Question

Morocco Free Trade Agreement (MAFTA)

The Morocco Free Trade Agreement went into effect on January 1, 2006. Under the agreement most Moroccan goods enter the United States duty free and virtually all will enter free by the time it is fully implemented on January 1, 2023. The parties are The United States of America and Morocco. Since the entry into force of the FTA, the U.S. goods trade surplus with Morocco has risen to $1.8 billion in 2011, up from $79 million in 2005. Morocco is now the 55th largest export market fro U.S. goods. The major U.S. imports from Morocco include salt, sulfur, electrical equipment, fertilizer, woven apparel and agricultural products such as olive oil and processed fruits and vegetables. The FTA requires the use of fair and transparent procurement procedures, including advance notice of purchases and timely and effective bid review procedures for procurements covered by the agreement. The U.S. suppliers are permitted to bid on procurements for most Moroccan central government entities, as well as the vast majority of Moroccan regional and municipal governments, on the same basis as Moroccan suppliers. The anti corruption provisions require each government entity to ensure that bribery in government procurement is treated as a criminal offense.

What is the Future of MAFTA?

Plans for other products being traded?

Will more countries join the FTA?

I'm trying to add to my post with the above questions. Can you please give response to them

Answer 1

1. What is the Future of MAFTA?

Ans: The future of MAFTA is:

Benefits

• Improvement of trade relations between America and Morocco leading to trade improvement in Morocco and economic integration in the country
• Broad access to US market for Moroccan companies
• Best alternatives to choose for US companies
• For US, FTA will provide access to East Africa

        Risks

• Trade erosion might happen in Morocco
• Dumping of secondary goods will occur in Morocco
• Lack of channels for Moroccan firms regarding information in US market
• More cultural differences and language barriers

        Finally, MAFTA should be considered as stepping stone to improve trade but not as a permanent option to rest upon

2. Plans for other products being traded?

Ans: The other products that can be traded are:

• Industrial goods
• Services
• Pharmaceuticals

3. Will more countries join the FTA?

Ans: I feel more countries can join the FTA because it is a preferential trade agreements between two countries and it will provide access to big markets for small countries and many alternatives to choose for big countries.

The benefits would be improved trade relations and trade cooperation between both countries

The risks would be dumping and IPR issues