The U.S., Morocco Free Trade Agreement (FTA), signed in June 2004, has provided the United States a significant market advantage with its recent tariff reduction of U.S. corn. As of June 1, 2009, the government reinstated tariffs on corn imports with U.S. origin a 7 percent tariff and a 17 percent tariff for other origins. Chris Corry, USGC senior director of international operations, said, “As of Jan. 1, 2010, the Moroccan government has reduced the tariff for corn of U.S. origin by half, to 3.5 percent, while import tariffs for other origins were reduced from 17 percent to 10 percent, providing the United States a significant market advantage.� According to U.S. Grains Council Consultant Dr. Abdellah Ait Boulahsen, “Since Aug. 1, 2009, the United States has been virtually the only supplier of corn to Morocco, with a total of 705,200 metric tons (27.7 million bushels) exported through December 2009.�
With the tariff reduction on the horizon, the Council had been working in the region at great lengths to build a market for the U.S. feed ingredient, offering educational opportunities to local buyers and other end-users. “It is anticipated that sales of U.S. corn will remain robust in Morocco with the reduced tariff on U.S. corn, as agreed upon in the FTA,� said Chip Councell, USGC Trade Policy Advisory Team leader. As the Moroccan market continues to grow, the Council will continue programming in the region to assist end-users in tackling the issues impeding the growth of the feed industry and livestock sector, a benefit to both U.S. producers and the global economy.
Written by Jodi Kiely, USGC Contributing Writer