COUNTRY COMMERCIAL GUIDE FISCAL YEAR 2005

“International copyright, U.S. Commercial Service and the U.S. Department of State, 2003. All rights reserved outside the United States.”

Country Commercial Guides can be ordered in hard copy or on diskette from the National Technical Information Service (NTIS) at 1-800-553NTIS. U.S. exporters seeking general export information and assistance or country-specific commercial information should consult their nearest Export Assistance Center or the U.S. Department of Commerce’s Trade Information Center at (800) USA-TRADE, or go to one of the following website: www.export.gov and www.buyusa.gov/morocco/en

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY

2. ECONOMIC TRENDS AND OUTLOOK - Major Trends and Outlook ...... ……………………………………….. - Principal Growth Sectors ...... …………………………………………. - Government Role in the Economy …...... …………………………………..... - Balance of Payments Situation ...... ………………………………………... - Infrastructure ...... ………………………………………………….

3. POLITICAL ENVIRONMENT

- Nature of Political Relationship with the U.S………………………………………... - Major Political Issues Affecting Business Climate....………………………………. - Brief Synopsis of Political System…………………………………………………….

4. MARKETING U.S. PRODUCTS AND SERVICES

- Distribution and Sales Channels ...... …………………………….…. - Information on Typical Product Pricing Structures……………………………….. - Use of Agents & Distributors; Finding a Partner ...... ……………….…………. - Franchising ...... …………………………………………….. - Direct Marketing ...... ………………………………………… - Joint Ventures/Licensing ...... …………………………………….. - Steps to Establishing an Office……………………………………………………... - Selling Factors/Techniques...... ……………………………………. - Advertising and Trade Promotion...... …………………………………. - Pricing Product...... …………………………………………… - Sales Service/Customer Support ...... …………………………………… - Selling to the Government ...... …………………………………….. - Need for a Local Attorney ...... ………………………………………. - Performing Due Diligence/Checking Bona Fides of Banks/Agents/Customers ……

1 5. LEADING SECTORS FOR U.S.EXPORTS AND INVESTMENT

- Best Prospects for Non-Agricultural Goods and Services ...... ………………….. - Best Prospects for Agricultural Products ...... …………………………….

6. TRADE REGULATIONS, CUSTOMS AND STANDARDS

- Trade Barriers, Including Tariff and Non-Tariff Barriers …………………………. - Customs Regulations ……………………………………………………….……... - Tariff Rates………………………………………………………………….……….. - Import Taxes ………………………………………………………………………… - Import License Requirements...... ……………………………………… - Temporary Goods Entry Requirements…………………………………………… - Special Import/Export Requirements……………………………………………… - Prohibited Imports…………………………………………………………………. - Warranty and Non-Warranty Repairs……………………………………………. - Export Controls...... ………………………………………. - Standards ...... ………………………………………………………. - Membership in Free Trade Agreements ...... ………………………... - Customs Contact Information ……………………………………………………. - Standard Overview…………………………………………………………………. - Standards…………………………………………………………………………… - Conformity Assessment……………………………………………………………. - Product Certification………………………………………………………………… - Accreditation………………………………………………………………………… - Technical Regulations………………………………………………………………. - Labeling/Marketing……………………………………………………………………. - Contact Information…………………………………………………………………….

7. INVESTMENT CLIMATE

- Openness to Foreign Investment ...... …………………………….. - Right to Private Ownership and Establishment ...... ……………………….. - Protection of Property Rights ...... ………………………………… - Protecting Your Product From IPR Infringement…………………………………… - Foreign Trade Zones/Free Ports ...... ……………………………… - Performance Requirements/Incentives ...... …………………………... - Transparency of the Regulatory System ...... …………………………... - Corruption ...... ……………………………………….. - Labor ...... …………………………………………. - Efficiency of Capital Markets and Portfolio Investment ...... ……………………... - Expropriation and Compensation ...... …………………………….. - Dispute Settlement ...... ……………………………………. - Political Violence ...... ……………………………………… - Major Foreign Investors ...... ………………………………….

8. TRADE AND PROJECT FINANCING

- Description of the Banking System...... …………………………… - Foreign Exchange Controls Affecting Trade...... ………………………. - General Availability of Financing...... …………………….…………

2 - How to Finance Exports/Methods of Payment...... …………………… - Types of Available Export Financing and Insurance...... …………………. - Project Loans - Availability of Project Financing...... ………………………………. - List of Banks with Correspondent International Banking Arrangements..……

9. BUSINESS TRAVEL

- Business Customs...... …………………………………. - Travel Advisory and Visas...... ………………………………. - Holidays...... ………………………………………. - Work Week…………………………………………………………………………. - Business Infrastructure...... ………………………………… - Temporary Entry of Goods...... ……………………………..

10. ECONOMIC AND TRADE STATISTICS

APPENDIX A: Country Data...... ………………………….. APPENDIX B: Domestic Economy...... ………………………. APPENDIX C: Trade...... ……………………………….

11. U.S. AND COUNTRY CONTACTS

12. TRADE EVENTS

This Country Commercial Guide (CCG) presents a comprehensive look at Morocco’s commercial environment using economic, political and market analysis. The Country Commercial Guides were established by recommendation of the Trade Promotion Coordinating Committee (TPCC), a multi-agency task force, to consolidate various reporting documents prepared for the U.S. business community. Country Commercial Guides are prepared annually at U.S. Embassies through the combined efforts of several U.S. government agencies.

CHAPTER 1: EXECUTIVE SUMMARY

Morocco signed a free trade agreement with the U.S. on June 15, 2004, over two hundred years after being the first country to recognize the U.S. as an independent nation. The U.S.-Moroccan Free Trade Agreement (FTA) is one of the most comprehensive FTAs that the U.S. has ever negotiated. The FTA is expected to be approved by the Moroccan parliament by the end of 2004. Morocco is the second Arab and first African nation to have an FTA with the U.S.

In addition to opening Moroccan markets to greater American exports by eliminating tariffs on 95 percent of all bilateral consumer and industrial exports on the day it comes into force, the FTA will level the playing field with European competition and provide assurance for U.S. investors. Moroccan officials anticipate that the FTA will be a catalyst to accelerate and deepen the economic reform process by allowing greater competition and the formation of international partnerships in key sectors such as insurance and banking and by greatly liberalizing the Moroccan textile and agricultural tariff structures.

3 Morocco is now steadily progressing internally toward greater modernization and globalization, with the creation of the country’s first commercial courts, new streamlined customs departments and 16 new Regional Investment Centers dedicated solely to facilitating new business ventures. A new comprehensive labor code protecting both the employer and employee was passed in July 2003. In addition to calling for a more transparent judicial system and stricter accounting standards, the FTA also provides a high level of intellectual property protection, consistent with the standards set by U.S. law. This includes state-of-the-art protections for trademarks and digital copyrights, expanded protection for patents and product approval information and tough penalties for piracy and counterfeiting.

There are already 120 American businesses operating in Morocco who have invested $600 million and have created 90,000 direct and indirect jobs. Taking advantage of Morocco’s 11 million person workforce, American manufacturers are expected to follow the lead of Fruit of the Loom and The Gap and begin producing popular American textiles in Morocco boosting its $45 billion GDP and $1,492 average per capita GDP. The greatest challenge for Morocco and international investors lies in providing effective education and job training.

Mohamed VI, the King of Morocco, is committed to a broad program of political, economic and social reform, and to remaining a strong partner in the international struggle against terrorism. Morocco held successful nationwide parliamentary elections in fall 2002 and local elections in fall 2003. Thirty-five Moroccan women are now present in Parliament. The economic impact of the May 16, 2003 terrorist bombing in on Morocco’s international investment and tourism sectors was minor. According to the Central Bank of Morocco, the number of tourists in 2003 was 2.224 millions, a very slight increase from 2,222 million in 2002. In the first seven months of 2004, there were 3.16 million tourists, a jump of 19% according to the Ministry of Tourism. Morocco has an ambitious project to attract 10 million tourists by 2010 in order to reduce its 23% unemployment rate (11.69% according to the Moroccan government). According to 2002 statistics, nineteen per cent of the Moroccan population lives below the UNDP poverty line.

Strategically located along the Straits of Gibraltar just seven hours from JFK and three hours from Paris, Morocco is seen more and more as a regional hub for transportation, transit, and business. Morocco’s moderate Mediterranean climate on 2,750 miles (3,500 km) of coastline and its developing infrastructure make it an increasingly strategic and attractive location for business. The March 1, 2002 EU Association Agreement has spurred manufacturing development in Morocco, an activity that will be heightened when the U.S. and Morocco ratify their agreement. Most importantly, with a literacy rate of 52%, Morocco will rely on these key trade agreements to stimulate the economic growth and to foster the job creation necessary to facilitate social and educational reform.

Thanks to adequate and well-spread rainfalls, Morocco recorded a bumper crop in 2003- 2004. But, as a country the size of California, with only 20.12% arable land, there is still substantial potential for expanded U.S. agricultural imports.

The U.S. Trade and Development Agency (TDA) continues to make significant contributions to Morocco. In 2003, TDA funded a feasibility study for the future Casablanca Convention Center. If built, this complex would have the potential to attract

4 millions of dollars in tourist revenue and promises to make Casablanca a regional and international convention hub.

The U.S. Commercial Service has identified the following sectors as best prospects for US firms: 1) Wastewater treatment, 2) Tourism infrastructure, equipment and services, 3) Housing and construction, 4) Engineering and Consulting, 5) Environmental equipment and services, 6) Seawater desalination, 7) Telecommunications equipment and services, 8) Airport/Aviation equipment and services, 9) Food processing and packaging and 10) Renewable energy. At the top of the Foreign Agriculture Service’s best prospects list are: 1) Wheat, including durum, 2) Feed grains, 3) Oilseeds and products and 4) Dried fruits and nuts.i[i]

CHAPTER 2: ECONOMIC TRENDS AND OUTLOOK Major Trends and Outlook: Morocco boasts the world’s largest phosphate reserves, a diverse agricultural sector, rich fisheries, a sizeable and growing tourist industry, a growing manufacturing sector (especially clothing and electronics), and a dynamic, telecommunications sector. There is a considerable inflow of funds from working abroad (nearly $4 billion in 2003). The illegal production and export of cannabis also plays a role in the Moroccan economy, particularly in the north. Most of Morocco’s trade is with Europe. France alone accounts for about a quarter of Morocco’s imports and a third of its exports. The U.S.- Moroccan FTA will create additional opportunities for U.S. trade and investment. FTA negotiations began in January 2003 and were concluded in March 2004. Principal Growth Sectors:

(1) Agriculture: Agricultural production accounts for 15 to 20% of GDP (depending on the harvest) and employs about 45% of the workforce. Morocco is a net exporter of fruits and vegetables, and a net importer of cereals, oilseeds and products, and sugar. Over 90% of the agriculture is rain-fed and thus the output is highly variable. After three consecutive years of drought (four in the Southern parts), in 2003-2004 Morocco was blessed with significant, timely, and widespread rainfall that boosted agricultural output and has positively impacted the whole economy. Although Morocco’s grain production increased dramatically, imports will still be necessary later in the year to fulfill the local demand, especially for wheat. Barley and other feed imports are likely to be low this year because of more adequate pasture conditions and increased feed supply. Since most corn is used for poultry feed, less variable demand should continue to result in large amounts of corn imports.

(2) Fishing: The fishing industry is a key sector of the Moroccan economy, employing about 400,000 people directly and indirectly, and accounting for almost one billion dollars. Despite tremendous political pressure, Morocco has not renewed its fisheries agreement with the EU, which expired on November 30, 1999. As a result, Morocco is searching for other international partners to develop its fishing industry. The relatively undercapitalized Moroccan fishing fleet has difficulty competing with the highly industrialized European

5 fleet. Working to better manage its fish resources, the Moroccan government has been imposing periodic fishing bans on various types of fish and regions.

(3) Industry: Industrial output rose 3.1% in 2001, and expanded by only 2.2% and 2.8% in 2002 and 2003. With the advent of the FTA however industrial output specifically in the textile sector is expected to increase significantly. For the time being, much of the clothing production is done under contract with European companies, which provide the inputs and receive the finished garments. World market conditions will determine development for Morocco’s export industries, notably phosphate derivatives, processed agricultural products and clothing.

(4) Mining: Morocco has the world’s largest phosphate reserves. The export of phosphates and its derivatives (phosphoric acid and fertilizer) account for 16.4% of Moroccan exports. The export earnings of phosphate and phosphate derivatives reached $1.25 billion in 2002. Morocco’s other mineral resources include copper, fluorine, lead, barite, iron and anthracite. As will be noted, there are licenses in negotiation for offshore oil and gas exploration as well as some test drills in the east. Globally, Morocco is a significant producer and exporter of industrial minerals. It is also a significant regional producer of base metals, primarily for Europe.

(5) Telecommunications: The Moroccan government decided to open up the entire telecommunications sector to competition by the end of 2002. Morocco has already issued licenses to provide mobile phone service and data transmission via satellite. In 2002, Morocco launched a tender for a second fixed-line license to provide competition to , but due to the global situation in the telecommunications sector, the tender received no bids. Morocco intends to re-launch the bid before the end of 2004. Vivendi Universal paid $2.1 billion in 2001 for a 35% stake in state-controlled Maroc Telecom. The government is planning on selling an additional stake in Maroc Telecom before the end of 2004.

Government Role in the Economy: The Moroccan government has gradually reduced its role in the economy over the last decade. In particular, it ceased direct credit and foreign exchange allocation, reduced trade barriers, partially restrained government spending, and embarked on a privatization program, including the telecom sector, tobacco, and concessions in energy and utilities.

(1) Monetary policy: Inflation remains low. Over the past decade, average annual inflation has remained below 3%. The rate of inflation was 2.8% in 2002 and 1.2% in 2003. Monetary growth has remained steady in recent years. Morocco possesses a comfortable level of foreign exchange reserves largely as a result of the telecommunications sector and the tobacco

6 privatizations. Foreign currency reserves stood at about $13.5 billion in 2003, providing more than 11 months of import coverage. Broad money (M2) grew 7.5% in Q3 of 2003. (2) Fiscal policy: The Moroccan government’s commitment to tight fiscal policy has weakened in recent years. Thanks to one-time receipts from the partial privatization of Maroc Telecom, the 2001 overall budget deficit remained modest at 2.7% of GDP. However, with lower than expected privatization receipts in 2002, the budget deficit increased to 4.3%. Tobacco privatization again reduced the deficit to 3.8% in 2003, and the Moroccan government expects a deficit of just over 3% in 2004. Excluding privatization, the deficit continues to grow and should reach nearly 5.7% in 2004.

(3) Foreign exchange regulations: The is convertible for all current transactions (as defined by the IMF’s Article VIII) as well as for some capital transactions, notably capital repatriation by foreign investors. Foreign exchange is available through the commercial banks on presentation of appropriate documents. Foreign firms have complained about the complexity of remaining restrictions on foreign exchange. Private Moroccan residents face foreign exchange restrictions, and Moroccan banks do not issue internationally accepted credit cards. The Central Bank currently sets the exchange rate for the dirham against a basket of currencies of its principal trading partners. Changes in the rates of individual currencies reflect changes in cross rates. In May 2004, the exchange rate was approximately 9 dirhams/USD.

(4) Privatization: Morocco launched a privatization program in 1992 and since then has sold stakes in 65 enterprises, raising $5.2 billion. On March 31, 1999 Parliament approved an amendment to the privatization law that designated 28 of the remaining enterprises to be sold off, mainly reflecting legal and financial problems in the others. The law also provides a legal framework for other state-owned enterprises to be privatized in the future. Among the entities to be privatized are six sugar plants, nine hotels, three banks (Banque Centrale Populaire, Banque Nationale pour le Développement Economique, Credit Immobilier et Hotelier) and the state fertilizer company, Fertima. Given weakness in the telecommunications and aviation sectors, the government decided to delay further privatization of Maroc Telecom until late 2004 and the partial privatization of the national carrier, . An 80% stake in the state-run tobacco marketing company, Regie des Tabacs, was sold to a French-Spanish consortium, Altadis, in 2003 for $1.53 billion.

Balance of Payments Situation: Morocco runs a chronic merchandise trade deficit, which is generally offset by receipts from tourism, workers’ remittances and foreign investment. In 2002, foreign trade figures remained relatively stable, with imports increasing by 3.8% and exports decreasing by 3.5%. Foreign investment increased to $2.4 billion in 2003, mainly due to the privatization of the Regie des Tabacs. In 2003, tourism receipts remained constant and worker remittances increased by 7.2% to $3.8 billion.

7 (1) Merchandise trade: The trade deficit in 2003 increased to $5.8 billion. Citrus fruit and phosphates and its derivatives led export growth. In 2002, imports of crude oil decreased by 10.8%, wheat imports fell by 12.8%, and telecommunications equipment imports fell by 25.8%.

