VZCZCXRO3154
RR RUEHLMC
DE RUEHRB #1111/01 1600748
ZNR UUUUU ZZH
R 090748Z JUN 06
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 3967
INFO RUEHCL/AMCONSUL CASABLANCA 1780
RUEHAS/AMEMBASSY ALGIERS 4028
RUEHTU/AMEMBASSY TUNIS 8920
RUEHNK/AMEMBASSY NOUAKCHOTT 3201
RUEHFR/AMEMBASSY PARIS 4237
RUEHRO/AMEMBASSY ROME 1470
RUEHMD/AMEMBASSY MADRID 5527
RUEHLO/AMEMBASSY LONDON 2974
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/USDOC WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEHRC/USDA FAS WASHDC 0916
RUEAORC/USCBP WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEAEPA/HQ EPA WASHINGTON DC

UNCLAS SECTION 01 OF 02 RABAT 001111 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR NEA/MAG, NEA/OFI AND INL/AAE 
DEPT ALSO FOR EB/TPP, EB/IFD AND DRL/IL 
STATE PASS USTR FOR DOUG BELL 
STATE PASS USAID FOR JENNIFER RAGLAND 
USDOC ITA/MAC/ANESA FOR NATE MASON 
USDOC FOR FSC/OIO AND CLDP 
USDOL FOR ILAB 
PARIS FOR ZEYA 
LONDON FOR TSOU 
ROME FOR ROSE 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EAGR KNNP SOCI MO
SUBJECT: MOROCCO ECONOMIC HIGHLIGHTS 
 
REF: 05 RABAT 1636 
 
----------------- 
Big Growth Ahead? 
----------------- 
 
¶1.  Moroccan economic think tank Centre Marocain de 
Conjoncture (CMC) is forecasting that the economy will grow 
by 7.1 percent in 2006, outpacing GOM forecasts of 5.4 
percent.  The CMC said strong farming output will be the 
driver behind the growth.  The GOM had predicted 5.4 percent 
growth on the assumption of a cereals harvest of six million 
tons, whereas the Ministry of Agriculture has more recently 
said Morocco is expecting a harvest of 8.6 million tons, the 
biggest crop in ten years.  The projected 7.1 percent GDP 
rate would be the highest since 1998 when the economy grew 
by 7.7 percent.  The economy is growing less dependent on 
agriculture, but the swing from an anemic 1.8 percent growth 
rate last year to an anticipated five to seven percent this 
year underlines the fact that the economy is still highly 
reliant on farming. 
 
---------------------------- 
U.S.-Morocco Phosphates Deal 
---------------------------- 
 
¶2.  Maroc Phosphore, an affiliate of Moroccan state-owned 
phosphates group OCP, signed a long term purchase agreement 
with Minneapolis-based Mosaic Company through which the 
Moroccan firm will supply Mosaic with 200,000 tons of 
granular triple superphosphate (GTSP) per year for 
distribution on the North American market.  The deal runs 
through 2011 and is renewable upon mutual agreement at that 
time.  State-owned OCP is the world's largest producer and 
exporter of phosphate rock and the world's largest exporter 
of phosphoric acid.  The value of Morocco's phosphates and 
chemical fertilizers exports increased by 50 percent in the 
first four months of 2006 compared with the same period last 
year. 
 
--------------------- 
Tender for U.S. Wheat 
--------------------- 
 
¶3.  On May 30, the Moroccan cereals office (ONICL) accepted 
importer bids for the first time under the U.S.-Morocco Free 
Trade Agreement for licenses to import 40,000 tons of U.S. 
durum wheat at the preferential duty granted under the 
tariff rate quota (TRQ) of the agreement.  Bids were 
accepted from three importers for the full 40,000 tons 
announced in ONICL's April 10 tender.  Licenses to import 
under the preferential TRQ duty were sold for $17.88 per 
ton.  This was the first tender enacted for U.S. wheat under 
the FTA.  It drew a total of 22 bids for 140,000 tons and 
was attended by the largest players in the Moroccan durum 
wheat market. 
 
-------------------------------- 
Nuclear Research Reactor Delayed 
-------------------------------- 
 
¶4.  The start up of Morocco's much-delayed nuclear research 
reactor has been pushed back to July or August, after the 
arrival of damaged fuel rods from France.  The two megawatt 
 
RABAT 00001111  002 OF 002 
 
 
reactor, built by General Atomics (Ref A), will be the pride 
of Morocco's National Center for Energy, Sciences and 
Nuclear Techniques (CNESTEN).  Department of Energy 
contractors and other visiting U.S. specialists routinely 
report that CNESTEN's staff extremely technically competent 
and that the center's directors go out of their way to 
remain transparent in their preparations for the reactor's 
commissioning. 
 
------------------------------ 
Coupe du Monde, Out of Bounds? 
------------------------------ 
 
¶5.  With kickoff just hours away, Moroccans are facing for 
the first time the dire possibility that national TV 
stations RTM and 2M will not show the World Cup soccer 
tournament.  According to Moroccan government officials, 
Saudi broadcasting company ART, which owns the 
retransmission rights of all World Cup games for the Arab 
world, has refused to negotiate with Moroccan public TV 
stations to license viewing rights.  ART offers the games by 
private subscription costing 1,200 dirhams, or about $140, 
far out of the range of most Moroccans.  With their access 
to pirated satellite TV channels TF1 and M6 recently cut 
off, many Moroccans are in a state of panic.  Cafes and bars 
that have purchased the ART package stand to reap a windfall 
from patrons who will pack these establishments for a 
glimpse of the world's largest sporting event. 
 
RILEY