Morocco Reopens to U.S. Wheat in 2017 Rabat Morocco 10 24 2017
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY
Voluntary
- Public
Date: 10/24/2017
GAIN Report Number: MO1708
Morocco
Post: Rabat
Morocco Reopens to U.S. Wheat in 2017
Report Categories:
Grain and Feed
SP2 - Prevent or Resolve Barriers to Trade that Hinder
U.S. Food and Agricultural Exports
SP1 - Expand International Marketing Opportunities
Approved By:
Morgan Haas
Prepared By:
Mohamed Fardaoussi
Report Highlights:
Under the auspices of the US-Morocco Free Trade Agreement, on October 23, 2017, Morocco’s state
cereals office (ONICL) issued the second tender of calendar year 2017 to import 30,000 MT of common
wheat and 327,273 MT of durum wheat from the United States. Bids close and results should be
announced on November 10. Deliveries must arrive by December 31, 2017. To facilitate trade, the
Government of Morocco simultaneously lowered the MFN import duty for common wheat, effective
December 1, from 135% to 30%, which translates into a reduction of the preferential U.S. in-quota duty
from 83.7% to 9.9%.
Morocco Reopens 2017 Tender for US Wheat
Under the auspices of the U.S.-Morocco Free Trade Agreement, on October 23, 2017, Morocco’s state
cereals office (ONICL) issued the second tender of calendar year 2017 to import 30,000 MT of common
wheat and 327,273 MT of durum wheat from the United States, with deliveries required to be made by
December 31, 2017 and volume commitments allowed to be +/- 10% of the auction results, which will
be announced on November 10.
Product
U.S. Common
Wheat
U.S. Durum Wheat
Tender
Opens
Oct 24, 2017
Tender
Closes
Nov 10, 2017
Oct 24, 2017
Nov 10, 2017
Quantity
30,000 MT
327,273
MT
For Delivery No Later
Than
Dec 31, 2017
Dec 31, 2017
For more information, see ONICL – Reference circular N DC/SIE 2811 of October 23, 2017.
As prescribed in the U.S.-Morocco FTA, the preferential quota volumes in calendar year 2017 are
400,000 MT for common wheat and 360,000 MT for durum wheat. This announcement follows
Morocco’s earlier December/January tender for common and durum wheat deliveries in 2017 and
reflects the unassigned/remaining quota volume. See Appendix for trade-to-date.
For more information, see USTR – Morocco General Notes and Annex 1 to Morocco General Notes; FAS/Rabat – Morocco
Opens US and EU Tenders for Wheat (12/28/2016) and Morocco: Grain and Feed Update – January 2017 (01/19/2017).
Common Wheat Duty Lowered, Effective December 1, 2017
In order to facilitate trade, the Government of Morocco simultaneously lowered the seasonal MFN
import duty for common wheat, effective December 1, from 135% to 30%, which will translate into a
reduction of the preferential U.S. in-quota duty from 83.7% to 9.9%. However, the common wheat
import duty is a complex tariff, and only the portion of the unit value less than or equal to
MAD1000/MT is charged the MFN (e.g., Black Sea) or preferential (e.g., United States) rate while the
portion of the unit value exceeding MAD1000/MT remains subject to an import duty of 2.5%. For
example, given an MFN duty of 30% and a preferential rate of 9.9%, if the unit value of common wheat
entering Morocco is $220/MT, roughly equivalent to MAD2,000/MT, this would result in an effective
tariff rate of 6.2% for the United States whereas the Black Sea would pay 16.3%.
For more information, see Government of Morocco, Decree 6613 (2017); FAS/Rabat – Common Wheat Import Duties Jump
to 135% (06/29/17).
Morocco’s MFN import duty for durum wheat remains set at 2.5% in August-May and 170% in June
and July. The United States continues to benefit from a preferential import duty of 0% in August-May
with no preference applied in June and July.
2|Page
Appendix: Wheat Trade Matrix
World
United States
Ukraine
Romania
France
Germany
Argentina
Russia
Bulgaria
Hungary
Estonia
United Kingdom
Canada
Slovakia
Morocco Imports of Common Wheat Subject to the TRQ: 1001.99.00.19 and 1001.99.00.90
(excludes Seed: 1001.91 and Feed Wheat: 1001.99.00.11), MT
01/2017
02/2017 03/2017 04/2017 05/2017 06/2017 07/2017 Jan-Jul 2017
30,000 125,580 575,070 1,225,180
10,701
20
1,966,551
- 152,742
214,153
20
366,915
8,242
81,145
241,283
330,670
27,085 111,192
143,379
281,656
59,174
26,601
149,262
4,400
239,437
30,000
- 121,848
82,228
234,076
31,079
15,000
102,507
148,586
136,471
136,471
63,634
57,737
121,371
67,959
67,959
26,900
26,900
6,301
6,301
3,300
3,300
2,910
2,910
Source: IHS Markit Inc.
01/2017
World
79,536
Canada
62,826
France
16,710
Australia
United States
-
Morocco Imports of Durum Wheat Subject to the TRQ: 1001.19.00.90
(excludes Seed: 1001.11 and June-July: 1001.19.00.10), MT
02/2017
03/2017
04/2017
05/2017 06/2017 07/2017 Jan-Jul 2017
86,861
78,020
65,399 247,858
557,674
70,261
73,620
65,399 203,240
475,346
16,600
4,400
9,618
47,328
35,000
35,000
-
Source: IHS Markit Inc.
