Morocco free trade agreement benefits US grain industry
GRAINNET, USA, 6 January 2006
Morocco Free Trade Agreement Benefits U.S. Grain Industry
Washington, DC (January 6)—Jan. 1 marked the start of the long-awaited free trade agreement (FTA) between the United States and Morocco.
The agreement eliminates tariffs on U.S. sorghum immediately and phases out duties on U.S. corn over five years - good news for both U.S. grain producers and Moroccan livestock producers.
Costs to Morocco’s expanding poultry and meat sector will be significantly reduced due to lower feed grain prices, creating an opportunity for producers to reinvest those savings into expanding their operations.
In a statement released in December, Christin Baker of the Office of the U.S. Trade Representative noted that the FTA will expand markets for American farmers, ranchers and businesses while strengthening U.S. trade relationships in the Middle East.
She noted that the Morocco FTA is a step toward creating a United States-Middle East Free Trade Area, a goal of the Bush Administration.
“The U.S. Grains Council has been striving to build demand for U.S. feed grains in Morocco for many years,” said Chris Corry, senior director of international operations.
“By working with local livestock producers to create the first of its kind beef feedlot in Morocco and bringing Moroccan grain buyers to the United States to see the U.S. export system from field to elevator to ship, the Council has been promoting U.S. feed grains to ensure our producers and agri-businesses will reap maximum benefit from this agreement.”
