FOM Newsletter November 2002
Morocco Week in Review November 23 2002 

U.S. COMMITMENT TO FREE TRADE DIALOGUE REAFFIRMED DURING EVANS VISIT TO MOROCCO
Morocco Sept inflation at 2.0 percent yr/yr
 Sept 11 impact on Morocco tourism seen over 20 pct
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE Trade Policy Staff
Amnesty International Morocco section holds 2nd caricature contest
British famous garments factory to delocalize industry to Morocco
Football: Morocco expresses intention to bid for 2010 world cup
Morocco's new government places economic development on top of priorities
Morocco vows to generalize, promote quality education
Morocco has great oil, gas potential, Vanco energy says
Athletics: Morocco's Guerrouj Made 2002 Athlete of the Year

U.S. COMMITMENT TO FREE TRADE DIALOGUE REAFFIRMED DURING EVANS VISIT TO MOROCCO

U.S. Secretary of Commerce Don Evans today reiterated the United States' commitment to pursue a free trade agreement with Morocco and said that expanding the economic relationship between the two nations is one of President Bush's highest priorities. Evans' visit to Morocco begins a weeklong trip to Africa, where he will advance President Bush's commitment to the region as well as discuss additional commercial opportunities for American firms in Africa. In a meeting with King Mohamed VI, Evans emphasized that reaching a timely free trade agreement would further the progress both nations have made in their two-way trade relationship. During the first eight months of 2002, trade between the U.S. and Morocco was nearly 48 percent higher than during the same period in 2001. "The prospect of a U.S.-Morocco Free Trade Agreement is a reflection of the maturing economic relationship that exists between our two nations," said Evans. "A free trade agreement between our nations represents a milestone in our relationship, and once completed will greatly contribute to growing our economies and creating new, higher-paying jobs for our workers. "President Bush and King Mohamed have recognized that this is an exciting time in the relationship between the United States and Morocco, and each is committed to growing the long-standing friendship between our nations," added Evans. "Expanding trade and growing our commercial relationship will empower local economies, improve our standards of living, and open new opportunities for entrepreneurs in both nations to compete in the global economy." Evans' trip will continue on to Ghana and South Africa where he will lead a business development mission of 15 firms wanting to forge new commercial ties there.

RABAT, Nov 19 (Reuters) - Morocco's Consumer Price Index (CPI) rose 0.4 percent in September for an annual rise of 2.0 percent, a senior finance ministry official said on Tuesday. The government has set a 2.0 percent inflation forecast for 2002. Inflation last year reached 0.6 percent. The state Statistics Directorate said in August that year-on-year inflation in the first half of this year was at 3.2 percent. The official said September's rise was due mainly to a 0.6 percent increase in foodstuff prices and a 0.8 percent rise in the leisure and culture price index, reflecting the start of the school year.He predicted that the index would "overcome the exceptional conditions of September...and decline in the last three months".

((Rabat newsroom, +212-37 720065 fax +212-37 722499, rabat.newsroom@reuters.com ))

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RABAT, Nov 20 (Reuters) - Moroccan tourism receipts, the country's top foreign currency earner, are likely this year to fall by more than the 20 percent predicted by the finance ministry, a senior Tourism Ministry official said on Wednesday. Finance Ministry officials have said tourism receipts should decline by between 15-20 percent in 2002 from their record level of 27.8 billion dirhams ($2.64 billion) in 2001. In the first nine months up to September, the receipts dropped 24 percent to 18.13 billion dirhams. The Tourism Ministry official said the real impact of the September 11 attacks on the United States last year was visible on the decline of the number of international bed-nights. "They fell 22 percent to 6.1 million at the end of August," he said. He was unable to give a figure on the number of international bed-nights up to September but noted that a "decline of some 25 percent is expected". The number of foreign tourists who visited Morocco in the first eight months of the year fell 10 percent to 1.5 million. France, Germany and Spain are the main sources of holiday-makers visiting the Muslim North African country. Morocco welcomes an annual 2.5 million foreign tourists and aims at quadrupling the figure by 2010. The sector employs some 600,000 people.

