Kingdom of

Morocco
SADIA SULTAN 25TH STP PITAD
Sequence
▪ Introduction
▪ Economic & trade profile of Morocco
▪ Global trade of Morocco
▪ Pakistan-Morocco bilateral trade
▪ Competitors analysis
▪ Market access
▪ Trade regimes
▪ Potential sectors for export
▪ Challenges
▪ Conclusion & Recommendations
2
Introduction
 Look Africa 2017
▪ 54 states – collective GDP $2.20 trillion
▪ Total trade - $ 1 Trillion
▪ Growth rate projected at 4.5% (2017)
▪ Rich in natural resource
▪ Receiving renewed focus
▪ Pakistan commercial Sections in only
four African Countries, Kenya, South
Africa, Nigeria, Morocco.
▪ Proposed commercial sections in
Egypt, Tanzania, Ethiopia, Sudan,
Algeria
4
Ten 10 Economies of Africa
Rank Country GDP in Billion US $
1 Nigeria 538
2 Egypt 331
3 South Africa 266
4 Algeria 166
5 Morocco 108
6 Sudan 94
7 Angola 81
8 Ethiopia 67
9 Kenya 65
10 Tanzania 46

Source: IMF Figures Feb 2017

6
Economic & trade profile of Morocco (2017)
Gross Domestic Product $109.8 billion
GDP per Capita $8,400 (2016 est.)
GDP growth Rate 4.2%
GDP Composition Agriculture 14.8 %
Industry 29.1 %
Services 56 %
   
Exports $25.6 billion
Major export items Motorcars and other motor vehicles, wires and cables, minerals and chemicals,
apparels and textiles etc. (2017)-UNCOMTRADE
Top Export Partners Spain 24%, France 23%, Italy 5%, US 5 %, India 3 % (2017)
 
Imports $45.10 billion (2017)
 
Major Import items Medium oil and preparations, butanes, liquefied, motor cars, parts of aero plane, textile
fabric, telecommunications equipment, wheat, gas and electricity, transistors, plastics
(2017)
Major Import Partners Spain 17 %, France 12 %, China 8.5%, US 7%, Italy and Germany 6 % Germany 5.8%
(2017.)

Source: CIA Fact book

Global trade of Morocco
Morocco Global Trade (USD Billion)

Source: Ministry of Commerce & Textile

 Industry’s composition of Morocco’s Trade
(2017)
25%
22%

20%
17%
17%
16% 16%
15% 14% 14%
12% 12%
11% 10%
10%
8%
7% 7%
6%
5%
5% 4%

1% 1% 1%
1% 1%
0%
Textiles Plastics, Iron and steel, Machinery Mineral Others Articles of Vehicles Chemicals Electrical Agriculture
Articles of products apparel equipment
plastic

Share of Industry in Exports Share of Industry in Imports 10

Source: UNCOMTRADE
 Morocco Top Trade Partners (2017) USD Billion
Source: ITC
Top 10 Export Partners Top 10 import partners
Exports to Share in Total Imports from Share in
Partners Partners Exports Partners Partners imports
Spain 6.06 24% Spain 7.61 17%
France 5.86 23% France 5.36 12%
Italy 1.18 5% China 4.08 9%
United States of United States of
America 1.01 4% America 3.09 7%
Brazil 0.76 3% Germany 2.72 6%
Germany 0.72 3% Italy 2.62 6%
Turkey 0.71 3% Turkey 1.98 4%
India 0.66 3% Portugal 1.39 3%
United Kingdom 0.60 2% United Kingdom 1.02 2%
Netherlands 0.55 2% Russian Federation 0.96 2%
11
Pakistan (18th) 0.22 1% Pakistan (61th) 0.036 0.08%
Pakistan – Morocco
bilateral trade
 Pakistan - Morocco trade
(Value In million US$)

% share of
Pak Exp to
Years Exports Imports Total Trade Balance Exports to
World
Morocco

2012-13 19.69 358.18 377.86 -338.49 24500

0.08
2013-14 16.92 232.87 249.8 -215.95 25200 0.07
2014-15 15.3 317.12 332.42 -301.82 23700 0.06
2015-16 15.7 334.45 350.15 -318.75 20800 0.08
2016-17 20.22 267.42 287.64 -247.2 20800 0.10
2017-18 24.93 296.1 321.03 -271.17 23200 0.11

