in the social sectors.WT/REG112/1
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Article 76
Within the framework of Community instruments intended to buttress structural adjustment
programmes in the Mediterranean countries - and in close coordination with the Moroccan authorities
and other contributors, in particular the intern ational financial institutions - the Community will
examine suitable ways of supporting structural policies carried out by Morocco to restore financial
equilibrium in all its key aspects and create an economic environment conducive to boosting growth,
while at the same time enhancing social welfare.
Article 77
In order to ensure a coordinated approach to dealing with exceptional macroeconomic and
financial problems which could stem from the progressive implementation of this Agreement, theParties shall closely monitor the development of trade and financial relations between the Community
and Morocco as part of the regular economic dialogue established under Title V.
TITLE VIII
Institutional, General and Final Provisions
Article 78
An Association Council is hereby established which shall meet at ministerial level once a year
and when circumstances require, on the initiative of its Chairman and in accordance with the
conditions laid down in its Rules of Procedure.
It shall examine any major issues arising with in the framework of this Agreement and any
other bilateral or international issues of mutual interest.
Article 79
1. The Association Council shall consist of the members of the Council of the European Union
and members of the Commission of the European Communities, on the one hand, and of members of
the Government of the Kingdom of Morocco, on the other.
2. Members of the Association Council may arrange to be represented, in accordance with the
provisions laid down in its Rules of Procedure.
3. The Association Council shall establish its Rules of Procedure.4. The Association Council shall be chaired in tu rn by a member of the Council of the European
Union and a member of the Government of the Kingdom of Morocco in accordance with the
provisions laid down in its Rules of Procedure.
Article 80
The Association Council shall, for the purpose of  attaining the objectives of this Agreement,
have the power to take decisions in the cases provided for therein.
The decisions taken shall be binding on the Parties, which shall take the measures necessary
to implement the decisions taken. The Association Council may also make appropriate
recommendations.WT/REG112/1
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It shall draw up its decisions and recommenda tions by agreement between the two Parties.
Article 81
1. Subject to the powers of the Council, an A ssociation Committee is hereby established which
shall be responsible for the implementation of the Agreement.
2. The Association Council may delegate to the Association Committee, in full or in part, any of
its powers.
Article 82
1. The Association Committee, which shall meet at the level of officials, shall consist of
representatives of members of the Council of the European Union and of members of the Commission
of the European Communities, on the one hand, and of representatives of the Government of the
Kingdom of Morocco, on the other.
2. The Association Committee shall establish its Rules of Procedure.
3. The Association Committee shall be chaired in turn by a representative of the Presidency of
the Council of the European Union and by a representative of the Government of the Kingdom of
Morocco.
The Association Committee shall normally meet alternately in the Community and in
Morocco.
Article 83
The Association Committee shall have the power to  take decisions for the management of the
Agreement as well as in those areas in which the Council has delegated its powers to it.
It shall draw up its decisions by agreement between the Parties.  These decisions shall be
binding on the Parties, which shall take the measures necessary to implement the decisions taken.
Article 84
The Association Council may decide to set up any working group or body necessary for the
implementation of the Agreement.
Article 85
The Association Council shall take all appropr iate measures to facilitate cooperation and
contacts between the European Parliament and the parliamentary institutions of the Kingdom of
Morocco, and between the Economic and Social Committee of the Community and its counterpart inthe Kingdom of Morocco.
Article 86
1. Either Party may refer to the Association Council any dispute relating to the application or
interpretation of this Agreement.
2. The Association Council may settle the dispute by means of a decision.WT/REG112/1
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3. Each Party shall be bound to take the measures involved in carrying out the decision referred
to in paragraph 2.
4. In the event of it not being possible to settle the dispute in accordance with paragraph 2, either
Party may notify the other of the appointment of an arbitrator; the other Party must then appoint asecond arbitrator within two months.  For the application of this procedure, the Community and the
Member States shall be deemed to be one Party to the dispute.
