The U.S. International Trade Commission (ITC) today released its report Effect of Modifications to the U.S.-Morocco Free Trade Agreement.

The ITC, an independent, nonpartisan, factfinding federal agency, conducted the investigation at the request of the U.S. Trade Representative (USTR). The ITC was asked to identify any changes to its previous advice concerning the impact of the U.S.-Morocco FTA resulting from a new effective date. The report was also submitted to the USTR today.

Legislation implementing the U.S.-Morocco FTA was enacted on August 17, 2004. As required by the Trade Act of 2002, the ITC had submitted advice concerning the likely impact of the agreement to the USTR and the Congress in June 2004.

The original agreement was based on the assumption that it would enter into force on January 1, 2005. Since then, the United States and Morocco have agreed to amend the agreement, now intended to enter into force on July 1, 2005. The first stage of negotiated tariff reductions and related measures will become effective on that date, with the second stage starting on January 1, 2006. In addition, the agreement will be amended so that the in-quota quantities of the tariff-rate quotas for agricultural and apparel goods and the quantities of textile and apparel goods that receive preferential tariff treatment, as set out in the agreement, will be reduced by 50 percent for the period July 1, 2005, through December 31, 2005, after which the previously agreed treatment would be accorded. The United States and Morocco will exchange letters to modify the agreement; no other amendments to the agreement will be made, according to the USTR.

The ITC's report Effect of Modifications to the U.S.-Morocco Free Trade Agreement (Inv. No. Morocco FTA-103-11, Publication 3774, April 2005) will be available on the ITC's Internet site at www.usitc.gov. A CD-ROM version or printed copy may be requested by calling 202-205- 1809 or by writing to the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may be faxed to 202-205-2104.