Morocco

Overview:

• Morocco is a Muslim country that observes Ramadan.
• Morocco faces the typical problems of a developing country - restraining government spending, reducing constraints on private activity and foreign trade, and achieving sustainable economic growth.
• Morocco has an extensive infrastructure, including 10 main ports and 6 international airports.
• The Moroccan economy is very dependent on the export of raw materials.
• Morocco has eliminated most restrictions on imports originating from other GATT member countries but some trade barriers still exist in the form of customs duties and value-added taxes.
• There is a free trade zone in Tangier.
• Goods cannot be shipped directly from the U.S. to Morocco

Opportunities:

• Consumer goods
• Lubricants
• Chemicals
• Crude petroleum
• Raw materials, especially cotton and sawn wood
• Wheat, including durum
• Feed grains, especially corn
• Vegetable oil
• Oilseeds
• Protein meals, including soybean meal
• Purebred dairy cattle
• Milk powder
• Unsalted butter
• Canned fruit and vegetables
• Nuts
• Dried fruit, especially prunes and raisins
• Confectionery
• Industrial machinery and equipment
• Telecommunications equipment
• Electrical power systems
• Environmental equipment and services
• Water resources equipment
• Engineering services
• Franchising

Links:

• Moroccan American Business Council Ltd.: www.usa-morocco.org/  provides extensive information about doing business in Morocco.
• The American Chamber of Commerce in Morocco: www.amcham-morocco.com/  provides helpful information for working with Moroccan companies.
• Business Culture: www.businessculture.com sells reports about Moroccan business etiquette and culture.

Marketing Tips:

• U.S. businesses face strong competition from France and other EU countries.
• Newspaper and magazine advertising is commonly used.
• French-language papers have the largest readership.
• Radio advertising is very effective, and is the second most popular medium for consumer goods advertising.
• Direct mail is becoming more common.
• Street posters offer another important advertising medium for consumer goods in Morocco.
• Consumer product companies sometimes use sound trucks to advertise, particularly in remote areas.
• U.S. expertise in technology gives American companies a competitive edge in the telecommunications and computer sectors.
• Other opportunities include health, mining, and construction.
• Franchising is growing in popularity because the idea is fairly new and there is plenty of room for more franchises.

Business Culture:

• Society is male-dominated.
• There is strict segregation of the sexes in public life.
• More and more women are entering the work force.
• Handshaking is the customary form of greeting but some people may brush cheeks or kiss.
• Greetings usually include inquiries about one's health and family.
• Many of the manners and social customs emulate French manners.
• French is the language of business, but the use of English is increasing. Spanish is also spoken.
• Product information should be in French.
• Business people should be dressed professionally and conservatively, but a suit is not necessary in very hot weather.
• Meetings tend to be slow-paced, beginning with long amenities and gradually approaching the purpose.
• Negotiations often involve a lot of bargaining, and a visitor should expect to deal with many people.
• Most businesses close for a two and a half-hour break during midday.

Legal Environment:

• Based on Islamic law, French and Spanish civil law system.
• The legal system protects and facilitates acquisition and disposition of property rights, including intellectual property.
• Moroccan laws are adequate, but enforcement is lacking. Counterfeit clothing, luggage, and other consumer goods are common.
• New-to-market U.S. firms are advised to hire an English-speaking law firm in Casablanca or Rabat that specializes in U.S. business practices.