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Govt optimistic about ongoing trade agreement with Mercusur

08
Apr '08
A meeting for negotiation of a Free Trade Agreement between Morocco and the Mercosur was initiated yesterday on April 7 in Rabat.

The two day meeting will close today and was attended by representatives of both the Governments. Discussions will revolve around whether there would be a free trade or a fixed tariff preference.

While in case of the former, agreement would involve around all kind of products, in case of the latter, discussions will be limited to a group of goods to be traded.

This is the first meeting between the two regions after the signing of a framework agreement in November 2004.

Agenda of the meeting includes reforms in Moroccan financial sector and macroeconomic situation and origins, operation and foreign tariffs of South American bloc on part of Mercosur.

The main objective is to familiarize both the regions about the existing conditions and norms and plan out the strategies for future.

While Morocco aims to sell textile products among others to Mercosur, Brazil in turn intends to export textile, machinery and equipments other related products.

In the first two months of this year, trade between Brazil and Morocco saw an unrestricted growth.

Brazilian exports to the Arab country rose from US $42 million in January and February of last year to $82.9 million in the same period this year. An average increase of 97.4 percent was registered.

On the other hand, Morocco exported $161.4 milion worth goods to Brazil against $26.7 million recorded in the same period of 2007. Products transacted mainly include phosphates and naphtha for petrochemical industry.


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