WASHINGTON, D.C. - (January 21, 2003) Earlier today, U.S. Trade and Development Agency (USTDA) Director Thelma J. Askey participated in the official launch of the negotiations on a free trade agreement (FTA) between the United States and Morocco. U.S. Trade Representative Robert B. Zoellick announced the start of the negotiations at an event at the U.S. Department of State. During the event, USTDA Director Askey gave remarks on the agency's technical assistance work and its plans to support the negotiations.

Specifically, USTDA may sponsor an orientation visit to the United States for the Moroccan negotiating team on analytical and technical support for trade negotiations and the experience of other U.S. free trade partners. In addition, the agency is considering funding other technical assistance related to the negotiations in the area of trade capacity building.

USTDA Director Askey also discussed a technical assistance grant awarded by the agency in 2001 to the Moroccan Ministry of Industry, Commerce, Energy and Mines to examine the probable trade effects of the European Union (EU)-Morocco Association Agreement. The study provided the Moroccan government with an evaluation of the potential effects on U.S.-Moroccan trade resulting from the country's Association Agreement with the EU, as well preliminary analysis of the economic effects of an FTA with the United States.

The study found that a U.S-Morocco FTA would substantially increase Morocco's trade options, providing new market access for the country's horticultural and fisheries products. In addition, the FTA would help Morocco to acquire advanced technology and commercial expertise more cost-effectively, factors that are important to increasing economic growth. From the U.S. perspective, the study found that an FTA with Morocco would provide important market access for U.S. firms seeking to manufacture or distribute in Morocco for re-export to the EU and Maghreb markets.

Associates for International Resources and Development of Cambridge, Massachusetts conducted the USTDA-funded study. The completed study is available for review at USTDA headquarters, 1000 Wilson Boulevard, Suite 1600, Arlington, VA 22209.

USTDA's Morocco program is one of the largest and most diverse country portfolios in the agency's Africa & Middle East Region. In 2001, Morocco was named as USTDA's Country of the Year. During that year, USTDA provided funding totaling $2.5 million related to 18 activities, including 8 feasibility studies, an orientation visit, definitional missions, and conferences. The award was based on Morocco's leadership in the number, effectiveness, and diversity of projects in five key sectors: environment (especially water supply and wastewater treatment), transportation, oil and gas, electric power, and information technology.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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