((Souhail Karam, Rabat newsroom, +212-37 720065 fax +212-37 722499, rabat.newsroom@reuters.com ) ($1=10.526 Moroccan dirhams)

Committee; Initiation of Environmental Review of the U.S.-Morocco Free Trade Negotiations; Public Comments on Scope of Environmental Review Washington, DC, Nov 22, 2002 (FedNet via COMTEX) -- This publication gives notice that, pursuant to the Trade Act of 2002, and consistent with Executive Order 13141 (64 FR 63169) (Nov. 18, 1999) and its implementing guidelines (65 FR 79442), the Office of the United States Trade Representative (USTR), through the Trade Policy Staff Committee (TPSC), is initiating an environmental review of the proposed Free Trade Agreement (FTA) between the United States and Morocco. The TPSC is requesting written comments from the public on what should be included in the scope of the environmental review, including the potential environmental effects (both positive and negative) that might flow from the free trade agreement, including the potential implications for our environmental laws and regulations, and identification of complementarities between trade and environmental objectives such as the promotion of sustainable development. The TPSC also welcomes public views on appropriate methodologies and sources of data for conducting the review. Persons submitting written comments should provide as much detail as possible on the degree to which the subject matter they propose for inclusion in the review may raise significant environmental issues in the context of the negotiation. DATES: Public comments should be received no later than January 15, 2003.

AGENCY: Office of the United States Trade Representative. ACTION: Notice and request for comments. Copyright 2002 FedNet

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The Morocco Section of the human rights NGO Amnesty International (AI) is holding the second "national contest of caricature and human rights" under the theme "women and discrimination." AI Morocco section called Tuesday persons wanting to take part in the contest to submit a copy of their caricature before February 15, 2003 at the offices of the section. The contest is part of AI Morocco Section's contribution to the world campaign on violence against women to be launched next November

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Dewhirst, a British company that manufactures garments sold by the famous stores "Marks And Spencer" will move 420 jobs in its factory in Northumberland (northern England) to Morocco. According to "Times" daily, the company which has already cancelled 1,000 jobs, says it has been forced to conduct layoff to meet the needs of its customers who want less expensive design apparel.

http://www.arabicnews.com/ansub/Daily/Day/021121/2002112126.html 

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The Moroccan Football Federation (FRMF) has notified FIFA (the World football governing body) of Morocco's intention to bid for hosting the 2010 World Cup. "FIFA took note of Morocco's intention and considers our country a potential candidate to host the competition," the FRMF said in a release. Morocco had made three unsuccessful bids to stage the world cup in 1994, 1998 and 2006. FIFA had said that the 2010 world cup will be held in Africa for the first time since the inception of the competition in 1930. African federations have until next December to announce their intentions to host the competition, before officially declaring their commitments prior to next April 30. A FIFA committee will then inspect infrastructures in the countries' bidding to stage the cup, before submitting reports to the body's executive committee, which will select the host country in May 2004. South Africa and Egypt already expressed intention to go ahead with a bid for the 2010 World Cup finals. Libya has also indicated recently it will submit a letter of intent to FIFA by the deadline of December 31.

The government program, successively presented Thursday by Premier Driss Jettou to the two chambers of the parliament, placed economic development on top of the new team's priorities. The program cites economic development with three other top priorities, namely productive employment, useful education and decent housing, in accordance with the guidelines outlined in the speech King Mohammed had made at the inauguration of the first year of the current legislative term. King Mohammed VI appointed on November 7 the new 39-member government, formed of a coalition of six parties. The government is led by Driss Jettou, who held the portfolio of Interior Minister in the former government, led by socialist leader, Abderrahmane Youssoufi. Making of economic development a top priority stems from a keen interest to curb unemployment and achieve growth, which remains dependent on draining more capital and investment. In his presentation, Driss Jettou stressed the government's will to take all necessary measures and initiatives and usher in reforms to consolidate trust and credibility through promoting the business environment in a bid to attract more capital which is a strong leverage for curbing unemployment, improving the population's living standards and gradually eradicating poverty and social edging out. The government undertook in its declaration to enforce a program to foster Moroccan firms' awareness of competition requirements and encourage them to modernize their structures and develop productivity.The declaration put a special emphasis on promoting economic sectors where Morocco is competitive, including tourism, export-oriented industry, fisheries, agriculture, mining and the new information and communication technologies. Part of the drives planned to spur investments, the government commits to oost the role of regional investment centers, the target being to enable these structures play an effective role in encouraging firms to be an engine for growth and wealth generation. Jettou underlined, in this connection, that the government will enforce a package of measures to promote small and medium size firms to enable them to face up the challenges of fierce competition, particularly in the perspective of the entry into force of the free trade area with the European Union by 2012, as provided for by the Association Accord Morocco signed with the Union.

