An Examination of Morocco's Trade Options with the EU
AbstractAs a moderate North African Arab state, Morocco has ratified preferential free trade agreements with both the EU and the USA. However, the potential importance of improved agro-food market access with the EU has been largely ignored in Morocco-EU Association Agreement (MEAA). Indeed, in comparison with the depth of the agro-food reforms in the Morroco-US agreement, the MEAA is largely incomplete. Accordingly, as a first objective we employ a modified computable general equilibrium (CGE) model to assess the potential for further long run trade and growth in Morocco through agro-food tariff abolition. Moreover, we investigate whether there is an economic incentive for such a EU countermovement to restore competitive parity with the US. As a further aim, we examine the trade inhibiting implications of non-tariff barrier (NTB) trade costs (e.g., red tape, licensing laws etc.), which have hitherto largely escaped reform. Thus, we estimate NTB trade cost tariff equivalents (TEs) employing a theoretically consistent gravity specification. TEs are implemented into our CGE model to measure the trade and growth impacts from NTB removal in agro-food and across all Moroccan-EU trade. While agro-food liberalisation yields disappointing results for Morocco, the potential for development-led policies through elimination of NTBs is highly appealing. Copyright 2007, Oxford University Press.
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Bibliographic InfoArticle provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.
Volume (Year): 16 (2007)
Issue (Month): 2 (March)
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- Niven Winchester, 2008. "Is there a dirty little secret? Non-tariff barriers and the gains from trade," Working Papers 0801, University of Otago, Department of Economics, revised Jan 2008.
- P. Dorian Owen & Niven Winchester, 2011. "The impact of US fresh milk production standards on dairy trade," Working Papers 1117, University of Otago, Department of Economics, revised Dec 2011.
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