US embassy cable - 05RABAT243

UNCLAS RABAT 000243 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR NEA/MAG, NEA/PI AND EB/TPP 
PASS USTR FOR BELL 
 
E.O. 12958: N/A 
TAGS: ETRD, KPAO, MO 
SUBJECT: FTA:  FEZ YOUNG ENTREPRENEURS -- MORE CARPING THAN 
CARPE DIEM 
 
 
(U)  This message is sensitive but unclassified.  Please 
protect accordingly. 
 
1.  (SBU)  Largely reconstituting the participants in post's 
September 2004 FTA Caravan Roadshow, the Fez Young 
Entrepreneur Association hosted a conference on the 
U.S.-Morocco Free Trade Agreement (FTA) on January 29 and 30. 
 Despite unusually cold temperatures, the sessions were 
well-attended and the audience seemed engaged and curious. 
However, emboffs noted that during both formal question and 
answer sessions and informal conversations during coffee 
breaks and meals, participants pressed for financial 
assistance to raise their competitiveness and complained 
about their (perceived) inability to access the huge U.S. 
market.  These young entrepreneurs recognized that Morocco 
must reorient itself away from the French business model to 
the more "American way" of things. 
 
2.   (SBU)  On January 29 and 30, EconCouns joined Casablanca 
FCS Specialist, Government of Morocco (GOM) officials, local 
journalists and academics, and American Chamber of Commerce 
(AmCham) representatives to participate an FTA conference 
organized by the Fez Young Entrepreneurs Association. Despite 
thorough and specific presentations by Moroccan services and 
agricultural negotiators, an extensive "how-to" lesson on the 
U.S. market provided by AmCham and remarks by both emboffs 
and MEPI-funded IESC Morocco Fast Track Trade Program, the 
audience asked ill-informed and often badly-articulated 
questions related to pharmaceutical patents, agriculture (an 
important sector in the Fez region), and services.  Many in 
the audience posed questions related to immigration and 
temporary entry -- issues not addressed in the FTA. 
EconCouns and Ministry of Trade officials explained the 
opportunities presented in the Services Chapter, but these 
young businessmen were seeking a different kind of entry into 
the United States. 
 
3.  (SBU)  The conference showed that despite the GOM's  and 
Emboffs' extensive FTA outreach efforts over the last year, 
the Moroccan private sector, especially outside the 
Casablanca/Rabat axis, continues to harbor misconceptions 
about the FTA.  Rather than enthusiastically seizing the 
opportunities the agreement provides, these young, small 
Moroccan "entrepreneurs" complain about their lack of 
competitiveness, bemoan the paucity of GOM state support and 
actively seek USG and Moroccan support (financial, technical 
assistance, expert advice).  One young entrepreneur asked 
EconCouns' opinion of his idea to organize a "SMEs in 
Difficulty" association.  Few participants approached 
panelists to seek advice on either entering the U.S. market 
or identifying American joint venture partners.  None sought 
additional clarification on the specific provisions. 
 
RILEY