VZCZCXYZ0014
PP RUEHWEB

DE RUEHRB #0647/01 2051759
ZNR UUUUU ZZH
P 241759Z JUL 09
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 0501
INFO RUCNMGH/MAGHREB COLLECTIVE
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS RABAT 000647 
 
SIPDIS 
SENSITIVE 
 
STATE FOR EEB/TPP/BTA AND NEA/MAG 
STATE PLEASE PASS TO USTR FOR C WILSON AND P BURKHEAD 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR ECON MO
SUBJECT: TRADE MINISTER AGREES TO POSTPONE FTA JOINT 
COMMITTEE MEETING, SPELLS OUT REMAINING ISSUES 
 
REF: RABAT 0271 
 
¶1.  (SBU) Summary:  Minister of Foreign Trade Abdellatif 
Maazouz replied to the July 7 letter of Assistant U.S. Trade 
Representative (A/USTR) Christopher Wilson, agreeing to a 
delay in the Joint Committee Meeting (JCM) and outlining 
areas for continued work.  The Ministry of Foreign Trade also 
sent a list of requested areas of technical assistance to the 
Embassy.  The text of Minister Maazouz's letter is included 
in this message.  End Summary. 
 
¶2.  (SBU) On July 20, Minister of Foreign Trade (MFT) Maazouz 
sent a reply to the July 7 letter from A/USTR Wilson, 
indicating Morocco's willingness to delay the U.S.-Morocco 
Free Trade Agreement (FTA) JCM and suggesting that it could 
be rescheduled in October 2009.  Maazouz also outlined six 
groups of outstanding issues on which the Government of 
Morocco (GOM) would like to continue to engage with the USG. 
 
¶3.  (SBU) The six areas that Maazouz identified include: 
 
-- Customs Issues:  Maazouz stated that Morocco's position on 
"direct transport" (transshipment) is clear, but indicated he 
is willing to continue discussions. 
 
-- Agricultural Issues:  The Minister asserted that Morocco's 
administration of wheat tariff rate quotas is not responsible 
for the difficulties that U.S. suppliers have had in filling 
the quotas, stating that European suppliers use the same 
system without difficulty.  He emphasized Morocco's desire 
for movement on approval for produce exports to the U.S., 
creation of a sanitary and phytosanitary working group, and 
accelerated tariff elimination on certain products. 
 
-- Textiles Market Access:  Maazouz stated that Moroccan 
textile exporters face difficulties obtaining the 
preferential tariffs to which they are entitled under the FTA. 
 
-- Exchange of Letters:  Morocco hopes to sign the letters on 
Non-conforming Measures and the omitted tariff positions on 
fisheries during the rescheduled JCM. 
 
-- Technical Assistance:  Maazouz praised the Commercial Law 
Development Program (CLDP) assistance and urged its 
continuation.  (Note:  The Embassy also received this week a 
Note Verbale from the MFT outlining areas of requested 
technical assistance.  We will report these details septel 
following translation.  End Note.) 
 
-- Statistics Harmonization:  The GOM indicated its 
willingness to repeat last year's exchange of data and 
interaction between U.S. Census Bureau and Morocco's Office 
of Exchanges in order to reconcile differing trade 
statistics.  (Note:  The Census Bureau and the Office of 
Exchanges have scheduled a teleconference on July 28 to 
continue this exercise.  End Note.) 
 
¶4.  (SBU) The text of Minister Maazouz's letter follows: 
 
Begin text. 
 
July 20, 2009 
 
Mr. Christopher Wilson 
Assistant United States Trade Representative for Africa and 
the Middle East 
Washington, D.C. 
 
Dear Mr. Assistant Representative: 
 
Let me first express to you how pleased I was to meet you 
last March during your visit to Morocco, and express our 
satisfaction regarding our discussions which were marked by 
sincerity and understanding. 
 
With reference to your letter of July 7, I hereby express our 
agreement on the postponement of the Joint Committee which 
was scheduled on July 23 and 24, 2009. 
 
In this regard, I would like to share with you some thoughts 
on issues of common interest. 
 
¶1.  Customs Issues: 
 
Morocco believes it has provided the necessary clarifications 
on the concept of Direct Shipment covered by Article 5 of the 
 
Agreement, at the various meetings and video conferences 
devoted to this issue.  However, we reaffirm our willingness 
to work with you in a spirit of openness and cooperation in 
order to find a mutually beneficial outcome of this issue. 
 
¶2.  Agricultural Issues: 
 
In agriculture, despite the efforts deployed by both sides, 
several issues remain unresolved and require further 
discussion between the two Parties.  These mainly concern: 
 
-- The allocation of the quota for wheat:  Morocco asserts 
that the current system of tenders for the management of the 
quotas for wheat is not responsible for the partial use of 
the quota of U.S. wheat and does not circumvent the 
objectives of the Agreement, recognizing that the same system 
is applied with our European partners and does not pose any 
problem. 
 
-- Sanitary and Phyto-sanitary Issues:  Morocco is still 
awaiting the result of requests regarding the expansion of 
the region for exporting Moroccan tomatoes to the U.S., and 
the request for export of red fruits and vegetables (pepper, 
peas, beans, zucchini, eggplant and cucumber) as well as some 
heat-treated poultry products. 
 
-- Setting up the working group on SPS cooperation:  In 
accordance with the Morocco-U.S. Joint Declaration in this 
regard, Morocco believes that it is necessary to set up this 
working group as soon as possible. 
 
-- Access to the market for agricultural products:  Morocco 
reiterates its call for the acceleration of tariff 
elimination regarding canned olives and artichoke hearts, to 
enable us to benefit from the agreement, in a balanced 
framework without compensation or conditionality. 
 
¶3.  Access to the U.S. Market for Non-agricultural Products: 
Textiles 
 
Morocco is concerned about the difficulties that some 
operators are still facing to obtain the preferential tariff 
following the presentation of the certificate of eligibility. 
 
It should be remembered that the certificate of eligibility 
used for flexibility on rules of origin (quota of 30 million 
square meters), was developed in coordination with the U.S. 
Customs which approved its form and content. 
 
¶4.  Exchange of Letters: 
 
The exchange of letters relating to Non-conforming Measures 
on services and the omitted Tariff Positions on fisheries 
were finalized and sent to the American Party in English, 
Arabic and French. 
 
We hope that these documents will be signed at the Second 
Joint Committee scheduled for next October. 
 
¶5.  Technical Assistance 
 
I appreciate your office's readiness to pursue programs in 
support of Morocco, recognizing that coordination work has 
been initiated by my Ministry in collaboration with the 
United States Embassy in Rabat and the Commercial Law 
Development Program (CLDP). 
 
In this regard, we would like to see the technical assistance 
program, developed between the two parties under the CLDP, 
take shape as soon as possible. 
 
¶6.  Other Issues: Study on Harmonizing Statistics: 
 
We applaud the efforts of the working group on the divergence 
of American and Moroccan trade statistics, undertaken by the 
Office of Exchanges and the U.S. Census Bureau. 
 
In this regard, the Moroccan Office of Exchanges is willing 
to repeat the mirror exercise of foreign trade data and had 
indicated its willingness to meet with its counterparts from 
the U.S. Census last May or June, but this meeting did not 
take place. 
 
I do not wish to conclude without reiterating our readiness 
to continue cooperation on issues of common interest in order 
to achieve the economic objectives of the Agreement between 
 
our two countries. 
 
/S/ 
Abdellatif Maazouz 
Minister of Foreign Trade 
 
End text. 
 
 
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Jackson