13

Source: FBR
 Pakistan’s Top 10 Exports to Morocco
Source: FBR (US $ Million)
S. No HS 6 Codes HS 6 Description 2017-18 2016-17
1 520512 Cotton yarn 3.32 2.80
2 520942 Denim fabrics of cotton 2.74 2.99
3 520912 Twill weave cotton fabric 2.30 1.93

4 520524 Cotton yarn,>/=85%, single, combed 1.72 2.05

5 100630 Rice, semi-milled or wholly milled, 1.67 0.43

6 521021 Plain weave cotton fab, 1.15 1.05
7 520922 Twill weave cotton fabrics 1.02 0.69
8 611610 Gloves impregnated, coated or covered with plastics or rubber, 0.78 0.54
9 300490 Medicaments nes, in dosage 0.69 0.62
10 551341 Plain weave polyester staple fib fab,<85%,mixd w 0.52 0.38
14

Source: Trade map

 Pakistan’s Top 10 Imports from Morocco
Source: FBR (US $ Million)
S. No HS 6 Codes HS 6 Description 2017-18 2016-17
1 280920 Phosphoric acid and polyphosphoric acids 226.77 220.21
2 251010 Natural calcium phosphates, aluminum calcium phosphates 35.94 45.47
3 310530 Diammonium phosphate, 31.31 -
4 720430 Waste and scrap, of tinned iron or steel 0.65 0.74
5 720441 Ferrous waste & scrap,i or s,from the mechanical 0.29 0.12
6 390720 Polyethers nes 0.18 -
7 760200 Waste and scrap, aluminium 0.16 0.04
8 630900 Worn clothing and other worn articles 0.10 0.36
9 620640 Womens/girls blouses and shirts, of man-made fibres, 0.09 0.01
10 620463 Womens/girls trousers and shorts, of synthetic fibres, 0.06 -
15

Source: Trade map

Composition of Pakistan’s Merchandise exports
to Morocco
Medi
cal
or
surgi
cal
instr
Che
Othe
umeLeat
Agric
mical
r
s nts,her
ultur
e 4% 2% 2% 4%
9%
Articl
es of
appa
rel
10% Textil
es
70%

16
Composition of Pakistan’s Merchandise imports
from morocco

Mineral
produc
ts Others
12% 1%

Chemi
cals
87%

17
 Pakistan-Morocco Bilateral Trade in Services
25.00
20.00 18.33
17.93
15.00 14.36 14.22
14.21 11.44 13.43
10.00 11.14

5.00
0.00 0.15 0.40 0.30 0.79
2013-2014 2014-2015 2015-2106 2016-2017
-5.00
-10.00
-10.85
-15.00 -12.63
-14.07
-20.00 -17.54

Total Trade Balance Exports Imports

18

Source: SBP
 Composition of services trade (2016-17)

▪ Pakistan’s major services imports from Morocco are:

▪ Transportation services (85%)
▪ Government services (9%)
▪ Business services (3%).

▪ Pakistan’s top services exports to Morocco during include;

▪ Government services (96%)
▪ Business services (22.4%).

19
 Institutional arrangements

▪ Pak – Morocco Joint Ministerial Commission (JMC)

▪ Pakistan-Morocco Joint Business Council (JBC)
▪ Pakistan-Morocco Preferential Trade Agreement .

20
Competitors Analysis
 10 product categories of export items from Pakistan
Product Code Product Label US$ million
52 Cotton 16.738
55 Man-made staple fibres 4.280
61 Articles of apparel & clothing accessories, knitted or crocheted 1.552
62 Articles of apparel & clothing accessories, not knitted/ crocheted 0.949
90 Optical, photographic, cinematographic, measuring, checking, 0.733
  precision, medical or surgical ...  

33 Essential oils & resinoids; perfumery, cosmetic/toilet preparations 0.660

63 Other made-up textile articles; sets; worn clothing and worn 0.658
  textile articles; rags  
73 Articles of iron or steel 0.442
30 Pharmaceutical products 0.427
42 Articles of leather; saddlery and harness; travel goods, 0.363
  handbags and similar containers; articles ...  

