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 DENMARK,

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,

THE 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;

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 Community 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 FOLLOWS:

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.

2. The aims of this Agreement are to:

- provide an appropriate framework for political 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 common interest;

(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.

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 between diplomatic 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 General Agreement 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.

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 force 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.

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;

10 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 20 % of the basic duty;

11 years after the date of entry into force of this Agreement each duty and charge shall be reduced to 10 % of the basic duty;

12 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 the schedule 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 that products 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 reduction 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 630900.

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 social problems.

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 Community. 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 a different 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 a maximum 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.

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 effect from 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 their agricultural 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 of that Party's interests.

2. If the Community or Morocco, in applying paragraph 1, modifies the arrangements made by this Agreement for agricultural products, they shall 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, on other 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 interests 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 Article VI 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:

- 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 be eliminated 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 the appropriate measures;

(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 the situation 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 relating 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.

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 Article V 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 paragraph 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.

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 direct investments in Morocco in companies formed in accordance 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;

(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 years 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 the 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 entry 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 in Article 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.

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 other relevant 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 account 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 the end of the fifth year following the entry into force 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 ensure, 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 those enterprises.

Article 39

1. The Parties shall provide suitable and effective protection of intellectual, industrial and commercial property rights, in line with the highest 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.

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 liberalisation 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.

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;

(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;

(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.

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-European communication 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;

(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.

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 in particular.

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 psychotropic 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 which they are employed.

The concept of social security shall cover the 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.

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 transfer 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 from industrial 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, treatment 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 bilateral 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;

(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 this 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 between 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 to promoting 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.

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 of industry is concerned,

- flanking measures for policies implemented in the social sectors.

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 international 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, the Parties 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 within 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 turn 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.

It shall draw up its decisions and recommendations by agreement between the two Parties.

Article 81

1. Subject to the powers of the Council, an Association 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 appropriate 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 in the 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.

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 a second 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,

- 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 the 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 and under 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.

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 procedures 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 Member States of the European Coal and Steel Community and the Kingdom of Morocco, signed in Rabat on 25 April 1976.

Hecho en Bruselas, el veintiséis de febrero de mil novecientos noventa y seis.

Udfærdiget i Bruxelles, den seksogtyvende februar nitten hundrede og seksoghalvfems.

Geschehen zu Brüssel am sechsundzwanzigsten Februar neunzehnhundertsechsundneunzig.

Έγινε στις Βρυξέλλες, στις είκοσι έξι Φεβρουαρίου χίλια εννιακόσια ενενήντα έξι.

Done at Βrussels on the twenty-sixth day of February in the year one thousand nine hundred and ninety-six.

Fait à Bruxelles, le vingt-six février mil neuf cent quatre-vingt-seize.

Fatto a Bruxelles, addì ventisei febbraio millenovecentonovantasei.

Gedaan te Brussel, de zesentwintigste februari negentienhonderd zesennegentig.

Feito em Bruxelas, em vinte e seis de Fevereiro de mil novecentos e noventa e seis.

Tehty Brysselissä kahdentenakymmenentenäkuudentena päivänä helmikuuta vuonna tuhatyhdeksänsataayhdeksänkymmentäkuusi.

Som skedde i Bryssel den tjugosjätte februari nittonhundranittiosex.

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Pour le Royaume de Belgique/Voor het Koninkrijk België/Für das Königreich Belgien

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Cette signature engage également la Communauté française, la Communauté flamande, la Communauté germanophone, la Région wallonne, la Région flamande et la Région de Bruxelles-Capitale.

Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brusselse Hoofdstedelijke Gewest.

Diese Unterschrift verbindet zugleich die Deutschsprachige Gemeinschaft, die Flämische Gemeinschaft, die Französische Gemeinschaft, die Wallonische Region, die Flämische Region und die Region Brüssel-Hauptstadt.

På Kongeriget Danmarks vegne

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Für die Bundesrepublik Deutschland

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Για την Ελληνική Δημοκρατία

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Por el Reino de España

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Pour la République française

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Thar cheann Na hÉireann/For Ireland

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Per la Repubblica italiana

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Pour le Grand-Duché de Luxembourg

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Voor het Koninkrijk der Nederlanden

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Für die Republik Österreich

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Suomen tasavallan puolesta

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För Konungariket Sverige

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Pela República Portuguesa

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For the United Kingdom of Great Britain and Northern Ireland

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Por las Comunidades Europeas/For De Europæiske Fællesskaber/Für die Europäischen Gemeinschaften/Για τις Ευρωπαϊκές Κοινότητες/For the European Communities/Pour les Communautés européennes/Per le Comunità europee/Voor de Europese Gemeenschappen/Pelas Comunidades Europeias/Euroopan yhteisöjen puolesta/På Europeiska gemenskapernas vägnar

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(1) Renumbered Articles 81, 82 and 87 in the consolidated version of the EC Treaty (following the entry into force of the Treaty of Amsterdam).

