(ii) a serious shortage, or threat thereof, of a product essential to the exporting Party;
and where the situations referred to above give rise, or are likely to give rise, to major difficulties for the exporting Party, that Party may take appropriate measures under the conditions and in accordance with the procedures laid down in Article 27. The measures shall be non-discriminatory and shall be eliminated when conditions no longer justify their maintenance.
Article 27.
1. In the event of the Community or Morocco subjecting imports of products liable to give rise to the difficulties referred to in Article 25 to an administrative procedure having as its purpose the rapid supply of information on trade flow trends, it shall inform the other Party.
2. In the cases specified in Articles 24, 25 and 26, before taking the measures provided for therein or, in cases to which paragraph 3(d) of this Article applies, as soon as possible, the Community or Morocco, as the case may be, shall supply the Association Committee with all relevant information with a view to seeking a solution acceptable to the two Parties.
In the selection of measures, priority shall be given to those which least disturb the functioning of this Agreement.
The safeguard measures shall be immediately notified to the Association Committee by the Party concerned and shall be the subject of periodic consultations, particularly with a view to their abolition as soon as circumstances permit.
3. For the implementation of paragraph 2, the following provisions shall apply:
(a) as regards Article 24, the exporting Party shall be informed of the dumping case as soon as the authorities of the importing Party have initiated an investigation. When no end has been put to the dumping within the meaning of Article VI of the General Agreement on Tariffs and Trade or no other satisfactory solution has been reached within 30 days of the matter being referred, the importing Party may adopt the appropriate measures;
(b) as regards Article 25, the difficulties arising from the situation referred to in that Article shall be referred for examination to the Association Committee, which may take any decision needed to put an end to such difficulties.
If the Association Committee or the exporting Party has not taken a decision putting an end to the difficulties or no other satisfactory solution has been reached within 30 days of the matter being referred, the importing Party may adopt the appropriate measures to remedy the problem. These measures shall not exceed the scope of what is necessary to remedy the difficulties which have arisen;
(c) as regards Article 26, the difficulties arising from the situations referred to in that Article shall be referred for examination to the Association Committee.
The Association Committee may take any decision needed to put an end to the difficulties. If it has not taken such a decision within 30 days of the matter being referred to it, the exporting Party may apply appropriate measures to exports of the product concerned;
(d) where exceptional circumstances requiring immediate action make prior information or examination, as the case may be, impossible, the Community or Morocco, whichever is concerned, may, in the situations specified in Articles 24, 25 and 26, apply forthwith the precautionary measures strictly necessary to deal with the situation and shall inform the other Party immediately thereof.
Article 28.
This Agreement shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures of artistic, historic or archaeological value or the protection of intellectual, industrial and commercial property or rules relating to gold and silver. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Parties.
Article 29.
The concept of "originating products" for the purposes of implementing this title and the methods of administrative cooperation relating thereto are laid down in Protocol 4.
Article 30.
The Combined Nomenclature of goods shall be applied to the classification of goods in trade between the two Parties.
Title III. RIGHT OF ESTABLISHMENT AND SERVICES
Article 31.
1. The Parties agree to widen the scope of this Agreement to cover the right of establishment of one Party's firms on the territory of the other and liberalisation of the provision of services by one Party's firms to consumers of services in the other.
2. The Association Council will make recommendations for achieving the objective described in paragraph 1. In making such recommendations, the Association Council will take account of past experience of implementation of reciprocal most-favoured-nation treatment and of the respective obligations of each Party under the General Agreement on Trade in Services annexed to the Agreement establishing the WTO, hereinafter referred to as the "GATS", particularly those in Article V of the latter.
3. The Association Council will make a first assessment of the achievement of this objective no later than five years after this Agreement enters into force.
4. Without prejudice to the provisions of paragraph 3, the Association Council shall, once this Agreement is in force, examine the international maritime transport sector with a view to making appropriate recommendations for liberalisation measures. The Association Council shall take account of the results of GATS negotiations on this matter subsequent to the end of the Uruguay Round.
