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The Free Trade Agreement Between the United States and Morocco. The Importance of a Gradual and Assymetric Agreement

Mustapha Sadni Jallab (msadnijallab@gmail.com), Lahsen Abdelkmalki (abdelmalki@gate.cnrs.fr) and René Sandretto (sandretto@gate.cnrs.fr)
Additional contact information
Lahsen Abdelkmalki: GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - ENS LSH - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique
René Sandretto: GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - ENS LSH - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique

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Abstract: The agreement recently signed between Morocco and the United States foresees several modalities in dismantling tariffs. Our simulations show that the various modalities of trade liberalization may have different impacts on the welfare, the rate of growth and the sectoral trade balance of these two countries. More precisely, our findings justify the interest of a gradual and asymmetrical agreement. In addition, the free trade agreement (FTA) between the US and Morocco will have a significant impact not only on trade between the two countries, but also on their trading relationships with other countries. The most important trade diversion will affect the EU and particularly France, which is Morocco's largest trading partner. It will also adversely affect the other North African countries. The FTA will thus offer the opportunity to Morocco to diversify its markets and its capabilities, which are currently focused on the EU, particularly on France and Spain.

Keywords: Trade Policy; Liberalization; Free trade Agreement; Simulation; CGE Model; Morocco; United-States (search for similar items in EconPapers)
Date: 2007
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00359098v1
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Citations: View citations in EconPapers (3)

Published in Journal of Economic Integration, 2007, 22 (4), pp. 852 - 887

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Journal Article: The Free Trade Agreement Between the United States and Morocco: The Importance of a Gradual and Assymetric Agreement (2007)
Working Paper: The Free Trade Agreement Between the United States and Morocco. The Importance of a Gradual and Assymetric Agreement (2007) Downloads
Working Paper: The Free Trade Agreement Between the United States and Morocco. The Importance of a Gradual and Assymetric Agreement (2007) Downloads
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