Agreement with Morocco to Provide
Increased Export Opportunities for U.S. Cattle Industry

Washington, D.C. (March 5, 2004) - U.S. cattle producers across the country are looking to benefit from a free trade agreement (FTA) with Morocco. This week, the Bush Administration announced it has completed negotiations on this agreement. For more than a year now, NCBA has continually reiterated the cattle industry's position on these trade negotiations through comments, testimony, and meetings with trade officials.

"This new agreement gives us new opportunities to promote U.S. beef in Morocco," says NCBA President and Kansas cattle producer Jan Lyons. "It opens doors for increased quantities of our high-quality beef to be exported to their extensive hotel and restaurant industry, where there is an increasing demand for high-quality beef products. Our popular, coveted U.S. beef could do well in Morocco."

According to the agreement, Morocco will open its market with a tariff rate quota for high-quality beef that will provide access to the hotel and restaurant industry (HRI) market, starting with a low in-quota tariff that goes to zero quickly.

"Presently, products entering Morocco face some of the highest beef tariffs in the world," exclaims NCBA Associate Director of Trade Policy Michelle Reinke. "This agreement will finally liberalize tariffs on trade, and improve market access for cattle producers. In addition, this agreement paves the way for future market access opportunities across the Middle East and North Africa."

American fast-food outlets have been among the most successful businesses in Morocco in recent years. Most of the major fast food chains have opened outlets during the past five years and more outlets are scheduled to open in the near future in response to the higher demand for "western type" food. The rapid growth in the sector stems from major economic changes in Morocco. Beef is listed among the U.S. agricultural products having the best high value product prospects for increasing exports to Morocco.

"NCBA appreciates the initiatives that have been undertaken to gain access to international markets and to resolve lingering issues that restrict the ability of the U.S. beef industry to offer its products to international consumers," says Lyons. "Historically, the U.S. beef industry has been the world's largest beef importer and second largest exporter. We depend on access to new and expanding markets to maintain our profitability. Morocco presents an opportunity to expand access to a country that is also aligned with the European Union through a bilateral agreement, so a U.S. - Morocco FTA offers strategic future opportunities."

NCBA continues to participate in the process of evaluating critical trade issues within the cattle industry. NCBA looks forward to providing additional input as the U.S. advances its proposals at the WTO, negotiates bi-lateral and regional agreements and resolves a growing list of SPS issues with trading partners around the world.

The Bush Administration will continue to consult with the Congress on this agreement and will soon send a formal notification of its intent to sign the U.S.-Morocco FTA to Congress.