Morocco's Free Trade Agreement (FTA) with the U.S. entered into force in 2006, allowing 98 percent of all consumer and industrial products to cross borders without tariffs.  A comparable pace (Association Agreement) with the European Union will take effect in 2010, linking the fourth most populous Arab market to the world's major Western markets.  The FTA with the U.S., coupled with the growing demand for Moroccon goods in Europe, bodes well for Moroccan exports.

Agriculture is important to Morocco, employing about 45 percent of the workforce, but agricultural exports have historically been hampered by unreliable rainfall levels.  With this in mind, the Government of Morocco is strongly promoting growth in non-agricultural sectors, particularly those that lend themselves to privatization efforts, such as banking, telecommunications, aviation, and energy.

Efforts to cut bureaucratic red tape are making headway: there has been a sharp increase in new business starts and, according to Doing Business 2007 (World Bank Group), Morocco was the top business reformer in the Arab world in 2005-2006.  The report suggested that the North African nation was especially effective in simplifying business regulations, strengthening property rights, easing tax burdens, and providing access to credit.

Morocco's economy is highly dependent on phosphate mining and tourism, the country's third largest source of revenue.  According to the Ministry of Tourism, some 6.4 million tourists visited Morocco in 2006 compared to 4.4 million in 2002.  Approximately half of these tourists are native speakers of English, particularly from the UK, and increasing numbers are returning to Morocco to retire, predominately in Marrakech.

Links

Country Commercial Guide (pdf)
CIA Factbook
World Bank
Embassy in the U.S.
U.S. Embassy in Morocco