Article 32.
1. At the outset, each of the Parties shall reaffirm its obligations under the GATS, particularly the obligation to grant reciprocal most-favoured-nation treatment in the service sectors covered by that obligation.
2. In accordance with the GATS, such treatment shall not apply to:
(a) advantages granted by either Party under the terms of an agreement of the type defined in Article V of the GATS or to measures taken on the basis of such an agreement;
(b) other advantages granted in accordance with the list of exemptions from most-favoured-nation treatment annexed by either Party to the GATS.
Title IV. PAYMENTS, CAPITAL, COMPETITION AND OTHER ECONOMIC PROVISIONS
Chapter I. Current Payments and Movement of Capital
Article 33.
Subject to the provisions of Article 35, the Parties undertake to allow all current payments for current transactions to be made in a freely convertible currency.
Article 34.
1. With regard to transactions on the capital account of balance of payments, the Community and Morocco shall ensure, from the entry into force of this Agreement, that capital relating to direct investments in Morocco in companies formed in accordance with current laws can move freely and that the yield from such investments and any profit stemming therefrom can be liquidated and repatriated.
2. The Parties shall consult each other with a view to facilitating, and fully liberalising when the time is right, the movement of capital between the Community and Morocco.
Article 35.
Where one or more Member States of the Community, or Morocco, is in serious balance of payments difficulties, or under threat thereof, the Community or Morocco, as the case may be, may, in accordance with the conditions established under the GATT and Articles VIII and XIV of the Articles of Agreement of the International Monetary Fund, adopt restrictions on current transactions which shall be of limited duration and may not go beyond what is strictly necessary to remedy the balance of payments situation. The Community or Morocco, as the case may be, shall inform the other Party forthwith and shall submit to it as soon as possible a timetable for the elimination of the measures concerned.
Chapter II. Competition and other Economic Provisions
Article 36.
1. The following are incompatible with the proper functioning of this Agreement, in so far as they may affect trade between the Community and Morocco:
(a) all agreements between undertakings, decisions by associations of undertakings and concerted practices between undertakings which have as their object or effect the prevention, restriction or distortion of competition;
(b) abuse by one or more undertakings of a dominant position in the territories of the Community or of Morocco as a whole or in a substantial part thereof;
(c) any official aid which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods, with the exception of cases in which a derogation is allowed under the Treaty establishing the European Coal and Steel Community.
2. Any practices contrary to this Article shall be assessed on the basis of criteria arising from the application of the rules of Articles 85, 86 and 92 of the Treaty establishing the European Community (1) and, in the case of products falling within the scope of the European Coal and Steel Community, the rules of Articles 65 and 66 of the Treaty establishing that Community, and the rules relating to State aid, including secondary legislation.
3. The Association Council shall, within five years of the entry into force of this Agreement, adopt the necessary rules for the implementation of paragraphs 1 and 2. Until these rules are adopted, the provisions of the Agreement on interpretation and application of Articles VI, XVI and XXIII of the General Agreement on Tariffs and Trade shall be applied as the rules for the implementation of paragraph 1(c) and related parts of paragraph 2.
4. (a) For the purposes of applying the provisions of paragraph 1(c), the Parties recognise that during the first five years after the entry into force of this Agreement, any State aid granted by Morocco shall be assessed taking into account the fact that Morocco shall be regarded as an area identical to those areas of the Community described in Article 92(3)(a) of the Treaty establishing the European Community.
During the same period of time, Morocco may exceptionally, as regards ECSC steel products, grant State aid for restructuring purposes provided that:
- it leads to the viability of the recipient firms under normal market conditions at the end of the restructuring period,
- the amount and intensity of such aid are strictly limited to what is absolutely necessary in order to restore such viability and are progressively reduced,
- the restructuring programme is linked to a comprehensive plan for rationalising capacity in Morocco.
The Association Council shall, taking into account the economic situation of Morocco, decide whether the period should be extended every five years.
b) Each Party shall ensure transparency in the area of official aid, inter alia, by reporting annually to the other Party on the total amount and the distribution of the aid given and by providing, upon request, information on aid schemes. Upon request by one Party, the other Party shall provide information on particular individual cases of official aid.