22

Source: ITC (2016)

 PRODUCT CODE: 52 (Cotton)

Sr. No Name of Exporting Country Value in US$ Million

  World 522,737
1 Turkey 140,413
2 Spain 101,127
3 Italy 56,925
4 United States of America 48,110
5 China 37,543

Trade map 23
 PRODUCT CODE: 55 (Man-made staple fibers)

Sr. No Name of Exporting Country Value in US$ Million

  World 677,501
1 China 122,853
2 Italy 111,181
3 Spain 105,048
4 Turkey 104,721
5 France 39,099

Trade map
24
 PRODUCT CODE: 61 (Articles of apparel and
clothing accessories, knitted or crocheted)

Sr. No Name of Exporting Country Value in US$ Million

  World 162,392
1 China 43,406
2 Turkey 41,793
3 Portugal 13,587
4 India 13,080
5 Spain 12,606

Trade map 25
 PRODUCT CODE: 62 (Articles of apparel &
clothing accessories, not knitted / crocheted)

Sr. No Name of Exporting Country Value in US$ Million

  World 222,002
1 China 48,102
2 Turkey 40,034
3 Spain 36,384
4 France 25,577
5 Bangladesh 15,125

Trade map 26
 PRODUCT CODE: 90 (Optical, photographic,
cinematographic, measuring, checking, precision,
medical or surgical ...)

Sr. No Name of Exporting Country Value in US$ Million

  World 487,936
1 France 84,369
2 China 73,159
3 United States of America 63,802
4 Germany 59,849
5 Italy 28,470

Trade map 27
 PRODUCT CODE: 33 (Essential oils and resinoids;
perfumery, cosmetic or toilet preparations)

Sr. No Name of Exporting Country Value in US$ Million

  World 292,432
1 France 84,748
2 Ireland 27,981
3 Spain 26,234
4 Germany 17,918
5 Poland 14,834

Trade map 28
 PRODUCT CODE: 63 Other made-up textile articles;
sets; worn clothing and worn textile articles; rags)

Sr. No Name of Exporting Country Value in US$ Million

  World 80,212
1 China 20,199
2 Turkey 14,030
3 Spain 11,943
4 Germany 7,884
5 France 4,895

Trade map 29
 PRODUCT CODE: 73 (Articles of iron or steel)

Sr. No Name of Exporting Country Value in US$ Million

  World 1,159,762
1 Spain 266,800
2 China 179,589
3 France 157,956
4 Korea, Republic of 127,902
5 Italy 77,079

Trade map 30
 PRODUCT CODE: 30 (Pharmaceutical products)

Sr. No Name of Exporting Country Value in US$ Million

  World 556,596
1 France 146,374
2 Germany 75,988
3 United States of America 53,993
4 Switzerland 38,183
5 Italy 34,955

Trade map 31
 PRODUCT CODE: 42 (Articles of leather; saddlery and
harness; travel goods, handbags and similar containers;
articles ...)

Sr. No Name of Exporting Country Value in US$ Million

  World 96,507
1 China 35,754
2 Portugal 18,068
3 Italy 13,275
4 Hungary 7,446
5 France 5,277

Trade map 32
 Regional competitors trade analysis
Value Growth in
Ranking of partner Trade balance Share in
imported in imported value
countries in Exporters 2017 (USD Morocco's
2017 (USD between 2013-
Morocco's imports thousand) imports (%)
thousand) 2017 (%)
  World 45,083,310 -19,476,456 100 -1
3 China 4,082,507 -3,775,023 9.1 6
15 India 615,500 49,254 1.4 2
42 Indonesia 132,850 -100,833 0.3 12
46 Malaysia 100,315 -91,390 0.2 1
60 Bangladesh 43,354 48,882 0.1 14
61 Pakistan 35,673 187,085 0.1 5
66 Philippines 27,056 -21,043 0.1 22

Trade map 33
 Strategy analysis of competitors (no RTA’s)
Competitors Major exports Strategy
China textiles, machinery, - Political engagement at highest level (2016 – King’s visit).
electrical equipment, tea, - Visa free entry for Chinese business men
articles of iron & steel, - Direct selling through wholesale establishments
furniture & bedding and - Bank of China presence
vehicles etc. - Chinese FDI; JV’s at PPP level to exploit duty free access
to EU, USA & others
- Pursuing FTA
India textiles, pharmaceuticals - Political engagement at highest level (2015 – King’s visit).
& chemicals, machinery, - Strong cultural influence though Bollywood
vehicles and minerals etc. - Technical assistance by India – ICT Center
- Trade bodies & local chambers have established
institutional level cooperation with counterparts.
- Bilateral investment (JV’s -PPP) – India’s phosphate plant
in Morocco & Morocco’s investment in fertilizer sector in
India. TATA motors plant in Casablanca. PepsiCo India’s
acquisition of all bottling operation’s.

