VZCZCXYZ0033
RR RUEHWEB

DE RUEHRB #0104/01 0201815
ZNR UUUUU ZZH
R 201815Z JAN 06
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 2556
INFO RUEHCL/AMCONSUL CASABLANCA 1120

UNCLAS RABAT 000104 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EB/CBA DWINSTEAD 
 
E.O. 12958: N/A 
TAGS: ETRD BEXP MO
SUBJECT: FY06 BFIF PROPOSAL - MOROCCO 
 
 
REF: 05 STATE 189815 
 
¶1. Embassy Rabat seeks to use $11,000 of Business 
Facilitation Incentive Funds (BFIF) funding to support the 
U.S.-Morocco Free Trade Agreement (FTA) that was implemented 
on January 1, 2006.  This funding leverages funding from the 
American Chamber of Commerce (AmCham) in Morocco.  This is 
the first FTA the USG has in Africa and only the second one 
with an Arab country.  This FTA is one of the first steps in 
the Middle East Free Trade Area envisioned by the USG. 
Therefore, it is imperative that the U.S.-Morocco FTA 
succeed and act as a catalyst for other countries in the 
region.  The USG, through the Department of Commerce, USAID 
and the Middle East Partnership Initiative (MEPI), has 
already spent several million dollars to prepare the 
Moroccan economy for the FTA.  Now, we seek to build upon 
these efforts by linking U.S. and Moroccan businesses to 
take the final steps toward doing business with each other. 
 
¶2. Post seeks to use BFIF funds, in conjunction with AmCham 
funding, to bring five trainers from the U.S. to Morocco to 
teach American and Moroccan companies how to use the 
provisions in the FTA to their advantage to trade with one 
another and therefore increase trade between our two 
countries.  The USG funding will pay for the travel and 
interpretation service expenses of five trainers to come to 
Morocco to conduct sector-specific training sessions in 
selected Moroccan cities.  This program will be further 
leveraged by working with the American Chamber of Commerce 
(AmCham) to help promote these training sessions by using 
its well-established network of contacts and its own funding 
for all other expenses including per diem, honoraria for 
local experts, local transportation and advertising 
(approximately $8,300). 
 
¶3. Justification: The proposed sector-specific training 
sessions will help to support post's MPP goals of increasing 
trade with and investment in Morocco, reducing unemployment 
by helping to encourage job creation, and increasing 
economic growth and development.  All of these features also 
support the goals of the Millennium Challenge Corporation 
(MCC), which is currently negotiating a compact with the GOM 
for using USG assistance funds to stimulate economic growth 
in Morocco and increase human development.  Both of these 
issues are extremely important in combating global terrorism 
that finds a fertile breeding ground in impoverished lands 
where people have little hope of a better future. 
 
¶4. Planning milestones: Post and AmCham plan five sector- 
specific training sessions in the automotive components, 
agribusiness, chemicals, apparel and pharmaceuticals 
sectors, which we deem likely to benefit from the FTA.  Each 
trainer will spend approximately one week in Morocco and 
conduct several training sessions in various cities during 
that time.  Trainers will visit Morocco in the February to 
April timeframe to help assure a quick start to FTA-related 
business activities.  AmCham, with input from post, will 
select the trainers and cities, identify target audiences, 
arrange local transportation and other logistics, and 
perform management duties of the program. 
 
¶5. Performance metrics or anticipated outcomes: Increased 
trade between the U.S. and Morocco.  Currently, bi-lateral 
trade is under $1 billion per year and relatively balanced. 
The U.S. accounts for only about 4 percent of Morocco's 
foreign trade and post's MPP calls for a 10 percent increase 
in bilateral trade in each of the next four years.  In 
addition to supporting the FTA, the proposed BFIF activities 
should create domestic American jobs and boost the U.S. 
economy by raising export levels.  A successful FTA should 
help encourage further economic liberalization in Morocco 
and reinforce its western orientation and promote global 
stability. 
 
¶6. Estimated costs:    $11,000.  Airfare for each of the 
five trainers will cost approximately $1,000 and 
interpretation services should be about $6,000. 
 
¶7. Point of Contact: David Schnier, Economic Officer 
                     Tel: (212) 37 762265 ext. 2131 
                     E-mail: schnierdm@state.gov 
 
¶8. Leveraging funding from other DOS bureaus and/or 
agencies:  USAID and MEPI have already spent approximately 
$7 million on various projects to support the FTA and 
increase trade with Morocco in recent years.  The proposed 
BFIF activities reinforce the current USAID programs in 
support of the FTA.  In addition, AmCham will make a 
significant financial and in-kind contribution to the 
proposed BFIF activities. 
 
 
¶9. Project outcome/success criteria:  Increased levels of bi- 
lateral trade and U.S. exports, improved business 
environment in Morocco, and increased opportunities for 
American businesses.  In addition, the proposed program will 
help modernization and development of the Moroccan economy, 
create jobs, raise the standard of living, and help combat 
terrorism. 
 
¶10. Follow-up strategy:  Post is currently planning a 
business conference targeting the automobile sector in 
Morocco.  We are closely monitoring progress on the Tangier 
Port facility that could become a major trans-shipment point 
for goods destined to the European Union.  Morocco is likely 
to secure the largest grant in the MCC program that has 
economic growth as its primary focus.