LIST OF ANNEXES

>TABLE>

ANNEX 1

PRODUCTS REFERRED TO IN ARTICLE 10(1)

>TABLE>

ANNEX 2

PRODUCTS REFERRED TO IN ARTICLE 10(2)

List 1((Products for which Morocco will maintain the level of customs charges prevailing on 1 January 1995 for four years, within the tariff quotas shown, in accordance with the first subparagraph of Article 10(3).

In accordance with the second subparagraph of Article 10(3), during the elimination of the industrial component of the duties pursuant to Article 10(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.))

>TABLE>

List 2

>TABLE>

List 3

>TABLE>

ANNEX 3

PRODUCTS REFERRED TO IN ARTICLE 11(2)

HS heading

1505

1522

1901 90 10 10

1903

2001 except 2001 90 30

2004 10 91

2101 20

2103 10

2106 90 10

2208

2502

2503

2504

2505

2506

2507

2508

2509

2510

2511

2512

2513

2514

2516

2517

2518

2519

2521

2523 21

2523 30

2523 90

2524

2525

2526

2527

2528

2529

2530 10

2530 30

2530 40

2530 90

2701

2702

2703

2704

2705

2706

2707

2708

2709

2710 00 19

2710 00 20

2710 00 30

2710 00 40

2711 14

2711 19

2711 21

2711 29

2712

2713

2714

2715

2801 20

2801 30

2803

2804 21

2804 29

2804 50

2804 61

2804 69

2804 70

2804 80

2804 90

2805

2808

2810 00

2811 11

2811 19

2811 22

2811 23

2812

2813

2814

2815 20

2815 30

2816

2817 00 90

2818

2819

2820

2821

2822

2823

2824

2825

2826

2827

2829

2830

2831

2832

2833 11

2833 19

2833 23

2833 24

2833 27

2833 29

2833 40

2834

2835 24

2835 29

2835 31

2835 39

2836

2837

2838

2840

2841

2842 10

2843

2844

2845

2846

2847

2848

2849

2850

2901 21

2901 22

2901 24

2902

2903

2904

2905 11

2905 12

2905 13

2905 14

2905 15

2905 16

2905 17

2905 19 10

2905 21

2905 22

2905 29

2905 31

2905 32

2905 39

2905 41

2905 42

2905 43

2905 44

2905 49

2905 50

2906

2907

2908

2909

2910

2911

2912

2913

2914

2915

2916

2917

2918

2919

2920

2921

2922

2923

2924

2925

2926

2927

2928

2929

2930

2931

2932

2933

2934

2935

2936

2937

2938

2939

2940

2941

2942

3002 10

3002 20

3002 39 90

3003 39 20

3003 90 91

3004 10 20

3004 10 30

3004 10 91

3004 10 92

3004 10 93

3004 20 20

3004 20 30

3004 20 91

3004 20 92

3004 20 93

3004 20 94

3004 31 10

3004 31 91

3004 31 92

3004 31 93

3004 32 20

3004 32 30

3004 32 91

3004 32 92

3004 32 93

3004 32 94

3004 39 20

3004 39 30

3004 39 40

3004 39 91

3004 39 92

3004 39 93

3004 40 20

3004 40 30

3004 40 91

3004 40 92

3004 40 93

3004 50 20

3004 50 91

3004 50 92

3004 50 93

3004 90 20

3004 90 30

3004 90 40

3004 90 50

3004 90 91

3004 90 92

3004 90 93

3004 90 94

3005 10 10

3006 20

3006 30

3006 60 11

3006 60 12

Chapter 31

3201

3202

3203

3204 except 3204 12

3206

3207

3208 90 10

3209 90 10

3210

3402 11

3402 12

3402 13

3402 19

3403 99 10

3404 20

3507 90 10

3606 90

3701 10

3701 20 10

3701 20 99

3701 30

3701 91

3701 99

3702 10

3702 20 10

3702 20 99

3702 31

3702 32

3702 39

3702 41

3702 42

3702 43

3702 44

3702 51

3702 52

