Non-tariff barriers in Morocco range from language and cultural differences to oligopolies in certain key industrial sectors such as banking, insurance and cement, standards that favor EU brands, and lack of efficient and transparent processes for obtaining government permits, land approvals and government procurements.
The language and cultural differences are subtle and need to be addressed. French is the dominant business language, and business models are often based on traditional French models. Many of Morocco’s elite were educated in France and feel at ease with the French models. All government tenders are issued in French and bids must be submitted in French.
Convincing local oligopolies that liberalized trade and investment policies will benefit them in the medium to long term by expanding the business pie has been a challenge. Nevertheless a number of U.S. firms are taking the lead in the tourism and franchising sectors. Other market openings such as in the banking, insurance and cement sectors will require a shift in mentality. In general, competition is not welcomed because the business pie traditionally has been relatively small. Significant new investments, however, are beginning to expand the pie.
A number of forward leaning provisions in the FTA require the Government of Morocco to improve business procedures, reduce corruption and improve transparency in government procurement. The U.S. Embassy and the U.S. Consulate General are monitoring the government’s efforts to make improvements.