Morocco International Business

What the country does in term of total trade?

Morocco is the 71th largest export economy in the world and the 88th most complex economy according to the Economic Complexity Index(ECI). In 2013, Morocco exported $26.9 billions and imported $44.4 billions, resulting in a negative trade balance of $17.5 billions. In 2013, the GDP of Morocco was $103 billions and its GDP per capital was $3.09 thousands. The top exports of Morocco are Insulated wire (10.1%), Cars (6.5%), mixed mineral or chemical fertilizers (5.9%), refined petroleum (5.6%) and phosphoric acid (5.6%).

Morocco is the 58th largest importer in the world. During the last five years the imports of Morocco have increased at an annualized rate of 1.1%, from $41.9 billions in 2008 to 44.4 billions in 2013. Morocco’s top imports are refined petroleum (9.2%), crude petroleum (8.6%), Petroleum gas (4.8%), cars (3.4%) and Wheat (2.2%)

The major trade agreements and international organizations it is involved in

• The Euro-Mediterranean free trade area agreement with the European Union(EU) is based on the Barcelona Process and European Neighbourhood Policy(ENP). The Barcelona process, developed after the Barcelona conference in successive annual meetings, is a set of goals designed o lead to a free trade area in the Mediterranean region and the middle east by 2010
• Negotiations for a Deep and Comprehensive Free Trade Agreement(DCFTA) between the EU and Morocco were launched on 1st March 2013. The first round of negotiation started on 22nd April in Rabat. The main objective of the DCFTA is to bring Moroccan legislation closer to EU legislation in trade-related areas. The current framework for EU-Morocco which entered into force 1st March 2000 and provided for a Free Trade Area.
• The Agadir Agreement is a free trade agreement between Egypt, Jordan, Morocco and Tunisia. Named after the Moroccan city of Agadir, where the process to set up the pact was launched in May 2001. The Agadir agreement uses the EU’s rule of origin. There are at odds with US rules of origin, which makes it difficult for countries in the Mediterranean and the Middle East to apply one and the other in their trade relations with the two competing power blocs. The EU allows its Mediterranean FTA partners to cumulate value-added.
• The United States-Morocco Free Trade Agreement came into force on 1st January 2006. The USA-Morocco FTA is a comprehensive agreement that supports the significant economic and political and political reforms that are underway in Morocco and provides for improved commercial opportunities for U.S. exports to Morocco by reducing and elimination trade barriers.
• The agreement with Turkey for free exchange.

Whom it trades with major countries it exports to and imports from

The top export destinations of Morocco are Spain (13.3%), France (17.5%), Brazil (5.7%), Belgium-Luxembourg (4.3%) and Italy (4.3%).