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Viewing cable 07RABAT597, BFIF SUPPORT FOR U.S.-MOROCCO FTA CLOSE OUT REPORT

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Reference ID Created Released Classification Origin
07RABAT597 2007-04-04 16:23 2011-08-24 16:30 UNCLASSIFIED Embassy Rabat
VZCZCXYZ0046
RR RUEHWEB

DE RUEHRB #0597 0941623
ZNR UUUUU ZZH
R 041623Z APR 07
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 6246
INFO RUEHCL/AMCONSUL CASABLANCA 2865
UNCLAS RABAT 000597 
 
SIPDIS 
 
SIPDIS 
 
EB/CBA FOR DWINSTEAD 
 
E.O. 12958: N/A 
TAGS: BEXP EAGR ECIN EFTA EIND ETRD MO
SUBJECT: BFIF SUPPORT FOR U.S.-MOROCCO FTA CLOSE OUT REPORT 
 
REF: 06 STATE 127166 
 
1.  Summary.  The FY-06 Business Facilitation Incentive Funds 
(BFIF) program approved $11,000 for Embassy Rabat to support 
the U.S.-Moroccan Free Trade Agreement (FTA) in its initial 
year of implementation.  Post proposed to use the funds to 
bolster the American Chamber of Commerce's (AmCham) program 
of workshops to highlight industrial sectors thought to be 
particularly well suited to benefit from the FTA.  While all 
envisaged seminars were not realized, those that were held 
contributed to the strong trade results that marked the FTA's 
first year.  End summary. 
 
2.  AmCham originally planned to cover the following 
industries: automotive components, agribusiness, chemicals, 
apparel and pharmaceuticals.  In the end, three workshops 
were completed concerning the handicrafts, agribusiness and 
pharmaceutical sectors.  However, AmCham experienced delays 
in organizing certain other workshops and deobligated $4,653 
of unused funds at the end of FY-06 with the intention of 
using most of them in FY-07.  Now, however, the AmCham has 
decided to cancel the remainder of the program. 
 
3.  In February 2006, AmCham secured the services of an 
expert in the handicraft sector who was visiting Morocco. 
Although this sector was not originally covered in its plans, 
the AmCham took advantage of this target of opportunity to 
hold several workshops that did not require any BFIF funding 
for travel.  Later in 2006, AmCham decided not to pursue the 
automotive part sector program, but instead assisted post 
with its plans to hold an investment conference for the 
sector (septel). 
 
4.  The AmCham conducted a successful series of workshops for 
the agriculture sector in March, 2006.  This program incurred 
total costs of $3,448 consisting of $1,920 for air fare for 
agribusiness expert Mathew Nussbaum and $1,528 for 
translation services.  Agriculture is one of the most 
important sectors of the Moroccan economy, employing 
approximately 40 percent of the population and accounting for 
15 percent of GDP.  The sensitive agriculture sector received 
special attention during negotiations on the FTA and in 2006 
total bilateral trade in the sector increased 63 percent to 
$365 million.  U.S. exports increased 70 percent to $295 
million and Moroccan exports grew 40 percent to $70 million. 
These results are a considerable success for the FTA in its 
first full year of implementation. 
 
5.  Pharmaceutical workshops were delayed until September, 
2006 due to difficulties in finding a trainer.  Costs for the 
program totaled $2,875: $1,300 for airfare and $1,575 for 
translation services.  Bilateral trade in this sector is 
still quite small with zero exports from Morocco and only 
$1.4 million of U.S. exports.  Unfortunately, U.S. 
pharmaceutical exports to Morocco dropped 31 percent in 2006, 
but since the workshop did not take place until late in the 
year any beneficial effects probably will not be felt until 
2007. 
 
6.  Comment: In comparison with its larger MEPI and USAID 
counterparts, which also aimed at supporting FTA 
implementation, our BFIF funding was directed at specific 
niche markets.  As such, its impact was more limited. 
Nevertheless, it helped post's efforts to get the FTA off to 
a strong start and to underline the U.S. commitment to 
helping Morocco draw maximum advantage from the agreement. 
****************************************** 
Visit Embassy Rabat's Classified Website; 
http://www.state.sgov.gov/p/nea/rabat 
****************************************** 
 
RILEY