5. With regard to products referred to in Chapter II of Title II:
- the provisions of paragraph 1(c) do not apply,
- any practices contrary to paragraph 1(a) shall be assessed according to the criteria established by the Community on the basis of Articles 42 and 43 of the Treaty establishing the European Community, and in particular those established in Council Regulation (EEC) No 26/62.
6. If the Community or Morocco considers that a particular practice is incompatible with the terms of paragraph 1, and:
- is not adequately dealt with under the implementing rules referred to in paragraph 3, or
- in the absence of such rules, and if such practice causes or threatens to cause serious prejudice to the interest of the other Party or material injury to its domestic industry, including its services industry,
it may take appropriate measures after consultation within the Association Committee or after 30 working days following referral to that Committee.
In the case of practices incompatible with paragraph 1(c) of this Article, such appropriate measures may, where the GATT applies thereto, only be adopted in accordance with the procedures and under the conditions laid down by the General Agreement on Tariffs and Trade and any other relevant instrument negotiated under its auspices which is applicable between the Parties.
7. Notwithstanding any provisions to the contrary adopted in accordance with paragraph 3, the Parties shall exchange information taking into account the limitations imposed by the requirements of professional and business secrecy.
Article 37.
The Member States and Morocco shall progressively adjust, without affecting commitments made under the GATT, any State monopolies of a commercial character so as to ensure that, by the end of the fifth year following the entry into force of this Agreement, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of the Member States and of Morocco. The Association Committee will be informed about the measures adopted to implement this objective.
Article 38.
With regard to public enterprises and enterprises which have been granted special or exclusive rights, the Association Council shall ensure, from the fifth year following the entry into force of this Agreement, that no measure which disturbs trade between the Community and Morocco in a manner which runs counter to the interests of the Parties is adopted or maintained. This provision shall not impede the performance in fact or in law of the specific functions assigned to those enterprises.
Article 39.
1. The Parties shall provide suitable and effective protection of intellectual, industrial and commercial property rights, in line with the highest international standards. This shall encompass effective means of enforcing such rights.
2. Implementation of this Article and of Annex 7 shall be regularly assessed by the Parties. If difficulties which affect trade arise in connection with intellectual, industrial and commercial property rights, either Party may request urgent consultations to find mutually satisfactory solutions.
Article 40.
1. The Parties shall take appropriate steps to promote the use by Morocco of Community technical rules and European standards for industrial and agri-food products and certification procedures.
2. Using the principles set out in paragraph 1 as a basis, the Parties shall, when the circumstances are right, conclude agreements for the mutual recognition of certifications.
Article 41.
1. The Parties shall set as their objective a reciprocal and gradual liberalisation of public procurement contracts.
2. The Association Council shall take the steps necessary to implement paragraph 1.
Title V. ECONOMIC COOPERATION
Article 42. Objectives
1. The Parties undertake to step up economic cooperation in their mutual interest and in the spirit of partnership which is at the root of this Agreement.
2. The objective of economic cooperation shall be to support Morocco's own efforts to achieve sustainable economic and social development.
Article 43. Scope
1. Cooperation will be targeted first and foremost at areas of activity suffering the effects of internal constraints and difficulties or affected by the process of liberalising Morocco's economy as a whole, and more particularly by the liberalisation of trade between Morocco and the Community.
2. Similarly, cooperation shall focus on areas likely to bring the economies of the Community and Morocco closer together, particularly those which will generate growth and employment.
3. Cooperation shall foster economic integration within the Maghreb using any measures likely to further such relations within the region.
4. Preservation of the environment and ecological balances shall constitute a central component of the various fields of economic cooperation.
5. Where appropriate, the Parties shall determine by agreement other fields of economic cooperation.
Article 44. Methods
Economic cooperation shall involve methods including:
(a) regular economic dialogue between the two Parties covering all aspects of macroeconomic policy;
(b) communication and exchanges of information;
(c) advice, use of the services of experts and training;
(d) joint ventures;
(e) assistance with technical, administrative and regulatory matters.
