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.