(2) Foreign debt: Morocco’s foreign debt burden has declined steadily in recent years. Morocco last rescheduled its Paris Club debt in 1992. The French and Spanish governments, and since early 1999 the Italian government, have engaged in debt-equity swaps with Morocco, and Morocco is seeking the cooperation of other lenders. Morocco’s current debt service ratio of approximately 16% of exports of goods and non-factor services and appears sustainable. External public debt fell to $14.2 billion in 2001, and fell again to $13.9 billion in 2002.

Infrastructure Situation: Morocco is making the development of its communication and transportation networks a top priority. With many improvements already achieved and several projects underway in these two sectors, Morocco’s infrastructure for the distribution of goods and services is good.

(1) Roads and Highways: Morocco’s 37,267 mi (60,000 km) road network is among the best in Africa. Most parts of the country are readily accessible by well-surfaced roads. Most agricultural and manufactured goods move by road. With the completion of a toll-highway linking Fez and , Morocco now boasts 311 miles (500 km) of expressways linking the coastal cities of Casablanca, Rabat and Assilah, and the inland cities of Fez and Meknes. However, the slow progress of the highway between Casablanca and Marrakech is a frustration to residents, tourists and distributors, and the road between Casablanca and Jorf Lasfar, passing through the resort town of El Jadida has been the scene of frequent traffic accidents involving fatalities. A new highway construction is well underway between Casablanca and Jorf Lasfar, and is expected to be completed by 2005. A Settat-Marrakech highway is expected to be complete by 2006. A new Mediterranean coastal road from Tangier to Saidia (on the Algerian border) is also under construction. Traffic in Casablanca continues to be clogged due to insufficient signaling, absence of pedestrian overpasses and lack of parking and traffic enforcement. The discussion of a subway or light rail system that has been underway for years appears to favor a light rail system for Casablanca. A new highway between Marrakech and Agadir (240 km) will be completed in 2009.

(2) Airports: There are sixteen international airports in the country. The largest international airport "Mohamed V," located 22 miles (35 km) south of Casablanca, offers about fifty regular flights per day to Europe, the United States, Canada, the Middle East and several African cities. Merchandise can be transported to and from the airport by truck or by

8 train. Rabat and Tangier also have international airports with daily flights to Europe. All airports have modern equipment to increase traffic security and safety, and to improve airspace radio coverage. Runways are being extended to receive large planes and training is provided to airport technical agents. The U.S. Trade and Development Agency signed a grant with the Ministry of Economy, Finance, Privatization and Tourism for a pilot airport privatization project.

(3) Air transportation: An "Open Skies" air transport agreement between the United States and Morocco entered into force in August 2002. Royal Air Maroc (RAM), Morocco’s national airline, has a well-developed route structure, particularly to Europe and the Middle East/Gulf as noted above. The carrier has modernized its middle and short-haul fleet with the purchase of new generation Boeing 737s and four Airbus A321s. A tender for a 22-plane fleet renewal to replace RAM’s middle/short haul and long haul aircraft was won by Boeing in November 2000. RAM entered into a code share agreement with Delta Airlines in October 2000, and Northwest Airlines has a code share arrangement with KLM. Regional Airlines and RAM, former domestic competitors, are now also partners in a code share agreement. Atlas Blue, a subsidiary of RAM, is the most recent low cost carrier serving Morocco and Europe.

(4) The Rail Network: The rail company, the "Office National des Chemins de Fer" (ONCF), plays an important role in the Moroccan economy. It employs 13,820 people and operates on some 1,242 miles (2,000 km) of track. ONCF handles passenger service and the freight service of phosphates, fertilizers, chemical products and other minerals. Ambitious plans are scheduled to modernize and extend the network.

(5) Shipping Network: The National Port Authority, "Office d’ Exploitation des Ports" (ODEP) is the Moroccan ports’ managing body. The port infrastructure handles 98% of the country’s foreign trade. Morocco’s twenty-seven ports handled a record 57.5 million tons in 2001, an increase of 8.8% over 2000. The , the second largest in Africa, handles 37% of all goods imported and/or exported. Morocco’s shipping costs are high in comparison to its Mediterranean competitors. There is frequent ferry service to and from Spain and France for tourists. The government is building a new transshipment port known as Tanger-Med, approximately 9 miles (15 km) from Tangiers in northern Morocco that will cost about $500 million. The French Bouygues Group was chosen in June 2003 to build the basic infrastructure for the port complex for $242 million (2.4 billion dirhams). It is scheduled for completion in 2007.

(6) Telecommunications: The telephone system has greatly improved in the last five years. The national telecommunications network offers a range of services including cellular, paging, video conferencing, voice mail and Internet. The sector employs over 50,000 people and generates $1.3 billion in turnover. The number of fixed lines has slowly declined over the past three years while the number of mobile phones has exploded. Since 1999, the

9 number of mobile phones has increased from 175,000 to almost eight million. The country’s state-owned telephone company Maroc Telecom was partially privatized to Vivendi Universal in 2001. The government plans to award a second fixed license by the end of 2004.

CHAPTER 3:POLITICAL ENVIRONMENT

Nature of the Political Relationship with the United States: Morocco’s bilateral ties with the United States date back to 1787 when Morocco was the first nation to recognize the independence of the United States. More recently, Morocco’s early activism in the search for peace in the Middle East has made the kingdom a valuable partner on the international stage. Until his death in 1999, King Hassan II enjoyed a warm relationship with a succession of American Presidents. A similarly close relationship has been established with King Mohamed VI, whose successful visits to the U.S. in 2003 and July 2004 exemplify the strengthening bilateral relationship. Five years into his reign, Mohamed VI remains committed to reforming Morocco’s economy and deepening its democratic structures as seen in his dedication to the US-Moroccan FTA. To date, promising progress toward these objectives has been achieved.

Major Political Issues Affecting the Business Climate: Islamic extremism appeals to only a small minority of Moroccans, although rapid growth in urban poverty has fed the Islamic movement, as demonstrated by the May 16 attacks. A disturbing phenomenon has been the appearance of gangs in urban slums willing to use violence to enforce their conception of religiously correct behavior. While there are no accurate election or opinion poll results upon which to base an estimate, it is likely that active adherents of non-violent political Islam probably account for nearly one fourth of the population. These non-violent Islamists are for the most part divided between those who have elected to cooperate with the regime and those who have not. The former have a political party, the Party of Justice and Development, and are represented in Parliament. The latter form a tightly disciplined organization with more adherents than the aforementioned political party, yet they remain outside the realm of political legitimacy and the authorities tightly restrict their activities. Another issue is the ongoing dispute over the Western Sahara. A ceasefire between the Moroccan government and the Polisario Front has been in effect since 1991, and the UN maintains a peacekeeping presence in the territory pending a UN-brokered permanent settlement. Over the years the parties to the conflict have weighed several peace plans proposed by James Baker, the former UN Secretary General’s Personal Representative for the Western Sahara, with Morocco staunchly opposing independence for the territory, while Algeria and Polisario advocate the right of self-determination for the local Saharan people. Mr. Baker resigned as envoy in June 2004. As the parties continue to wrestle with a political solution, the border between Algeria and Morocco remains closed. Both cannabis productions in northern Morocco and illegal immigration to Europe have become serious concerns for Morocco’s European neighbors, but have not destabilized the region.

10

Brief Synopsis of the Political System: Morocco is a constitutional monarchy in which the King remains the final arbiter of power. In September 1996, a constitutional referendum divided the Parliament into two chambers. The lower house is directly elected and the upper house is made up of representatives elected by labor unions, management associations and communal councils. Parliamentary elections held in September 2002 were widely regarded as free and fair and were followed by successful local elections in September 2003. The largest parties in Parliament are: the Socialist Union of Popular Forces (USFP) with 50 seats, the Istiqlal Party (PI) with 48 seats, the PJD with 42 seats and the National Rally of Independents (RNI) with 41 seats. Following the 2002 elections, the King consulted with the heads of the major political parties concerning the formation of a new government but appointed nonparty member, technocrat, and former Interior Minister as Prime Minister in October 2002. Morocco is divided into regions, provinces, prefectures and communes. Citizens of a commune elect a council that is roughly the equivalent of a city council. Members of communal councils in turn elect councils for provinces and prefects (the prefecture is urban, the province rural). Communal councils elect 60% of the members of the upper house of the national parliament as well. Members of provincial and prefectural councils elect members for a regional council. Each communal, provincial, prefectural and regional council elects a council President from among its ranks. In theory, these council Presidents function as executives at the communal, provincial, prefectural and regional levels. In practice, however, executive authority at the communal level is effectively in the hands of a "Qaid;" at the provincial/prefectural level, in the hands of a "Super Qaid;" and, at the regional level, in the hands of a "Wali." The Minister of Interior has the authority to appoint the Qaids, Super Qaids and Walis. In practice, however, the King appoints the Walis. Morocco has 16 regions, 67 provinces and prefectures, and some 1500 communes presided over by mayors. In addition, following the September 2003 local elections and for the first time, the municipal councilors in Morocco’s six largest cities elected mayors to coordinate the activities of the municipal councils that exist within these large cities.

CHAPTER 4: MARKETING U.S. PRODUCTS AND SERVICES

Distribution and Sales Channels:

Casablanca is the primary point of entry for foreign manufactured goods for direct distribution to the public, wholesalers, distributors and retailers. In addition, ferry services between Morocco, Spain and France do allow goods to be imported and exported by truck. There is also a major port construction project, the Tanger-Med port, which is well underway 15 km from Tangier in Northern Morocco that is expected to absorb a far higher percentage of imports from Europe within the next few years.

Use of Agents/Distributors; Finding a Partner:

Foreign manufacturers and exporters are represented in the market either through their own branch offices or through authorized agents and distributors. Distributors customarily provide technical support to end-users and often have contractual

11 arrangements with their principals under which the local importers provide in-bond warehousing. Although it is legal for an American corporation to be an independent distributor, local agents and distributors are recommended to assist the U.S. firm with documentation in the French language and with local customs and know-how. Some U.S. firms supply Morocco indirectly through regional distribution centers in Europe. Although this helps in terms of language and shipping, often the products go through so many distribution channels that the item ceases to be competitive in the Moroccan market. As always, volume is the key. Large-scale stores based on the "Costco" model are a relatively new phenomenon and a good source for direct distribution of consumer products. The German-owned Metro stores are in Casablanca, Rabat, Fes and Agadir. More traditional European style hyper-marches such as are also present in major cities and provide good markets for Western food and household supplies. A Moroccan hyper-marche Assouak As Salam is also present in Rabat, Marrakech, and Kenitra and the first ever “Home Depot-style” hardware store Bricorama has opened in Rabat.

The Foreign Commercial Service at the American Consulate in Casablanca provides two services to help identify agents, distributors and/or potential partners on a cost recovery basis. The International Partner Search (IPS) is initiated through a district office of the Department of Commerce. FCS in Morocco also operates a “Gold Key Service”, which provides U.S. business representatives with one-on-one meetings with a series of potential partners, agents or distributors. For the address and phone number of the nearest Department of Commerce domestic office, call 1-800-USA-TRADE (1-800-872- 8723).

Franchising:

Close to 90 foreign franchises successfully operate in the sectors of fast food; clothing, furniture, cosmetics, office cleaning and auto repair since the first Pizza Hut was established in 1992. Franchise holders are attracted to the marketing image and financial security of well-known American products and brands such as Pepsi Cola, McDonald’s, Dominos Pizza, KFC, Haegen Daz, Budget, New Balance, FutureKids, Office 1 Superstore and Midas. The success of franchising stems from an expanding base of young entrepreneurs many of whom are American educated and have the financial means to develop master franchises.

Direct Marketing:

Marketing services and advertising agencies are increasingly focusing on direct marketing in response to saturation in the traditional media. Common forms in Morocco are point-of-sale promotions, games, moving billboards, direct mail and door-to-door sales. Avon and Oriflame are active in door-to-door cosmetic sales. To date, there is only a small emerging market focused on Internet sales as well as thru cell phones.

Joint Ventures/Licensing:

Moroccans are increasingly interested in joint venture business opportunities with American partners as a way to modernize their factories or license a technology. Beginning in the 60's, the manufacturing of U.S. products has typically started through joint ventures or acquisition of a local Moroccan firm. The best examples are, Gillette, Coca Cola Export Corp., Procter & Gamble, Colgate Palmolive Maroc, Clark Gum, Fruit

12 of the Loom, Jacob Delafon (Kohler), Johnson & Johnson, Pfizer Laboratories, Pepsi Cola, Simmons Maroc, Kraft Foods and Steelcase. Morocco also provides a good geographic location for exporting to the EU and the rest of Africa.

Steps To Establishing an Office:

According to the American Chamber of Commerce, the steps to opening an office in Morocco have been greatly centralized and simplified over the last year. Morocco’s sixteen new Regional Investment Centers are the governmental headquarters for the entire registration process. Within one week of providing the center with a completed application, a passport or ID, and a copy if not personally present, and $16 (150 dirhams), a certificate from the Regional Investment Center will be processed. If the completed certificate is not picked up after one month it automatically becomes void and the process must begin again. Upon receipt of the certificate and after presenting a proof of patent, a registration receipt from the Registre du Commerce ($37 or 350 dirhams), a fiscal statement and a completed application to the social security savings bank (Caisse de sécurité sociale), the business can be established. All businesses are subject to inspection by the Regional Investment Centers.

Selling Factors/Techniques:

Most local distributors of imported merchandise expect their suppliers to provide them with substantial advertising and promotional support, particularly when introducing a new product or brand name. All sales promotional material and technical documentation should be in French. Clear and simple French-language operating instructions are necessary. Illustrations helping the consumers and sales force are recommended. U.S. firms often need to train local staff, provide full documentation of products in French, ensure an adequate supply of spare parts, and cooperate in advertising and marketing. Direct mail and text messaging is becoming very popular and can aid this process.

Advertising and Trade Promotion:

There are several Moroccan advertising agencies that operate mainly on a small scale, thus reflecting the undeveloped state of the Moroccan advertising industry. However, McCann Erickson and a joint operation of Leo Burnett and Darcey Masius Benton & Bowles have offices that provide state-of-the-art resources for new product launches.

TV has overtaken the print media as the most prevalent vehicle for advertising, generating more than 70% of advertising returns. Food, hygiene and beverages are the most common products advertised on television, with multinationals such as Procter & Gamble, Pepsi Cola, Gillette and Coca-Cola among the biggest advertisers. Newspapers and periodicals continue to provide advertising space for a variety of products and services, but verification of subscriptions and circulation is difficult. The number and importance of billboards advertising anything from state of the art cell phones to coffee has dramatically increased in the last few years. More and more small and medium-sized companies are also turning to the Internet as a means of reaching consumers. The number of subscribers is increasing slowly with about 60,000 subscribers and 700,000 users who frequented Morocco’s 2000 Internet cafes in 2002. Many companies have established web pages, finding this a very economical way to reach a wide range of consumers.

13 Pricing Product:

The market freely determines commodity prices without government involvement with the exception of staple commodities such as gasoline, vegetable oil, sugar and subsidized flour. In June 2003, Morocco implemented a new tariff system for grains (barley, wheat, and corn) that resulted in a significant increase in tariffs for bread wheat. The new tariffs supplemented the October 1998 system that is still applicable for oilseeds and sugar. Any legislation that threatens to raise the price of bread causes great public outcry. As a result, the government managed to raise the price of bread by only 10 centimes in 2004.

Sales Service/Customer Support:

It is incumbent upon U.S. firms to supply their local distributor with customer and employee documentation in French. Training in the U.S. or in Morocco by U.S. headquarters representatives of management, sales and service personnel is important and can do much to support the relationship and build product loyalty. Sales service and product guarantees are also extremely important along with simple maintenance and care instructions for the consumer. As products improve in quality and customers become increasingly price conscious, emphasis on simple care and maintenance are critical techniques that illustrate the longevity of products that receive proper care. Unlike most Western countries, Morocco lacks the equivalent of a Better Business Bureau and thus consumer feedback is sometimes difficult to acquire.

Selling to the Government:

Selling to the Moroccan government is handled principally through government tenders and on rare occasions through mutual agreement or private contract. In the latter case, the government applies directly to firms, which have been traditional suppliers through their representatives in Morocco. Tenders are published in newspapers and announcements are sent to Embassies. Each ministry issues its own tenders. Deadlines range from 30 to 90 days. The bidding documents are published in French and replies must be in French using French or European standards (i.e. metric, 50/60 htz). FCS Morocco transmits notice of Moroccan government tenders likely to be of interest to U.S. companies to the U.S. Department of Commerce for listing in the Commerce Business Daily through the Economic Bulletin Board (EBB) on E-menu. Interested U.S. firms can access this information at www.export.gov.

