On December 22, 2005 the President proclaimed that new tariffs will be effective January 1, 2006 for products entering from Morocco under terms of the U.S. Morocco Free Trade Agreement (USMFTA).  On June 15, 2004, the United States entered into the USMFTA, which was approved by the Congress in section 101(a) of the United States-Morocco Free Trade Agreement Implementation Act (the "USMFTA Act") (Public Law 108-302, 118 Stat. 1103) (19 U.S.C. 3805 note).  The text of the USMFTA can be found at:  http://www.ustr.gov/Trade_Agreements/Bilateral/Morocco_FTA/FInal_Text/Section_Index.html.

Prior to the USMFTA, most U.S. imports of fishery products from Morocco were eligible for duty-free entry as a beneficiary developing country under the Generalized System of Preferences (GSP).  The USMFTA provides that, with two exceptions (clam juice and canned sardines), U.S. fishery products imports from Morocco are immediately eligible for duty-free treatment, including those items previously eligible for GSP treatment.  As a result, 22 items under Chapter 03 of the Harmonized Tariff Schedule of the United States (HTS) (live and fresh and frozen fish products) and 33 items under Chapter 16 of the HTS (processed fish products) are now eligible for duty-free treatment on a permanent basis.  U.S. imports of fishery products from Morocco will likely reach $25 million in 2005, with a substantial portion of that being canned sardines and anchovies.

U.S. exports of fishery products to Morocco were subject to substantial tariffs prior to the free trade agreement, with most products subject to duties of 50 percent.  Under the free trade agreement, most U.S. fishery product exports to Moroccan will enter duty free.  However, a number of more sensitive items will have duties phased out over either a 15-year or nine-year period.  U.S. exports to Morocco are virtually non-existent, but the USMFTA will provide U.S. exporters greatly improved access into the $30 million Moroccan fishery product import market.