The reform of the tax system is a corner stone in Jettou's government program. The Prime Minister underlined that the government is determined to reconsider this system to make it fairer and the informal economy's gradual integration in the realm of structured activity. Given the key role of financial markets in economy and promoting investment-oriented savings, the government said it will endeavor to restructure the public and private financial sectors and promote the efficiency of the channels financing the economy. The new team equally pledged to continue building on past efforts, particularly in the realms of privatization, liberalization of some sectors, reforming and restructuring public institutions and state-owned enterprises in addition to consolidating the role of the Hassan II Fund for Social and Economic Development as an engine of productive investments and of attracting capital, and a key actor in social and economic projects.

The Moroccan government on Thursday vowed to enforce a new educational policy, based on generalizing and promoting a quality education. Morocco's Primie Minister, Driss Jettou, who presented on Thursday the government program successively to the two chambers of the Moroccan parliament, said his team will base the reform of the country's educational system on the National Education and Training Charter. The strategy, Jettou said, will rely on generalizing primary education, encouraging the two secondary education cycles in order to generalize it by 2008, enlarging the scope of vocational secondary education and reaching the target of 60 percent of pupils at the Baccalaureate by 2010. Private education was granted a special interest in the program of the government, which seeks to make this sector contribute to schooling generalization. The schooling of children with special needs appears as one of the major targets in the government program, which stressed the importance of integrating these children in the educational system. Jettou equally noted that the government will build on efforts meant to teach Arabic language, Islamic religion and national values to the children of Moroccan nationals settled abroad. In line with the principle of education for all, the Prime Minister said the government will concentrate efforts on promoting non-formal education programs for non-schooled children or dropouts, and intensifying the program of struggle against illiteracy. In order to achieve quality education, the government program said it will reform and promote syllabi in terms of content, methodology and style, generalize the use of new information technologies in education and consolidate scientific and technical branches. Touching on higher education, Jettou said the government will activate a reform of the sector in accordance with the National Education and Training Charter and adapting higher education to job market requirements. The government also undertakes to continue setting up new university structures likely to consolidate the pedagogical, administrative and financial independence of universities. The government also said it will encourage scientific and technological research, while associating the private sector to this drive.

Morocco and Cote d'Ivoire have a great offshore hydrocarbon potential, said Gene Van Dyke, President and Managing Director of the US Vanco Energy corp. Van Dyke told the Washington File, that he expects huge oil and gas finds of the shores of Western Africa, where his company is involved in drilling operations. The African coast may in the medium run substitute the Middle East as a major oil supplier for the USA, said Dyke, who described the West Africa hydrocarbon potential as "phenomenal." The USA consumes annually 20 million barrels of oil and imports 14 million. The offshore drilling has just started, he said, adding success rate in West Africa's shores stands at 50 percent. This means wells of 100 million barrels will be discovered in 50 to 60 percent of drillings made. For US firms, Western Africa shores are easy to exploit and are advantageous in terms of conveying oil to the USA, he said. Van Dyke attended a conference, held in Houston Nov. 19-20 by the Corporate Council on Africa, on hydrocarbon production in Africa.

Monte Carlo, Nov. 18 - Morocco's field and track star, Hicham El Guerrouj, was elected Athlete of the Year, at the 2002 World Athletics Gala, which is celebrating the 90th anniversary of the International Association of Athletics Federations (IAAF). El-Guerrouj's award was announced during a live TV broadcast at the Sporting Club of Monte-Carlo by Prince Albert of Monaco, the Honorary President of the Foundation, and Lamine Diack, President of the IAAF and the International Athletic Foundation. The other men's finalists were 100m world record holder Tim Montgomery (USA) and Felix Sanchez (DOM), who won a share of the IAAF Golden League Jackpot and was crowned 400m Grand Prix Champion in 2002. In the women's contest the other finalists were Marion Jones (USA) and Ana Guevara (MEX), who were both Jackpot winners and Grand Prix Champions, with both also winning their event at the IAAF World Cup. Hicham El Guerrouj becomes the first man to win Athlete of the Year titles in consecutive years since the award was created in 1988. The 28-year-old Master of the Middle Distances had a superb 2002, and was unbeaten in 11 races at 1500m or 1 Mile, including all IAAF Golden League races and the IAAF Grand Prix Final, where he just lost out in the Overall Grand Prix Standings when Tim Montgomery ran 9.78 to set a new 100m world record. El Guerrouj also had world-leading times at both 1500m (3:26.89) and 1 Mile (3:48.48). The Moroccan has announced his intention to double up at 1500m and 5000m at the IAAF World Championships in Paris next year and then at the 2004 Olympic Games in Athens. British Paula Radcliffe won the females' title. She emerged in 2002 as a true world beater with spectacular displays on every surface.

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