3702 53

3702 54

3702 55

3702 56

3702 91

3702 92

3702 93

3702 94

3702 95

3706 10 93

3706 90 93

3801

3802

3803

3805

3806

3807

3812

3813

3814

3815

3817

3818

3821

3822

3823 10

3823 20

3823 30

3823 60 10

3823 60 90

3823 90 10

3823 90 20

3823 90 91

3823 90 92

3823 90 93

3901 10 90

3901 20 90

3901 30 20

3901 30 90

3901 90 20

3901 90 90

3902 10 90

3902 20 90

3902 30 20

3902 30 90

3902 90 20

3902 90 90

3903 11 90

3903 19 90

3903 20 90

3903 30 90

3903 90 90

3904 30 90

3904 40 20

3904 40 90

3904 50 90

3904 61 90

3904 69 20

3904 69 90

3904 90 19

3904 90 29

3904 90 95

3904 90 99

3905 19 19

3905 19 29

3905 19 95

3905 19 99

3905 20 90

3905 90 30

3905 90 95

3905 90 99

3906 10 90

3906 90 19

3906 90 95

3906 90 99

3907 10

3907 20

3907 30

3907 40

3907 60 10

3907 99 90

3908 10 90

3908 90 90

3909 10 11

3909 20 90

3909 30 90

3909 40 90

3909 50 90

3910

3911 10 11

3911 10 13

3911 10 19

3911 10 91

3911 10 93

3911 10 99

3911 90 93

3911 90 99

3912 11 00

3912 20 10

3912 31 10

3912 39 10

3912 90 21

3913 10 00

3914

3920 41 10

3920 42 10

3921 90 10

4001

4002

4003

4004 00 10

4004 00 21

4004 00 22

4004 00 40

4004 00 90

4005 10 10

4005 20

4005 91 91

4005 99

4006 90 11

4007

4011 30

4012 90 21

4014

4015 11

4016 99 92

4016 99 93

4101

4102

4103

4110

4301

4401

4402

4403

4701 00 10

4702 00 10

4702 00 21

4702 00 29

4702 00 31

4702 00 91

4703 11

4703 19 10

4703 21 10

4703 21 90

4703 29 10

4704 11

4704 19 10

4704 21 10

4704 21 90

4704 29 10

4705 00 10

4706

4707 10

4801 00 10

4802 20

4804 31 21

4813

4816 30

4901 10

4901 91 90

4901 99 99

4902 10 90

4902 90 90

4904 00 90

4905

4906

4907 00 10

4908 10 91

4908 90 91

4911 10 10

4911 99 10

Chapter 50

5101

5102

5103

5104

5105

5111 11 10

5111 19 10

5111 20 10

5111 30 10

5111 90 10

5112 11 10

5112 19 10

5112 20 10

5112 30 10

5112 90 10

5201

5202

5203

5301

5302

5303

5304

5305

5501

5502

5503

5504

5505

5506

5507

5601 30

5603 00 10

5604 90 30

5608 11 10

5608 90 11

5608 90 21

5811 00

5902 10 10

5902 20 10

5902 90 10

5903 10 10

5903 20 10

5903 90 10

5906 99 10

5906 99 20

5907 00 10

5908

5909

5910

5911

6115 91 91

6115 92 91

6115 93 91

6115 99 91

6214 10

6215 10

6310 10 10

6310 90 10

Chapter 66 except 6601 10

Chapter 67

6902 10

6903 10

6909

6914

7001

7002

7003

7004

7005

7006

7008

7010 90 21

7010 90 29

7011

7012

7014

7015

7016

7017

7018

7019

Chapter 71

7201

7202

7203

7204

7205

7206

7207

7208

7209

7210 50

7210 11 99

7211

7212 10 10

7212 10 21

7212 10 29

7212 10 91

7212 10 99

7212 40 31

7212 50 10

7212 50 20

7212 50 31

7212 50 32

7212 50 33

7212 50 39

7212 50 61

7212 50 62

7212 50 64

7212 50 69

7212 60 10

7212 60 21

7212 60 29

7212 60 91

7213 10 10

7213 10 91

7213 10 99

7213 20 00

7213 31 90

7213 39 10

7213 41 90

7213 49 10

7213 49 90

7213 50 10

7213 50 91

7213 50 99

7214 10 00

7214 20 10

7214 20 99

7214 30 00

