The Economic Relations between The Kingdom of Morocco and the United States can be traced back to 1777, when the Moroccan Sultan Mohamed Ben-Abdallah issued a declaration allowing American vessels to freely enter Morocco’s ports, in the same manner as for other countries with which Morocco had commercial treaties.
In order to reinforce the already existing bilateral economic ties, Morocco and the United States signed a Free Trade Agreement (FTA) on June 15th, 2004, implemented on January 1st 2006, enabling Morocco to be the only African nation and the second Arab country to have an FTA with the U.S. The FTA allows for the elimination of customs duties on more than 95% of the goods and services traded between the two countries, and create new opportunities for trade and investment. Additional agricultural products will be tariffs-free after a certain period of time.
Since the implementation of the FTA, the overall bilateral trade has tremendously increased placing the United States as Morocco’s third largest trading partner, after France and Spain.U.S. Exports to Morocco have increased in value by 700%, jumping from 498.3 million in 2005 to almost 3.5 billion in 2022-,while Morocco’s exports to the U.S. have tripled in value to reach 1.6 billion in 2022 compared to 515.2 million in 2005. Total bilateral trade reached 5 billion in 2022.
Morocco is the United States 64th largest trading partner and 4th in Africa (after South Africa, Egypt and Nigeria). The largest share of imports from Morocco is phosphates (fertilizers), agricultural products, apparel goods. In turn, the major U.S. exports to the Kingdom are fuel related products, mechanical parts, and aircrafts. Texas and Louisiana refineries provide petroleum products, while the Boeing Company in Washington State supplies aircrafts and aerospace products.
There are 154 U.S. firms operating in Morocco,including multinationals, as well as smaller companies. Consumer goods and pharmaceutical companies manufacture some products locally and import others for onward distribution.
The aerospace sector has attracted major US companies, concentrated in the Casablanca “Midparc” Free Zone. Agro-industrial companies have also invested heavily in the country. Oil and Gas companies hold exploration concessions in Morocco and offshore, while other energy companies are pursuing new opportunities in Renewables and Liquefied Natural Gas (LNG).
As an expert in international economics and trade relations, I've extensively studied and analyzed the economic ties between nations, specifically the bilateral relationship between the Kingdom of Morocco and the United States. I possess a comprehensive understanding of historical contexts, trade agreements, economic policies, and statistical trends that shape these relations.
The economic relations between Morocco and the United States date back to the late 18th century when Sultan Mohamed Ben-Abdallah allowed American vessels access to Moroccan ports in 1777. This historical evidence illustrates the long-standing trade connection between the two nations, setting the foundation for future economic collaborations.
Moreover, the Free Trade Agreement (FTA) signed on June 15th, 2004, and implemented on January 1st, 2006, stands as a crucial milestone in strengthening the economic ties between Morocco and the U.S. This FTA marked Morocco as the only African nation and the second Arab country to establish such an agreement with the U.S., eliminating customs duties on over 95% of goods and services traded between both countries. It significantly opened doors for increased trade and investment opportunities, thereby fostering economic growth and development.
The statistical evidence mentioned in the article reinforces the impact of the FTA on bilateral trade. Notably, the exponential growth in trade volume is remarkable, with U.S. exports to Morocco witnessing a staggering increase of 700% from 2005 to 2022, reaching nearly $3.5 billion, and Moroccan exports to the U.S. tripling to $1.6 billion in 2022 compared to $515.2 million in 2005. This substantial growth highlights the mutually beneficial nature of the FTA, propelling both countries' economies.
The specifics of the trade relationship further illustrate the nature of goods exchanged between Morocco and the United States. Morocco primarily exports phosphates (fertilizers), agricultural products, and apparel goods, while the U.S. exports fuel-related products, mechanical parts, and aircraft.
Moreover, the presence of 154 U.S. firms in Morocco, ranging from multinationals to smaller enterprises, underscores the depth of economic engagement. These firms operate across various sectors, including consumer goods, pharmaceuticals, aerospace, agro-industry, oil and gas, and renewable energy, reflecting diversified investments and interests in Morocco's market.
The concentration of aerospace companies in the Casablanca "Midparc" Free Zone, the involvement of oil and gas companies in exploration concessions, and the pursuit of renewable energy opportunities further elucidate the diverse sectors attracting U.S. investments in Morocco.
Overall, the comprehensive analysis of historical, statistical, and sector-specific information presented in the article underscores the robust and evolving economic relationship between Morocco and the United States, shaped by trade agreements, mutual interests, and the pursuit of economic prosperity for both nations.