In December 1998, the Government Council approved a decree overhauling the public procurement system to enhance transparency, accountability and competitiveness in procurement. In particular, the decree mandates public bid-opening sessions, substantially narrows the scope of restricted bidding or sole-sourcing, extends the period of bid submissions, and provides for mandatory special controls and audits for contracts valued at over $500,000. The decree entered into effect in summer 1999, and has reinforced the trend away from direct negotiation and toward open tenders in public procurement. Furthermore, the FTA has a government procurement chapter that requires transparency and fairness in all transactions.

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Need for a Local Attorney:

Although no American law firm has a practice in Morocco yet, there are a number of English, French and German firms as well as Moroccan firms with strong international expertise. New-to-market U.S. firms are strongly advised to obtain the services of a law firm or the legal department of one of the multinational accounting or consulting firms. A complete list of recognized Moroccan law firms is available through the U.S. Consulate General in Casablanca.

In light of the U.S.-Moroccan FTA, the government has made judicial reform a top priority within its overall program. To strengthen the ability of the judicial system to handle business-related cases, six new commercial courts and three commercial courts of appeal have been established. In order to ensure the effective operation of the new commercial court network, the government has also begun work on a legal guide for commercial court judges. A Casablanca Commercial Arbitration Center (CCAC) has been established as a pilot vehicle. Although the CCAC is a non-governmental body, the government wishes to support its activities and the broad concept of recourse to commercial arbitration; it has therefore completed an action plan and timetable for the preparation and adoption of a consolidated Commercial Arbitration Code that will bring together the numerous provisions relating to arbitration that are currently scattered in Moroccan laws. In the meantime, by training judges in commercial law and offering professional counseling to those with questions about business law, the CCAC has successfully expedited many cases.

Performing due diligence/checking bona fides of banks/agents/customers:

All potential investors in Morocco, exporters of goods and service providers are strongly recommended to perform due diligence on and research the bona fides of their Moroccan agents, partners and customers (when extending credit). American firms, especially those with no previous Moroccan experience, should seriously consider the U.S. Department of Commerce “International Company Profile” (ICP) service prior to signing any agreements with new partners. Initiated usually through a U.S. Department of Commerce District Office for a fee, a U.S. exporter can obtain information on the reputation, reliability and financial status of a potential partner in a confidential report, along with a recommendation from commercial officers at the U.S. Embassy as to the suitability of the company as a trading partner. Contact: call 1-800-USA-TRADE, or visit the website at www.export.gov.

CHAPTER 5: LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT

Best Prospects for Non-agricultural Goods and Services:

1. Wastewater Treatment 2. Tourism Infrastructure, Equipment and Services 3. Housing and Construction 4. Engineering and Consulting 5. Environmental Equipment and Services

15 6. Seawater Desalination 7. Telecommunications Equipment and Services 8. Airport/Aviation Equipment and Services 9. Renewable Energy 10. Food Processing and Packaging

1. Wastewater Treatment

Morocco is a semi-arid country where water resources are limited. As a developing country with a high birth rate, Morocco faces the problems of increased water residue and the difficulty in finding alternative solutions to protect the environment and to improve quality of life. Since Morocco is losing about 10% of its water table each decade, it is imperative to find alternative methods to purify water and treat wastewater associated with urban and industrial pollution.

The National Office of Potable Water (ONEP) which produces about 80% of the potable water for the entire country, has identified several aquifers used for drinking water in many regions of Morocco that have been contaminated with high levels of nitrates. These pose a serious health problem to the population of these regions, and ONEP is planning to conduct a feasibility study to identify the extent of the contamination and select appropriate technologies to treat the groundwater. In addition, ONEP plans to conduct several feasibility studies to develop more water treatment projects. These studies will help to define the best way to re-use water, to build plants for potable water discharge treatment, to use simple techniques for water purification and to eliminate the excess of fluoride in water. These studies will also evaluate the use of small compact equipment for potable water distribution in about 200 small towns to replace the large and exhausted treatment systems, which exist today.

During 2001, USTDA funded two feasibility studies for the National Office of Potable Water (ONEP). The first one is assessing whether the chlorination system used to treat water from the Bour Regreg River should be upgraded with ozonation technology followed by activated carbon filtration. The second study is dedicated to building a wastewater treatment plant for the city of Azzemour and to reuse the treated wastewater for irrigation. Both studies will constitute an opportunity to introduce American wastewater treatment technology in Morocco.

USAID is active in several water management projects in Morocco. Currently, they are sponsoring a pilot project for the reduction of chromium discharged by the tanneries in Fes. This chrome is discharged in the Oued Sebou of Fes, polluting Morocco’s largest river, which could be used for agricultural purposes, potable water or industry. Using U.S. technology, USAID has signed an agreement with the Urban Community of Fes and the Ministry of Environment to help the tanneries to revise their methods. The second project, Nakhla, is located in a water basin near Tetouan, located in northern Morocco. Since this dam contains a lot of sediments, USAID introduced citrus and olive trees to protect it. The Moroccan government is pleased with the results of USAID’s method and has decided to allocate $1.5 million for the extension of this program. For its third project, USAID has placed a wastewater purification system in an area of five hectares and built ten large basins in Drarga, south east of Agadir representing 1,500 communes of which 500 are urban. Wastewater is treated and reused for agricultural purposes using U.S. technology. Equipment needed for one commune is estimated at about $2 million. This system will be installed in about 1,500 communes.

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Today, Morocco is looking for state-of-the-art water purification technology and wastewater treatment equipment. Water treatment plants and water purification equipment will also be needed to process the urban effluents for cities located along the coast. Plans for increasing water supply capacity to meet increased rural population and agricultural sector demand offers a growing market to U.S. suppliers of water and wastewater equipment.

(In $million) 2001 2002 2003 A. Total Market Size 283 326 375 B. Total Local Production 120 130 143 C. Total Exports 0 0 0 D. Total Imports 163 196 225 E. Imports from the U.S. 15 49 56 The above statistics are unofficial estimates. (Sources: National Office of Potable Water (ONEP)

2. Tourism Infrastructure

During 2002, Morocco’s tourism sector generated $2.471 billion in receipts, a 15% decrease over 2001. Despite the downturn, it remained the second most important foreign exchange earner in Morocco. This trend is a direct result of the negative effects of September 11 on the world’s economy. In the fall of 2000, access to Morocco was improved when Delta Airlines launched its code share with Royal Air Maroc to provide direct connections from Chicago, Los Angeles, San Francisco, Washington, D.C., Boston and Orlando. Furthermore, after recently signing contracts for 20 new 737s and 4 new A321s, Royal Air Maroc’s 36-plane fleet is rapidly expanding to better serve growing domestic and international flight demand. With royal endorsement, the government and the Tourism Federation, a group of private actors in the tourism industry, have signed an ambitious plan called the Framework Agreement (Contract-Program). According to this document, Morocco plans on attracting 10 million tourists by 2010 becoming a regional hub for vacations, conventions and trade events. If this occurs, tourism will become the main source of foreign currency contributing up to 20% to the GDP. The government is dedicated to achieving these objectives by:

• Concentrating on coastal tourism (with the future development of 6 beach resorts that will add 75,000 beds to the current lodging capacity) presumed to have a higher comeback rate than cultural tourism. At the end of 2003, the international developers for these new beach resorts will be announced. Moreover, the state will subsidize 50% of the land cost and participate in the costs related to off-site infrastructure development. • Offering special tax advantages for development projects with an investment value that exceeds $20 million.

17 • Promoting other types of tourism: rural-tourism, sports events, and business events, mainly by the creation of 80,000 additional beds, which will require an investment of $3 billion. • Restructuring of the tourism promotion agency ONMT. • Creating a Renovation Fund in order to help finance the upgrading of the existing facilities. • Hosting more regional conventions in Marrakech such as 2003’s Global Women’s Summit and in Casablanca, after constructing a new multimillion dollar coastline convention center complex.

The 1999 restructuring of fiscal regulations allows non-resident investors to transfer their revenue, price of disposition of business (including increment value), and dividends after tax, without limits on duration or on amounts. Firms that commit to invest at least $20 million benefit from the exemption from Import Tax (PFI) and TVA not only on finished products but also on the imports of goods and equipment needed to realize their projects. The exemption is also applicable to spare parts and accessories imported at the same time. These incentives are granted to companies that have signed agreements with the Moroccan government. American architectural, engineering and resort development firms, hotel management and information services providers, and infrastructure support services will find many excellent opportunities in Morocco’s tourism sector.

2001 2002 2003 (E) Number of Visitors (in millions) 2.2 2.22 2.00 Tourist Receipts (in $ millions) 2.91 2.47 2.40 Investments (in $ millions) 604 263 120

The above statistics are unofficial estimates.

3. Housing and Construction

In 2002, the Moroccan government launched 49 projects valued at $800 million. The projects, launched in cooperation with King Hassan II Economic and Social Development Fund and the Municipalities, include tourism, housing and highway projects.

Moroccan residential housing increased steadily during the last five years but there is still a large unmet demand, especially in the urban areas. With 57% of the total 30 million inhabitants living in urban areas and demographic growth exceeding 2.5% per year, inadequate or illegal housing and shantytowns that lack basic amenities continue to increase and exceed 23% of the total urban housing.

The current housing shortage in urban areas is evaluated at 1,000,000 units. The need for 125,000 new houses per year, resulting from demographic growth alone, exceeds the present building rate of 90,000 units. Under its 2000-2004 Economic and Social Development Plan, the Ministry of Housing and Urbanism (Ministère de l’Habitat et de l’Urbanisme “MHU”) plans to build approximately 143,000 new houses per year. Morocco needs to increase that number four-fold in order to meet the demand by 2014. The late King Hassan II launched the 200,000 Dwellings Program, which grants tax

18 incentives to developers that commit to a minimum of 3,500 low-cost housing units. Since its inauguration in 1994, local competition has increased and foreign firms are now entering this market, making property more accessible to low- and mid-range income households. To meet the demand for affordable housing in May 2003, King Mohammed VI launched private sector housing projects in Casablanca worth $820 million.

In spite of the high demand for affordable housing, Morocco’s issues of insufficient private banking participation, lack of low-cost housing and scarcity of urban land are worsened by the multiple government agencies involved in the attribution of land. The building industry in Morocco consists of a few large contractors and a myriad of small companies and sub-contractors. Morocco needs U.S. technology in order to obtain a competitive advantage. U.S. firms will find excellent opportunities when offering safe and fast building methods.

Furthermore, Morocco has recently announced its bid for the 2010 World Cup Games. If they should win, Morocco will offer American corporations even greater opportunity to construct stadiums, hotels and roads. There is also a USTDA funded feasibility study underway for constructing a state-of-the-art convention center and hotel complex on the Casablanca coastline that will provide great opportunity for large-scale American construction companies.

Morocco has more than 37,580 mi (60,500 km) of road network, which is generally adequate and considered the best in Africa. However, considering its land surface, development objectives (tourism, transportation of goods, developing rural areas) and international standards, Morocco’s road infrastructure is described as inadequate in terms of both quality and quantity. Morocco's developmental plans addressing improved safety and higher capacity recommend that the government construct 930 mi (1,500 km) of highways by 2010. The most ambitious Moroccan projects include the Oujda-Algerian border highway (75 mi or 120 km), the Marrakech-Agadir highway (155 mi or 250 km, estimated at $600 million) and the Agadir-Taroudant highway (44 mi or 70 km, estimated at $160 million). The Morocco-Spain fixed link project, which is under consideration, is estimated at approximately $3 billion over a 17-year period. It includes a 25 mi (39 km) tunnel, 18 mi (29 km) of which under sea, with 2 main circular galleries and a side drift. All these projects offer excellent opportunities to U.S. firms to introduce American high technology and know-how.

Sources: Ministry of Commerce and Industry, Moroccan Customs Office, FCS best estimates based on business publications.

4. Engineering and Consulting

An influx of engineering experts is essential to the entire Moroccan economy’s development. Necessary advances in infrastructure such as new roads and tunnels, water treatment and solid waste management centers, power plants, ports and airports will not be possible without strong professional engineering support. In addition, engineers are imperative to realizing Morocco’s goal of attracting 10 million tourists by 2010. Their expertise is indispensable to the construction of new hotels, resorts and modes of transportation. All of Morocco’s best prospects in 2004 require experts in their respective fields but also engineers to help create the infrastructure necessary to launch

19 these projects. Since Morocco still lacks the necessary amount of engineering experts that its development demands, there is great opportunity for American corporations.

5. Environmental Equipment and Services

Rapid urbanization in recent years continues to increase the problems of household waste disposal and vehicular air pollution. Thus municipal wastewater collection as well as solid waste disposal and treatment have become key sectors. Due to unprecedented increase and neglect, Morocco’s production of solid waste is a critical issue. To address the solid waste issue, the Moroccan government drafted a law on solid waste management, which stipulates that, effective February 1999, the Communautés Urbaines “CU” (that have charge of landfill management) and their Communes Urbaines (that have charge of collection) have 3 years to insure that household waste is properly collected and dumped in controlled landfills. As a result of this draft law, Morocco’s main cities are moving rapidly towards delegating the management of solid waste to private firms through international tenders. In June 2003, Morocco passed its first law on protection of the environment (Law 11-03), which prohibits dumping waste or gas into the environment and introduces the concept of paying for the damage.

In December 2001, the Communauté Urban of Fez signed a contract for a controlled landfill for the Fez metropolitan area with the American consortium composed of Edgeboro and Sadat International and the Moroccan firm Ecomed. This contract represents Morocco’s first concession of a controlled landfill and the second most important concession granted by the Moroccan government. With a total investment of approximately $10 million in 10 years, Edgeboro/Sadat-Ecomed is offering American know-how and expertise in treating Fez’s 800t/day solid waste production. This same U.S.-Moroccan consortium also recently won a contract to manage the landfill in Agadir.

After several years of discussions, Morocco’s largest city with four million inhabitants, Casablanca, elected to conduct a feasibility study for a project that will treat the 3,000 tons/day of solid waste that are inadequately disposed of in a saturated landfill. In March 2002, Casablanca signed a contract with the American engineering firm Brown, Vence & Associates (BVA) to study a concession of solid waste management for the city of Casablanca and its region. The study, sponsored by TDA’s technical assistance program, recommended waste management systems and assisted Casablanca in the preparation of the bidding document for an international tender that will be launched towards the end of 2003. The contract with a private firm should be concluded at the beginning of 2004 for a 25-year concession. The Communauté Urbaine of Marrakech is also preparing to launch an international tender for a controlled landfill in Marrakech at the end of 2003. The Communauté Urbaine of Marrakech plans to award a fifteen-year contract based on the Fez model. However in light of Morocco’s ambition to safeguard natural resources, bio-diversity and tourism, progress toward private delegation remains slow.

After hosting the COP7 conference on climate change in the fall of 2001, Morocco passed its first law on air quality. In addition to aging car emission’s impact on the health, industrial pollution remains a major concern, especially now that the EU agreement with Morocco requires cleaner Moroccan production. Approximately half of total industry is concentrated in Casablanca alone. These industries reuse only 23% of

20 their waste. Especially in light of the fact that the FTA will create more stringent environmental protection guidelines, Morocco is in great need of education and models for efficient equipment that can decrease production costs while reducing environmental emissions. U.S. environmental technology companies are competitive and powerful internationally, although in Morocco, U.S. firms have lost to European competitors, with the Danes and Germans particularly strong, and the Spaniards in good geographic position to supply heavy equipment. Nevertheless, American strength in innovative technology, particularly in waste treatment, pollution abatement and clean up, leaves plenty of opportunity.

6. Seawater Desalination

With 57% of the rural population not being properly served, providing safe drinking water to the countryside is a priority for the Moroccan government. Thus given Morocco’s long coastline, desalination research is imperative. By 2010, the Moroccan government hopes to satisfy the water distribution and sewage service demand of at least 80% of the rural population.

The National Office of Potable Water (ONEP) awarded a reverse osmosis project in Laayoune to the French group Vivendi in January 2002 for drinking water with 7000- m3/day-production capacity. However, even when this project is begun in late 2003, it will not be adequate to satisfy the demand estimated at 10,000 m3/day.

In addition, due to water shortages in southern Morocco, the National Office of Potable Water is planning to launch several large seawater desalination projects currently under study.

In 2001, the USTDA funded a feasibility study for the National Office of Phosphates (OCP) to examine the possibility of developing a heat recovery system from a sulfuric acid plant distillation process to harness cooling water to generate energy for a desalination plant. The U.S. consultant Duke Engineering conducted the study for this 60,000-m3/day project. The international tender for its implementation will be announced sometime during 2003. OCP has also launched a tender for a 4000 m3/day seawater desalination plant in Laayoune to produce pure water.

