Congress Approves Implementing Legislation for the U.S.-Morocco FTA
On July 22, 2004, both the House of Representatives and the Senate passed H.R. 4842, the "U.S.-Morocco Free Trade Agreement (FTA) Implementation Act," clearing the measure for the President.
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(In order for this FTA to be implemented, H.R. 4842 must now be approved (enacted) by the President, which is expected. The President must also issue a proclamation for its implementation. According to H.R. 4842 and previous statements by USTR sources, the U.S. and Morocco must exchange notes on the FTA prior to the issuance of this proclamation.)
According to a statement by U.S. Trade Representative (USTR) Zoellick, on the first day that the U.S.-Morocco FTA goes into effect, 95% of the two-way trade in industrial and consumer products will be without tariffs. USTR Zoellick also stated that the U.S.-Morocco FTA is a major step forward in implementing President Bush's plan for a Middle East Free Trade Area by 2013.
"Goal" is for U.S.-Morocco FTA to Take Effect on January 1, 2005
Administration sources have previously stated that although it is not known when the U.S.-Morocco FTA will enter into force, the "goal" is to implement it on January 1, 2005.
Highlights of H.R. 4842
According to a House Ways and Means Committee summary and other sources, "highlights" of H.R. 4842 include (partial list):
Tariff modifications under the U.S.-Morocco FTA. H.R. 4842 would provide authority for the President to proclaim tariff modifications to carry out the U.S.-Morocco FTA.
Rules of origin. H.R. 4842 would also set out the rules of origin for goods to qualify for preferential treatment under the U.S.-Morocco FTA. In particular, the U.S.-Morocco FTA would require a "yarn forward" rule of origin for most textile and apparel goods.
Agricultural "additional duty" safeguard measures. H.R. 4842 would also provide for the imposition by the U.S. of an agricultural safeguard measure, in the form of additional duties, on certain horticultural goods from Morocco.
Enforcement authority to prevent circumvention of textile or apparel requirements. H.R. 4842 provides enforcement authority to prevent circumvention of textile or apparel requirements.
Temporary import relief when increased imports from Morocco, including textiles and apparel, cause injury. H.R. 4842 would also provide a temporary mechanism to provide import relief when increased quantities of Moroccan imports are a substantial cause of injury or threat of serious injury to U.S. industry. H.R. 4842 would also provide a special safeguard relief procedure for textile and apparel imports.
See future issues of ITT for additional details on H.R. 4842, as provided in the House Ways and Means Committee's report on the legislation.
H.R. 4842 available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h4842eh.txt.pdf.
USTR statement (dated 07/21/04) available athttp://www.ustr.gov/releases/2004/07/2004-07-21-statement-morocco.pdf.
House Ways and Means Committee summary (dated 07/21/04) available at http://waysandmeans.house.gov/legis.asp?formmode=read&id=1805.
House Ways and Means Committee report on H.R. 4842 (H. Rept. 108-627) available at
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_reports&docid=f:hr627.108.pdf.
Final text of U.S.-Morocco FTA available at
http://www.ustr.gov/new/fta/Morocco/final/index.htm.
Fact sheets, statements, and other information regarding the U.S.-Morocco FTA available at http://www.ustr.gov/new/fta/morocco.htm.