EC/Morocco Euro-Mediterranean association agreement

-OBJECTIVE : Conclusion of a Euro-Mediterranean Agreement establishing an association between the European Communities and their Member States, on the one hand, and Morocco, on the other hand. This agreement will replace the cooperation agreement and the agreement governing ECSC products signed in 1976 which are currently in force. - SUBSTANCE: .General principle : the agreement is for an unlimited period, and will consolidate the existing ties between the European Communities and their Member States, on the one hand, and Morocco, on the other hand, creating a relationship based on reciprocity and partnership; Democratic clause : respect for democratic principles and human rights are a key feature of the agreement; .Main provisions : - regular political dialogue at all levels ; - creation of a free trade area : in accordance with the WTO rules, a free trade area between the Community and Morocco will be created gradually over a period lasting no more than twelve years. Morocco, which up to now has granted the Community no concessions, will gradually eliminate trade barriers affecting the Community's industrial exports, and will apply preferential duties to agricultural exports. The preferential arrangements currently applied by the Community (free market access for Moroccan industrial exports, and concessions on most agricultural exports) are confirmed, and will be further improved with regard to agricultural products). A specific solution had to be found in order to apply the entry-price system introduced in the wake of the Uruguay Round for a number of products, in order to maintain the traditional level of Moroccan exports. More generally, it should be noted that the agreement contains a special clause under which the parties undertake to examine the agricultural trade situation from 1 January 2000 to establish new reciprocal concessions and to liberalize trade. With regard to fishery products, account has been taken of the particular matter of Morocco's exports of canned sardines. - the agreement contains provisions on freedom of establishment and the freedom to provide services. The EC/Morocco Association Council will make its recommendations aimed at implementing these objectives, pending which the parties will respect their obligations under the GATS. The parties will also hold consultations aimed at fully ensuring the free movement of capital. The agreement also provides for the application of Community competition rules to Moroccan companies (and notably rules on transparency). - economic cooperation : existing economic cooperation will be strengthened on as wide a basis as possible in all areas of interest to the two parties, who will hold a regular dialogue on these issues. - social cooperation will go beyond existing provisions: a regular dialogue will cover all social issues of interest to the two parties. This dialogue will be complemented by cultural cooperation. - financial cooperation will assist in attaining the aims of the agreement in accordance with the appropriate procedures and resources. -to supervise implementation of the agreement, an Association Council and an Association Committee with decision-making powers shall be created. At the same time, cooperation between the European Parliament and the Economic and Social Committee and their Moroccan counterparts will be promoted. �