7214 40 90

7214 50 90

7214 60 10

7214 60 99

7215 10 00

7215 20 99

7215 30 99

7215 40 10

7215 40 99

7215 90 10

7215 90 39

7215 90 90

7216

7217 12 10

7217 13 90

7217 19 10

7217 22 10

7217 23 90

7217 29 10

7217 31 10

7217 32 10

7217 32 91

7217 33 10

7217 33 99

7217 39 20

7217 39 10

7218

7219

7220

7221

7222

7223

7224

7225

7226

7227

7228

7229

7301 10

7302

7303

7304 10 10

7304 10 99

7304 20

7304 31

7304 39

7305 11 99

7305 12 99

7305 19 99

7305 20 99

7305 31 99

7305 39 99

7305 90 99

7306 10 99

7306 20 99

7306 30 99

7306 40 99

7306 50 99

7306 60 99

7306 90 99

7311 00 10

7312 10 10

7315

7318 12 10

7318 13 10

7318 14 10

7318 15 10

7318 16 10

7318 19 10

7318 21 10

7318 22 10

7318 23 10

7318 24 10

7318 29 10

7319

7321 90 10

7401

7402

7403

7404

7405 00 10

7405 00 90

7406 10 00

7406 20 00

7407 10 10

7407 10 90

7407 21

7408 11 00

7408 19 90

7408 21 10

7408 21 29

7408 21 30

7408 21 41

7408 21 91

7408 22 10

7408 22 29

7408 29 10

7408 29 29

7409

7410

7415 21 10

7415 29 10

7415 31 10

7415 32 10

7415 39 10

7419 91 30

7419 99 30

7501

7502

7503

7504

7505

7506

7507

7508 00 10

7508 00 21

7601

7602

7603

7604 10 31

7604 10 40

7604 10 51

7604 10 91

7604 29 21

7604 29 30

7604 29 41

7604 29 91

7605 11 00

7605 19 21

7605 19 90

7605 21 00

7605 29 21

7605 29 90

7606 11

7606 12

7606 91

7606 92

7607 11 00

7607 19 10

7616 10 10

7616 90 10

7616 90 60

Chapter 78

7901

7902

7903

7904

7905

8001

8002

Chapter 81

8201 20

8202 10 00

8203

8204

8205 except 8205 20

8206

8207 11 10

8207 11 90

8207 12 10

8207 12 20

8207 12 90

8207 20 10

8207 20 90

8207 30 10

8207 30 90

8207 40 10

8207 40 20

8207 40 90

8207 50 11

8207 50 19

8207 50 20

8207 50 90

8207 60 10

8207 60 20

8207 60 90

8207 70 10

8207 70 20

8207 70 90

8207 80 19

8207 80 30

8207 80 90

8207 90 11

8207 90 19

8207 90 20

8207 90 31

8207 90 33

8207 90 39

8207 90 50

8207 90 90

8208

8210

8212

8213

8308

8404 10 90

8407 10

8408 10

8412 80 99

8414 30 90

8415 82 00

8415 90 00

8418 61 00

8420 99 00

8421 19 00

8450 20

8450 90

8451 90 10

8451 90 90

8474 10

8482

8483 10 19

8483 20

8483 60 90

8504 21 10

8504 22 10

8504 23 10

8504 31 91

8504 32 91

8504 33 10

8504 34 10

8504 90

8507 90

8510

8511

8512

8513

8516 31 00

8516 32 00

8516 33 00

8516 40 00

8516 50 00

8516 71 00

8516 72 00

8516 79 00

8517

8518

8519

8520

8521

8522

8523

8524

8525

8526

8527

8528

8529 except 8529 10 23

8533

8535 40

8539

8540

8544 19

8545

8546

8547

8548

8701 10

8701 20 11

8701 30

8702 10 10

8702 90 10

8704 10 10

8704 21 10

8704 22 10

8704 23 10

8704 31 10

8704 32 10

8704 90 10

8708 40

8708 50

8708 60

8708 70

8708 80 99

8708 93 00

8708 94

8709

8710

9001

9002

9005

9006

9007

9008

9018 39 11

9028 90 11

Chapter 91

Chapter 92

Chapter 95 except 9504 40

9602

9605

9606

9612

9613

9614

9617

9618

ANNEX 4

PRODUCTS REFERRED TO IN ARTICLE 11(3)

