afrol News, 19 June - According to a new report, further trade reforms in Morocco would improve the country's economic efficiency. The World Trade Organisation (WTO) yesterday "applauded" Morocco's recent economic performance and urged it to "accelerate its trade reforms with a view to improving efficiency and fully benefiting from its participation in the multilateral trading system."

A relatively diversified economy and sound macroeconomic policy had helped Morocco to contain the negative effects of recurrent droughts and have contributed to the stabilisation of its currency, according to a report on the trade policies and practices of Morocco released yesterday by the WTO Secretariat.

The report noted that by expanding its multilateral commitments in the services sector, which account for 60 percent of real GDP, Morocco would reinforce the predictability of its trade regime, make its economy more attractive for foreign capital, and consolidate reforms in areas such as tourism and others in which the country has comparative advantages.

The report also says that liberalisation of the agricultural sector and simplification of customs tariffs would improve economic efficiency and enhance Morocco's adherence to the principles of the WTO.

- Such reforms could include the abolition of variable duties and the reduction of the number and levels of tariff rates, WTO says. "This would somewhat simplify Morocco's trade regime, further complicated by membership of several overlapping trade agreements."

According to a Moroccan government document presented to WTO, the long-term goal of the country's economic and trade liberalisation policy is "sustainable human development, while the short- and medium-term objective is to generate strong, employment-generating economic growth by upgrading the economy, promoting investment and rural development and diminishing social and regional disparities."

Measures have also been taken to bring domestic legislation into line with the WTO principles and rules, to overhaul the legal framework for business, and to enhance institutional facilities for cooperation with the private sector, the Moroccan government paper said.

In addition to the Association Agreement with its main trade partner, the European Union, Morocco has concluded free-trade agreements with EFTA and Members of the Arab League at both bilateral and regional level (Arab free-trade area) and has entered into preferential agreements with several African and Arab countries.

The WTO Secretariat - which had appreciated Morocco's high-level delegation, led by Minister Mustapha Mechahouri - said it would encourage all WTO members to "support Morocco in its efforts to take up its challenges, guaranteeing market access for its products and assisting it to improve competitiveness."

By staff writer

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