Reviewing Agricultural Trade Policies
To Promote Intra-OIC Agricultural Trade
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measures, but the existence of modern SPS measures is not perceived as trade protection since
health and safety are of prime importance in Morocco.
The 2013 tariff reform has been implemented mainly for alleviating the supply chain problems
in agriculture. The reform has come with major reductions, letting the tariff rates on imported
agricultural inputs decrease to 2.5%. More generally, average tariffs are notably low for
agricultural machinery and agricultural raw materials. While this contributes to lower input
costs in the agricultural sector, it also may act as a barrier against technological progress in
agriculture.
Food security, supply chains, and smallholder farmers
The major reform initiative in Morocco since 2008 is the Green Morocco Plan (GMP). Reformed
in 2013, the GMP has many facets, e.g. distributing lands, restructuring of farmers into
cooperatives, and irrigation projects. There also exists a financial credit branch of the plan that
is administrated by the state-owned bank Crédit Agricole du Maroc. The Hassan II Institute of
Agronomy and Veterinary Medicine, vocational training centers, and institutions working on the
management of water resources are other key institutional actors for the GMP. Under the GMP,
there are also federations and offices each specializing in a particular agricultural product.
An innovative aspect of the GMP is known as the aggregation through which big agricultural
producers provide help and guidance to smallholder farmers in production, marketing, and
exporting. The main purpose is to let the smallholders increase the volume of their production
and the quality of their products, thereby achieve a product quality level that is in accordance
with the modern SPS measures faced in global markets. A very recent initiative called the
solidarity market, on the other hand, aims to create a direct/short circuit between producers
and consumers. Its scope, however, is currently restricted to some regions and some products.
The problem of fragmented lands stands out as one of the most important problems in the
implementation of the GMP. Most agricultural farmers resort to establishing family businesses
instead of pursuing entrepreneurship or forming cooperatives. This is a factor that may limit the
scope of modernization in agriculture. Another problem is the tendency of young people to not
to work in agriculture. The rural-to-urban migration associated with this is a plausible factor
that decreases the supply of entrepreneurship in agriculture and that contributes to the youth
unemployment in urban areas.
There are particular success stories in Moroccan agricultural trade as well. The cooperative
called COPAG is one such initiative that proves the importance of aggregation. Established by 39
small citrus producers initially in 1987, COPAG is now a major producer of meat, milk products,
and fruits and vegetables and an exporter of fresh fruits and vegetables after three decades of
reforms in processing and automation.
Despite successes in certain regions, irrigation problems still affect the standard of living for a
sizable portion of rural population and act as a barrier against agricultural exports. In regions
where irrigation projects have been successful, producers have become major exporters to the
EU. But projects have not resolved the problems of irrigation in all regions. In terms of rural
poverty, the livestock producers remain one of the most disadvantaged groups in Morocco.