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Morocco-United States Economic Cooperation


Morocco – United States Free Trade Agreement (FTA)

Morocco signed a free trade agreement with the U.S. on June 15, 2004, which entered into effect on January 1st, 2006. The U.S.-Moroccan Free Trade Agreement (FTA) is one of the most comprehensive free trade agreements that the U.S. has ever negotiated. Morocco is first African nation and the second Arab and to have an FTA with the U.S. The FTA will provide U.S. exporters increased access to the Moroccan market by eliminating tariffs on 95 percent of currently traded consumer and industrial goods.

The FTA aims to accelerate and reinforce Morocco’s economic reform process by allowing greater competition and international partnerships in key sectors such as insurance and banking. It’s objective is also to liberalize the Moroccan textile and agricultural tariff structures.

During the last decade, Morocco has been steadily progressing toward greater modernization and globalization, with the creation of the country’s first commercial courts, streamlined customs services and 16 Regional Investment Centers dedicated solely to facilitating new business ventures. In this context, the FTA provides a high level of intellectual property protection which includes state-of-the-art protection for trademarks and copyrights, expanded protection for patents and product approval information and tough penalties for piracy and counterfeiting.

Millennium Challenge Corporation

In 2007, the governments of Morocco and the United States signed the largest Millennium Challenge Corporation (MCC) compact to date of $697.5 million with the goal of stimulating sustainable economic and social growth in the country.

The grant shows that Morocco is being recognized by the United States for its commitment to democracy, economic progress and development since recipient countries must meet certain progressive criteria to qualify for the program.

The agreement aims to stimulating economic and social growth through investments. These strategic investments intend to increase productivity and improve employment in high potential sectors such as fruit tree productivity, small-scale fisheries, and artisan crafts. Small business creation and economic growth targeting local population will also be supported by investments in financial services and enterprise support. 

This agreement is managed by the Agency of Partnership for Progress APP.


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