Market Challenges Return to top
U.S. exporters face strong competition from European trading partners, particularly
France. France and Morocco share a common language and have strong historical ties.
European firms in general are familiar with all aspects of Moroccan business culture,
financing, regulations and standards. French businessmen also visit Morocco quite
often for leisure.
The greatest barriers to trade in Morocco are irregularities and lack of transparency in
government procurement procedures, corruption and counterfeit goods. Although the
government is diligently working to improve the business environment, foreign
corporations still complain about these challenges. The FTA addressed most of these
issues and the Moroccan government is striving to make reforms.
The legal and banking systems in Morocco differ in many significant ways from the U.S.
systems. The legal system is based on a combination of Spanish, French and Islamic
law, making it sometimes complicated for U.S. companies. International and domestic
arbitration are accepted and are often used in business contracts. Since the mid 1990s
Morocco has made significant reforms to the banking system, focused on structures and
programs to attract inbound investment and to facilitate financing of projects and
purchases.