Morocco participates in outward-oriented policies when it comes to trade. Morocco’s imports include crude petroleum, textile fabric, telecommunications equipment, wheat, gas and electricity, transistors, and plastics. It mostly imports and exports from France and Spain. Its exports consist of clothing and textiles, electric components, inorganic chemicals, transistors, crude mineral, fertilizers (phosphates), petroleum products, citrus fruits, vegetables, and fish (Bureau of Near Eastern Affairs. 2009).
On January 1, 2006, Morocco signed the United States-Morocco Free Trade Agreement which allowed U.S. exports to gain immediate duty-free access to the Moroccan market and the U.S. now provides Morocco with technical assistance supporting Free Trade Agreement compliance and regulatory reform (United States Trade Representative. 2009). In 2004 Morocco also signed the Agadir Agreement with Egypt, Jordan, and Tunisia which removed all tariffs on trade between these four countries (European Comission. 2004). Although it is not stated on the web, it can be assumed that Morocco charges tariffs on exports and imports to and from France, Spain, Germany, Italy, Saudi Arabia, Great Britain, India, and even Japan because these are Morocco’s only other main trade partners. Moroccos main and most profitable legal export is phosphorous for fertilizer. Another major export is hashish, although it is illegal. Unlike his father Hassan II, King Mohammed VI is tolerant towards the export of hashish into Spain and other European countries because he sees the its affluent affects to the many Moroccan cities, such as Tangiers (Pelhamin. 2000). Morocco’s main trading partner is France because Morocco gained independence from the French in the 1970s and a majority of Moroccans speak French. Morocco trades among their comparative advantage. Because it has a comparative advantage in phosphates and hashish, Morocco can produce those at lower opportunity costs and more efficiently (Afrol News) (Cannabis in Morocco).
Works Cited
"Afrol News - Major phosphate trader out of Western Sahara." Afrol News - African News Agency. Web. 10 Dec. 2009. <http://www.afrol.com/articles/16718>.
"Cannabis in Morocco: Introduction." Laurent Laniel - DrugSTRAT - Drugs&Strategy - Homepage. Web. 10 Dec. 2009. <http://laniel.free.fr/INDEXES/GraphicsIndex/KIF_IN_MOROCCO/Cannabis_Morocco_Intro.htm>.
"European Commission : Trade : Morocco (Bilateral relations)." EUROPA - European Commission - Homepage. Web. 10 Dec. 2009. <http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/morocco/>.
"Morocco Free Trade Agreement |." Office of the United States Trade Representative. Web. 10 Dec. 2009. <http://www.ustr.gov/trade-agreements/free-trade-agreements/morocco-fta>.
Pelhamin, Nick. "Morocco's king shows tolerance as late rains bring record hashish crop - Africa, World - The Independent." The Independent | News | UK and Worldwide News | Newspaper. 15 Aug. 2000. Web. 10 Dec. 2009. <http://www.independent.co.uk/news/world/africa/moroccos-king-shows-tolerance-as-late-rains-bring-record-hashish-crop-711242.html>.
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