Agricultural Agreement: Morocco-EU Ratification accelerated -L'Economiste

Exports of  citrus products and early vegetables will therefore benefit from new parameters and benefits of this new agreement  have been patiently negotiated by both parties. Moreover, the government is accelerating the process of ratification by Parliament, it will be entered into on or before June 30, according to a source familiar with the matter.

The House of Representatives had to decide on  Thursday, June 21 European side, the desire to go faster is clear.  Catherine Ashton, EU High Representative for Foreign and Security Policy, had announced two weeks ago the entry into force of the Agreement by 1 July 2012.  A Period when the Moroccan fresh produce are not present in European markets. The date corresponds to the start of the export  campaign for  processed products of plant and animal origin, most of which benefit from free access to unlimited quantities.

What gains  are expected for Morocco? First, a capital gain resulting from the customs quota increase and enlargement of the list of products benefiting from free access to unlimited quantities, in EU countries. Then revenue due to maintaining a high level of protection for sensitive Moroccan areas. In addition, most agricultural products from the Kingdom receive free access to the market with the exception of a short list.

These are tomatoes, garlic, tangerines, strawberries, cucumber and zucchini, products deemed sensitive by the European side. Under the agreement, upon its entry into force, an immediate there will be an increase in quota of 20,000 tons for tomatoes, and 32,000 for four years.

.Along the same lines, the amounts of zucchini will be reviewed, 30,000 and 36,000 tonnes and cucumber 8800 and 10,600 tons. For garlic, tangerines,strawberries,the improvement is respectively 500, 4,600 and 31,300 tons.

For tomatoes, a  highly sensitive product, higher quotas were limited and spread over five years. This quota includes a penalty of 30,000 tons inflicted  as a result of exceeding the quota under the previous agreement. The tariff applied to this fruit will be applied in  the same way to protect the powerful European producers (Spain and Portugal).

For other products, the principle of complementarity in production on both sides was essentially extended. The current export schedules have been preserved so as to limit the telescoping with periods of  EU  Community production. It is the same system as when  the entry price which was maintained for citrus and vegetables.

To prevent a possible destabilization of the market, a safeguard measure is provided and  it is strengthened by  the consultation mechanisms between Rabat and Brussels.This  would be activated if it is found  that  there is a significant increase in imports into the European market.

The same agreement also  lists a series of open access products on the market: olive oil, green beans, lettuce, stone fruit, melon and wine. But an entry price is maintained for a dozen others representing about 10% of the value of Moroccan exports (Status of 2008 base  year).

For table grapes, apricots and fishing, there are provided conventional prices 30% lower than the entry price of the World Trade Organization (CMC). While other products are subject to WTO entry prices. Morocco has also the provision of most  favored nation in case of granting a benefit to a third country.

Concessions

As a negotiation involves an exchange of favours, concessions were granted to the EU without the agricultural sector is endangered.

Dairy products from the Union freely enter the Moroccan market with the exception of liquid milk and powdered whole milk. Other sensitive products, like olive oil, tomato paste, meat and sausages, are subject to tariff quotas for their entry into Morocco.

To some extent, especially the authorities interpret the few openings as a means of stimulating competition to improve the competitiveness of certain sectors. Indeed, most products will not be liberalized until a decade. Three groups are concerned.The first, to liberalize over 10 years, focuses on breeding animals and seeds.

The second group of 5 to liberalize to 10 years: dairy products, eggs, beans, biscuits, chocolate and confectionery. For wheat, milk and olive oil, there are quotas. And wheat, said a social product, no additional supply is given to the EU calling for an alignment with the agreement signed with the United States. With that country, the hard and soft wheats, as well as fresh apples, are subject to quotas and benefit from preferential tariff treatment on a schedule for each product.

For fishery products, Morocco has always  had free access to the European markets. While EU countries have the same access to tuna,salmon, herring and caviar. In contrast, a 10-year period is planned for canned fish, flour and meal.