WASHINGTON--(BUSINESS WIRE)--Moroccan American Center for Policy (MACP) – In the twelve years since its implementation, the US-Morocco Free Trade Agreement (FTA) has dramatically exceeded the predictions initially set by the United States International Trade Commission (ITA), according to a new report published today by the Moroccan American Center for Policy chronicling the origins and impact of the deal.
“In broad terms, the ITA… predicted that US exports were ‘likely to increase by $740.0 million, and US imports from Morocco [were] likely to increase by $198.6 million,’” stated the report, titled “Exceeding Expectations: The US-Morocco FTA.” “US exports were able to hit this target by 2007, in just its second year of implementation. Through mostly sustained improvement up to 2016, US exports to Morocco have actually increased by about $1.4 billion, amounting to a 286 percent boost.” Meanwhile, “Moroccan exports to the US reached their target in 2008,” and since 2010 “have seen consistent improvement,” growing by about $560 million overall.
The report notes that of the seven US free trade agreements implemented between 2004 and 2010 (Chile and Singapore in 2004, Bahrain and Morocco in 2006, Oman and Peru in 2009, and Jordan in 2010), “Morocco’s success stands out among this group. In the first two years following implementation, US exports to Morocco shot up by 118 percent, nearly double the percentage of the next most successful over a similar time period . Moroccan exports to the US grew by 18 percent as total bilateral trade grew by 68 percent—the highest among this group of FTA partners. In terms of jobs, the Morocco FTA was again the top performer, with an estimated 101 percent increase in US jobs supported by exports to Morocco over the same period.”
In addition to generating economic benefits for both countries, the FTA kicked off a series of initiatives further strengthening the US-Morocco bilateral relationship and Morocco’s reform trajectory, “one of the US’s primary goals” for the deal. Indeed the report offers an overview of the largely political impetus behind the FTA—the US’s first in Africa -- noting that it was seen by President George W. Bush’s Administration as a reward for Morocco’s support in the war on terror and as recognition of the two countries’ centuries-old friendship. Congressional support for this view and for the possibility of opening new markets for US exports was overwhelming. In July 2004, the US Senate voted 85-13 in favor of the United States-Morocco Free Trade Implementation Act; and the House of Representatives followed suit with a 323-99 vote in favor. The momentum continued, and in 2007 and again in 2013, Morocco signed two consecutive Millennium Challenge Corporation Compacts; and in 2012, the US and Morocco launched a bilateral Strategic Dialogue—one of about two dozen such agreements in existence.
“From both a political and economic standpoint, the US-Morocco Free Trade Agreement is a prime example of trade policy done right, where both sides benefit, and where the United States strengthens a relationship with a critical friend and ally,” said report author and MACP Director of Research & Policy Analysis David S. Bloom.
The Moroccan American Center for Policy (MACP) is a non-profit organization whose principal mission is to inform opinion makers, government officials, and interested publics in the United States about political and social developments in Morocco and the role being played by the Kingdom of Morocco in broader strategic developments in North Africa, the Mediterranean, and the Middle East.
This material is distributed by the Moroccan American Center for Policy on behalf of the Government of Morocco. Additional information is available at the Department of Justice in Washington, DC.