RESTRICTED WT/TPR/S/329 7 December 2015 (15-6416) Page: 1/140 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT KINGDOM OF MOROCCO This report, prepared for the fifth Trade Policy Review of Morocco, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Morocco on its trade policies and practices. Any technical questions arising from this report may be addressed to Jacques Degbelo (022 739 5583), Catherine Hennis-Pierre (022 739 5640) and Alya Belkhodja (022 739 5162). Document WT/TPR/G/329 contains the policy statement submitted by Morocco. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Morocco. This report was drafted in French. WT/TPR/S/329 • Kingdom of Morocco - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ........................................................................................ 11 1.1 Main features of the economy .................................................................................... 11 1.2 Recent economic trends ............................................................................................ 13 1.3 Trade performance ................................................................................................... 15 1.4 Foreign investment ................................................................................................... 22 2 TRADE AND INVESTMENT REGIME ............................................................................ 25 2.1 Overview ................................................................................................................. 25 2.2 Trade policy objectives .............................................................................................. 28 2.3 Trade agreements and arrangements .......................................................................... 29 2.3.1 World Trade Organization (WTO) .............................................................................. 29 2.3.2 Agreements with the European countries and Turkey .................................................. 31 2.3.2.1 European Union .................................................................................................. 31 2.3.2.2 Agreement with EFTA .......................................................................................... 32 2.3.2.3 Agreement with Turkey ........................................................................................ 32 2.3.3 Trade relations with Arab countries .......................................................................... 32 2.3.3.1 Greater Arab Free Trade Area (GAFTA) ................................................................... 33 2.3.3.2 Relations with the United Arab Emirates (UAE) ........................................................ 33 2.3.3.3 Arab-Mediterranean Free Trade Agreement ("Agadir Agreement") .............................. 33 2.3.4 Agreements with the sub-Saharan African countries .................................................... 33 2.3.5 Agreements with countries of the Americas ............................................................... 34 2.3.6 Non-reciprocal preferential arrangements .................................................................. 34 2.4 Investment regime ................................................................................................... 34 2.4.1 Investment Charter ................................................................................................ 35 2.4.2 Free zones regime ................................................................................................. 36 2.4.3 Tax incentives for investment under the General Tax Code .......................................... 37 2.4.4 Investment aid ...................................................................................................... 37 2.4.5 International investment agreements and conventions ................................................ 37 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 39 3.1 Measures directly affecting imports ............................................................................. 39 3.1.1 Customs procedures ............................................................................................... 39 3.1.2 Customs valuation ................................................................................................. 41 3.1.3 Customs levies ...................................................................................................... 42 3.1.3.1 Overview ........................................................................................................... 42 3.1.3.2 Applied most-favoured-nation (MFN) tariff .............................................................. 42 3.1.3.3 Other duties and charges levied solely on imports .................................................... 46 3.1.3.4 Bindings ............................................................................................................ 47 3.1.3.5 Internal duties and taxes ..................................................................................... 48 3.1.3.5.1 Value added tax (VAT) ...................................................................................... 48 WT/TPR/S/329 • Kingdom of Morocco - 3 - 3.1.3.5.2 Internal consumption tax (TIC) .......................................................................... 50 3.1.3.5.3 Other internal taxes .......................................................................................... 50 3.1.3.6 Duty and tax exemptions and concessions .............................................................. 50 3.1.3.7 Tariff preferences ................................................................................................ 50 3.1.4 Rules of origin ....................................................................................................... 51 3.1.5 Import prohibitions, quantitative restrictions, licensing and prior authorization ............... 53 3.1.6 Contingency measures ........................................................................................... 54 3.1.6.1 Safeguard measures ............................................................................................ 55 3.1.6.2 Anti-dumping and countervailing measures ............................................................. 56 3.1.7 Standards and other technical requirements .............................................................. 57 3.1.7.1 Standards, testing and certification ........................................................................ 57 3.1.7.2 Sanitary, phytosanitary and environmental measures ............................................... 59 3.1.7.3 Marking, labelling and packaging ........................................................................... 63 3.2 Measures directly affecting exports ............................................................................. 64 3.2.1 Procedures ........................................................................................................... 64 3.2.2 Export taxes ......................................................................................................... 65 3.2.3 Export prohibitions, licensing and control .................................................................. 65 3.2.4 Exports subsidies, promotion and support ................................................................. 65 3.2.4.1 Export free zones ................................................................................................ 66 3.2.4.2 Customs regimes ................................................................................................ 67 3.2.4.3 Export financing .................................................................................................. 68 3.2.4.4 Insurance .......................................................................................................... 69 3.2.4.5 Promotion .......................................................................................................... 70 3.3 Measures affecting production and trade ...................................................................... 70 3.3.1 State trading, State-owned enterprises and privatization ............................................. 70 3.3.2 Incentives ............................................................................................................ 74 3.3.3 Competition policy and price controls ........................................................................ 75 3.3.4 Government procurement ....................................................................................... 77 3.3.5 Intellectual property rights ...................................................................................... 80 3.3.6 Industrial property rights ........................................................................................ 82 3.3.6.1.1 New varieties of plants ...................................................................................... 84 3.3.6.1.2 Copyright and related rights ..............................................................................