HS heading

1803

1804

1805

2101 10

2101 30

2102

2103 except 2103 10

2104

2106 except 2106 90 10

2201 10

2202 10

2202 90

2205

2207

2209

2402

2403

2501

2515

2520

2522

2523 10

2523 29

2530 20

2710 00 11

2710 00 90

2711 11

2711 12

2711 13

2801 10

2802

2804 10

2804 30

2804 40

2806

2807

2809

2811 21

2811 29

2815 11

2815 12

2817 00 10

2828

2833 21

2833 22

2833 25

2833 26

2833 30

2835 10

2835 21

2835 22

2835 23

2835 25

2835 26

2839

2842 90

2851

2901 10

2901 23

2901 29

2905 19 90

3001

3002 31

3002 39 10

3002 90

3003 except 3003 39 20

3004 10 10

3004 20 10

3004 31 20

3004 32 10

3004 39 10

3004 40 10

3004 50 10

3004 90 10

3005 except 3005 10 10

3006 10

3006 40

3006 50

3006 60 19

3006 60 91

3006 60 99

3204 12

3205

3208 10

3208 20

3208 90 90

3209 except 3209 90 10

Chapter 33

3401

3402 20

3403 except 3403 99 10

3404 except 3404 20

3405

3406

3407

3501

3502

3503

3504

3505

3506

3507 except 3507 90 10

3605

3701 20 91

3702 20 91

3703

3704

3705

3706 except 3706 10 93

3804

3808

3809

3810

3811

3816

3819

3820

3823 40

3823 50

3823 90

3901 10 10

3901 20 10

3901 30 10

3901 90 10

3902 10 10

3902 20 10

3902 30 10

3902 90 10

3903 11 10

3903 19 10

3903 20 10

3903 30 10

3903 90 10

3904 10

3904 21

3904 22

3904 30 10

3904 40 10

3904 50 10

3904 61 10

3904 69 10

3904 90 11

3904 90 91

3905 11

3905 19 11

3905 19 91

3905 20 11

3905 90 11

3905 90 91

3906 10 10

3906 90 11

3907 50

3907 60 20

3907 91

3907 99 10

3908 10 10

3908 90 10

3909 10 19

3909 20 10

3909 30 10

3909 40 10

3909 50 10

3911 10 17

3911 10 97

3911 90 10

3912 12

3912 20 90

3912 31 90

3912 39 90

3912 90 10

3913 90

3915

3916

3917

3918

3919

3920 except 3920 41 10

3921 except 3921 90 10

3922

3923

3924

3925

3926

4004 00 23

4005 10 20

4005 91 10

4006 except 4006 90 11

4008 to 4010

4011 except 4011 30

4012 10

4012 90 10

4012 90 29 00

4012 90 31

4012 90 39 00

4012 90 40 10

4012 90 90 11

4013

4015 except 4015 11

4016 except 4016 99 92

4017

4104

4105

4106

4107

4108

4109

4111

Chapter 42

4302

4303

4304

4404 to 4421

4501 to 4504

Chapter 46

4701 00 90

4702 00 39

4703 19 90

4704 19 20

4705 00 90

4707 20

4801 00 90

4802 10

4803

4804 except 4804 31 21

4805

4806

4807

4809

4810

4811

4812

4814

4815

4816 10

4817

4818

4819

4820

4821

4822

4823

4901 91 10

4901 99 10

4902 10 10

4902 90 10

4903

4904 00 10

4907 00 30

4908 10 10

4908 90 10

4909

4911 10 99

4911 91

4911 99 20

5106

5107

5108

5109

5110

5111 11 99

5111 19 99

5111 20 99

5111 30 99

5111 90 99

5112 11 99

5112 19 99

5112 20 99

5112 30 99

5112 90 99

5113

5204

5205

5206

5207

5208

5209

5210

5211

5212

5306

5307

5308

5309

5310

5311

5401

5402

5403

5404

5405

5406

5407

5408

5508 to 16

5601 10 10

5601 10 90

5601 21 to 29

5602

5603 except 5603 00 10

5604 except 5604 90 30

5605

5606

5607

5608 11 90

5608 19

5608 90 19

5608 90 29

5608 90 30

5608 90 90

5609

Chapter 57

Chapter 58 except 5811 00

5901

5902 10 20

5902 10 90

5902 20 20

5902 20 90

5902 90 20

5902 90 90

5903 10 90

5903 20 90

5903 90 90

5904

5905

5906 10 00

5906 99 90

5906 91 00

5907 00 20

5907 00 90

Chapter 60

6101

6102

6103

6104

6105

6106

6107

6108

6109

6110

6111

6112

6113

6114

6115 11

6115 12

6115 19

6115 20

6115 91 10

6115 91 99

6115 92 10

6115 92 99

6115 93 10

6115 93 99

6115 99 10

6115 99 99

6116

6117

Chapter 62 except 6214 10

Chapter 63 except 6310 10 10

Chapter 64

Chapter 65

6601 10

Chapter 68

6901

6902 20

6903 20

6904

6905

6906

6907

6908

6910

6911

6912

6913

7007

7009

7010 except 7010 90 21

7013

7020

7210 except 7210 50

7210 except 7210 11 99

7212 21

7212 29

7212 30

7212 40 except 7212 40 31

7212 50 40

7212 50 51

7212 50 52

7212 50 59

7212 50 63

7212 50 90

7212 60 30

7212 60 99

7213 10 92

7213 10 93

7213 31 10

7213 39 20

7213 39 30

7213 41 10

7213 49 20

7213 50 92

7213 50 93

7214 20 91

7214 40 10

7214 50 10

7214 60 91

7215 20 10

7215 20 91

7215 30 10

7215 30 91

7215 40 20

7215 40 91

7215 90 20

7215 90 31

7215 90 32

7217 11 00

7217 12 90

7217 13 10

7217 19 90

7217 21 00

7217 22 90

7217 23 10

7217 29 90

7217 31 90

7217 32 99

7217 33 91

7217 39 90

7301 20

7305 11 10

7305 11 91