34
 Strategy analysis of competitors (no RTA’s)
Competitors Major exports Strategy
Indonesia coffee & tea, iron & - Political engagement (i.e. sister city agreement between
steel, manmade fibre, Jakarta and Casablanca, 1990)
edible oil, machinery & - Cultural ties (i.e. Indonesian Food Festival hosted in
rubber etc. Morocco)
- Morocco-Indonesia Business Council (2014)
- Visa-free entry policy
- Opening of the Trading House Representative Office (2014)
- Opening of Islamic Center for Development and Trade in
Casablanca
Malaysia electrical & consumer - Technical assistance & cooperation (i.e. education, student
products, edible oil, exchange programs)
chemical materials, - Tourism exchanges
textile & clothing, rubber - Trade fairs participation
products, transportation
equipment etc.
Bangladesh Textile & apparel - Significant increase due to major brands opening outlets in
Morocco – imports from Bangladesh
Philippines electrical & medical - No diplomatic engagement – ties through Libya
machinery
35
Market access
 Tariff & NTB’s faced by Pakistan’s exports

Tariff Barrier NTB’s

External MFN Tariff Import licensing
0.25% Para fiscal tax SPS measures
Internal VAT (ad valorem)
Internal Consumption tax

Source: WTO 37
 MFN Tariff structure (2009 -2015)
    2009 2015 bound tariff rate
1. Bound tariff lines (% of all tariff lines) 100 100 100
2. Simple average of applied MFN rates 20.2 12.5 42.2
  Agricultural products 44.5 30.0 58.0
  Non-agricultural products 16.3 9.5 39.6
  Agriculture, hunting, forestry and fishing 29.0 16.5 41.5
  Mining and quarrying 9.1 4.2 36.8
  Manufacturing 19.9 12.3 42.3
3. Duty-free tariff lines (% of all tariff lines) 0.1 0.1 0.1
4. Simple average rate (dutiable lines) 20.2 12.5 42.3

38

Source: WTO
 Internal & import VAT comparison (2015)

Product Internal VAT (%) Import VAT (%)

Powdered milk 0 0 (babies), 7 (food), 20 (other)
Dates packaged in Morocco 0 20
Virgin olive oil 0 10 (food), 20 (other)
Oils other than edible oils .. 20
Cereals, grains and straw 0 0 (food), 20 (other)

Fresh, chilled or frozen fish 0 20

Source: WTO 39
Trade Regime
 Coverage of the
Parties & Agreement Effective date
Agreement
Morocco - United States 01.01.06 Goods & Services
Morocco – Turkey 01.01.06 Goods
Morocco - European Union 01.03.00 Goods
New agricultural protocols (in
the form of an 01.10.12 Goods
RTA’s concluded by
exchange of letters with the EU)    
Morocco
Morocco - European Free Trade
54 RTA’s
Association (EFTA) 01.12.99 Goods
Agreement establishing the
Greater Arab Free Trade Area
(GAFTA) 01.01.98 Goods
Global System of Trade
Preferences among Developing
Countries (GSTP) 19.04.89 Goods
Agadir Agreement 06.07.06 Goods
Morocco - United Arab Emirates 09.07.03 Goods
Morocco – Tunisia 16.03.99 Goods
Arab Maghreb Union Non-operational Goods
41
Applied MFN rates and preferential rates

42
 EU – Morocco FTA
Agricultural products Fisheries
Non-agricultural
Trade
products
WTO definition products
Duty free except for
141 lines, average
Reduced customs duties: Reduced customs duty: 0.2%, (MFN:
average of 16.3% (MFN: 30%). duties: average of 9.3%); average duty
Imports into Morocco: Average dutiable rates on 1,071 10.60% (MFN: on the 141 dutiable
products originating in EU dutiable lines:39% 16.6%) lines: 17%
Reduced customs duties and
tariff quotas: average of 0.4%
Imports into EU: products (MFN: 14.4%). Average duty on Duty free (MFN:
originating in Morocco the 48 dutiable lines: 36% 12.0%) Duty free (MFN: 3.8%)

Source: WTO 43
US – Morocco FTA
▪ Came into force in 2006
▪ Boosted trade volume from US$1 billion in 2004 to US$4 billion in 2012
▪ FDI is also covered under the agreement. More than 120 US companies are now
established in Morocco representing investment of over US$2.2 billion.
▪ Includes non-agricultural products (including fisheries products, but not textiles
and clothing) and agricultural products (sensitive products subject to annual tariff
quota).
▪ As pertains to trade in services and to investment, the FTA provides for all
sectors to be free of restrictions, barring those specified in a "negative" list.

