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Journal of Economic Integration 2007 December;22(4) :852-887.
DOI: https://doi.org/10.11130/jei.2007.22.4.852
The Free Trade Agreement Between the United States and Morocco: The Importance of a Gradual and Assymetric Agreement
Mustapha Sadni Jallab
Lahsen Abdelmalki and 
René Sandretto 
United Nations Economic Commission, Africa
University of Lyon
Copyright ©2007 Journal of Economic Integration
ABSTRACT

The agreement recently signed between Morocco and the United States foresees s veral modalities in dismantling tariffs. Our simulations show that the various modalities of trade liberalization may have different impacts on the welfare, the rate of growth and the sectoral trade balance of these two countries. More precisely, our findings justify the interest of a gradual and asymmetrical agreement. In addition, the free trade agreement (FTA) between the US and Morocco will have a significant impact not only on trade between the two countries, but also on their trading relationships with other countries. The most important trade diversion will affect the EU and particularly France, which is Morocco's largest trading partner. It will also adversely affect the other North African countries. The FTA will thus offer the opportunity to Morocco to diversify its markets and its capabilities, which are currently focused on the EU, particularly on France and Spain.

JEL classification:

F13 - Commercial Policy; Protection; Promotion; Trade Negotiations

F17 - Trade Forecasting and Simulation

C68 - Computable General Equilibrium Models

Keywords: Trade Policy | Liberalization | Free trade Agreement | Simulation | CGE Model | Morocco | United-States
 
REFERENCE
1. Abdelmalki L. and Sandretto R. (2000), "La PME marocaine dans les enjeux globaux de la coopération industrielle et financière euro-maghrébine". Colloque Economie émergentes et politiques de promotion de la PME, Rabat, 5 octobre.
2. Adams, P., M. Horridge, B. Parmenter, and X. Zhang (1997), "Long-run Effects on China of APEC Trade Liberalization", Unpublished paper based on a report prepared for the East Asia Analytical Unit, Department of Foreign Affairs and Trade, Canberra, Australia.
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