7305 12 10

7305 19 10

7305 19 91

7305 20 10

7305 31 10

7305 31 20

7305 31 91

7305 39 10

7305 39 20

7305 39 91

7305 90 10

7305 90 20

7305 90 91

7306 10 10

7306 10 91

7306 20 10

7306 20 91

7306 30 10

7306 30 91

7306 40 10

7306 40 91

7306 50 10

7306 50 91

7306 60 10

7306 60 91

7306 90 10

7306 90 91

7307

7308

7309

7310

7311 00 90

7312 10 90

7312 90

7313

7314

7316

7317

7318 11 00

7318 12 90

7318 13 90

7318 14 90

7318 15 90

7318 16 90

7318 19 90

7318 21 90

7318 22 90

7318 23 21

7318 23 29

7318 23 91

7318 23 99

7318 24 90

7318 29 90

7320

7321 except 7321 90 10

7322

7323

7324

7325

7326

7408 19 10

7408 21 21

7408 21 49

7408 21 99

7408 22 21

7408 22 49

7408 22 99

7408 29 21

7408 29 49

7408 29 99

7411

7412

7413

7414

7415 10 00

7515 21 21

7415 21 29

7415 21 91

7415 21 99

7415 29 21

7415 29 29

7415 29 91

7415 29 99

7415 31 90

7415 32 90

7415 39 90

7416

7417

7418

7419 10 00

7419 91 10

7419 91 20

7419 91 40

7419 91 90

7419 99 10

7419 99 20

7419 99 40

7419 99 90

7508 00 except 7508 00 10

7604 10 10

7604 10 20

7604 10 39

7604 10 59

7604 10 99

7604 21 00

7604 29 10

7604 29 29

7604 29 49

7604 29 99

7605 19 10

7605 19 29

7605 29 10

7605 29 29

7607 19 90

7607 20 00

7608

7609

7610

7611

7612

7613

7614

7615

7616 10 20

7616 10 90

7616 90 20

7616 90 30

7616 90 40

7616 90 50

7616 90 70

7616 90 90

7906

7907

8003

8004

8005

8006

8007

8201 10

8201 30

8201 40

8201 90

8202 20 00

8202 31 00

8202 32 00

8202 40 00

8202 91 00

8202 99 00

8205 20

8207 80 11

8207 80 20

8209 00 00

8211 10 00

8211 91 00

8211 92 00

8211 93 00

8211 94 00

8214

8215

8301

8302

8303

8304

8305

8306

8307

8309

8310

8311

8402 11 00

8402 12 91

8402 12 99

8402 19 91

8402 19 99

8402 20 00

8402 90 91

8402 90 99

8403 10 00

8403 90 00

8407 31

8407 32

8408 20

8408 90

8409 91 21

8409 91 30

8409 91 41

8409 91 50

8409 99 21

8409 99 29

8409 99 30

8409 99 50

8413 91 00

8413 92 00

8414 59 90

8414 60 10

8414 90 60

8414 90 70

8414 90 90

8417 20 00

8418 10 00

8418 21 00

8418 22 00

8418 29 00

8418 30 00

8418 40 00

8418 50 00

8418 91 00

8418 99 00

8419 11

8419 19

8419 20 00

8419 81 20

8419 89 00

8419 90

8421 23 00

8421 29 10

8421 31 00

8421 39 10

8421 99 21

8421 99 91

8424 10 00

8426 11 10

8426 11 90

8426 12 10

8426 20 10

8426 30 10

8431 39

8431 41

8431 42 00

8431 49 21

8431 49 23

8431 49 24

8431 49 90

8432 10

8432 90

8436 29 00

8436 91 00

8436 99 00

8450 11

8450 12

8450 19

8464 90 10

8474 31 11

8474 90 10

8474 90 91

8474 90 99

8481

8483 10 11

8483 10 21

8483 50 00

8483 60 10

8483 90 00

8484

8485

8502 11 00

8504 10

8504 21 90

8504 22 90

8504 23 90

8504 31 10

8504 31 99

8504 32 10

8504 32 99

8504 33 90

8504 34 90

8504 40

8504 50 00

8506 11 00

8506 12 00

8506 13 00

8506 19

8506 20 10

8506 20 90

8506 90 90

8507 10 00

8507 20 00

8507 30

8507 40

8507 80

8516 10 00

8516 21 00

8516 29 00

8516 60 00

8516 80 00

8516 90 10

8516 90 90

8529 10 23

8535 except 8535 40

8536

8537

8538

8544 except 8544 19

8601

8602

8603

8605

8606

8609

8701 20 19

8701 90 42

8701 90 99

8702 10 91

8702 10 92 except 8702 92 90

8702 10 99 except 8702 10 99 19

8702 90 21

8702 90 22 except 8702 90 22 90

8702 90 29 except 8702 90 29 19

8702 90 90

8703 10

8703 21 10

8703 21 20

8703 21 81

8703 22 10

8703 22 20

8703 22 81

8703 23 10

8703 23 20/31/39/51/59/81/89

8703 24 10

8703 31 10

8703 31 20

8703 31 41

8703 32 10

8703 32 20

8703 32 41

8703 33 10

8703 90 00

8704 10 90

8704 21 90 except 8704 21 90 39

8704 21 90 except 8704 21 90 79

8704 22 90 except 8704 22 90 29

8704 22 90 except 8704 22 90 59

8704 23 90

8704 31 90 except 8704 31 90 39

8704 31 90 except 8704 31 90 79

8704 32 90 except 8704 32 90 29

8704 32 90 except 8704 32 90 59

8704 90 90

8705 except 8705 10 00 90

8705 except 8705 90 90 99

8706

8707

8708 10

8708 21

8708 29

8708 31

8708 39

8708 80 10

8708 80 20

8708 80 91

8708 91

8708 92

8708 99

8711

8712

8713

8714

8715

8716 except 8716 31 90 99

8716 except 8716 39 90 90

9003

9004

9018 31 00

9018 39 19

9018 39 20

9021 21

9021 30 10

9028 10

9028 20

9028 30

9028 90 19

9028 90 90

9401

9403

9404

9405

9406

9504 40

9603

9604

9607

9608

9609

9610

9611

9615

