European Free Trade Agreement Morocco
The European Free Trade Association (EFTA) and Morocco have recently signed a free trade agreement (FTA) which enables trade to flourish between both parties. This agreement is in line with the European Union’s stance towards North Africa and its willingness to promote sustainable economic development in the region.
The FTA covers a wide range of sectors including agriculture, fishery, and processed agricultural products, industrial products, as well as services and Intellectual Property Rights. According to the EFTA, the agreement will “improve legal certainty and predictability for economic operators” and “facilitate trade in goods by removing tariffs and other trade barriers”.
One of the main benefits of this agreement is that it will increase market access for both EFTA and Morocco. EFTA exports to Morocco amounted to USD 374 million in 2019, with the majority of the trade being in machinery, pharmaceuticals, and chemicals. The FTA will also make it easier for EFTA companies to bid for public contracts in Morocco.
Morocco is the first North African state to sign an FTA with EFTA, which sets it apart from other regional economic blocs such as the African Continental Free Trade Area (AfCFTA) and the Arab Maghreb Union (AMU). The FTA also opens up opportunities for EFTA to engage with other North African countries, such as Tunisia and Algeria, and to promote regional economic integration.
The FTA is not only significant in terms of economic benefits, but also in terms of political and social consequences. It signals a step towards strengthened relations between the European Union and North Africa, and a move towards the EU’s commitment to promote sustainable economic development in the region. The agreement also has the potential to promote social welfare in Morocco, by creating more jobs and improving market access for small and medium-sized enterprises.
In conclusion, the FTA between EFTA and Morocco is a significant development in the economic landscape of North Africa. By increasing trade between both parties, the agreement has the potential to promote sustainable economic development and improve social welfare in Morocco. It is also a step towards strengthened relations between the European Union and North Africa, and a move towards regional economic integration.