AMENDMENT OF MOROCCAN-TURKISH FREE TRADE AGREEMENT. WHAT IS NEW
The Moroccan Council’s Government approved on October 08th, 2020, the draft law No. 54.20, amending the Moroccan-Turkish Free Trade Agreement (FTA), which was previously signed on August 24th by both parties in Rabat.
The main amendments to this agreement are about:
- The adoption of a negative list of more than 1,200 local products grouped into 630 tariff positions impacted by Turkish imports, relating in particular to the textile and clothing, leather, metallurgy, electricity, wood and automobile.
- Turkish exports falling under this list, which are currently exempted from custom duties, will be subject to a customs duty equivalent to 90% of the common customs duty in force.
- This list will be extended to include products currently subject to trade defense measures as soon as they expire (sheet metal, reinforcing bars, insulin, notebooks, wire rod, refrigerators, coated wood panels, PVC, etc.).
- This list will be revised annually to adapt it to the economic situation.
- The reinstatement of customs duties will be carried out over a period of 5 years, renewable by mutual agreement, for 5 other years.
- The Joint Committee will meet 3 months before the expiration date of the first 5-year period, in order to assess the results of the implementation of these amendments.
This document provides general information on the subject and does not constitute a legal opinion or recommendation. Consulting a specialist is recommended before taking an action. No claim arising from the content of or relating to this document can be asserted against NAZALI.