AMBASSADOR AND MINISTER OF AGRICULTURE

UNCLAS RABAT 000121 C O R R E C T E D C O P Y -------------- ADDED SIPDIS STATE FOR EEB AND NEA/MAG STATE PLS PASS USTR - PAUL BURKHEAD USAID/W FOR MEA SIPDIS E.O. 12958: N/A TAGS: EAGR EAID ETRD EINV KMCA MO SUBJECT: AMBASSADOR AND MINISTER OF AGRICULTURE DISCUSS MCA, TOMATOES AND WATER MANAGEMENT ¶1. Summary: When the Ambassador called on the Minister of Agriculture and Maritime Fisheries Akhannouch on January 14, they focused on agricultural trade, the recent approval of changes to the chocolate standard, the MCA and Maroc Vert's (Green Morocco's) progress, and water resource management. The multi-year joint USG/Mars effort to secure a change in the chocolate standard opens the way for Mars to significantly expand its production, product line and sales in Morocco. End Summary. ¶2. Minister of Agriculture and Maritime Fisheries Aziz Akhannouch warmly welcomed the Ambassador, USAID/Morocco Director, Agricultural Attache and Acting MCC Country Director on January 14. The atmosphere was very amicable. A large team representing the ministry's main sections also attended. The Ambassador asked the Minister about his assessment of the U.S.-Morocco Free Trade Agreement's (FTA's) progress. The Minister responded with an overall positive assessment, citing some progress on the wheat tariff-rate quotas (TRQs) and the publication of final rule for the longstanding issue of exporting tomatoes from the Souss-Massa-Draa region. The Minister, however, voiced some concerns about limited Moroccan exports to the U.S. markets, especially of fruits, vegetables and olive products. He said more work needed to be done for Morocco to realize the full benefits from the FTA. ¶3. The Ambassador told the Minister that the Mars Company was very appreciative of his efforts in finalizing the chocolate standard issue. The Minster said he was delighted to be able to deliver on his promise to Ambassador Riley and DCM to get this issue resolved. The Ambassador said he would inform Ambassador Riley that the promise had been fulfilled. ¶4. Turning to the Millennium Challenge Account (MCA) Compact, the Ambassador asked Minister Akhannouch how well the implementation of the MCA- funded projects in the fishing and agriculture sectors was going. The Minister responded that both projects were innovative and integral to Morocco's strategies in these sectors. The MCA fruit tree productivity project was, in fact, the cornerstone of Morocco's "Green Plan" in the agricultural sector, he said. Implementation of the projects was slowed by procedures and studies required by the MCC, in addition to difficulties encountered on the ground. The Minister said he would be happy to discuss this in more detail during a future meeting. Despite challenges, the Minister was optimistic about the progress made already. He added that the Ministry has made additional efforts to complement the work in the field. ¶5. Finally, the Minister praised USAID for 50 years of support. He noted particularly the manual of procedures produced by USAID to facilitate the ministry's restructuring to better implement the "Green Plan." The Minister described the need to introduce modern farming methods to Moroccan smallholders. He emphasized his desire for U.S. firms to invest in the equipment needed by small farmers and said that U.S. firms can now lease land in Morocco more easily. He would also like to see expatriate firms "aggregate" the production of small farmers to facilitate their transactions with large companies. In response to a question from the Ambassador on the plan's ambitious goals, the Minister emphasized the need for Morocco to build sufficient infrastructure to manage better its water resources. He noted the large amount of water lost to poor infrastructure and land and water management -- a USAID focus for 2010 through 2014. Kaplan