Brussels, 21/10/2013 (Agence Europe) - A recent study by Ecorys on the scope and impact of the deep and comprehensive free trade agreement (DCFTA) with the EU highlights the positive impact of this agreement, which is currently being negotiated between the EU and Morocco. It also highlights the weak points that need to be taken into account during discussions. One of the benefits would be to increase Morocco's GDP by about 1.6% over the long term. The DCFTA would also have a positive impact on trade flows with a long term increase in Morocco's exports of 15% in comparison with an 8% rise for its imports.
According to the authors of the report, the study consisted of assessing the way in which trade arrangements and those linked to trade, which are currently being negotiated, could influence economic, social and environmental issues in the EU and Morocco. The study also takes into account the process of regional integration and its potential impact, as well as in the third countries concerned. Risks of “diversion” of trade flows between the EU and Tunisia and the EU and Turkey are mentioned.
The study proposes measures (trade or non-trade) to maximise the benefits of the DCFTA and to prevent or minimise the potential negative impacts. Effects are predicted on agriculture, especially in the cereals sector, where a long term loss of production of 2.7% is expected. Another sector which is likely to be affected negatively is leather goods. The textiles and clothing sector is likely to have to re-adapt. In the services sector, ICT and other business services are expected to face increased competition from their counterparts in the EU, with a projected loss of 1.7% of total production in the long term, but the offshoring industry (relocations) is unlikely to be negatively affected. (FB/transl.fl)