The Economic Relations between The Kingdom of Morocco and the United States can be traced back to 1777, when then 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 15, 2004, implemented on January 1st 2006, enabling Morocco to be the only African nation and the second Arab state 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 signature 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 tripled in value since the FTA came into force, while Morocco’s exports to the U.S. have increased in value by 90%.

Morocco is America’s 72nd (2016) largest trading partner and third in North Africa, after Egypt and Algeria. 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.

Morocco’s stability and the long term sectorial strategies have transformed the country into a regional commercial and financial hub, which builds on the existing US-Morocco Free Trade Agreement. Thanks to the favorable business environment, US firms are particularly interested in investing in sectors such as: energy (green and fossil), tourism, aeronautics, automotive, manufacturing, infrastructure, agriculture, IT and Off-shoring.

Located at the crossroad between the Atlantic and the Mediterranean, Morocco is uniquely situated as a gateway to Africa, Europe, and the Middle East. Thanks to the direct shipping routes that connect Morocco and the United States, Morocco serves as a transshipment point and hub for the three continents.

The United States and Morocco signed an FTA on June 15, 2004. The Agreement entered into force on January 1, 2006. The United States-Morocco FTA is a comprehensive agreement that supports the significant economic and political reforms that are underway in Morocco and provides for improved commercial opportunities for U.S. exports to Morocco by reducing and eliminating trade barriers.

Since the entry into force of the FTA, the U.S. goods trade surplus with Morocco has risen to $1.8 billion in 2011, up from $79 million in 2005 (the year prior to entry into force). U.S. goods exports in 2011 were $2.8 billion, up 45 percent from the previous year. Corresponding U.S. imports from Morocco were $996 million, up 45 percent. Morocco is now the 55th largest export market for U.S. goods.

The Joint Committee established by the FTA held its third meeting in December 2012. At meeting, the United States and Morocco announced agreement on three new initiatives: a Trade Facilitation Agreement, Joint Principles for International Investment, and Joint Principles for Information and Communication Technology (ICT) Services. U.S. and Moroccan experts discussed FTA implementation issues including technical barriers to trade, sanitary and phytosanitary issues, and technical assistance to support implementation of the labor and environment provisions of the FTA. The two sides also discussed next steps in implementation of the 2011 Anti-Counterfeiting Trade Agreement (ACTA). Morocco joined the United States in signing the ACTA, an agreement that will raise the standard for intellectual property rights enforcement internationally.

The FTA Subcommittees on Agricultural Trade and Sanitary and Phytosanitary Matters also met in September 2012 and discussed Morocco’s implementation of the tariff-rate quotas established under the FTA to afford U.S. wheat producers preferential access to the Moroccan market. The United States continues to have serious concerns about Morocco’s administration of these tariff-rate quotas

U.S. exports to Morocco in 2016 totaled $1.8 billion, whereas Moroccan exports to the United States totaled $1 billion in the same year resulting in a $2.8 billion trade volume. Trade with the U.S. represents approximately 5.7 percent of Morocco’s total foreign trade, compared to 50.4 percent with the European Union.