ITC Investigates Delaying Effective Date of Morocco FTA to July 1, 2005 (from January 1, 2005)
The International Trade Commission (ITC) has instituted an investigation at the request of the U.S. Trade Representative (USTR) entitled, Effect of Modifications to the U.S.-Morocco Free Trade Agreement.
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The ITC states that written comments on this investigation are due by April 25, 2005. According to the ITC, it will submit its advice to the USTR by April 28, 2005, and shortly thereafter issue a public version of the report.
U.S. and Morocco Have Agreed to Delay FTA's Effective Date to July 1, 2005
The ITC states that the U.S. and Morocco drafted the U.S.-Morocco Free Trade Agreement (FTA) based on the assumption that it would enter into force on January 1, 2005. However, due to subsequent events, the U.S. and Morocco agreed that the date of entry into force of the FTA should be delayed until July 1, 2005.
First stage of tariff reductions, etc. would start July 1, 2005. Accordingly, the U.S. and Morocco agreed to amend the FTA so that the first stage of negotiated tariff reductions and related measures will become effective on July 1, 2005, with the second stage starting on January 1, 2006.
TRQ quantities, etc. for first period would be prorated. In addition, the U.S. and Morocco agreed to amend the FTA so that the in-quota quantities of the tariff-rate quotas (TRQs) for agricultural and apparel goods and the quantities of textile and apparel goods that receive preferential tariff treatment, as set out in the FTA, be reduced by 50% for the period July 1, 2005 through December 31, 2005, after which the previously agreed treatment would be accorded.
U.S. and Morocco to Exchange Letters to Modify FTA
The ITC states that the U.S. and Morocco will exchange letters to modify the FTA as specified above in order to effect a date of entry into force of July 1, 2005. The ITC notes that no other amendments to the FTA will be made.
ITC to Provide Advice on Probable Effect of Delaying FTA's Effective Date
The USTR has asked the ITC to provide advice on the probable effect of the modifications to the FTA described above, with a view toward identifying any changes in the ITC's June 2004 advice concerning the impact of the FTA.
(According to the ITC, Section 201 of the U.S.-Morocco FTA Implementation Act (Act) authorizes the President, subject to the consultation and layover requirements of section 104 of the Act, to proclaim such tariff modifications and other customs treatment as are necessary to carry out or apply specified provisions of the FTA with Morocco. One of the requirements set out in section 104 of the Act is that the President obtain advice from the ITC.)
(See ITT's Online Archives or 07/27/04 news, 04072735, for BP listing of the ITC's June 2004 report concerning the potential impact of the FTA.)
(See ITT's Online Archives or 08/19/04 news, 04081905, for BP summary of President Bush signing the U.S.-Morocco FTA Implementation Act into law on August 17, 2004.)
- written comments must be submitted no later than close of business on April 25, 2005
ITC contact - Janis Summers (202) 205-2605
ITC notice (Inv. No. Morocco FTA-103-11, FR Pub 04/20/05) available at http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-8015.pdf