Free Trade Agreement between Morocco and the US: An Overview
The Free Trade Agreement (FTA) between Morocco and the United States was signed in 2004 and came into effect in 2006. This agreement established a framework for the elimination of trade barriers and the promotion of trade between the two countries.
Morocco is a country located in North Africa, while the United States is a global economic power. The FTA between these two countries has brought several benefits to both parties.
Benefits of the Free Trade Agreement for Morocco
The FTA between Morocco and the US has provided several benefits for the Moroccan economy. Firstly, it has increased trade between the two countries. In 2019, the total trade between Morocco and the US was $4.3 billion, which is more than double the value of trade in 2005.
Secondly, the FTA has helped to diversify the Moroccan economy. The agreement has encouraged foreign investment in Morocco, and many US companies have set up operations in the country. This has created employment opportunities for Moroccans and has helped to boost the economy.
Thirdly, the FTA has allowed Moroccan exporters to access the US market more easily. The agreement has eliminated tariffs on many Moroccan products, making them more competitive in the US market. This has led to an increase in Moroccan exports to the US.
Benefits of the Free Trade Agreement for the US
The FTA between Morocco and the US has also provided several benefits for the US economy. Firstly, the agreement has provided US businesses with new opportunities to sell their goods and services in Morocco. This has helped to increase US exports to Morocco, which was valued at $3.2 billion in 2019.
Secondly, the FTA has provided US consumers with access to a wider range of products at lower prices. This is because the agreement has eliminated tariffs on many Moroccan products, making them more affordable for US consumers.
Thirdly, the agreement has provided US businesses with a platform to invest in Morocco. This has created employment opportunities in Morocco and has helped to boost the country`s economy. Additionally, US companies that have set up operations in Morocco have been able to benefit from the country`s strategic location and access to African and European markets.
Conclusion
In conclusion, the Free Trade Agreement between Morocco and the US has brought several benefits to both countries. The agreement has increased trade and investment between the two countries, providing opportunities for businesses in both countries to grow and prosper. Additionally, the FTA has helped to diversify the Moroccan economy and has provided US consumers with access to a wider range of affordable products. Ultimately, the FTA has strengthened the economic relationship between Morocco and the US, benefiting both parties.