(In $million) 2001 2002 2003 (e) A. Total Market Size 320 368 423 B. Total Local Production 0 0 0 C. Total Exports 0 0 0 D. Total Imports 320 368 423 E. Imports from the U.S. 64 76 84 The above statistics are unofficial estimates. (Sources: National Office of Potable Water (ONEP)

7. Telecommunications Equipment and Services

Opportunities in the Moroccan telecommunications sector continue to increase. Investments in the telecommunication sector as a percentage of total foreign investment

21 was 0.35% in 1998, 55% in 1999, 64% in 2000 and reached 80% in 2001. However, the state of global telecommunications industry and delay of new licenses affected investments in 2002 and drastically decreased the share to 7%. In 1999, imports of telecommunication equipment rose by 193% compared to 1998. When the U.S.- Moroccan FTA is passed, telecommunications imports from the U.S. should increase.

The Moroccan 2000-2004 Economic and Social Development Plan outlines telecommunications as Morocco's most strategic sector. Morocco’s strategic plan, “e- Maroc,” aims at developing new technologies within education, administration and the private sector. With e learning, e-commerce and government on-line, the Moroccan government hopes to reach 10 million Internet users by 2010. To achieve the objectives of integrating the country into the global economy, the Moroccan government adopted a modern institutional and legal framework with the creation of an independent regulatory agency, ANRT. In addition, an operator, Maroc Telecom or the former Itissalat Al Maghrib, was created with the enactment of telecommunications law 24/96. The Economist Intelligence Unit ranked Morocco as having the most autonomous telecommunications regulator in all of Africa and the Middle East. It was ranked as having the second best overall regulatory structure in Middle East and Africa, behind Israel. In accordance with an agreement signed with the WTO, Morocco fulfilled its commitment to liberalize all telecommunications by 2002. The privatization of Maroc Telecom started in December 2000 when it awarded 35% of Maroc Telecom’s capital to the Vivendi Universal group for $2.3 billion dollars. By the end of 2004, Maroc Telecom will sell an additional 16% of its shares.

Progress has been made in infrastructure development as well, with fixed lines increasing from 827,000 in 1993 to 1,471,000 at the end of 1999. Maroc Telecom seeks to recover lost subscribers with free connections, free calls and lower tariffs. However, the density ratio remains very low. With 55% of the lines concentrated in the Rabat- Casablanca axis, there are excellent opportunities for growth in rural areas and a large unmet demand for fixed line telecommunications, particularly for business, Internet and data services. Launched in June 2002, the international tender for the second fixed line telecommunications network was cancelled due to the global state of the telecommunications sector and lack of bidders. The Moroccan government is discussing a new tender to be launched by 2004. This project will require new infrastructure in the seven major cities and is an excellent opportunity for U.S. equipment suppliers.

The International Telecommunication Union classed Morocco as the fastest growing mobile market in the world. Experts estimate the Moroccan cellular market growth rate at 100% during the period 2001-2002. Since the award of the second GSM license to the Spanish Telefonica-led consortium, Meditel, the total number of GSM based station systems (BSS) increased from 170 in 1999 to 2,500 in 2002. Since its inauguration in March 2000, Meditel has gained more than 26% of the total mobile market (March 2003). The second GSM operator successfully completed Morocco’s first GPRS (general packet radio services) allowing data transmission across a mobile telephone network. In response, the state-owned carrier Maroc Telecom (MT) continued to install new infrastructure, to enhance its marketing and promotional activities and to offer competitive services. MT’s number of mobile subscribers rose from 1 million (2000) to 4.7 million (March 2003), representing 74% of the market in March 2003. An international tender for a third mobile license is slated for mid 2004. This new license is expected to offer prodigious business potential to American firms.

22 The Moroccan telecommunications market has rapidly opened to foreign investors. In 2001, three companies won a license for trucking (radio electrical systems "3RP"). Since 2000, the three private license holders, Gulfsat Maghreb (U.S. Hughes Systems and Gulfsat International, Kuwait), Argos (Norwegian Telenor) and SpaceCom (Moroccan- French consortium) operate VSAT and use U.S. equipment. The U.S. Orbcomm, which operated one of the two GMPCS licenses, was approved for two additional ones in 2002, posting a 300% increase in revenue for the period 2000-2001.

The Moroccan Internet market ranks first in the Maghreb region and second in Africa, after South Africa. The entry of foreign competitors (Wanadoo, France) in 2000 forced the state-carrier Maroc Telecom to reduce prices and subscription fees. In 1999, introduction of reforms by the regulator ANRT ended the Internet bottleneck, doubling the number of Internet subscribers by 2001. Despite its presently small size, with approximately 255,000 official users, (55,000 ISP subscriptions, 100,000 cyber cafe clients, and 100,000 universities and administrations), the Moroccan Internet market is expected to grow strongly in the near future.

Source: ANRT

8. Airport ground support and security equipment

Morocco has 28 airports, of which 16 are international, offering 112,400 m2 of reception area. Twenty-two air transportation companies and 50 charter companies fly regularly to Morocco. Its national carrier, Royal Air Maroc (RAM), flies to 64 airports in 30 countries. In 2001, 75% of tourism arrivals transited through airports. The Mohamed V airport of Casablanca, with its 41,000 m2 of reception area, received 40% of total arrivals. The Menara airport of Marrakech, which is five times smaller than Casablanca received 27% of total arrivals. Finally, 17% transited by the Al Massira Airport of Agadir, which has a reception area of 25,000 m2. The management of Moroccan airports is assigned to a government agency, ONDA, which is supervised by the Ministry of Transportation. The latter is dedicated to liberalizing charter activity, concluding more private to government agreements and encouraging the private sector to be more involved in airport management. In fact, the Ministry of Economy, Finance, Tourism and Privatization has recently benefited from a TDA grant to conduct a feasibility study concerning Airport Privatization. This will eventually require future investment in ground support infrastructure and security equipment. Future investments projected for the next five years, with an envelope of $240 million will include: • The extension of Mohammed V airport through the construction of a new 40,000-m2-reception area, reserved for departures to Europe. This will reinforce its role as a regional hub for connections to Africa, the Americas and the Middle East. The project will cost $60 million and will be fully financed by African Development Bank (AFDB). The studies are being finalized and should be implemented starting the first semester of 2004. This airport, which should be completed by the end of 2004, will be equipped with a second runway, adequate technology for severe weather condition landings and a cargo terminal with a

23 capacity of 60,000 tons. The investment, which will cost $22 million, will also include the building of commercial spaces and reception halls for passengers. • The extension of the airports of Tangier, Essaouira, Errachidia and Al Hoceima. The latter is expected to have a larger runway to accommodate bigger carriers. • ONDA will allocate $70 million for safety and security projects. It includes installing three S mode secondary radar systems and three approach radar systems as well as extending the V/SAT station networks for satellite communication in order to achieve full radar coverage of Moroccan airspace. In terms of safety, $12.6 million will be reserved for renewing safety equipment at all airports, acquiring new detection equipment, upgrading video-surveillance systems and installing an automatic luggage processing system at the Mohamed V airport.

Future projects also include the relocation of Ali Massira airport, which is currently located in Marrakech. A recent Definitional Mission on Transportation Infrastructure conducted by TDA indicates that this project offers great potential for U.S. equipment and technology exports. In addition, ONDA has undertaken a project for the development of a techno-pole in the vicinity of the Mohamed V airport for the innovation of zero-pollution industries. To date, a $100 million investment helped establish 50 companies in different hi-tech industrial sectors.

9. Renewable Energy

Because of its geographical location on the coast, Morocco has many potential renewable energy sources. Morocco holds great potential for solar energy. Today, the small country of Morocco uses 4% of the world’s photovoltaic cells, where the installed capacity is estimated at about 4 KVA with the average use of about 700 KVA per year. This growth is expected to increase with the surge of rural electrification projects. For wind energy, Morocco boasts several sites where the wind conditions are very favorable (3500 km of coastline). The average speed of the wind varies from less than 3m/second to more than 10m/second. Due to a large number of stock-farming zones, residues and waste from agri-business industries and dumps providing raw material for energy, Morocco holds great biomass potential. About 200 different sites have been identified for the construction of micro-hydraulic power plants, which can produce energy for rural areas.

Several factors will influence changes in the market in the next five years as rural electrification increases demand for renewable energies. This growth is expected to reach 30% over the next five-year period (2003-2008). Moroccan statisticians estimate that about 40,000 villages exist with 50 homes each, amounting to more than 12 million rural inhabitants. Eighty percent of these remote areas do not have access to electricity. The National Office of Electricity (ONE) is planning to supply 1.5 million homes (9 million inhabitants) at a pace of 100,000 homes a year by the year 2012.

In 2004, ONE is planning to launch an international tender for the construction of a turnkey 220-MW thermo-solar project in the northern part of Morocco, near Oujda, using natural gas and solar energy. There will also be a pre-qualification international tender for a 60MW-wind park in Essaouira that ONE is also planning to launch during 2004. In addition, ONE is currently undertaking a feasibility study for a 120 MW oil shale power plant. In the north of Morocco, it is also preparing the technical studies for a power plant using biomass gas.

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($ in millions) 2001 2002 2003 A. Total Market Size 73 95 109 B. Total Local Production 0 0 0 C. Total Exports 0 0 0 D. Total Imports 73 95 109 E. Imports from the U.S. 15 18 23 The above statistics are unofficial estimates. (Sources: National Office of Electricity)

10. Food Processing and Packaging Equipment The FPP industry is the primary processing industry in Morocco. With a production of $5.6 billion, a value added of $1.8 billion, an export value of $917 million, 63,992 jobs and investments of $288 million, FFP represents respectively 33%, 33%, 20%, 19% and 25% of the total processing industry figures. Besides its integration of rich and highly diversified local natural resources, this sector is considered strategic thanks to its ability to feed a rapidly growing population and to generate hard currency receipts through important exports. The high potential of this sector, which remains under-exploited, is expected to develop substantially thanks to the following factors: • Rapid demographic growth • Changing consumption habits in favor of processed products • Proximity to Europe • Need to improve product quality to face worldwide competition The FPP industry can be divided into two sectors, which target two separate markets: • The first category, basic food, aims to provide the local market with self-sufficiency in basic food products. The latter includes sub-sectors of sugar, dairy, vegetable fats and oil, and cereals transformation industries. This category is dominated by large private enterprises. • The second category is export-oriented and is constituted primarily (80% in 1999) by sub-sectors of seafood canning and fruit & vegetable canning. This category is expected to continue its rapid growth mainly through the flourishing of small and medium size businesses.

The FPP equipment market, which had a dollar value of $106 million in 2002, is mainly supplied by imports (91.2%). Local production is limited to low technology profile equipment. EU countries dominate 94% of the imports with France, Italy, Spain and Germany occupying the largest shares. Exports are also distinguished by the strong presence of food packaging equipment, which represents 32.5%. Although US exports have a small share of 2.33%, it has marked a rise of 50% compared to 2000 and is expected to grow by 30% in the coming three years.

In fact, as a result of a feasibility study financed by the TDA, US companies Yasmine Enterprises and Service Tool International and a Moroccan business consortium established International MENA Can, a food can manufacturing plant to be built in

25 Agadir. This company will produce cans for the fruit and vegetable processors and also for the fish processing industry. Under the coordination of Service Tools International and Yasmine Enterprises, this $34 million project will require importing equipment and technology from the U.S.

Moroccan buyers are aware of the high quality of U.S. equipment but they are also price sensitive as the EU FTA puts non-EU origin products at a disadvantage. The U.S.- Moroccan FTA will also greatly benefit this sector. Besides accessories and spare parts, most imported equipment faces a maximum duty rate of 2.5%. The ability to provide tailored equipment and favorable financing terms usually makes good sales arguments among Moroccan buyers.

Best Prospects for Agricultural Products:

The recently signed FTA offers great opportunities for export of agricultural products to Morocco. Customs duties will go down for all key products, over different time periods. The FTA will allow the U.S. to recapture market share for many key commodities (grains) and will allow entry into the market for many others (meat, poultry). The U.S. was able to secure tariff rate quotas for meat, poultry, and some fresh fruit and get immediate (upon implementation) and significant reduction in duties for many others (such as corn).

Detailed information on FTA can be found at www.ustr.gov. The Moroccan demand for U.S. products will continue to be for bulk commodities but the FTA should result in more demand for many U.S. products, including apples, dried fruit, milk powder, and cheese.

Best Prospects for Morocco are:

- Wheat, including durum - Corn for feeding - Feed grains and non-grain feed ingredients (in drought years) - Crude vegetable oil - Oilseeds and products (soybean meal) - Purebred pregnant dairy cattle and dairy semen - Milk powder and unsalted butter - Dried fruits and nuts (non-pitted prunes, raisins, and almonds) - Apples and pears - Confectionary items - Canned products.

Several consumer-oriented food products offer good opportunity for U.S. suppliers in spite of the high freight cost. These include sauces, condiments, canned fruit and vegetables, confectionary and snack foods.

Commodity: Total Wheat (1,000 Metric Tons) 2002 2003 2004

26 Total Market Size 6,426 6,567 6,600 Total Local Production 3,357 5,147 5,300 Total Exports 0 0 0 Total Imports 2,995 1,900 1,500 Total Imports from U.S. 44 500 500

Commodity: Soybean Oil (1,000 Metric Tons) 2001 2002 2004(e) Total Market Size 395 396 398 Total Local Production 56 68 70 Total Exports . . . Total Imports 331 320 320 Total Imports from U.S. 40 40 50

Commodity: Soybean Meal (1,000 MT) 2002 2003 2004(e) Total Market Size 317 382 432 Total Local Production 310 370 420 Total Exports 0 0 0 Total Imports 7 10 10 Total Imports from U.S. 0 10 10

Commodity: Corn (1,000 MT) 2002 2003 2004 Total Market Size 1,000 1,100 1,200 Total Local Production 200 150 300 Total Exports 0 0 0 Total Imports 1,066 1,000 1,200 Total Imports from U.S. 438 300 350

Association Nationale des Eleveurs de Bovins de Races Pures (ANEB) (Purebred Dairy Cattle Association) M. LOMRI Abdel-llah, Directeur 5, Rue Mohamed Triki, Residence Tissir, Im. B. Apt. 2 Rabat 10050, Morocco Phone: (212-3) 723-0244 Fax: (212-3) 723-0262 Email: [email protected]

Fédération Interprofessionnelle du Secteur Avicole (FISA) (Poultry Feed, Poultry, and Eggs Federation) ; President 123, Boulevard Emile Zola

27 Casablanca, Morocco Phone: (212-2) 231-1249 Fax: (212-2) 244-2276 Email: [email protected]

List of USDA/FAS Commodity Reports and Briefs:

In addition to the scheduled reports listed on the table below, Agricultural Attaché regularly reports on special issues (such as significant changes in policy).

Report Due Date Oilseeds and Products February 1 Grain and Feed March 6 Trade Policy Monitoring Report March 15 Sugar April 10 Food/Agriculture Import Regulation And Standards July 31 (FAIRS) Promotion Opportunities October 1 Seafood Report September 30 AgExporter Guide September 30 Citrus November 1 Retail Food Sector November 15

14) Appendix G: Trade Event Schedule

AGRIMAROC - (Agriculture Show) Date: 23-26 September 2004 Office des Foires et des Expositions de Casablanca (OFEC) Rue Tiznit, Face à la Mosquée Hassan II Casablanca 20000, Maroc Phone: (212) 22-27-32-82/227-16-64/220-0654 Fax: (212-) 22-27-49-73/-226-4949 Email: [email protected] Website: www.ofec.co.ma Agriculture and Food show

SAM-2005 - (Food and Agricultural Show) Date: March 2005 Contact: Ms. Medkouri, Houda Espace Tori, Blvd Sidi Mohammed Ben Abdellah, Casablanca Phone: (212) 22-94-02-47/294-0315/294-0296 Fax:(212) 22- 94-02-22/294-9371 Food And Agricultural Show

Dawajine Show - (Poultry and Feed Show) End of June 2005 Federation Interprofessionnelle du Secteur Avicole (FISA) M. Jirari, Chaouki; CEO 123, Boulevard Emile Zola, Casablanca Phone: (212) 22-31-12-49/254-2488/254-2489 Fax:(212) 22-44-22-76

28 Email: [email protected] Web site: www.fisa.org.ma Poultry Feed Exhibition. The largest Agricultural and Food Show in Morocco. Excellent opportunity to meet poultry producers and feed manufacturers.

Casablanca American Café IV - 2005 June 2005 Contact: Agricultural Affairs Office – U.S. Embassy, Rabat Phone: (212) 37-70-11-35/776-5987 Fax: (212) 37-76-54-93 Email: [email protected] U.S. made Food Products Exhibition. A One-to-one meeting with Moroccan Food Importers strictly for Moroccan importers and distributors.

CHAPTER 6: TRADE REGULATIONS, CUSTOMS, AND STANDARDS

Trade Barriers:

The greatest barriers to trade in Morocco are irregularities in the government procurement procedures, lack of transparent governmental and judicial bureaucracies and contraband. Although the government is diligently working to liberalize the business environment, foreign corporations still complain about these challenges. FTA negotiators have addressed these issues and the Moroccan government has agreed to conform to international business standards. Thus the problems posed by these obstacles will gradually diminish after the FTA ratification.