9616

NB:

In the case of the headings marked with an asterisk, tariff dismantling will follow the schedule set out below:

three years after the Agreement enters into force, each of the duties and charges will be reduced to 97 % of the basic duties,

four years after the Agreement enters into force, each of the duties and charges will be reduced to 94 % of the basic duties,

five years after the Agreement enters into force, each of the duties and charges will be reduced to 91 % of the basic duties,

six years after the Agreement enters into force, each of the duties and charges will be reduced to 88 % of the basic duties,

seven years after the Agreement enters into force, each of the duties and charges will be reduced to 73 % of the basic duties,

eight years after the Agreement enters into force, each of the duties and charges will be reduced to 58 % of the basic duties,

nine years after the Agreement enters into force, each of the duties and charges will be reduced to 43 % of the basic duties,

10 years after the Agreement enters into force, each of the duties and charges will be reduced to 28 % of the basic duties,

11 years after the Agreement enters into force, each of the duties and charges will be reduced to 13 % of the basic duties,

12 years after the Agreement enters into force, each of the remaining duties and charges will be eliminated.

ANNEX 5

PRODUCTS REFERRED TO IN ARTICLE 12(1)

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New cars: 69500 DH per car.

Used cars: 65000 DH per car.

ANNEX 6

PRODUCTS REFERRED TO IN ARTICLE 12(2)

List 1((The concept of used goods will be governed by a benchmark of age, based on the length of time for which the goods have been in use. This should be determined by the Parties six months before the Agreement enters into force.

The concept of used goods will not apply to reconditioned goods which are recognised as complying with the technical regulations in force in Morocco.))

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List 2((The concept of used goods will be governed by a benchmark of age, based on the length of time for which the goods have been in use. This should be determined by the Parties six months before the Agreement enters into force.

The concept of used goods will not apply to reconditioned goods which are recognised as complying with the technical regulations in force in Morocco.))

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ANNEX 7

relating to intellectual, industrial and commercial property

1. By the end of the fourth year after the entry into force of the Agreement, Morocco shall accede to the following multilateral conventions on the protection of intellectual, industrial and commercial property:

- International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organisations (Rome, 1961),

- Budapest Treaty on the International Recognition of the Deposit of Micro-Oganisms for the Purposes of Patent Procedure (1977, amended in 1980),

- Patent Cooperation Treaty (1970, amended in 1979 and modified in 1984),

- International Convention for the Protection of the New Varieties of Plants (Act of Geneva, 1991).

2. The Association Council may decide that paragraph 1 of this Annex applies to other multilateral conventions in this field.

3. The Contracting Parties express their attachment to observing the obligations flowing from the following multilateral conventions:

- Paris Convention for the Protection of Industrial Property in the 1967 Act of Stockholm (Paris Union),

- Madrid Agreement concerning the International Registration of Marks in the 1969 Act of Stockholm (Madrid Union),

- Berne Convention for the Protection of Literary and Artistic Works in the Act of Paris of 24 July 1971,

- Protocol relating to the Madrid Agreement concerning the International Registration of Marks (1989),

- Nice Agreement concerning the International Classification of Goods and Services for the purposes of the Registration of Marks (Geneva, 1977).

LIST OF PROTOCOLS

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PROTOCOL 1

on the arrangements applying to imports into the Community of agricultural products originating in Morocco

Article 1

1. The products listed in the Annex, originating in Morocco, shall be admitted for import into the Community in accordance with the conditions set out below and in the Annex.

