Free Trade Agreement Morocco Eu

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The overall objective of the negotiations is to create new trade and investment opportunities and ensure a better integration of the Moroccan economy into the EU`s internal market. The DCFTA also aims to support ongoing economic reforms in Morocco and to bring Moroccan legislation in trade-related areas closer to those of the EU. In addition to this assessment, it should be taken into account that over the last twenty years, the economic strategies of Morocco and the EU have evolved. The EU has signed several free trade agreements with Asian countries that have had an impact on Morocco`s comparative advantage. Morocco has developed its industrial strategies and recently joined the African Continental Free Trade Area. These bilateral agreements are part of the instruments for the creation of the free trade area between the EFTA countries and Morocco. Trade in agricultural products is covered by three bilateral agricultural agreements concluded between the EFTA State (Iceland, Norway and Switzerland/Liechtenstein) and Morocco. They provide for important concessions on both sides, taking into account the respective sensitivities. Each agreement contains specific rules of origin, usually based on the “fully acquired” origin criteria.

The Agreement establishes a Protocol A on processed agricultural products which lays down the arrangements applicable in this field (price compensation system). The underlying principle is that tariffs reflect the difference between the domestic market price and the world price of the basic agricultural component of the product. The industrial (processing) component is exempt from customs duties. The pan-Euro-Mediterranean system of cumulation of origin was introduced in 2005. It brings together the EU, Morocco and other partners in Europe and the Mediterranean to support regional integration through the creation of a common system of rules of origin. Rules of origin are the technical criteria that determine whether, under a given trade agreement, a given product is eligible for duty-free or other preferential access. .