Customs Regulations:

In the last few years, Moroccan customs has undergone a major transformation from a primarily cumbersome bureaucracy to a streamlined and computerized, efficient institution. In addition to the last customs survey indicating high levels of client satisfaction, the American Chamber of Commerce reports that the average waiting time has been reduced to just a few hours and that the well-organized customs service is one of the highlights of doing business in Morocco. Furthermore, all up to date customs information is available on its comprehensive French website, www.douane.gov.ma.

Tariff Rates and Import Taxes:

When the FTA is ratified over 95 percent of bilateral U.S. consumer and industrial exports will be able to immediately enter Morocco duty-free. Over the next nine years, the tariff rate will decrease gradually for the remaining 5 percent of products according to the prearranged tariff schedule. Products gaining immediate duty-free access include information technology, machinery, chemicals and construction equipment. Furthermore, the FTA tariff schedule was created using a negative list format meaning that unless stated as not being privy to tariff reductions products will enjoy all of the rights granted to American products in the FTA. Furthermore, textiles are privy to this same right as long as the fabric and yarn meet the rules of origin requirements. Over a fifteen-year period American agricultural products including wheat, poultry and beef will also gain duty-free status. Until ratification however the tariff structure will remain the same. The following information must be taken into account if planning on exporting to Morocco before the FTA goes into effect.

29 Import duties are generally high and considered as the main obstacle to greater imports. However, if the import is an unfinished product requiring further processing or construction in Morocco, duties are reduced accordingly. Import duties vary from 2.5% to 35% for many raw materials and equipment. Imports are also subject to a Value Added Tax (VAT), varying from 0 to 20%. VAT is not always paid on locally produced goods (e.g., corn) or on some vehicles used for international transportation (e.g., moving vans). With import duties on food sometimes being as high as 329% for frozen lamb, food products are subject to an average 80% cumulated import taxes and duties, which makes the price of consumer oriented food products prohibitive for the average Moroccan consumer.

In addition to the 1995 Finance Act, a "taxe parafiscale" of 0,25% on imports was introduced to finance activities such as technical inspections for export goods, economic and export promotion, industrial development, and small-scale production. The following are exempt from the "taxe parafiscale": All merchandise imports qualifying for - Special customs procedures or concessions granted in the context of officially approved investment programs, - Exemption or total relief from import duties and taxes by virtue of legislative provisions or special regulations, and - Preferential trading agreement between Morocco and other countries.

Import/Export Documentation:

The following documentation is required for all imports and exports. (1) License (representing the “physical import or export”) (2) A commercial invoice: Pro-forma invoices are provided in most cases. No special invoice form is necessary. The commercial or pro-forma invoice should (a) be on the supplier’s letterhead, (b) fully describe the goods in French, (c) indicate the HS code when available, (d) indicate the value of the goods, (e) indicate the currency for payment (for foreign exchange transfer), and (f) indicate the address of the buyer. U.S. exporters should keep in mind that unlike in the U.S., the date format should be (dd/mm/yy). (3) An “engagement d’importation,” which is the authorization provided by the exchange office for transfer of foreign currencies from Morocco to foreign suppliers abroad. (4) A “declaration de douane” is provided by the customs office and is required for import and export through a port or airport. For shipments by mail, a simple form filled out at the post office replaces the “declaration de douane.” (5) The importer/exporter may attach any documentation, such as technical documentation, that might help the customs office.

The documentation required for import or export of digitalized products electronically delivered over the Internet (i.e., software, movies, downloads) or other networks, is the same as the documentation previously listed.

When sending promotional material, and especially promotional videos, it is important to clearly state, in French, “Promotional Use Only, No Commercial Value.”

Temporary Goods Entry Requirements:

30 Goods imported under a temporary entry provision must be approved by decree of the Finance Ministry. Customs may authorize entry of goods on an individual basis. The limit for temporary entry is 6 months, renewable for up to two years.

Prohibited Imports:

Import restrictions apply only to firearms, explosives, used clothing, used tires, pornography, absinthe, kif and rugs similar to those produced in Morocco.

Warranty and non-warranty repairs:

Usually in Morocco a one-year warranty is given to end-users for products or equipment purchased.

Export Controls:

Goods that are temporarily exported from Morocco for further processing abroad are only taxed on the value added outside of Morocco; however they must reenter the country by the indicated legal reentry date. In general, Morocco does not require authorization from the Exchange Office for the export of goods. However, certain restrictions apply to the following: -Goods exported on consignment to be sold on commission: except for fruits, vegetables, flowers and handicraft goods -Goods exported by individuals not registered with the Trade Registration Authority. -Goods valued at more than $300 that are not exported for sale. -Samples valued at more than $1,000 that are exported without payment. -Exports whose payment period exceeds 150 days.

The following goods require export licenses from the Ministry of Foreign Trade: - Antique articles older than 100 years - Archeological, ethnographical, historical and paleontological products, and specimens of anatomy, botany, mineralogy and zoology. -Charcoal and flour made from cereals, except for ground rice. -Phosphates and chemicals.

Membership in Free Trade Agreements:

On June 15, 2004 the U.S. and Moroccan governments signed an FTA that will go into effect as soon as it receives both U.S. Congress and Moroccan Parliament ratification. For the last 9 years the 1995 TIFA has characterized U.S.-Moroccan trade relations. This agreement, which already guaranteed that both parties would take appropriate measures to encourage and facilitate trade in goods and services, will be greatly expanded upon once the FTA is ratified. Symbolic of Morocco’s political and historical importance to the U.S., this FTA is the most comprehensive providing the greatest market access package ever agreed upon in an American FTA with a developing country.

In addition to eliminating most tariffs aforementioned in the Tariff Rates and Import Taxes section, Morocco has also agreed to make its business environment far more

31 transparent and welcoming to foreign enterprises by dedicating itself to providing American companies with an efficient, predictable legal framework and secure working environment. In addition to the tariff elimination schedule, this FTA will also work to weaken many of Morocco’s non-tariff trade barriers. Both governments have vowed to publish all of their current trade and investment laws and publish any proposed legislation in advance while welcoming public comment. Bribery of any form will be outlawed, whistle-blowers will be granted protection, and American companies will enjoy the same rights as Moroccan companies when investing. Furthermore, the Moroccan government has promised to grant American companies the same legal rights that they enjoy in the American system such as effective, impartial legal dispute settlements including due process protection and transparent public trials where all parties are allowed to offer their view. There is also a non-discriminatory clause legally mandating that all American businesses trying to physically invest in Morocco will have equal access to infrastructure such as phone switches and submarine cable landing stations. Trademarks, Copy rights, Patents and Trade Secrets will receive the same protection they receive under American law even when in digital form. Intellectual Property Rights will also be protected through the enforcement of tough laws outlawing both piracy and counterfeit products. Both governments will have the right to destroy these products and the machines that create them and the guilty parties will be responsible for any monetary damages suffered by the legally established company.

Furthermore, the FTA will also put American corporations on equal footing with their European competitors and will allow American corporations based in Morocco to export to Europe duty free.

This agreement will also work to uphold tough labor and environmental standards. Neither party can reduce their current laws in hope of making their country more attractive for international investment.

After both parties have ratified the FTA, American direct is expected to increase significantly providing a much need stimulus to the Moroccan economy. Although America’s greatest exports to Morocco now lie in aircraft, corn and machinery, with the FTA American energy, transport, financial services, insurance, wheat, feed grain and soybean exports should increase markedly. By voiding outdated legislation, American banks and insurance companies will also be granted greater freedom to open branches, create subsidiaries and enter into joint ventures. Furthermore, by reducing the red tape more American manufacturers are expected to build production facilities in Morocco.

The social and political success of the FTA lies in the effective job retraining of Moroccan farmers who will be adversely affected by the influx of American agricultural exports. The American government has already invested millions of dollars into training small and medium business on how best to take advantage of the FTA to export their products or to form partnerships with American importers.

The full text of the agreement along with a main point summary, a trade guide and list of key contacts can be found at www.moroccousafta.com.

It should be noted that Morocco also has FTAs with the Maghreb Arab Union, Saudi Arabia, Jordan, Tunisia, Egypt, and most importantly for American investors, the EU. All of these agreements, but especially the trade agreements with the U.S. and the EU,

32 capture Morocco’s drive to liberalize its business environment by adopting internationally accepted business law, accounting procedures and technical norms in order to foster internationalization and economic development.

The EU-Moroccan Association Agreement went into effect on March 1, 2000 and is equally valid for all American companies located in Morocco. The agreement calls for the gradual elimination of tariffs on EU-Moroccan trade in industrial goods over the next 12 years and provides duty-free access for limited quantities to some agricultural products, especially seafood products, fruits and vegetables. Morocco provides gradual reduction in duties for many EU industrial and agricultural products. The effect of this agreement on U.S. exports to Morocco has been relatively small, especially for the major U.S. commodities currently exported to Morocco (grains, oilseeds, vegetable oil, etc.). The concessions made by Morocco on imports from the EU are not significant and are meant to keep the traditional flow of products coming from the EU. However, first indications from Moroccan agricultural trade data indicate that the EU share has increased considerably for some products including butter, cut lumber, cheese, paper pulp, ice cream and beer since the implementation of the Association Agreement. Thus, for many agricultural products, this agreement is increasingly displacing U.S. sales. The longer American exporters wait the more difficult it will for them to enter these specific markets. (See FAS/USDA report MO1008).

Customs Contact Information:

For more information on import duties for specific products, U.S. exporters should contact the Director General des Douanes (customs office), Avenue Annakhil, Centre des Affaires, Hay Raid, Rabat, Morocco, tel: (212)-037-57-90-00; fax: (212)-037- 71-78- 14/15; e-mail: [email protected]. The customs website located at www.douane.gov.ma, though all in French, is also a great reference for any customs related issues.

Standards and Accreditation Overview:

The Moroccan standards regime has been rapidly developing in light of increased international pressure stemming from the EU-Moroccan Association Agreement and the U.S.-Moroccan FTA. Thanks to this government led progress, all standards, norms and future standardization goals are easily accessed worldwide on numerous government websites. Furthermore the main conformity assessment body is now located in cities nationwide allowing all Moroccan and foreign producers better accessibility. The government’s goal is to ensure the quality of Moroccan products thus facilitating the success of Moroccan exports to their ever-growing number of trading partners and to guarantee their citizens quality-imported products. The private sector has thus far been relatively inactive in this process with their major contributions limited to forming a few technical committees. The government would like to see more private activity in this process in the coming years.

Practically speaking, the government does not require locally registered firms to apply ISO 9000 usage although most multinational firms operating in Morocco currently use the ISO, primarily as a marketing tool. Also as a point of interest for American exporters, except for few bulk commodities, most Moroccan importers are not familiar with the USDA and U.S. industry commodity grading systems and standards

33

(1) Standards:

The “Service de Normalisation Industrielle Marocaine” (SNIMA) is the only Moroccan organization responsible for developing standards. As the unique standardization body in Morocco it not only provides all product norm and standards certification it also is the soul provider of management system certification. It is responsible for answering all questions related to the Technical Barriers to Trade Agreement. Furthermore, this bureau annually creates a list of consumer and industrial products that they intend to create norms and standards for the following year. A list of what products will receive updated norms and standards and when this process is expected to occur can be found in French on their website www.mcinet.gov.ma/snima under “Normes en enquête.” The national goal is to increase the number of certified product norms by 15 to 20 percent over each of the next three years. With the total number increasing to 5000 certified product norms in the next three years, domestic and international trade will be facilitated and product quality will be ensured to the Moroccan consumer. Their long-term strategy also focuses on gaining official recognition from the International Accreditation Forum.

(2) Conformity Assessment:

The main national testing organization is the Laboratoire Public d’Essais et d’Etudes (LPEE). LPEE currently has laboratories in all of Morocco’s major cities. Although most of their work is dedicated to building and construction testing, they also deal with electrical and calibration testing. In the near future LPEE in collaboration with industrial federations will create technical industrial centers that will specialize in mechanical, chemical and transportation testing.

(3) Product Certification:

The following five government commissions have the sole mandate to certify products. 1.Commission pluri-sectorielle (Multi-sector Commission), 2.Commission de Certification des Industries Agro-Alimentaires (Food and Agricultural Industry Certification Commission), 3.Commission de Certificate des Industries de la Chimie et de la Parachimie (Chemical and Para Chemical Industry Certification Commission), 4.Commission de Certification des Industries Mécaniques, Métallurgiques, Electriques et Electroniques (Mechanic, Metallurgic, Electric and Electronic Certification Commission), and 5.Commission de Certification des Industries du Textile et Cuir (Textile and Leather Industry Certification Commission). All products must conform to the international guide ISO/IEC 65. Once products conform to this standard the Ministère Chargé l’Industrie will grant the product the right to use the NM label as proof of its quality. Furthermore, with the advent of the U.S.-Moroccan FTA all products must conform to the specifications of this Mutual Recognition Agreement.

(4) Accreditation:

The only Moroccan accreditation body is the Ministère de l’Industrie, du Commerce, et de la Mise à Niveau de l’Economie. Although accreditation is still voluntary with no accreditation requirements required by technical regulations, there are almost thirty certified labs nation wide. A complete list of these labs can be found be at the website

34 www.mcinet.gov.ma by clicking on “Qualité-Métrologie-Accréditation,” then “Accréditation” and finally “Liste des laboratories accrédités.”

(5) Technical Regulations:

Morocco’s national gazette is the Bulletin Officiel. It is edited by the Official Printing Press (Imprimrie Officielle) but proposed technical regulations are not yet published. All proposals concerning standardization are instead published on the website www.mcinet.gov.ma/snima/. The proposals are public information and anyone can comment on these proposals during their 90 days of posting.

(6) Labeling/Marking:

No special regulations apply to the exterior marking of containers for shipments to Morocco. However, an indication on outer containers of the net weight in kilograms, together with other identification markings, will assist in locating goods on arrival and speed their clearance through customs. Duties and taxes are assessed on the value indicated on the commercial invoice.

Food labels can be in French or Arabic and must show country of origin. There is, however, a requirement for both local and imported canned foods and beverages to print the date of production and the expiration date.

The metric measurement is mandatory. Moroccans are not familiar with U.S. measurements and standards such as ounces, lbs., cups, servings, etc. Metric measurements are common on both local and imported products. Also, unlike in Egypt and other Middle Eastern countries, most Moroccans use exclusively the same numbers (characters) as those used in the U.S. When using the date format (xx/xx/xx), U.S. exporters should keep in mind that unlike in the U.S., the date format should be (dd/mm/yy). The NM 09.000 is the standard requiring labeling on textile products and the Agricultural Attaché’s office in Rabat has prepared a Food and Agricultural Import Regulations and Standards (FAIRS) report for U.S. exporters detailing agricultural labeling requirements.

(7) Contacts:

The national inquiry point on standards: Service de Normalisation Industrielle Marocaine Angle Avenue Kamal Zebdi et Rue Dadi, Secteur 21 Hay Riad- Rabat Tel: (212) 037 71 62 14 Fax: (212) 037 71 17 98 Email: [email protected]

The Ministry of Agriculture’s inquiry point on standards: Direction de la Protection des Végétaux, des Contrôles Techniques et de la Repression des Fraudes “DPVCTRF” Quartier Administratif. Place Abdellah Chefchaouni B.P. 607 Rabat

35 Director: M. Rachid LAKHDAR Tel: (212) 37 69 03 75 Fax: (212) 37 29 75 44 E-mail: [email protected]

Direction de la Normalisation et de la Promotion de la Qualité Angel Avenue Kamal Zebdi et Rue Dadi, secteur 21, Hay Riad Rabat, Morocco Director: Abdesselam Benyaïch Tel: (212) 37 71 17 72 Fax: (212) 37 71 17 98 Email: [email protected]

CHAPTER 7: INVESTMENT CLIMATE

Openness to Foreign Investment:

The Moroccan government actively encourages foreign investment and in light of the FTA is taking concrete steps to improve the investment climate for foreign and domestic investors. Moroccan officials hope that the signing of the FTA will encourage more U.S. investors to take advantage of duty-free access to both the U.S. and European markets. In addition to tariff elimination, the FTA with Morocco includes commitments to increase access to the Moroccan services sector for American firms.

King Mohamed VI and the current government have made attracting foreign and domestic investment a high priority. With the assistance of the U.S. Agency for International Development (USAID), the government is streamlining paperwork associated with investment and has established a series of Regional Investment Centers to decentralize and accelerate investment-related bureaucratic procedures.

The October 1995 investment code applies equally to foreign and Moroccan investors, with the exception of foreign exchange provisions, which favor foreign investors. Foreign investment is now permitted in most sectors, with the notable exception of phosphate mining. It is also permitted in the agricultural sector, although foreigners are prohibited from owning agricultural land. However, the law does allow long-term leases of up to 99 years and it also allows agricultural land to be purchased if it will be used for non-agricultural uses such as tourism. Morocco welcomes foreign participation in its privatization program, and does not pre-screen or select foreign investment projects.

