VZCZCXRO7128
PP RUEHTRO
DE RUEHRB #0807/01 2721717
ZNR UUUUU ZZH
P 291717Z SEP 09
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 0694
INFO RUCNMGH/MAGHREB COLLECTIVE
RUEHFR/AMEMBASSY PARIS 5179
RUEHCL/AMCONSUL CASABLANCA 4721
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHINGTON DC

UNCLAS SECTION 01 OF 02 RABAT 000807 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR NEA/MAG 
TREASURY FOR OFFICE OF MIDDLE EAST AND NORTH AFRICA 
DOC FOR ITA (OFFICE OF MIDDLE EAST- N MASON) 
 
E.O. 12958: N/A 
TAGS: ECON EINV ETRD MO
SUBJECT: MOROCCO SEEKS TO JOIN OECD DECLARATION ON 
INVESTMENT AND MULTILATERAL CORPORATIONS 
 
RABAT 00000807  001.2 OF 002 
 
 
¶1.  (SBU) SUMMARY: Embassy received a diplomatic note from 
the Ministry of Foreign Affairs seeking U.S. support for 
Morocco's bid to join the OECD Declaration on Investment and 
Multinational Enterprises.  The note made the case that 
Morocco has undertaken numerous steps in recent years to 
improve its investment climate.  Embassy believes that 
Moroccan membership in the OECD Investment Declaration would 
support the continuing economic and political reform process 
and urges favorable consideration of Morocco's request.  End 
summary. 
 
¶2.  (SBU) Below is an informal Embassy translation of the 
diplomatic note (from the French original): 
 
18 SEPT. 2009 
 
The Ministry of Foreign Affairs and Cooperation presents its 
compliments to the Embassy of the United States of America 
and has the honor to inform the Embassy that the Kingdom of 
Morocco's proposal for membership in the OECD Declaration on 
International Investment and Multinational Enterprises will 
be considered in Paris on 6 October 2009 by the Investment 
Committee of the Organization. 
 
The choice of Morocco to adhere to the OECD Declaration on 
International Investment and Multinational Enterprises is an 
expression of the Kingdom's commitment to economic opening. 
This decision is consistent with the dynamic of the reforms 
launched by Morocco several years ago which argue for its 
membership, in conformity with the principles of the OECD 
Declaration on International Investment and Multinational 
Enterprises. 
 
The important policy reforms being undertaken by Morocco to 
improve the investment climate, as well as Morocco's 
irreversible choice to integrate into the global economy 
plead in favor of the Moroccan candidacy: 
 
- Adoption, since the beginning of the 1980s, of a liberal 
policy of openness to the outside world. 
- Conclusion of several free trade agreements with important 
partners, which make Morocco one of the largest nodes of 
world free areas. 
- Signature of several international investment treaties, 
including bilateral agreements on investment promotion and 
protection, as well as conventions for the avoidance of 
double taxation inspired by OECD and United Nations model 
conventions. 
- Considerable improvements introduced to harmonize the 
investment environment and secure Morocco's commercial 
relations.  These have expanded the definition of investment 
to grant national treatment and most favored nation status to 
investors, ensured the complete convertibility of capital for 
foreign investors, as well as the freedom to repatriate both 
their profits and their invested capital, and given them the 
possibility, in case of dispute with the host country, to 
appeal to its domestic courts or international arbitration 
(ICSID or the UNCITRAL ad-hoc tribunal). 
- Acceleration of the liberalization process in several 
strategic sectors, including telecommunications, 
transportation, energy, and banking and finance. 
- Improvements to the legal environment for business through 
the implementation of new laws on industrial and commercial 
property, a new Trade Code, Corporation Law, Customs Code, 
Tax Code, Law on Competition and Prices, Labor Code, 
Insurance and Procurement Codes. On the institutional level, 
creation of Regional Investment Centers and strengthening of 
the Investment Commission. 
- Commitment by Morocco to building a democratic society: 
creating a country of laws, respect for Human Rights. 
- Ownership of the principles of good governance and 
transparency at the public level as well as the corporate 
level (deconcentration, decentralization, results-based 
management, combating corruption, corporate governance). 
- Engagement for human development (National Initiative for 
Human Development). 
- Promotion of the role of women (in society) and adoption of 
principles of gender equity. 
 
Implementing these reforms has led to a dramatic increase of 
foreign investment flows to Morocco, which demonstrates its 
 
RABAT 00000807  002.2 OF 002 
 
 
increasing attractiveness.  Moreover, Morocco is no longer 
limited to receiving investment; several Moroccan enterprises 
have already begun a significant international development 
process. 
 
Given the above and in virtue of the privileged relations 
linking the Kingdom of Morocco and the United States of 
America, the Ministry of Foreign Affairs and Cooperation 
would appreciate it if the Embassy could intercede with the 
appropriate U.S. authorities to support Morocco's membership 
in the OECD Declaration on International Investment and 
Multinational Enterprises, and avails itself of this 
opportunity to renew to the Embassy of the United States of 
America the assurances of its highest consideration. 
 
¶3.  (SBU) COMMENT:  Embassy shares the Foreign Ministry's 
assessment that Morocco's reform process has yielded 
significant economic benefits and demonstrates a firm 
commitment to integration into international commercial and 
investment regimes.  Post believes that Moroccan membership 
in the OECD Declaration would encourage progress in improving 
the investment climate (for example, further liberalization 
of the foreign exchange regulations) and urges careful 
consideration of Morocco's candidacy. 
 
 
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Visit Embassy Rabat's Classified Website; 
http://www.intelink.sgov.gov/wiki/Portal:Moro cco 
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Millard