Article 45. Regional Cooperation
In order to make the most of this Agreement, the Parties shall foster all activities which have a regional impact or involve third countries, notably:
(a) intra-regional trade within the Maghreb;
(b) environmental matters;
(c) the development of economic infrastructure;
(d) research in science and technology;
(e) cultural matters;
(f) customs matters;
(g) regional institutions and the establishment of common or harmonised programmes and policies.
Article 46. Education and Training
The aim of cooperation shall be to:
(a) find ways to bring about a significant improvement in education and training, including vocational training;
(b) place special emphasis on giving the female population access to education, including technical training, higher education and vocational training;
(c) encourage the establishment of lasting links between specialist bodies on the Parties' territories in order to pool and exchange experience and methods.
Article 47. Scientific, Technical and Technological Cooperation
The aim of cooperation shall be to:
(a) encourage the establishment of permanent links between the Parties' scientific communities, notably by means of:
- providing Morocco with access to Community research and technological development programmes in accordance with Community rules governing non-Community countries' involvement in such programmes,
- Moroccan participation in networks of decentralised cooperation,
- promoting synergy in training and research;
b) improve Morocco's research capabilities;
c) stimulate technological innovation and the transfer of new technology and know-how;
d) encourage all activities aimed at establishing synergy at regional level.
Article 48. Environment
The aim of cooperation shall be to prevent deterioration of the environment, to improve the quality of the environment, to protect human health and to achieve rational use of natural resources for sustainable development. The Parties undertake to cooperate in areas including:
(a) soil and water quality;
(b) the consequences of development, particularly industrial development (especially safety of installations and waste);
(c) monitoring and preventing pollution of the sea.
Article 49. Industrial Cooperation
The aim of cooperation shall be to:
(a) encourage cooperation between the Parties' economic operators, including cooperation in the context of access for Morocco to Community business networks and decentralised cooperation networks;
(b) back the effort to modernise and restructure Morocco's public and private sector industry (including the agri-food industry);
(c) foster an environment which favours private initiative, with the aim of stimulating and diversifying output for the domestic and export markets;
(d) make the most of Morocco's human resources and industrial potential through better use of policy in the fields of innovation and research and technological development;
(e) facilitate access to credit to finance investment.
Article 50. Promotion and Protection of Investment
The aim of cooperation shall be to create a favourable climate for flows of investment, and to use the following in particular:
(a) the establishment of harmonised and simplified procedures, co-investment machinery (especially to link small and medium-sized enterprises) and methods of identifying and providing information on investment opportunities;
(b) the establishment, where appropriate, of a legal framework to promote investment, chiefly through the conclusion by Morocco and the Member States of investment protection agreements and agreements preventing double taxation.
Article 51. Cooperation In Standardisation and Conformity Assessment
The Parties shall cooperate in developing:
(a) the use of Community rules in standardisation, metrology, quality control and conformity assessment;
(b) the updating of Moroccan laboratories, leading eventually to the conclusion of mutual recognition agreements for conformity assessment;
(c) the bodies responsible for intellectual, industrial and commercial property and for standardisation and quality in Morocco.
Article 52. Approximation of Legislation
Cooperation shall be aimed at helping Morocco to bring its legislation closer to that of the Community in the areas covered by this Agreement.
Article 53. Financial Services
The aim of cooperation shall be to achieve closer common rules and standards in areas including the following:
(a) bolstering and restructuring Morocco's financial sectors;
(b) improving accounting, auditing, supervision and regulation of financial services and financial monitoring in Morocco.
Article 54. Agriculture and Fisheries
The aim of cooperation shall be to:
(a) modernise and restructure agriculture and fisheries through methods including the modernisation of infrastructure and equipment, the development of packaging and storage techniques and the improvement of private distribution and marketing chains;
(b) diversify output and external markets;
(c) achieve cooperation in health, plant health and growing techniques.