Right to Private Ownership and Establishment:

Private ownership is permitted in all but a few sectors that are specifically reserved for the state, such as phosphate mining and ownership of agriculture land. The government passed a law in February 2003 liberalizing the audiovisual sector and lifting the government monopoly over all radio and television transmissions although it may take some time before new radio and television stations actually begin operating. Apart from these few exceptions, private entities may freely establish, acquire and dispose of interests in business enterprises.

Protection of Property Rights:

36 Morocco has a non-discriminatory legal system that is accessible to foreign investors. The commercial courts, established in 1998, have begun to mitigate the weaknesses in commercial proceedings. A system of commercial arbitration was also created in April 1998.

Protecting Your Product From IPR Infringement:

Morocco has a relatively complete regulatory and legislative system for the protection of intellectual property and is largely in compliance with its TRIPS obligations. It is a member of the World Intellectual Property Organization (WIPO) and is a party of the Bern Copyright, Paris Industrial Property, and Universal Copyright Conventions; the Brussels Satellite Convention; and the Madrid, Nice, and Hague Agreements for the Protection of Intellectual Property.

While Moroccan laws are generally adequate, enforcement is sometimes lacking. Counterfeiting of clothing, luggage, and other consumer goods, as well as the illegal copying of computer software, is common. As a result, many American companies came together in 2003 and at the time of writing were forming their own advocacy group to combat IPR violations. Furthermore, the Business Software Alliance has been successful in educating retailers and consumers regarding this problem. The Moroccan government is more aggressive when it comes to tackling video piracy, and in response to complaints, the local music community has also stepped up enforcement efforts on CD and audiotape piracy. Canal+, the French satellite subscription service has left Morocco because of the trafficking of pirated cards. Counterfeiting of clothing, luggage, and even packaged food is increasing at a steady rate. However, as an FTA stipulation the Moroccan government has promised to crack down on all such activity and its doing so will have a direct impact on the success of the agreement and increased foreign investment in the country.

Secured interests in property are recognized and enforced through the "Administration de la Conservation Foncière." The Moroccan government has also passed a law permitting the development of a secondary mortgage market. Furthermore, the Office of Industrial Commercial Property (Office Marocain de la Propriété Industrielle et Commerciale) in Casablanca serves as a registry for intellectual property rights for patents and trademarks in the industrial and commercial sectors. The Moroccan Bureau of Copyrights (Bureau Marocain des Droits d’Auteur) in Rabat registers copyrights for literary and artistic works, including software. When the FTA goes in to effect the Moroccan government will use the “first-in-time, first-in-right” principle to honor trademarks and copyrights. In the FTA, the Moroccan government also vows to combat “cyber-squatting” and other digitally related IPR violations.

Morocco is implementing its intellectual property right (IPR) law for protecting new plant varieties. The basic 9/94 IPR law was published by the government in 1997, but has been effectively implemented since October 28, 2002 with the publication of various implementing orders.

The IPR law is patterned after the 1991 UPOV (International Union for the Protection of New Varieties of Plants) Convention and should provide adequate protection of breeders’ rights and allow plant breeders to reap fair returns from their investment. The law will also allow Moroccan agriculture to benefit from new developments in plant breeding.

37

Free Trade Zones/Free Ports:

Located just 15 miles from Europe in the northwestern city of Tangier, the industrial free trade zone offers an ideal location for American corporations looking to take advantage of the U.S.-Moroccan FTA and EU-Moroccan Association Agreement and duty free export to Europe and Morocco. In addition to being exempt from all duties, taxes and surcharges due on importation, circulation, consumption, production and/or exportation of goods, corporations in the free trade zone benefit from the zone’s unique one-stop administrative center facilitating corporate creation and growth.

According to the senior management of the Tangier Free Zone, further benefits include the following:

• Exemption from all registration taxes and stamps duty for both constitution or augmentation of capital, and for the acquisition of land plot • Exemption from l’impot sur la patente (licence tax) for 15 years • Exemption from l’impot sur les sociétés (tax on profits) for the first 5 years and a reduced rate of 8.75% from the sixth year ad infinitum • Exemption from la participation à la solidarité nationale (participation in national solidarity) • Exemption from la taxe sur les produits des action, les parts sociales (share yield taxes) and assimilated revenues for non-resident • Reduction of the above tax to 7.5% for resident • Exemption from VAT on goods coming from abroad or subjected territory • Affordable labor providing very competitive unit costs

For the time being, all companies located in the Free Trade Zone must supply transportation for their employees seeing as there is no public transportation and the average Moroccan cannot provide his own. The local government is however currently planning a new housing development that will provide housing for thousands of employees and their families within walking distance of the complex.

Performance Requirements/Incentives:

There are no foreign investor performance requirements or requirements regarding local value added, local equity, substitution of imports or employment of Moroccan workers. Incentives for foreign investors have been created under the Free Trade Zone laws, as well as under the Investment Code for large-scale investments. Incentives can include reduced land acquisition costs and tax breaks.

Transparency of the Regulatory System:

Although not perfect, Morocco’s regulatory system is becoming increasingly transparent. One of the most important reforms in recent years is the requirement that significant government projects must be publicly announced through a competitive tender call. Liberalization of the foreign exchange allocation system, the import regime and the financial services sector has also reduced the government’s role in the economy.

38 In anticipation of the FTA, the government is working hard to ensure that its procedures are becoming more transparent, efficient and quick. Still, routine permits, especially those required by local governments, can be difficult to obtain. In response to these problems, the government has launched reforms to streamline bureaucratic procedures.

Corruption:

Morocco has a rather broad body of laws and regulations to combat corruption. Corruption nevertheless exists and U.S. companies have at times identified it as an obstacle to doing business in Morocco. Transparency however is directly addressed in the FTA with clauses outlawing of all forms of bribery and protecting whistle-blowers. Even before the FTA though, both the offering and accepting of bribes was illegal at the risk of fines and jail sentences. Bribes to foreign officials are also not tax deductible.

The previous government of Prime Minister Youssoufi made efforts to strengthen transparency and the rule of law. It initiated cooperation with Moroccan civil society and business organizations as well as with the World Bank and foreign donors on measures to fight corruption more effectively and launched a high-profile public education campaign. Since coming to power in 2002, the government of Prime Minister Jettou has continued to support such efforts.

Labor:

Once strong and politically influential, the Moroccan trade union movement is now fragmented and no longer possesses the political clout it carried 45 years ago when it helped lead the country to independence. Nevertheless, five of the nineteen trade union federations retain the potential to influence political life. Although unions claim a higher membership, Morocco has about 600,000 unionized workers, or about 6% of its 10.866 million-member workforce.

Moroccan labor law and practice draw from French models. Labor law makes firing workers cumbersome. However, in early 2003, following intense tripartite negotiations among government, management, and labor, a major reform package, the April 30 Accord, was reached. This accord led to the adoption of a new Labor Code, which entered the “Bulletin Officiel” on December 8, 2003 and went into effect on June 7, 2004. It now supersedes all previous labor legislation.

Morocco has ratified ILO conventions covering the right to organize and bargain collectively. Any group of eight workers can organize. Article 14 of the Constitution gives workers the right to strike, but no detailed law yet exists to define it and the Interior Ministry usually intervenes when strategic interests are at stake. A strike bill is currently under discussion, but an impasse has been reached on the proposed length of pre-strike notification. Business associations have asked for two weeks notice and the unions have offered a two-day warning; the GOM has suggested ten days as a compromise.

The new Labor Code fosters modern business relationships by outlining the workers’ rights to form unions, bargain collectively, strike and receive unemployment and health related compensation while describing under what circumstances these rights are valid and how they should be properly implemented so that the employer is also protected. The new Labor Code includes both the right to work and the right to strike, and it

39 prohibits certain forms of industrial action while limiting the government’s police power, under Section 288 of the Penal Code to intervene. In an effort to create greater transparency and to strengthen the rule of law, the Labor Code also delineates under which circumstances it is legal for a union to attain national representation, to break a contract and to stage a walkout. For example, a union must have at least 35 % of the workforce as members in order to engage in collective bargaining. Finally, it also describes how labor-management conflicts might be avoided or resolved. .

The official national unemployment figure reached 12.5 % in the first trimester of 2004 with urban unemployment at approximately 19.3% and rural unemployment at less than 4%. U.S. government sources estimate the true national average to be more like 23%. Following a 10 % increase enacted by two 5% increments in June and July 2004, the minimum wage for non-agricultural workers is 9.66 dirhams per hour or 2,010 dirhams per month (about $223). The legal minimum age of employment is 15; however numerous forms of employment are prohibited for adolescents under the age 18. For non-agricultural workers the workweek is 44 hours.

Efficient Capital Markets and Portfolio Investment:

The Moroccan government has adopted a number of measures to liberalize the banking system in recent years. While these reforms have introduced additional competition in the banking sector, in practice, banks do not compete on deposit and lending rates, except for large customers.

Credit is allocated on market terms, and foreign investors are able to get credit on the local market. There are some cross-shareholding arrangements, but they are not tailored to exclude foreign investment. The Embassy has not heard of any efforts by the private sector or industry to restrict foreign participation in standard setting organizations. The government has actively sought out the participation of foreign investors for discussions on improving the business climate in Morocco.

Moroccan banks are generally sound, reflecting in part the limited competition within the sector, or from other financial institutions, e.g. a corporate bond market. Several state- owned specialized banks, in particular Caisse Nationale de Credit Agricole and Credit Immobilier et Hotelier were under investigation for bad management and corruption. These two banks account for over 60 percent of non-performing assets in the banking system. The overall rate of non-performing assets in the banking system is 11 percent.

Some foreign banks are critical of what they view as a lack of proportionate participation in the Moroccan Bankers’ Association. Moroccan banks are largely in compliance with the Basle standards. Banks are supervised on a consolidated basis and must provide statements audited by certified public accountants.

Expropriation and Compensation:

There have been no significant expropriations in Morocco since the early 1970s. The Embassy is not aware of any recent, confirmed instances of private property being expropriated for other than public purposes, or being expropriated in a manner that is discriminatory or not in accordance with established principles of international law.

Dispute Settlement:

40

Minor disputes are generally resolved with the relevant government agency. There is a consensus among Moroccan business leaders that the recent establishment of a network of commercial courts has somewhat improved commercial law operations, although enforcement of decisions still seems to be a problem. Morocco is a member of the International Center for the Settlement of Investment Disputes (ICSID) and a party to the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (with reservations) and the 1965 Convention on the Settlement of Investment Disputes Between States and Nationals of Other States.

Political Violence:

A series of terrorist bombings took place in Casablanca on May 16, 2003. U.S. Government facilities were not the target of these attacks, and no Americans were killed or injured. Moroccan security services have moved quickly and effectively to round up terrorists associated with May 16, but the potential for further attacks remains as it does worldwide.

Demonstrations occur periodically in Morocco and usually center on domestic issues. During periods of heightened international tension, large demonstrations may take place in major cities. These demonstrations have generally been peaceful, well organized, and well controlled by the police with some isolated incidents of violence.

The sparsely settled Western Sahara was long the site of armed conflict between the Moroccan government and the Polisario Front, which demands independence. A cease- fire has been in effect since 1991 in the U.N. administered area.

Foreign Direct Investment Statistics:

The Moroccan foreign exchange office maintains balance of payments statistics that include annual foreign exchange inflows for private foreign investment. These statistics differentiate between foreign direct investment (purchases of companies or increases in capital), portfolio investment, and short-term financing for current account expenditures (e.g. lending to a subsidiary for purchases of equipment). There are no statistics on the stock of foreign investment in Morocco. However, foreign direct investment totaled approximately $8.4 billion from 1967-2001. The following tables are based on the balance of payments statistics.

Foreign direct investment in Morocco ($ in millions)

Year Total FDI Percent of GDP 1997 800.9 3.3 1998 384.6 1.1 1999 945.6 2.7 2000 245.8 0.8 2001 2732.2 8.0 2002 555.6 1.3 2003 2422.4 5.1

41

Private Foreign Investment Inflows* by Country of Origin ($ in millions) Country 1999 2000 2001 2002 United States 112.8 35.4 83.2 37.2 France 383.3 186.6 2474.3 210.1 Spain 211.6 56.7 85.7 34.7 Germany 186.0 18.5 23.8 42.9 United 21.4 49.3 26.7 29.9 Kingdom Netherlands 346.4 229.3 15.3 20.2 Benelux 12.9 25.9 9.7 28.2 Saudi Arabia 10.9 13.5 7.4 14.8

Switzerland 30.0 23.8 41.6 32.2 Portugal 518.1 79.7 127.3 21.0 Int’l Finance -- 408.5 -- -- Corp Others 50.7 48.1 60.1 93.1 Total 565.8 1886.0 2955.3 564.2

* Includes portfolio investment and short-term financing for current account expenditures.

1999 2000 2001 2002 Exchange rate 9.8 10.6 11.2 11.0 (dh/USD) GDP ($ in 35.1 33.0 34.2 37.2 billions)

Private Foreign Investment Inflows* by Sector ($ in millions) Sector 1999 2000 2001 2002 Industry 387.3 106.8 222.1 186.2 Fishing 0.4 1.3 -- 2.1 Tourism 31.0 12.1 29.5 10.1 Services 36.4 29.0 87.8 79.8 Transport 3.5 1.6 2.5 0.3 Public Works 13.4 7.9 13.3 0.6 Banking 220.6 67.5 31.8 35.6 Real Estate 48.6 55.0 73.0 114.9 Telecommunications 1042.1 752.6 2354.8 36.3 Other 103.2 141.5 82.0 100.3 Total 1886.0 1175.3 2955.3 564.2

* Includes portfolio investment and short-term financing for current account expenditures.

42 Major Foreign Investors:

U.S.

Coca-Cola Export Corporation Parent company: The Coca-Cola Export Corporation Number of employees: 3200

Delphi Automotive (former Division of GM) Sector: auto part manufacturer Number of employees: 1500

J.R.A. Morocco S.A. Parent company: Jordache Enterprises Inc. Sector: manufacture of jeans Number of employees: 1000

Goodyear Maroc Parent company: Goodyear Sector: tire production Number of employees: 600

Jorf Lasfar Energy Company Parent company: CMS Energy Sector: independent power project Number of Employees: 500 Worth: $1.2 billion

Industries Marocaines Modernes Parent company: Procter and Gamble Sector: soaps and toiletries Number of employees: 500

Kraft Foods Sector: food products Number of employees: 60

Other

ST Microelectronics Parent company: S.G.S. Thomson (France) Sector: electronic components and semiconductor manufacturing Number of employees: 1,600

Pechiney - MMA Parent company: Pechiney (France) Sector: aluminum cookware manufacturing Number of employees: 1,280

43

Bymaro S.A. Parent company: Bouygues S.A. (France) Sector: civil engineering Number of employees: 1,000

Renault Maroc Parent company: Renault S.A. (France) Sector: motor vehicle assembly Number of employees: 800

C.G.E. Maroc Parent company: C.G.E. (France) Sector: electric cable and transformer manufacturing Number of employees: 675

Aventis Pharma Parent company: Hoechst AG (Germany) Sector pharmaceutical manufacturing Number of employees: 400

CHAPTER 8: TRADE AND PROJECT FINANCING

Banking System:

In comparison to the rest of the Arab world and Africa, Morocco continues to develop its relatively comprehensive banking system, originally modeled after the French system. There are 16 banks in the country plus five government-owned specialized financial institutions, about 30 credit agencies and about 12 leasing companies. The bank reform law of 1993 laid out parameters for banking activities, clarified oversight and control responsibilities, specified legal penalties for violations of banking regulations and established a depositors guarantee fund. Until 1991, credit and money supply was controlled directly by the old French-style "encadrement system" allocating sectoral lending to banks based on historical patterns. Since financial liberalization, credit is to be allocated freely, and the central bank has used indirect methods to control the interest rate and volume of credit. The banking system is still used by the government to channel domestic savings to finance government debt, and the banks are required to hold a part of their assets in bonds paying below market interest rates. Morocco’s banking sector is stronger, and the private sector’s role is more active, than in many African countries. The potential in this sector is great, as it is estimated that only 15% of the population uses a bank. Moroccan banks are anxious to work with EXIM and IFC, and also to offer financing to foreigners.

The Casablanca Stock Exchange is the third largest in Africa, after Johannesburg and Cairo. Privatized in 1996, the CSE is managed by 13 brokerage companies and

44 regulated by an independent oversight commission similar to the SEC Foreign Exchange.

