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Moroccan trade is still controlled by its main import and export partner France, although France’s share in Moroccan trade is decreasing, in favour of the US, the Persian Gulf area and China. If seen as a single entity, the EU is by far Morocco’s biggest trading partner. Over the last few years, Morocco has decreased its dependence on phosphate exports, becoming an exporter of produced and farming items, and as a growing tourism destination.
Morocco is reliant on imported fuel and its food import requirement can increase considerably in drought years, as in 2007. Although Morocco runs a structural trade deficit, this is generally offset by considerable services profits from tourist and big remittance inflows from the diaspora, and the country usually runs a small current-account surplus.
This contract, which lies within the scope of the Barcelona Process (Euro-Mediterranean collaboration) started in 1995 and imagines the progressive implementation of a totally free trade location prepared for 2012. Morocco’s FTA with the EU, which was checked in 1996, entered into force in 2000 and is being incrementally implemented with the goal of developing an EU-Morocco free trade zone by 2012, keeping in mind that the abolition of tariffs on commercial products has been a boom for Moroccan producers as some 75% of Morocco’s exports go to Europe.
France is Morocco’s largest trading partner for both imports and exports, controlling more than 60% of foreign direct investment in Morocco. Morocco has emerged as a major cheap-labour platform for European makers, in addition to a commercial trans-shipment point for goods from all around the world going through the Straits of Gibraltar.
In October 2007, French President Nicolas Sarkozy took a trip to Morocco on a main state visit to King Mohammed VI. Accompanied by 70 leading French business executives, Sarkozy verified numerous billion dollars’ worth of contracts for French companies in Morocco. Moroccan-US trade has actually risen to $2.3 billion in 2007 from the $1.4 billion considering that the enforcement of the complimentary trade arrangement signed in between the 2 countries in 2006, former Moroccan Minister of Trade and Economy Salaheddine Mezouar stated in 2007.
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