44
Potential sectors for
trade
Source: ITC
 Morocco's Pakistan’s
Pakistan’s Indicative
Hs code 2 Description Global Exports to
Global Exports Potential
Imports Morocco

8 Edible fruit and nuts; peel of citrus fruit or

melons 353.931 210.744 0.001 139.629
10 Cereals 1751.542 1117.834 0.698 15.902
17 Sugars and sugar confectionery 511.945 532.025 0.049 22.434
Salt; sulphur, earths and stone; plastering
25
materials, lime and cement 385.54 581.198 0 547.656
Mineral fuels, mineral oils and products of
27 their distillation; bituminous substances;
mineral waxes 258.511 7168.648 0 2951.594
30 Pharmaceutical products 207.352 592.436 0.796 289.911
39 Plastics and articles thereof 271.983 1879.309 0 356.866
52 Cotton 3497.681 528.917 15.703 359.267
55 Man-made staple fibres 256.197 646.977 1.184 245.218
62 Articles of apparel and clothing accessories,
not knitted or crocheted 2465.34 247.795 0.342 123.951
Optical, photographic, cinematographic,
90 measuring, checking, precision, medical or
surgical instruments and apparatus; parts 46

and accessories thereof 410.57 545.444 0.509 145.454

 Potential sectors export analysis
Significance Value of exports by Potential for export
Morocco (2017)
Textile - 2nd largest exports of $3.169 Billion - major - Industrial
Morocco share of Apparel & Acceleration Plan (PAI)
- Not a cotton producing Clothing (US$ 2.399 2015
country billion) - Demand for yarn &
fabric
Food & agro sector - 40% imports of grains to $1.39 Billion of Cereals - wheat, corn, sugar
fulfill local consumption alone cane, soybean oil,
barley, green tea,
coffee and butter
- Rice, Dry fruits,
Mangoes
Healthcare - Current medical $ 545 million medical - Surgical goods
equipment market 90% equipment market (increasing demand
dependent on imports - US$ 670 million by
2019)

Trade map & Ministry of Industry, Trade & Investment Morocco 47

 Potential sectors export analysis
Significance Value of imports by Potential for export
Morocco (2017)
Leather & leather - Meet local consumption $ 122 million - hides, skins and
products - High exports to EU & US leather products

Automotive parts - investment from car giants - Auto parts

Renault and PSA Peugeot
Citroen
Other sectors - footballs, hockey,
martial arts and
boxing; cutlery items;
essential oils and
beauty products;
spices

48
Trade map
Challenges &
Recommendations
 Challenges
▪ Customs procedures (discretionary powers of authorities)
▪ Market Access
▪ Strict visa regime
▪ Language barrier
▪ Substantial volume of export from Pakistan is being routed to Morocco through third countries
from Gulf or EU in order to exploit the preferences in customs duties for these countries.
▪ High logistics cost

50
Recommendations
▪ Trade Diplomacy (PTA with Morocco & ▪ Brand Sourcing
FTA’s with African trade blocs)
▪ Warehousing
▪ Visa Facilitation
▪ Joint Ventures
▪ High Level Delegations
▪ Supply Side Support
▪ Joint Ministerial Commission
▪ Promotion Of Brand Name
▪ Joint Business Council “Emerging Pakistan”
▪ Exploring Trade With Other African
Countries
▪ Investment Enhancement Plan  

51
Export Promotion strategy
▪ Market Intelligence ▪ Pakistan’s Exporters
▪ Participation in Trade Fairs . Delegation to Morocco

▪ Pakistan Pavilions in Trade ▪ Networking with buyers /

Fairs in Morocco   importers
▪ Community Business
▪ Single Country Exhibition
▪ Direct Business To Business
▪ Moroccan Buyer’s
Delegation to Pakistan (B2B) Contact

52
Conclusion