2. Import duties shall be either eliminated or reduced by the percentage indicated in respect of each product in column (a).

Where the Common Customs Tariff provides for the application of ad valorem customs duties and a specific customs duty in respect of certain products, the rates of reduction shown in column (a) and in column (c), as referred to in paragraph 3, shall apply only to the ad valorem customs duty.

3. The customs duties shall be eliminated in respect of certain products within the limits of the tariff quotas shown against them in column (b).

The Common Customs Tariff duties in respect of the quantities imported in excess of the quotas shall be reduced by the percentage indicated in column (c).

4. The reference quantities fixed in respect of certain other products exempt from customs duties are shown in column (d).

Where imports of a product exceed the reference quantities, the Community may, having regard to an annual review of trade flows which it shall carry out, make the product concerned subject to a Community tariff quota the volume of which shall be equal to the reference quantity. In such a case, for quantities imported in excess of the quota, the Common Customs Tariff duty shall, according to the product concerned, be applied in full or reduced, as indicated in column (c).

5. For some of the products referred to in paragraphs 3 and 4 and indicated in column (e), the quotas or reference quantities shall be increased from 1 January 1997 to 1 January 2000 on the basis of four equal instalments each corresponding to 3 % of these amounts.

6. For some of the products other than those referred to in paragraphs 3 and 4 and indicated in column (e), the Community may fix a reference quantity as provided for in paragraph 4 if, in the light of the annual review of trade which it shall carry out, it establishes that the volume of imports may cause difficulties on the Community market. If, subsequently, the product is subject to a tariff quota under the conditions set out in paragraph 4, the Common Customs Tariff duty shall be applied in full or reduced, depending on the product concerned, by the percentage shown in column (c) in respect of the quantities imported in excess of the quota.

Article 2

1. In the case of the products originating in Morocco which are referred to in Articles 3 and 4, the entry price levels from which specific duties will be reduced to zero shall be the prices hereinafter referred to as "agreed entry prices", within the limits of the maximum quantities, periods and conditions stipulated in those Articles.

2. These agreed entry prices shall be reduced in the same proportions and at the same pace as the entry prices bound with the WTO.

3. (a) If the entry price of a particular lot is 2 %, 4 %, 6 % or 8 % below the agreed entry price, the specific customs duty shall be 2 %, 4 %, 6 % or 8 % of the agreed entry price, as appropriate.

(b) If the entry price of a particular lot is below 92 % of the agreed entry price, the specific customs duty bound with the WTO shall apply.

4. Morocco hereby undertakes to ensure that total exports to the Community during the periods and under the conditions specified in this Protocol do not exceed the quantities agreed upon in Articles 3 and 4.

5. The aim of the specific arrangements established by this Article shall be to preserve the level of Morocco's traditional exports to the Community and to avoid disturbing Community markets.

6. The two Parties shall consult each other during the second half of every year in order to examine trade for the previous year. Such consultations may also take place at any time if one of the Parties so requests, within three working days of that request. The Parties shall take whatever steps are appropriate to ensure that the objective described in Article 2(5), Article 3 and Article 4 of this Protocol is fully achieved.

Article 3

1. For fresh tomatoes falling with CN code 0702 00:

(a)

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(b) From 1 November to 31 March:

(i) if, in any given month, the quantity specified in subparagraph (a) has not been used up, the balance of that quantity, up to 20 %, may be carried over to the next month;

(ii) the quantity specified may be exceeded by up to 20 % in any given month, provided that the overall limit of 145676 tonnes is not exceeded.

(c) Morocco shall notify the Commission of weekly exports to the Community within a space of time which allows precise and accurate reporting. That space of time must not exceed 15 days.

2. For fresh courgettes falling within CN code 070990:

(a) from 1 October to 20 April and for a maximum quantity of 5000 tonnes, the entry price level from which specific duties will be reduced to zero shall be ECU 451 per tonne.

(b) Morocco shall notify the Commission monthly of the quantities exported during the previous month.

Article 4

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ANNEX

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PROTOCOL 2

on the arrangements applying to imports into the Community of fishery products originating in Morocco

Article 1

The products listed below, originating in Morocco, shall be imported into the Community free of customs duties.

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Article 2

Imports into the Community of prepared or preserved sardines of CN codes 16041311, 1604 13 19 and ex 1604 20 50 originating in Morocco shall be covered by the arrangements established by Article 1, subject to the following provisions:

From 1 January to 31 December 1996:

- tariff exemption up to a Community tariff quota of 19500 tonnes;

- for imports beyond the level of the quota, 6 % customs duty.

From 1 January to 31 December 1997:

- tariff exemption up to a Community tariff quota of 21000 tonnes;

- for imports beyond the level of the quota, 5 % customs duty.