ExecutiveOrdersEO
Proc 7971ProclamationG.W. Bush · R Quiet signal

Proclamation 7971

To Implement the United States-Morocco Free Trade Agreement

This proclamation implements the United States-Morocco Free Trade Agreement by modifying the Harmonized Tariff Schedule to establish preferential tariff treatment, rules of origin, and tariff-rate quotas for Moroccan goods. It removes Morocco from the Generalized System of Preferences, delegates authority to the Secretary of Commerce to establish a dispute settlement office, and authorizes the Committee for the Implementation of Textile Agreements to enforce textile and apparel trade provisions.

Federal Register Open PDF 70 FR 76651

Impact dates

  1. HTS modifications for initial duty elimination and future staged reductions effective per dates in Annex II of Publication 3721

  2. Proclamation effective for goods entered or withdrawn from warehouse for consumption (except Annex II date-specific provisions)

Key directives

  • Modify HTS per Annex I of USITC Publication 3721 for preferential tariff treatment and rules of origin
  • Modify HTS per Annex II of Publication 3721 for staged duty elimination and reductions
  • Secretary of Commerce to establish or designate office for USMFTA Chapter 20 panel administrative assistance
  • CITA authorized to exclude textile/apparel goods, determine circumvention, and deny preferential treatment
  • CITA authorized to review requests for relief from serious damage to domestic textile/apparel industries
  • Supersede inconsistent provisions of prior proclamations and Executive Orders

Who is ordered

Timeline

Immediate

  • HTS modifications for preferential tariff treatment take effect
  • Morocco removed from GSP beneficiary list
  • CITA authorized to enforce textile provisions

Near term (90d)

  • Initial stage of duty elimination effective January 1, 2006
  • Staged duty reductions begin per Annex II schedules

Long term

  • Future staged reductions in duties as specified in Publication 3721
  • Ongoing trade dispute resolution through Commerce Department office

Risks & tensions

  • Textile and apparel safeguard provisions (serious damage determinations) could trigger trade friction with Morocco
  • Removal of Morocco from GSP may create adjustment costs for former GSP-eligible exporters
  • Rules of origin complexity creates compliance burden and potential for circumvention disputes
  • Delegation of presidential authority to CITA for enforcement actions concentrates power in non-Cabinet body
Proclamation 7971: To Implement the United States-Morocco Free Trade Agreement · Executive Orders