3|Page
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY
Voluntary
- Public
Date: 10/24/2017
GAIN Report Number: MO1708
Morocco
Post: Rabat
Morocco Reopens to U.S. Wheat in 2017
Report Categories:
Grain and Feed
SP2 - Prevent or Resolve Barriers to Trade that Hinder
U.S. Food and Agricultural Exports
SP1 - Expand International Marketing Opportunities
Approved By:
Morgan Haas
Prepared By:
Mohamed Fardaoussi
Report Highlights:
Under the auspices of the US-Morocco Free Trade Agreement, on October 23, 2017, Morocco’s state
cereals office (ONICL) issued the second tender of calendar year 2017 to import 30,000 MT of common
wheat and 327,273 MT of durum wheat from the United States. Bids close and results should be
announced on November 10. Deliveries must arrive by December 31, 2017. To facilitate trade, the
Government of Morocco simultaneously lowered the MFN import duty for common wheat, effective
December 1, from 135% to 30%, which translates into a reduction of the preferential U.S. in-quota duty
from 83.7% to 9.9%.
Morocco Reopens 2017 Tender for US Wheat
Under the auspices of the U.S.-Morocco Free Trade Agreement, on October 23, 2017, Morocco’s state
cereals office (ONICL) issued the second tender of calendar year 2017 to import 30,000 MT of common
wheat and 327,273 MT of durum wheat from the United States, with deliveries required to be made by
December 31, 2017 and volume commitments allowed to be +/- 10% of the auction results, which will
be announced on November 10.
Product
U.S. Common
Wheat
U.S. Durum Wheat
Tender
Opens
Oct 24, 2017
Tender
Closes
Nov 10, 2017
Oct 24, 2017
Nov 10, 2017
Quantity
30,000 MT
327,273
MT
For Delivery No Later
Than
Dec 31, 2017
Dec 31, 2017
For more information, see ONICL – Reference circular N DC/SIE 2811 of October 23, 2017.
As prescribed in the U.S.-Morocco FTA, the preferential quota volumes in calendar year 2017 are
400,000 MT for common wheat and 360,000 MT for durum wheat. This announcement follows
Morocco’s earlier December/January tender for common and durum wheat deliveries in 2017 and
reflects the unassigned/remaining quota volume. See Appendix for trade-to-date.
For more information, see USTR – Morocco General Notes and Annex 1 to Morocco General Notes; FAS/Rabat – Morocco
Opens US and EU Tenders for Wheat (12/28/2016) and Morocco: Grain and Feed Update – January 2017 (01/19/2017).
Common Wheat Duty Lowered, Effective December 1, 2017
In order to facilitate trade, the Government of Morocco simultaneously lowered the seasonal MFN
import duty for common wheat, effective December 1, from 135% to 30%, which will translate into a
reduction of the preferential U.S. in-quota duty from 83.7% to 9.9%. However, the common wheat
import duty is a complex tariff, and only the portion of the unit value less than or equal to
MAD1000/MT is charged the MFN (e.g., Black Sea) or preferential (e.g., United States) rate while the
portion of the unit value exceeding MAD1000/MT remains subject to an import duty of 2.5%. For
example, given an MFN duty of 30% and a preferential rate of 9.9%, if the unit value of common wheat
entering Morocco is $220/MT, roughly equivalent to MAD2,000/MT, this would result in an effective
tariff rate of 6.2% for the United States whereas the Black Sea would pay 16.3%.
For more information, see Government of Morocco, Decree 6613 (2017); FAS/Rabat – Common Wheat Import Duties Jump
to 135% (06/29/17).
Morocco’s MFN import duty for durum wheat remains set at 2.5% in August-May and 170% in June
and July. The United States continues to benefit from a preferential import duty of 0% in August-May
with no preference applied in June and July.
2|Page
Appendix: Wheat Trade Matrix
World
United States
Ukraine
Romania
France
Germany
Argentina
Russia
Bulgaria
Hungary
Estonia
United Kingdom
Canada
Slovakia
Morocco Imports of Common Wheat Subject to the TRQ: 1001.99.00.19 and 1001.99.00.90
(excludes Seed: 1001.91 and Feed Wheat: 1001.99.00.11), MT
01/2017
02/2017 03/2017 04/2017 05/2017 06/2017 07/2017 Jan-Jul 2017
30,000 125,580 575,070 1,225,180
10,701
20
1,966,551
- 152,742
214,153
20
366,915
8,242
81,145
241,283
330,670
27,085 111,192
143,379
281,656
59,174
26,601
149,262
4,400
239,437
30,000
- 121,848
82,228
234,076
31,079
15,000
102,507
148,586
136,471
136,471
63,634
57,737
121,371
67,959
67,959
26,900
26,900
6,301
6,301
3,300
3,300
2,910
2,910
Source: IHS Markit Inc.
01/2017
World
79,536
Canada
62,826
France
16,710
Australia
United States
-
Morocco Imports of Durum Wheat Subject to the TRQ: 1001.19.00.90
(excludes Seed: 1001.11 and June-July: 1001.19.00.10), MT
02/2017
03/2017
04/2017
05/2017 06/2017 07/2017 Jan-Jul 2017
86,861
78,020
65,399 247,858
557,674
70,261
73,620
65,399 203,240
475,346
16,600
4,400
9,618
47,328
35,000
35,000
-
Source: IHS Markit Inc.
3|Page