Morocco: The Only African Nation with a U.S. Free Trade Agreement

Morocco: The Only African Nation with a U.S. Free Trade Agreement

Morocco US Free Trade Agreement
The U.S.-Morocco Free Trade Agreement (MAFTA) has recently attracted significant attention from think tanks, media outlets, and government agencies in both Morocco and the United States. A recent article by The Washington Institute, titled “The U.S.-Morocco FTA After Twenty Years,” provides a comprehensive examination of the agreement’s impact on the economic landscape of both nations. The article underscores MAFTA's pivotal role in strengthening bilateral economic relations, driving reforms, and fostering cross-sector cooperation between the two countries.

The Washington Institute emphasized that this trade deal was driven by shared strategic and economic interests between the U.S. and Morocco. According to the article, the agreement was not only a recognition of Morocco's efforts in counter-terrorism and its commitment to tolerance but also a strategic move by the U.S. to broaden its vision for a free trade area extending into the Middle East. This alignment of interests was a fundamental factor in the agreement's establishment.

The analysis also revealed that the U.S. sought to deepen its trade and security ties with Morocco, leading to a notable increase in bilateral aid and Morocco's designation as a "Major Non-NATO Ally." This partnership has been marked by a significant rise in U.S. support and investment, reflecting the broader geopolitical and economic strategy underpinning the agreement.

Economically, while Moroccan exports have been relatively modest, the U.S. has gained valuable access to the Moroccan market, especially in agriculture. For the kingdom, the agreement provides an opportunity to diversify its trade partnerships and lessen its reliance on European markets. In this context, the Institute's report emphasized that since the agreement’s implementation, bilateral trade has more than quadrupled, increasing from $1.3 billion in 2006 to $5.5 billion in 2023, demonstrating the tangible benefits of the trade pact.

According to The Institute’s report, Morocco has seen significant economic growth, with GDP rising from $63 billion in 2005 to $131 billion in 2022. However, this growth is attributed to factors beyond MAFTA, such as favorable weather conditions, the impact of COVID-19, drought, infrastructure projects, and domestic policies.

Furthermore, the report noted that while Morocco’s fertilizer exports have flourished, its textile exports have experienced only slight declines. This illustrates the varied outcomes for different sectors under the trade agreement. 

The article also highlighted the kingdom's exploration of niche markets such as electric vehicle batteries, leveraging its rare minerals. Despite encountering several challenges, Morocco's efforts to enhance its trade system have been commended by the World Trade Organization, as detailed in The Washington Institute's report.

Twitter Notifications Facebook Language selector Search icon Menu icon Message icon Closing icon YouTube icon Scroll icon Arrow down Map of Morocco icon Map of Africa icon Map of Europe icon world's map icon Navigation Arrow Eye icon Sharing icon Point icon Play icon Pause icon News actuality icon Extend icon Print icon Social network share icon Calendar icon Whatsapp icon Journalist icon Radio icono Television icon Quote icon Location icon world's map icon Pin icon Previous icon Next icon PDF icon Icon to increase the text Icon to decrease the text Google plus icon Decree icon Organigram icon Icon left arrow Instagram