4
thTrade Policy Review of Morocco
June 24th, 2009
Statement by the Republic of Korea Thank you, Mr. Chairman.
I would like to begin by expressing a warm welcome to the delegation of the Kingdom of Morocco for their fourth trade policy review. My appreciation goes to H.E. Minister Maazouz for his detailed and informative presentation which has given us a clear picture of the current economic status and visions for the future of Morocco. My appreciation also goes to Amb. Wasesha for his pertinent comments relevant to our work today, and to the Secretariat for its detailed report.
Mr. Chairman, in reviewing the reports provided, Korea notes the remarkable progress made by Morocco since the past review. Korea commends Morocco for its outstanding track record which includes, among others;
▶ average annual rate of growth of 4.5% during the years 2002 through 2007, and a even higher figure of 5.8% for the year 2008;
▶ near doubling of its per capita GDP during the period;
▶ successful fiscal reform resulting in a turn around of a deficit of 3.9% of the GDP to a surplus of 0.7% of its GDP;
▶ reduction in total debt, and
▶ a successful check on inflation rates.
It is clear Morocco has done many things right, and its success showcases what developing countries can do under a stable, enlightened, and determined leader- ship, with a clear vision and blue-print in hand for economic development which incorporates effective measures for structural reform and a clear strategy for progressive liberalization of its trading and investment regimes.
Mr. Chairman, in line with Morocco’s commitment to economic reform and progressive liberalization of its economy, the economic relations between Korea and Morocco has developed and matured over the years. Since 2003, bilateral trade volume has registered double digit growth, and currently the bilateral trade figures have approached the 600 million dollars per year level. Two way trade exhibit a complementary relationship where Korea exports manufactured goods while importing primary goods essential for sustained economic activity. Korea highly values its current economic relations with Morocco, and hopes that both sides could further endeavor to continuously develop and nurture this relationship.
Without a doubt, my country offers Morocco with an unimpeded and unlimited access to the vibrant Northeast Asia region, while Morocco provides Korean
investors and exporters ease of access into the North Africa and the Mediterranean region.
Mr. Chairman, as I noted earlier, Morocco has done many things right since the last review as the macroeconomic figures indicates. However, from the Korean perspective, there are some aspects of its trading regime which could be further improved. Hoping that the Moroccan delegation could further elucidate us on those matters during the second day, please allow me to point out some of them today.
Firstly, we note that Morocco’s trade is heavily concentrated with a few countries in Europe. While the geographical proximity would point to this inevitable result, my delegation is of the view that in the long run a greater diversification of its trading partners will further expand the growth potential of Morocco. On this note, we wonder if the various preferential agreements signed on by Morocco are part of its efforts to diversify its trading regime, i.e. its proposed solutions, or the root cause of this phenomenon. It would be interesting to hear the Moroccan views to this issue.
Second, my delegation notes that while Morocco’s tariffs are already generally high, relatively high “other duties and taxes” are added on to the tariffs.
Furthermore, we note through the Secretariat report that in many cases ‘parafiscal import taxes’ and value added taxes of up to 20% are further added on to the imports. We believe these levels on aggregate are quite high, higher than for other Members in similar circumstances. On this item, we wonder how Morocco assesses this situation.
Third, recently we have been informed that as a direct consequence of the EU- Morocco Association Agreement, the difference in tariff rate for automobiles manufactured in EU countries and non-EU countries has steadily increased since 2002. As of today, the difference in tariff rate for cars produced in the EU and those produced in non-EU countries stands at 13.5%; we have been informed that this difference is expected to further increase to 20.8% in the year 2011. Faced with this insurmountable imbalance in competitive environment, the importers of non-EU manufactured cars have formed a dedicated organization (“Groupement des Importateurs de Vehicules pour l’Equite Tarifaire”, GIVET) in their attempts to remedy the situation.
While difference in tariff rates between a contracting party to a FTA and a non- party to the FTA is understandable, the situation non-EU car manufacturers face in Morocco seem to be much graver than the norm. As such, I would like to inquire if Morocco has plans to further reduce its MFN applied rates on automobiles, or may
defer the scheduled reduction of tariff rates on automobiles under the EC-Morocco Association Agreement.
Mr. Chairman, two weeks ago my delegation submitted some advanced written questions to Morocco. I understand these answers will be provided shortly. I would like to express our gratitude in advance for them. My delegation will review the answers, and revert on the second day if necessary.
In closing, I would like to extend the best wishes of this delegation to the delegation of the Kingdom of Morocco on their 4th Trade Policy Review.
Thank you, Mr. Chairman.
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