Trade Competitiveness of the Middle East and North Africa

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Anchoring Services Reform: The European Neighborhood Policy and Morocco

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many other Mediterranean agreements, it explicitly refers to the core legislation of EU competition and state aid policy (Article 36.3 of the agreement).14 This means that practices that run counter to Article 36.1, which covers collusive behavior, abuse of dominance, and state aid, will be assessed on the basis of Articles 81, 82, and 87 of the Treaty of the European Community. This direct reference to European Community law means that Morocco has committed to adopt EU legislation where it concerns competition or state aid that could touch on trade with the European Union. The time frame implementing the rules is five years after the agreements enter into force (that is, 2011). Morocco would greatly benefit from the ENP tools in the area of competition policy, both regulatory convergence and twinning. The ENP action plan is quite specific about cooperation with the European Union in the area of competition. It calls for implementing Article 36(3) of the association agreement;15 exchanging experience and know-how; building administrative capacity for the enforcement of the competition law; identifying other possible cooperation measures (market analysis techniques, conduct of competition investigations, merger control, dealing with disputes, and so forth); developing legislation and an enforcement mechanism compatible with those in the European Union; and ensuring the right of appeal to independent courts against antitrust decisions and the specialized training of judges dealing with competition cases. Improvement of the legislative texts and the strengthening of the administrative capacity and decision-making power of the Competition Council would be good places to start, because many disputes over competition have been brought before the courts in recent years. Examples include confusion and disputes regarding the right of entry of a new operator in maritime transport, a dispute between partners in the retailing sector, distribution monopoly issue in petroleum products, and abuse of a dominant position case in aerated beverages.16

Notes 1. The ENP covers a wide range of policy issues. The initiative’s most novel and far-reaching aspect is progressive participation in the EU internal market to create an economically integrated space with participating EU neighbors, including Morocco. These countries can adopt part of the acquis and, through this harmonization, share the benefits associated with the relevant elements of the European Union’s internal market. To operationalize the ENP, Morocco adopted an ENP action plan in October 2005.


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