EU finalises farm trade deal with Morocco

The European Union has finalised a deal on agricultural trade with Morocco, ending years of haggling over preferential market…

The European Union has finalised a deal on agricultural trade with Morocco, ending years of haggling over preferential market access for cereals and tomatoes.

Talks had been deadlocked for around three years, mainly over EU reluctance to increase Morocco's export quotas for fresh farm products - mostly tomatoes - and Rabat's desire to limit cereal imports from the 15-nation bloc.

The two sides finalised the agreement after reaching a provisional deal at the end of last month. The European Commission and member states have to formally endorse the deal before it can apply.

The talks are part of a 1995 partnership accord aimed at a gradual dismantling of barriers between the EU and Morocco by 2012.

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"It's a great step forward," said EU Farm Commissioner Mr Franz Fischler in a statement. "Our tomato producers finally have a clear picture of the volume of tomato imports into the EU."

Morocco sends some 150,000 tonnes of tomatoes a year to EU countries, virtually free of duties. Under the new deal, this volume would be set at 175,000 tonnes a year, with progressive annual increases of 15,000 tonnes over four years.

Morocco's tomato quota has set alarm bells ringing in Spain, which lies just across the water and is a major tomato and citrus supplier to EU countries. Along with their counterparts in France and Portugal, Spain's farmers fear their traditional markets will be flooded with cheap imports.

In return, Morocco has agreed to cut its stiff import tariffs for EU cereals by 38 per cent although details are still sketchy. Morocco is a major cereals importer from the EU and a key player on the world market.

For wheat, the main cereal affected by the deal, Morocco applies an import tariff of some 135 per cent, for example.