The Association Council shall appoint a third arbitrator.The arbitrators' decisions shall be taken by majority vote.
Each party to the dispute shall take the steps required to implement the decision of the
arbitrators.
Article 87
Nothing in this Agreement shall prevent a Contracting Party from taking any measures:
(a) which it considers necessary to prevent the disclosure of information contrary to its
essential security interests;
(b) which relate to the production of, or trade in, arms, munitions or war materials or to
research, development or production indispensable for defence purposes, provided
that such measures do not impair the conditions of competition in respect of products
not intended for specifically military purposes;
(c) which it considers essential to its own security in the event of serious internal
disturbances affecting the maintenance of law and order, in time of war or serious
international tension constituting threat of war or in order to carry out obligations it
has accepted for the purpose of maintaining peace and international security.
Article 88
In the fields covered by this Agreement, and without prejudice to any special provisions
contained therein:
- the arrangements applied by the Kingdom of Morocco in respect of the Community
shall not give rise to any discrimination between the Member States, their nationals,or their companies or firms,
- the arrangements applied by the Community in respect of the Kingdom of Morocco
shall not give rise to any discrimination between Moroccan nationals or its companies
or firms.
Article 89
Nothing in this Agreement shall have the effect of:
- extending the fiscal advantages granted by either Party in any international agreement
or arrangement by which it is bound,WT/REG112/1
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- preventing the adoption or application by either Party of any measure aimed at
preventing fraud or the evasion of taxes,
- opposing the right of either Party to apply the relevant provisions of its tax legislation
to taxpayers who are not in an identical situation as regards their place of residence.
Article 90
1. The Parties shall take any general or specific measures required to fulfil their obligations
under this Agreement. They shall see to it that the objectives set out in this Agreement are attained.
2. If either Party considers that the other Party has failed to fulfil an obligation under this
Agreement, it may take appropriate measures. Before so doing, except in cases of special urgency, it
shall supply the Association Council with all th e relevant information required for a thorough
examination of the situation with a view to seeking a solution acceptable to the Parties.
In the selection of measures, priority must be given to those which least disturb the
functioning of this Agreement. These measures shall be notified immediately to the Association
Council and shall be the subject of consultations within the Association Council if the other Party so
requests.
Article 91
Protocols 1 to 5, Annexes 1 to 7 and the Declarations shall form an integral part of this
Agreement. The Declarations and Exchanges of Letters can be found in the Final Act, which shall
likewise form an integral part of this Agreement.
Article 92
For the purposes of this Agreement, "Parties" shall mean, on the one hand, the Community or
the Member States, or the Community and its Member States, in accordance with their respective
powers, and, on the other hand, Morocco.
Article 93
This Agreement shall be concluded for an unlimited period.Either Party may denounce this Agreement by notifying the other Party. This Agreement shall
cease to apply six months after the date of such notification.
Article 94
This Agreement shall apply, on the one hand, to the territories in which the Treaties
establishing the European Community and the European Coal And Steel Community are applied andunder the conditions laid down in those Treaties and, on the other hand to the territory of the Kingdom
of Morocco.
Article 95
This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, French,
German, Greek, Italian, Portuguese, Spanish, Swedish and Arabic languages, each of these texts being
equally authentic.WT/REG112/1
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Article 96
1. This Agreement shall be approved by the Contracting Parties in accordance with their own
procedures.
It shall enter into force on the first day of the second month following the date on which the
Contracting Parties notify each other that the proced ures referred to in the first paragraph have been
completed.
2. Upon its entry into force, this Agreement shall replace the Cooperation Agreement between
the European Community and the Kingdom of Morocco and the Agreement between the MemberStates of the European Coal and Steel Community and the Kingdom of Morocco, signed in Rabat on
25 April 1976.
Done at Brussels on the twenty-sixth day of February in the year one thousand nine hundred
and ninety-six.
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