Controls Affecting Trading:

Morocco maintains a system of foreign exchange controls managed by the Office des Changes, but the rules on transfers have been progressively liberalized to the point where the dirham is freely convertible according to the IMF definition for current account transactions. The value of the dirham is tied to a basket of hard currencies weighted according to Morocco’s foreign trade. Because this basket is dominated by European currencies, variations in the dollar/euro rates are generally reflected in the dirham’s dollar value. Authority to buy and sell foreign exchange has been delegated to the banking system, which will carry out transactions on presentation of appropriate documentation justifying the transaction such as an invoice to pay for imports. Capital transactions require authorization from the Office de Changes, and are routinely granted for business-related transactions. Under the Moroccan investment code, the government guarantees repatriation of both invested capital and profits, provided that the initial capital investment was filed and registered. Advance payments to foreign exporters are forbidden under the current regulations.

General Availability of Financing:

Local financing is available for Moroccan investors and importers, but real interest rates are high by American standards. Moroccan banks generally require high collateral.

How to Finance Exports/Methods of Payment:

Most Moroccan imports are paid for by irrevocable confirmed letters of credit issued by local banks through U.S. banks. Domestic end-users are normally given up to 90-day credit by importers.

Types of Available Export Financing and Insurance:

(1) The U.S. Small Business Administration (SBA) has a number of programs targeted toward helping small and medium-sized companies to develop export markets. In particular, SBA offers an export working capital guarantee program whereby SBA will guarantee up to 75% of a bank loan to provide working capital or a line of credit to exporters. This, in turn, can enable exporters to offer more favorable payment terms to their Moroccan buyers or provide working capital while export orders are being manufactured. Contact: U.S. Small Business Administration, Office of International Trade, 409 Third Street, SW, Washington, DC 20416, tel. (202) 205-6720, fax (202) 205- 7272, or call 1-800-USA-TRADE for the location of your nearest U.S. Export Assistance Center.

45

(2) The U.S. Export-Import Bank (EXIM) promotes the export of U.S. goods and services through a variety of loan, guarantee, and insurance programs, all of which are available for transactions in Morocco. EXIM can guarantee U.S. commercial bank financing for U.S. exporters. Its export insurance programs provide insurance coverage against the risk of default on foreign receivables. However, a Moroccan guarantee, either from the government or from a private bank, may also be required. EXIM Bank established four years ago, a small bundling facility (a line of guaranteed credits of $10 million) with Credit du Maroc, the Moroccan subsidiary of Credit Lyonnais France. Although other Moroccan banks have expressed some interest in this program, they have not overcome the reluctance of Moroccan importers to take on the foreign exchange risk of borrowing in dollars. Contact: Export-Import Bank of the United States, 811 Vermont Ave., NW, Washington, DC 20871; 1-800-565-EXIM (3946); Robert Bosco, International Business Development Officer for North Africa and the Middle East, , Tel: (202) 565-3716; Fax: (202) 565-3931; International Lending fax: (202) 565-3816, or call 1-800-USA-TRADE for the location of your nearest U.S. Export Assistance Center.

(3) The U.S. Trade and Development Agency (TDA) is an independent U.S. government agency that promotes U.S. exports for major development projects in middle-income and developing countries. TDA funds feasibility studies, technical assistance, orientation visits and other project planning services related to major projects. Consulting contracts funded by TDA grants must be awarded to U.S. companies. U.S. involvement in project planning helps position potential U.S. suppliers to take advantage of follow-on contracts when these projects are implemented. TDA has been very active in Morocco in the energy, telecommunications, tourism, railway, chemicals, environmental, port and airport development industries. FCS Morocco works closely with TDA and with Moroccan and U.S. firms to identify potential projects. Contact: U.S. Trade and Development Agency, Leila Afas, Country Manager for Morocco, Room 309 SA-16, Washington, D.C. 20523- 1602; Tel: (703) 875-4357; Fax: (703) 875-4009

(4) The Overseas Private Investment Corporation (OPIC) is a self-sustaining, U.S. government agency that encourages U.S. businesses to invest in developing countries and emerging market economies. OPIC’s key programs are loan guarantees, direct loans and investment insurance against foreign political risk. Contact: Bruce Cameron, Overseas Private Investment Corporation (OPIC); Tel: (202) 336-8799/ (202) 336- 8700; Fax: (202) 408-9859; 1100 New York Avenue, N.W. Washington, D.C. 20527.

(5) The USDA Credit Guarantee Programs: In FY 2001, $50 million (GSM-103) was available to Morocco to purchase various agricultural commodities from the US. The GSM-103 line, originally offered to the government, has been made available to Moroccan private sector importers through the BMCI (Banque Marocaine pour le Commerce et l’Industrie) for fiscal year 2001. The list of eligible commodities has been extended to cover, in addition to wheat and feed grains, other commodities such as livestock, cotton, vegetable oil, oilseeds, and planting seeds. The private importers can benefit from up to 6 months financing and the local government supports the exchange risk and the guarantee fee of using GSM-103. For more information, please contact the Office of the Agricultural Affairs in Rabat at (212-3) 776-5987.

46 Availability of Project Financing:

The principal multilateral financial institutions such as the World Bank, the IFC, the African Development Bank, and the European Investment Bank all lend to Morocco for infrastructure development. The Commerce Department’s office of Multilateral Development Bank Operations (MDBO) provides one-stop shopping services to U.S. firms interested in doing business with the MDBs. Its staff can help U.S. companies get a share of major contracts financed by the multilateral development banks. For more information on any of these services in the U.S., contact MDBO at (202) 482-3399 or fax (202) 273-0927 or the Commercial Service Liaison Staff, Office of the U.S. Executive Director, the World Bank, 1818 H Street NW, Washington DC 20433, USA. Tel: (202) 458-0118/0120, Fax: (202) 477- 2967. The International Finance Corporation (IFC), a private-sector lending arm of the World Bank, has cooperative agreements with Moroccan institutions and can provide services including financing from commercial banks, export credit agencies and other institutions. Contact in Morocco, Joumana Cobein, Country Manager, IFC, 7 rue Larbi Ben Abdellah, Rabat. Tel: (212) 37 63 24 79; Fax: (212) 37 63 60 50 The Multilateral Investment Guarantee Agency (MIGA) is part of the World Bank group. Its purpose is to encourage foreign direct investment in developing countries by providing investors with political risk insurance. Like its counterpart OPIC, MIGA provides insurance to cover the risk of currency transfer, expropriation, war, and civil disturbance, and breach of contract by the host government. Morocco is a member of MIGA. Contact: Multilateral Investment Guarantee Agency, 1818 H Street, NW, Washington, DC 20433, and Guarantees Dept. Tel: (202) 473-6168. Types of Projects Receiving Financing Support:

Law and Justice and Urban Development Asset Management Reform Loan: The goal of this project is to promote efficiency in public expenditures, by helping rationalize investment, maintenance and rehabilitation expenditures in education and health, and improve public asset management, in line with the objectives of the Country Assistance Strategy (CAS) for expenditure rationalization, long-term fiscal sustainability, and improved service delivery in the social sectors. Environmental Category C. PID P005516. US $50.00. US$45 IBRD commitment. Ministry of Finance and Privatization, Direction des Domaines, Tel: (212) 037-77-92- 91, Fax: (212) 037-77-92-82.

Rural Development Irrigation Based Community Development: This project will seek to improve the incomes and quality of life in rural communities by centering attention on small and medium irrigation (SMI) projects in 15 provinces over a 13-year period. The main focus will be on demand-driven, coordinated investments in SMI rehabilitation and improvement and complementary community infrastructure, including rural roads, water supply/sanitation, electrification, health, and education facilities. Environment Category B. PID P056978. US$42.2. US $32.57 IBRD commitment. Ministry of Agriculture, Rural Development, Water and Forests, Tel: (212) 37 29 99 45, Fax: (212) 37 69 84 34.

47 Rain Fed Agriculture Development: The objective of the project is to promote sustainable agricultural development in rain fed areas that will help reduce the rural- urban gap. To this end, the proposed project would have the following specific objectives: (a) to build institutional capacity in rain fed areas for project identification and implementation in partnership with local organizations; (b) to improve the livelihoods and incomes of the local population in four priority areas; and (c) to reduce the vulnerability of the production systems to drought. Approved by the Executive Directors on 10 June 2003 the project will be closed on December 31, 2009. Loan signing was held in late October 2003. Environmental Assessment Category B. PID: 69124. US$ 45.0 (IBRD). Consulting services to be determined. Ministry of Agriculture, Rural Development, Water and Forests, Tel: (212) 37 29 99 45, Fax: (212) 37 69 84 34, Contact: M. Benmakhlouf, Director of Land Development

Tourism Historical Centers Revitalization - Meknes: The objective of the project is to revitalize the historical city of Meknes focusing on conservation of main monuments and public spaces, housing maintenance, urban infrastructure rehabilitation, improvements to the city’s productive commercial areas, support to handicraft production and marketing, social development, and promotion of cultural tourism. The project will also support a long-term strategy for the revitalization of other historic centers. Project preparation is scheduled to start in January 2004. Environmental Assessment Category B. PID: 76921. US$ 40.0 (IBRD). Consultants will be required during preparation to carry out technical and institutional studies. Wilaya of Meknes-Tafillalt, Tel: (212-37) 555-1271, Fax: (212- 37) 555-10064, Contact: Mr. El Mansouri, Délégué Régional de l'Aménagement du Territoire; Ministry of Housing, Culture and Tourism, c/o Ministére des Affaires Economiques et Generales et de Mise a Niveau de l'Economie, Nouveau Quartier Administratif, Rabat, Morocco, Tel: (212-37) 687-316, Fax: (212-37) 774-287, E-mail: [email protected], Contact: M. Mohammed Hillali; City of Meknes

List of Moroccan Banks with Correspondent International Banking Arrangements:

(1) American: Banque Marocaine du Commerce Exterieur Banque Centrale Populaire Banque Commerciale du Maroc Wafabank

(2) European/Other: Banque Marocaine du Commerce et de l’Industrie Credit du Maroc Société Générale Marocaine de Banques

(3) American Bank with Moroccan Branch: Citibank Morocco

48 CHAPTER 9: BUSINESS TRAVEL

All US citizens traveling to Morocco are highly encouraged to check the Embassy’s website at www.usembassy.ma for the latest travel information by following the link to American Citizen Services.

Furthermore, all Moroccans traveling to the U.S. need visas and except for diplomats, all must personally present themselves for an interview at the U.S. Consulate in Casablanca. Due to significant required procedural delays, everyone should apply well in advance of the planned departure date and should present a passport with at least six months validity remaining. It is wise to advice all Moroccan business partners of this delay before scheduling business meetings in the U.S.

Business Customs:

Moroccan business customs reflect a mix of Arab and Mediterranean influences, rather than African. Rarely are there breakfast meetings, lunches tend to be late and long, and business meetings are most commonly held in offices, rather than over meals. Moroccan hospitality is world-renowned, and business contacts enjoy entertaining in their lovely homes. Business attire is similar to warmer climates in the U.S. It is often a good idea to reconfirm appointments in advance. While U.S. business people are encouraged to arrive at appointments on time, one should not be surprised at encountering delays, and it is wise to schedule meetings recognizing that some could start, or run, late. A growing number of young Moroccan entrepreneurs with degrees from American schools conduct business in English, but it is always a good idea to determine in advance the language to be used during the meeting, should it be necessary to hire an interpreter. Generally, business meetings are conducted in French. Moroccan women are becoming more involved in business activities. There is no difficulty for foreign women doing business or representing U.S. companies in Morocco. In fact, the former American Ambassador to Morocco, Margaret Tutwiler is a woman. Businesses are open Monday through Friday and sometimes Saturday morning. Most businesses close for lunch from noon to 2:00 p.m., except during the month of Ramadan, when they remain open at mid-day but close earlier in the afternoon. Morocco is a Muslim country. Consumption of alcohol during the fasting month of Ramadan is prohibited for Muslims only but others are encouraged to refrain from consuming alcohol during this month as well.

Travel Advisory and Visas:

For current Travel Advisories, refer to www.usembassy.ma or to www.travel.state.gov. U.S. citizens and European Union member countries do not need a visa for entry into Morocco for up to 90 days. Entry visas are required for foreign nationals from certain countries, including Egypt, Iran, Sudan and Syria. In general, a tourist visa, which is valid for a period of three months, is the only type of temporary visa issued for Morocco.

Holidays in 2004:

January 1 New Year 2004

49 January 11 Presentation of Independence Proclamation January 19 Martin Luther King’s Birthday February 1 & 2 Aid Al Adha (*) February 16 President’s Day February 22 First Moharram (*) May 2 & 3 Prophet’s Birthday (*) May 31 Memorial Day July 5 American Independence Day July 30 Feast of the Throne August 20 Revolution of the King and the People August 21 King’s Birthday September 6 American Labor Day October 11 Columbus Day November 11 Veteran’s Day November 14 & 15 Aid Al Fitr (end of Ramadan) (*) November 18 Moroccan Independence Day November 25 Thanksgiving Day December 24 Christmas Day December 31 New Year – 2005 -

Note: Holidays with (*) are based on the lunar calendar and change every year. Dates shown are those projected for the year 2005. As is the case in most Muslim countries, it may be more difficult to make business appointments and contacts in Morocco during the month of Ramadan, which will start this year at the beginning of October. It is also imperative to keep in mind that due to summer holidays during the month of August business comes to a virtual standstill.

Time: Morocco is on Greenwich Mean Time (GMT). The country does not observe Daylight Saving Time. Time difference between Morocco and the East Coast is 5 hours and West Coast 8 hours during Standard Time months.

Currency:

The Moroccan currency unit is the dirham, abbreviated as DH. There are 100 centimes to each dirham. Bank notes are denominated in 200, 100, 50 and 20 dirhams. As of June 1, 2004, the average exchange rate to USD was 9.0 DH.

Weights and Measures:

The metric system is used in Morocco.

Electrical Standards:

Electric power in Morocco is 50 cycles, one and three phase, with nominal voltage in the largest cities at 220 volts.

50 Business Structure:

Several Moroccan laws govern companies operating in Morocco: Code of Commerce provides rules for businesses operated by companies or individuals; Stock Companies; Limited Liability Companies; Limited Partnerships; Partnerships Limited by Share; and Societies by Participation. Companies in Morocco may take the form of stock companies or limited liability companies. These forms are separate legal entities in which shareholder liability is limited to paid-in capital.

CHAPTER 10: ECONOMIC AND TRADE STATISTICS

Appendix A: Country Data Population 30.1 million (est. 2003) Population Growth Rate 1.5 % Religion Islam, Judaism (less than 1%) Government System Constitutional Monarchy. King Mohamed VI Languages Arabic (official), French (business), Berber dialects, Spanish (in north) Location On the northwest corner of Africa, less than 10 miles across the Straits of Gibraltar from Spain. Area 280,000 square miles, about the size of California Coastline 2,120 miles; Mediterranean Sea and Atlantic Ocean Climate Mild Mediterranean in North; Rabat/Casablanca similar to San Diego; Marrakech, dry desert similar to Phoenix or Palm Springs. Work Week Monday - Friday, 8:30 a.m.-12:30 p.m. and 2:30-6:30 p.m.

Appendix B: Domestic Economy Year 2000 2001 2002 2003 (est.) Gross Domestic Product ($ in millions) 32,986 33,589 35,870 45,029 Real GDP growth (percent change) 0.3 6.5 3.2 7.1 GDP per capita ($) 1,149 1,152 1,208 1,492 Government Spending (percent GDP) 31.0 29.5 29.3 26.5 Inflation (Dec/Dec CPI pct chg) 1.9 0.6 2.8 1.3 Unemployment (Urban, percent) 21.5 19.9 18.3 17.5 For-Ex reserves (yr. end, USD mil) 5,159 8,943 9,980 11,730 Average rate Dh/$ 10.6 11.4 11.1 9.7 Foreign debt ($ in billions) 16.0 14.2 13.9 13.6 Debt service ratio (as pct of exports, goods, 20.8 19.3 NA NA Non-factor services and private services) Sources 2000-2002: Moroccan government data 2003: Moroccan government and Embassy projections.

51 Appendix C: Trade ($ in millions, except where noted) YEAR 2000 2001 2002 2003 (est) Total Country Exports 7,427 7,057 7,716 9,227 Total Country Imports 11,515 10,885 11,653 14,081 U.S. Exports 645.1 399.8 400.4 NA U.S. Imports 254.1 284.7 254.9 NA Source: Moroccan government data.

