The EFTA States signed a Free Trade Agreement with Morocco in Geneva, Switzerland, on 19 June 1997. The Agreement entered into force on 1 December 1999.
The Agreement covers industrial products, processed agricultural products, and fish and other marine products. The EFTA States have eliminated all duties and other restrictions for products upon entry into force, whereas Morocco will gradually abolish its duties on most industrial products over a transition period of 12 years. The transitional period for the dismantling of customs duties has ended on 1 December 2011.
In addition, each EFTA State has concluded a separate agreement with Morocco on agricultural goods. These bilateral agreements are part of the instruments creating the free trade area between the EFTA countries and Morocco.
The Agreement includes provisions relating to the elimination of customs duties and other trade barriers as well as other trade-related disciplines such as rules of competition, protection of intellectual property, public procurement, state monopolies, subsidies, arbitration and payments and transfers. However, special provisions on structural adjustment allow Morocco to introduce, if necessary, temporary measures to protect infant industries and sectors undergoing restructuring or facing difficulties, particularly when these difficulties produce important social problems. Institutional provisions establish a Joint Committee, which supervises the Agreement.
The Agreement consists of 42 Articles, 8 Annexes, 5 Protocols and one Record of Understanding. The Agreement covers the following main subjects:
Trade in Goods
The Agreement with Morocco has been conceived to take into account the different level of economic development by providing for an asymmetrical approach. While the EFTA States abolished their existing customs duties and quantitative restrictions on imports or exports from Morocco and measures having equivalent effect at the entry into force of the agreement, Morocco was allowed to phase them out during a longer transition period, leaving it the necessary time to adapt its economy to free trade conditions. This dismantling period has ended on 1 December 2011.
Fish and marine products
The Agreement is based on the principle of free trade in fish but allows Morocco to maintain, for a certain number of products, customs duties on imports or charges having equivalent effect during various transitional periods as defined in Annex II to the Agreement.
Processed Agricultural Products
The Agreement contains a Protocol A on processed agricultural products laying down the applicable arrangements (price compensation system) in this field. The underlying principle is that duties reflect the difference between the domestic market price and the world market price of the basic agricultural component of the product. The industrial (processing) component is duty-free. Under the protocol each country has its own table listing the products for which it grants concessions to its partner countries. These concessions represent a treatment not less favourable than that granted to the EC by each country.
Basic Agricultural products
Trade in agricultural products is covered in three bilateral agricultural agreements negotiated between the respective EFTA State (Iceland, Norway and Switzerland/Liechtenstein) and Morocco. They provide for substantial concessions on both sides, while taking into account the respective sensitivities. Each agreement contains specific rules of origin, generally based on the “wholly-obtained” criteria.
Rules of Origin
The rules of origin for industrial goods concerning the definition of the concept of originating products and the methods for administrative co-operation, are similar in terms of layout to the rules in the EU-Morocco Association Agreement. The specific list rules have been amended in accordance with the 2002 version of the harmonized system.
Sanitary and Phytosanitary Measures (SPS)
Article 12 provides for the non-discriminatory application of regulations in sanitary and phytosanitary matters and prevents Parties from introducing any new measures that have the effect of unduly obstructing trade.
Technical Barriers to Trade (TBT)
Article 11 provides for cooperation and a consultations mechanisms between the Parties in the field of technical regulations, standards and conformity assessments.
Trade Remedies
The Agreement contains rules regarding subsidies, dumping, emergency action on imports of particular products and re-export and serious shortage in Articles 18-20 and 22. In addition, special provisions on structural adjustment (Article 21) allow Morocco to introduce, if necessary, temporary measures to protect infant industries and sectors undergoing restructuring or facing difficulties, particularly when these difficulties produce important social problems.
Protection of Intellectual Property (IPR)
The provisions on protection of intellectual property rights covers, inter alia, patents, trademarks and copyright and geographical indications. The level of protection in certain areas goes beyond what is stipulated under the WTO Agreement on Trade Related Aspects of Intellectual Property, taking into account the principles of most favoured nation treatment and of national treatment.
Government Procurement
The Article on public procurement contains a review clause with a view to further liberalisation of the public procurement markets in the Partner countries.
Competition
The Agreement includes provisions on co-operation and exchange of information with the aim of ensuring and facilitating the enforcement of the Parties' respective competition laws.
Institutional Provisions
A Joint Committee comprising the EFTA States and Morocco supervises the implementation of the Agreement.
Dispute Settlement
Consultations are the fundamental mechanism of dispute settlement between the FTA partners. The Agreement implies that the Parties are to endeavour to solve any differences between them on the interpretation and application of the agreement by direct consultations, and, if need be, through consultations in the Joint Committee. For cases where the consultations do not lead to a satisfactory solution, the Parties may revert to arbitration. Annex VIII governs the constitution and functioning of the tribunal.
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