TRADE AGREEMENT MONITORING AT EMBASSY RABAT

UNCLAS RABAT 001868 SIPDIS SENSITIVE SIPDIS STATE FOR NEA/MAG AND EB/TPP/MTA EKOCH, STATE PASS USTR FOR HIRSH AND BELL, USDOC FOR TCC/4110, USDA FOR ITP/FAS/BERTSCH E.O. 12958: N/A TAGS: ETRD BEXP MO SUBJECT: TRADE AGREEMENT MONITORING AT EMBASSY RABAT REF: STATE 152063 Sensitive but unclassified - entire text. Not for internet distribution. ¶1. (SBU) Since the entry-into-force of the U.S.-Morocco Free Trade Agreement on January 1, 2006, the U.S. Mission in Morocco has made monitoring of Moroccan compliance with the agreement a top priority. We carry out this responsibility through an interagency team, chaired by the Embassy Economic Counselor, and including all economic agencies at both the Embassy in Rabat and the Consulate General in Casablanca. We also work closely with the U.S. private sector through the American Chamber of Commerce in Casablanca, to learn its concerns and exchange information about compliance issues. The following information is keyed to the action request in para 11 of reftel: ¶A. Mission Organization: The interagency Trade Agreement Monitoring and Compliance Team at Embassy Rabat is chaired by the Economic Counselor and includes representatives from FCS (Commercial Counselor Rick Ortiz, who is based at the Consulate in Casablanca),FAS (Embassy Agricultural Attache Michael Fay),USAID (Economic Growth Team Leader James May) and the Economic Section (both the counselor and Trade Officer Jim Jimenez). It meets on a monthly basis to review developments relating to the FTA, and briefs Mission leadership on emerging issues, both to solicit their guidance and to enlist them in lobbying the GOM. ¶B. Contact person: Economic Counselor Stuart Smith; 212-37-76-22-65, x2132; fax 212-37-76-39-84; e-mail smithsm2@state.gov. ¶C. Complaint Response Activities: Mission's interagency team is currently working with American businesses regarding what we perceive to be excessive Moroccan restrictions on transhipment of American goods through third ports in Europe. After extensive contacts with industry and intial conversations with GOM officials, we are in the process of scheduling a direct video-conference between U.S. and Moroccan customs officials, to permit U.S. and Moroccan trade and customs officials to discuss the issue directly. We are also engaged in discussions about bilateral differences regarding allocation of quotas for grain imports under the agreement. Similarly, when the Moroccans raise questions or concerns about U.S. implementation of the agreement, we relay those inquiries to Washington agencies. ¶D. Proactive Monitoring: Members of mission's interagency team meet regularly with American businesses, including a monthly session with the Free Trade Committee of the American Chamber of Commerce in Casablanca. When we receive specific complaints, as regarding transhipment, we follow up agressively, lobbying Moroccan agencies on the company's behalf, and when that is unsuccessful, pressing for direct exchanges between U.S. and Moroccan experts to resolve the difference in interpretation of the agreement. ****************************************** Visit Embassy Rabat's Classified Website; http://www.state.sgov.gov/p/nea/rabat ****************************************** RILEY