CHAPTER 11: U.S. AND COUNTRY CONTACTS

U.S. Embassy Trade Related Contacts

AMERICAN CONSULATE GENERAL CASABLANCA Gail del Rosal, Commercial Counselor Latifa Essakalli, Senior Commercial Specialist Thanae Bennani, Commercial Specialist The U.S. Commercial Service 8, Bd. Moulay Youssef Casablanca, Morocco Tel: (212) (22) 26-45-50 Fax: (212) (22) 22-02-59 Email: [email protected]

AMERICAN EMBASSY RABAT Thomas T. Riley, Ambassador Wayne Bush, Deputy Chief of Mission Mike Koplovsky, Economic Counselor Manuel Micaller, Economic Officer David Schneier, Economic Officer Michael Fay, Agricultural Attaché Monique Stein-Olson, Director USAID Najia Tourougui, Commercial Specialist Address: 2, Avenue Mohamed El Fassi (Ave de Marrakech) Rabat, Morocco Tel: (212) (37) 76-22-65 Fax: (212) (37) 76-56-61

American Chamber and/or Bilateral Business Councils

AMERICAN CHAMBER OF COMMERCE Contact: Larry Dewitt, President Carl Dawson, Executive Director Hyatt Regency Hotel Place Mohammed V Casablanca, Morocco Tel: (212) (22) 29-30-28 Fax: (212) (22) 48-15-97 Email: [email protected] Website: www.amcham-morocco.com

52

ROTARY INTERNATIONAL CASA OASIS Contact: Azzedine Kettani 23 Rue El Amraoui Brahim Casablanca Tel: (212) 22-27-14-07 Fax: (212) 22-20-59-25

LION’S CLUB CASABLANCA DOYEN Contact: Aomar Berrada, District Governor (Souad) Maison des Lions du Maroc 148 Bd. Bahmad Casablanca Tel: (212) 22 89- 48- 58 Fax: (212) 22 89 48 61 Email: [email protected] Internet: www.lionsclubmaroc.org

Country Government Offices Relating to Key Sectors

Ministère des Affaires Economique, des Affaires Générales, et de la Mise à Niveau de l’Economie (Ministry of Government Affairs) Contact: Monkid Mestasse, Deputy Minister Rabat, Morocco Tel: 212 (37) 77 17 16 Fax: 212 (37) 77 47 76

Ministère du Tourisme (Ministry of Tourism) Contact: Adil Douiri, Minister Jaurad Ziyat, Directeur des Amenagements et des Investissements Touristiques Quartier Administratif Rabat, Morocco Tel:(212) (37) 56-37-25 Fax: 212 (37) 71-70-28 www.tourisme-marocain.com

Direction Des Douanes et Impots Indirects (Customs Office) Contact: Mohamed El Alej, Director Avenue Hassan II (ex rue Essafi) Rabat, Morocco Tel: (212) (37) 57 90 00 Fax: (212) (37) 73-09-85 E-mail: [email protected]

Agence du Nord (Government Agency in charge of the Northern Region) Contact: Managing Director

53 22, Av. Omar Ibn El Khattab Agdal Rabat, Morocco Tel: (212) (37) 77 60 13 Fax: (212) (37) 77 60 46

Direction Des Statistiques (Department of Statistics) Contact: Mr. Cherkaoui Toufiq Rue Mohamed Bel Hassan El Ouazzani Haut Agdal-Rabat, Morocco Tel: (212) 61 28 46 92 Fax: (212) (37) 77-32-17

Ministère de L’Economie et des Finances (Ministry of Economy and Finance) Contact: Fathallah Oualalou, Minister Contact: Mohamed Chafiki, Chief de Cabinet Ancien Quartier Administratif Rabat, Morocco Tel: (212) (37) 76 11 13 Fax: (212) (37) 76 50 68

Direction des Investissements Exterieurs (Foreign Investment Office) Contact: , Director 32 Rue Honain, Angle rue Michlifen Agdal-Rabat, Morocco Tel: (212) (37) 67-33-75 Fax: (212) (37) 67-34-19 E-mail: [email protected] [email protected]

Ministère de l’Agriculture, et du Développement Rural Contact: M. LAENSAR Mohand, Minister Quartier Administratif, Chellah Rabat, Morocco Phone: (212) 37 76 07 07/37 76 26 36 Fax: (212) 37 76 33 78

Ministère du Commerce Exterieur (Foreign Trade Office) Contact: M. Mustapha Mechahouri 63 Avenue Moulay Youssef Rabat, Morocco Tel: (212) (37) 73 56 37 Fax: (212) (37) 73 51 43

Office National de l’Electricité (ONE) (National Office of Electricity) Contact: Ahmed Nakkouch, General Manager 65 Rue Othman Ben Affane

54 Casablanca, Morocco Tel: (212) (22) 66-80-80 Fax: (212) (22) 20-56-98

Agence Nationale de Réglementation des Télécommunications (ANRT) (National Regulatory Agency for Telecommunications) Contact: Othman Demnati, General Manager Centre d’Affaires B.P 2939 Aile Nord Hay Riad, Rabat Tel: (212) (37) 71-84-00 /71-86-01 Fax: (212) (37) 71-84-48 Web: www.anrt.net.ma Email: [email protected]

Maroc Telecom (IAM) (National Telephone Company) Contact: Abdeslam Ahizoune, President General Manager Avenue Annakhil, Hay-Riad Rabat, Morocco Tel: (212) (37) 71-41-41 Fax: (212) (37) 71-66-66 E-Mail: [email protected]

Office National de l’Eau Potable (ONEP) (National Office of Potable Water) Contact: Ali Fassi Fihri, General Manager Station de Traitement Bouregreg Avenue Akrach Rabat-Salé, Morocco Tel: (212) (37) 65-06-95/96 Fax: (212) (37) 65-06-40

Office Cherifien des Phosphates (OCP) (National Office of Phosphates) Contact: Mourad Cherif, General Manager Bd. de la Grande Ceinture Route d’El Jadida Casablanca, Morocco Tel: (212) (22) 22-23-00-25 Fax: (212) (22) 25-09-99 www.ocpgroup.ma

Office d’Exploitation des Ports (ODEP) (Moroccan Ports Authority) Contact: Mustapha Barroug, General Manager 175 Bd. Mohamed Zerktouni Casablanca, Morocco Tel: (212) (22) 23-23-24 Fax: (212) (22) 25-81-58

55 Royal Air Maroc (National Airline Company) Contact: Mohamed Berrada, President Aeroport d’Anfa Casablanca, Morocco Tel: (212) (22) 91-20-21/91-20-22 Fax: (212) (22) 91-20-95

Office National de Recherches et d’Exploitations Pétrolières (ONHIM) TO CHANGE THE NAME) (Bureau of Mining and Oil Exploration Research) Contact: Amina Benkhadra, Managing Director 34 avenue Al Fadila B.P. 8030 Rabat, Morocco Tel: 212 (37) 28 16 16 Fax: 212 (37) 28 16 34 Email: [email protected]

Country Trade Associations

Confederation Générale des Entreprises du Maroc (CGEM) (Moroccan Employers Association) Contact: Hassan Chami, President Angle Avenue des FAR et rue Mohamed Errachid Casablanca, Morocco Tel: (212) (22) 25-26-96 Fax: (212) (22) 25-38-39 E-mail: [email protected]

A.F.A.C. (Feed Millers Association) Contact: Ibrahim Assimi, President 123 Bd Imile Zola Casablanca, Morocco Tel: (212-2) 231-1249/244-2276 Fax: (212-2) 244-2276 Email: [email protected] Website: www.fisa.org.ma

APEBI (Telecommunications and Computers Association) Contact: Hassan Amor, President 17, rue Najib Mahfoud. Quartier Gauthier. Casablanca, Morocco Tel: (212) (22) 27-47-57 Fax: (212) (22) 27-47-28

Fédération de l’Industrie Minière (Mining Industry Association) Contact: Amina Binkhadra, President 1 Place de l’Istiqlal

56 Casablanca, Morocco Tel: (212) (22) 30-68-98 Fax: (212) (22) 31-99-96

Association des Marchands et Importateurs de Materiel Agricole (Association of Moroccan Importers of Agricultural Equipment) Contact: Michelle Vitales, President C/o Comicom 9 Bd. d’Oujda Casablanca, Morocco Tel: (212) (22) 30-22-11 Fax: (212) (22) 30-60-82

Association Marocaine du Conseil et de l’Ingenierie (Engineering Association) Contact: Benyahia Noureddine, President 5 Rue Idriss Alakbar Quartier Hassan Rabat, Morocco Tel: (212) (37) 70-42-24 Fax: (212) (37) 20-03-47 E-mail: [email protected]

Specialized Agricultural Trade Associations

Fédération Interprofessionnelle du Secteur Avicole (FISA) (Poultry Feed, Poultry, and Eggs Federation) Moulay Youssef Alaoui; President 123, Boulevard Emile Zola Casablanca, Morocco Phone: (212) (22) 31-12-49 Fax: (212) (22) 44-22-76 Email: [email protected]

Association des Fabricants d'Aliments Composes (AFAC) (Feed Manufacturers Association) Contact: Dr. Brahim ASSIMI 123 Boulevard Emile Zola Casablanca Phone: (212) 22 31 12 49/44 22 76 Fax:(212) 22 31 12 49/22 44 22 76 Email: [email protected]

Association des Negociants en Céréales et Legumineuses (ANCL) (Grains and Pulses Importers and Traders Association) Contact: M. EL HADDAJ, Bouchaib, CEO 193, Avenue Hassan II Casablanca Phone: (212) 22 47 64 38/22 47 64 68 Fax:(212) 22 47 42 07 Email: [email protected]

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Association Nationale des Eleveurs de Bovins de Races Pures (ANEB) Purebred Dairy Cattle Association) M. A. Lomri, Directeur 5, Rue Mohamed Triki, Residence Tissir, Im. B. Apt. 2 Rabat Agdal Phone: (212) 37 23 02 44 Fax:(212) 37 23 02 62 Email: [email protected]

Fédération Nationale de la Minoterie (FNM) (Wheat Millers Federation) Contact: M. BOUAIDA, Ahmed, President Angle Ibn Majid Bahar & Brihmi El Idrissi (Ex Girardot/Havre) Casablanca Phone: (212) 22 30 18 01/22 30 11 58/22 30 18 01 Fax:(212) 22 30 65 51/22 30 59 13/22 30 65 51

Lesieur (oilseed crusher, refiner) Contact: M. RAHHOU Ahmed 1, Rue Caporal Corbi, Ain Sebaa Casablanca Phone: (212) 22 35 46 36/22 35 43 27 Fax: (212-2) 22 35 77 54/22 35 40 97

Office des Foires et des Expositions de Casablanca (OFEC) Rue Tiznit, Face à la Mosquée Hassan II Casablanca 20000, Maroc Phone: (212) 22 27 32 82/22 27 16 64/22 20 06 54 Fax: (212) 22 27 49 73/22 26 49 49 Email: [email protected] Website: www.ofec.co.ma

Major Country Market Research, Advertising and PR Firms

McCann Contact: Christian Abi Nader 237 Bd. Zerktouni Casablanca Phone: (212) 22 36 40 40 Fax: (212) 22 36 4726

Price Waterhouse Coopers -S.A. Contact: Mr. Aziz Bidah, Audit Consultant/Partner in Charge 101 Bd Massira El Khadra 2eme Etage Casablanca, Casablanca 20100 Phone: (212) 22 98 40 40; 77 90 00 Fax: (212) 22 99 11 96 Email: [email protected]

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SEMMA Contact: Mr. Pierrick Gautier, Director 18, Bd. Ibn Sina Casablanca, Morocco Tel: (212) (22) 39-60-30 Fax: (212) (22) 39-60-33

Country Commercial Banks

Banque Centrale Populaire Contact: El Basraoii, Director Int’l Affairs 101 Bd. Mohammed Zerktouni Casablanca, Morocco Tel: (212) (22) 46-91-67 Fax: (212) (22) 20-14-28

Attijari Wafa Contact: Mr. Ali Kadiri, Head of Int’l Department 2 Bd. Moulay Youssef Casablanca, Morocco Tel: (212) (22) 47-64-39 Fax: (212) (22) 22-69-82

Banque Marocaine du Commerce Exterieur Contact: Benjelloun Karima, Head of Int’l Department 140 Avenue Hassan II Casablanca, Morocco Tel: (212) (22) 20-04-20 Fax: (212) (22) 26-49-20

Banque Marocaine pour le Commerce et l’Industrie Contact: Mustapha Faris, President 26 Place Nations Unies Casablanca, Morocco Tel: (212) (22) 46-11-59 Fax: (212) (22) 22-46-04

Casablanca Finance Group Contact: Amil Ahmin, President 5/7 Rue Ibnou Toufail, Quartier Palmeur Casablanca, Morocco Tel: (212) (22) 25 50 50 Fax: (212) (22) 98 39 89

Casablanca Stock Exchange Contact: Mr. Driss Bencheikh, President Avenue de l’Armee Royale Casablanca, Morocco Tel: (212) (22) 45 26 26 Fax: (212) (22) 45 26 25

59 Email: erbib@casablanca^bourse.com

Citibank-Maghreb Contact: Mr. Nuhad Saliba, Managing Director Zenith Millenium Lotissement Attaoufik 1 Casablanca, Morocco Tel: (212) (22) 48-96-00 Fax: (212) (22) 97-41-97 E-mail: [email protected]

Credit Agricole (CNCA) Contact: M. Dadili, Head of International Division 28, Rue Abou Farris El Marini Rabat, Morocco Phone: (212) (37) 208231/208220/208221 Fax: (212) (37) 208267 Email: [email protected]

Credit du Maroc Contact: Jamal Lemridi, Director Int’l Affairs 48-58 Bd. Mohammed V Casablanca, Morocco Tel: (212) (22) 47-78-00 Fax: (212) (22) 27-71-27

Société Générale Marocaine de Banques Contact: Ali Ababou, General Manager 55 Bd. Abdelmoumen Casablanca, Morocco Tel: (212) (22) 20-02-83 Fax: (212) (22) 20-09-61

Upline Securities Contact: Hassan Ait Ali, General Manager 41-43 Boulevard d’Anfa Casablanca, Morocco Tel: 212 (22) 47 51 24 Fax: 212 (22) 47 46 03

Multilateral Development Bank Offices in Country and Trade Assistance Offices in the U.S.

IFC Contact: Joumana Cobein, Representative in Morocco 7, Rue Larbi Benabdellah Rabat, Morocco Tel: (212) (37) 63 60 49 Fax: (212)(37) 65-24-79

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World Bank Representation in Morocco Contact: Serib Bolhaj, Representative 7, Rue Larbi Benabdellah Rabat, Morocco Tel: (212) (37) 63-60-50 Fax: (212) (37) 63-60-51

Washington-Based USG Country Contacts

U.S. Department Of Commerce 14th & Constitution Ave NW, Washington DC 20230 Dan Harris, Regional Director OIO/ANESA, Tel: (202) 482-4836 Fax: (202) 482-5179

1) Cherie Loustaunau, Director of the Office of the Middle East, U.S. Department of Commerce, Washington, D.C. Tel: (202) 482-4442 Fax: (202) 482-0878

2) David Roth, International Trade Specialist: Morocco, U.S. Department of Commerce, Washington, D.C. Tel: (202) 482-2680 Fax: (202) 482-0878

3) Bill Crawford, World Bank Liaison Officer Multilateral Development Banks Office U.S. Department of Commerce Tel: (202) 458-0120 Email:[email protected]

TPCC Trade Information Center in Washington Tel: 1-800-USA-TRADE

U.S. Department Of State:

(1) Morocco Desk Officer: Kristi Hoggan-Lahmar Tel: (202) 647-1724 Fax: (202) 736-4458

(2) Deputy Director of NEA/MGA Washington, D.C.: William Jordan Tel: (202) 647-4675Office of the Coordinator for Business Affairs Tel: 202-647-1625 Fax: 202-647-3953 Email: [email protected]

U.S. Department of Agriculture, Foreign Agriculture Service Trade Assistance and Promotion Office:

61 Robert Riemenshneider, Director Grain & Feed Division, Washington, D.C. Tel: (202) 720-6219 Fax: (202) 720-0340

U.S. Export Import Bank (Ex-Im) Middle East & North Africa Regional Director, John Richter Tel: (202) 565-3911 Fax: (202) 565-3931 Email: [email protected]

Overseas Private Investment Corporation (OPIC) North Africa Desk Office, Bruce Cameron Tel/(Info Line): (202) 336-8799 Tel/(Facts Line): (202) 336-8700 Fax: (202) 408-9859 WEB: http://www.opic.gov Email: [email protected]

U.S. Trade Development Agency Leila Afas, Country Manager for Morocco Tel: (703) 875-4357 Fax: (703) 875-4009

Moroccan Embassy in Washington Contact: Aziz Mekouar, Ambassador Mohammed Ariad, Economic Officer 1821 Jefferson Place, NW Washington, D.C. 20036 Tel: (202) 462-7722 Fax: (202) 452-0106 Email: [email protected]

CHAPTER 12: MARKET RESEARCH http://www.export.gov/OneStopConsumer/OneStop/mrllogin.jsp.

CHAPTER 13: TRADE EVENT SCHEDULE

For information on international trade events please consult the Commercial Service and Buy USA web pages at www.export.gov and www.buyusa.gov/morocco/en. http://www.export.gov/comm_svc/tradeevents.html

i[i]Other Sources Include: CIA Factbook March 2003 American Chamber of Commerce in Morocco State Department Fact Book July 2003

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