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Morocco Free Trade Agreement

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Morocco Free Trade Agreement UNITED STATES – MOROCCO FREE TRADE AGREEMENT The Government of the United States of America and the Government of the Kingdom of Morocco (the “Parties”): Recognizing the longstanding friendship between them, and wishing to strengthen their partnership and promote mutually advantageous economic relations; Recognizing Morocco’s commitment to reform to improve the lives of its people; Desiring to raise living standards, promote economic growth and stability, create new employment opportunities, and improve the general welfare in their territories by liberalizing and expanding trade and investment between them; Seeking to enhance the competitiveness of their enterprises in global markets; Desiring to establish clear rules governing their trade and investment that reflect the interests of both Parties and thereby foster a predictable and mutually advantageous commercial environment; Committed to foster bilateral cooperation while recognizing the differences in their level of development and the size of their economies; Affirming their commitment to facilitate trade between them by eliminating barriers to bilateral trade; Building on their rights and obligations under the WTO Agreement and other agreements to which they are both parties; Desiring to liberalize and expand bilateral agricultural trade and investment and thereby make their agricultural sectors more competitive, foster rural development, and increase prosperity in their territories; Desiring to protect human, animal, and plant health conditions in the Parties’ territories, enhance the Parties’ implementation of the SPS Agreement, and provide a forum to address sanitary and phytosanitary matters between the Parties, thereby expanding trade opportunities; Affirming their commitment to transparency and their desire to eliminate corruption in international trade and investment; Seeking to foster creativity and innovation and to promote trade in goods and services that are the subject of intellectual property rights; Desiring to strengthen the development and enforcement of labor and environmental laws and policies, promote basic workers’ rights and sustainable development, and implement this Agreement in a manner consistent with environmental protection and conservation; Affirming their desire to establish a free trade area of the United States, Middle East, and North Africa and thereby contribute to regional integration and economic development; Have agreed as follows: CHAPTER ONE INITIAL PROVISIONS AND DEFINITIONS Section A: Initial Provisions ARTICLE 1.1: ESTABLISHMENT OF A FREE TRADE AREA Consistent with Article XXIV of GATT 1994 and Article V of GATS, the Parties hereby establish a free trade area in accordance with the provisions of this Agreement. ARTICLE 1.2: RELATION TO OTHER AGREEMENTS 1. Except as provided in paragraphs three through five, each Party affirms its existing rights and obligations with respect to each other under existing bilateral and multilateral agreements to which the Parties are party, including the WTO Agreement. 2. This Agreement shall not be construed to derogate from any legal obligation between the Parties that entitles goods or services, or suppliers of goods or services, to treatment more favorable than that accorded by this Agreement. 3. Articles VI and VII of the Treaty Between the United States of America and the Kingdom of Morocco Concerning the Encouragement and Reciprocal Protection of Investments, with Protocol, signed at Washington on July 22, 1985 (the “Treaty”) shall be suspended on the date of entry into force of this Agreement. 4. Notwithstanding paragraph 3, for a period of ten years beginning on the date of entry into force of this Agreement, Articles VI and VII of the Treaty shall not be suspended: (a) in the case of investments covered by the Treaty as of the date of entry into force of this Agreement; or (b) in the case of disputes that arose prior to the date of entry into force of this Agreement and that are otherwise eligible to be submitted for settlement under Article VI or VII. 5. In the event either Party terminates this Agreement in accordance with Article 22.6 (Entry into Force and Termination), Articles VI and VII of the Treaty, to the extent suspended, shall automatically resume operation and shall continue in full force and effect as provided therein. 1-1 Section B: General Definitions ARTICLE 1.3: DEFINITIONS For purposes of this Agreement, unless otherwise specified: Agreement on Textiles and Clothing means the Agreement on Textiles and Clothing, contained in Annex 1A to the WTO Agreement; central level of government means: (a) for the United States, the federal level of government; and (b) for Morocco, the national level of government; covered investment means, with respect to a Party, an investment (as defined in Article 10.27 (Investment – Definitions)) in its territory of an investor of the other Party in existence on the date of entry into force of this Agreement or established, acquired, or expanded thereafter; customs duty includes any customs or import duty and a charge of any kind imposed in connection with the importation of a good, including any form of surtax or surcharge in connection with importation, but does not include any: (a) charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994 in respect of like, directly competitive, or substitutable goods of the Party or in respect of goods from which the imported good has been manufactured or produced in whole or in part; (b) antidumping or countervailing duty; and (c) fee or other charge in connection with importation commensurate with the cost of services rendered; Customs Valuation Agreement means the WTO Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement; days means calendar days; 1-2 enterprise means any entity constituted or organized under applicable law, whether or not for profit, and whether privately owned or governmentally owned, including any corporation, trust, partnership, sole proprietorship, joint venture, or other association; enterprise of a Party means an enterprise constituted or organized under the law of a Party; existing means in effect on the date of entry into force of this Agreement; GATS means the General Agreement on Trade in Services, contained in Annex 1B to the WTO Agreement; GATT 1994 means the General Agreement on Tariffs and Trade 1994, contained in Annex 1A to the WTO Agreement; goods of a Party means domestic products as these are understood in GATT 1994 or such goods as the Parties may agree, and includes originating goods of that Party; government procurement or procurement means the process by which a government obtains the use of or acquires goods or services, or any combination thereof, for governmental purposes and not with a view to commercial sale or resale, or use in the production or supply of goods or services for commercial sale or resale; Harmonized System (HS) means the Harmonized Commodity Description and Coding System, including its General Rules of Interpretation, Section Notes, and Chapter Notes, as adopted and implemented by the Parties in their respective tariff laws; measure includes any law, regulation, procedure, requirement, or practice; national means: (a) with respect to Morocco, “national of the Kingdom of Morocco” in accordance with Dahir No. 1-58-250 of 21 Safar 1378 (September 6, 1958) enacting the Code of Moroccan Nationality; and (b) with respect to the United States, “national of the United States” as defined in Title III of the Immigration and Nationality Act; originating good means a good qualifying under the rules of origin set out in Chapter Five (Rules of Origin) or Chapter Four (Textiles and Apparel); person means a natural person or enterprise; 1-3 person of a Party means a national or an enterprise of a Party; preferential tariff treatment means the duty rate applicable under this Agreement to an originating good; regional level of government means: (a) for the United States, a state of the United States, the District of Columbia, or Puerto Rico; and (b) for Morocco, “regional level of government” is not applicable; Safeguards Agreement means the Agreement on Safeguards, contained in Annex 1A to the WTO Agreement; SPS Agreement means the Agreement on the Application of Sanitary and Phytosanitary Measures, contained in Annex 1A to the WTO Agreement; state enterprise means an enterprise owned, or controlled through ownership interests, by a Party; TBT Agreement means the Agreement on Technical Barriers to Trade, contained in Annex 1A to the WTO Agreement; territory means, with respect to the United States: (a) the customs territory of the United States, which includes the 50 states, the District of Columbia, and Puerto Rico; (b) the foreign trade zones located in the United States and Puerto Rico; and (c) any areas beyond the territorial seas of the United States within which, in accordance with international law and its domestic law, the United States may exercise rights with respect to the seabed and subsoil and their natural resources; TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights, contained in Annex 1C to the WTO Agreement; WTO means the World Trade Organization; and 1-4 WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, done on April 15, 1994. 1-5 CHAPTER TWO NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS ARTICLE 2.1: SCOPE AND COVERAGE Except as otherwise provided,
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