APPENDIX B Data on Best Prospect for Agriculture and Industry Sector Exports AGRICULTURE Exchange Rates 8.538 9.258 9.300 9.300 RANK : 1 WHEAT (1,000 Metric Tons) ============================ 1992 1993 1994f 1995f ============================ Total Market Size 4,800 4,800 5,600 5,200 Total Local Production 1,562 1,529 4,900 4,500 Total Exports 0 0 0 0 Total Imports 2,418 2,647 1,200 1,500 Total Imports from the US 570 2,020 700 1,000 RANK : 2 FEED CORN (1,000 Metric Tons) ============================ 1992 1993 1994f 1995f ============================ Total Market Size 450 450 500 700 Total Local Production 216 92 90 200 Total Exports 0 0 0 0 Total Imports 225 354 400 500 Total Imports from the US 138 294 320 450 RANK : 3 VEGETABLE OIL (1,000 Metric Tons) ============================ 1992 1993 1994f 1995f ============================ Total Market Size 240 245 250 255 Total Local Production 50 60 10 20 Total Exports 0 0 0 0 Total Imports 200 225 230 240 Total Imports from the US 130 52 150 180 RANK : 4 TALLOW (1,000 Metric Tons) ============================ 1992 1993 1994f 1995f ============================ Total Market Size 16 19 20 20 Total Local Production 0 0 0 0 Total Exports 0 0 0 0 Total Imports 16 19 20 20 Total Imports from the US 16 15 18 18 RANK : 5 COTTON (Metric Tons) ============================ 1992 1993 1994f 1995f ============================ Total Market Size 44,000 44,000 45,000 46,000 Total Local Production 1,946 236 1,300 2,500 Total Exports 1,565 1,200 500 1,000 Total Imports 37,476 40,000 42,000 44,000 Total Imports from the US 2,326 2,500 2,500 3,000 INDUSTRY SECTOR BEST PROSPECTS A) Rank of sector: 1 B) Name of sector: WATER RESOURCES EQUIPMENT C) Three-Letter ITA Industry Sector Code: WRE D) Total Market Size -1993: $280 million -1994 (e): $300 million -1995 (e): $320 million E) Total Local Production: -1993: $0 -1994 (e): $0 -1995 (e): $0 F) Total Exports: -1993: $0 -1994 (e): $0 -1995 (e): $0 G) Total Imports: -1993: $280 million -1994 (e): $300 million -1995 (e): $320 million H) Imports from US: -1993: $50 million -1994 (e): $65 million -1995 (e): $76 million I) Exchange rate: US$ = DH 9.3 Comments: Water resources in Morocco are estimated at an average of 30 billion cubic meters per year. They are under the control of the Administration of Hydraulics in close collaboration with the National Potable Water Office. Latter has extensive water conservation plans. The GOM launches the construction of one major and several small dams each year. The World Bank has implemented a USD 20 million agricultural sector loan which targets small and medium scale irrigation projects. The World Bank is also funding the research and extension of irrigated areas, wastewater irrigation to implement sewerage and primary treatment facilities and irrigation systems. A) Rank of sector: 2 B) Name of sector: ARCHITECTURE/CONSTRUCTION/ENGINEERING SERVICES C) ITA industry sector code: ACE D) Total market size: -1993: $154.8 -1994 (e): $182.6 -1995 (e): $224.6 E) Total Local Production: -1993: $3.10 million -1994 (e): $3.6 million -1995 (e): $4.5 million F) Total Exports: -1993: 0 -1994 (e) 0 -1995 (e) 0 G) Total Imports: -1993: $151. 7 million -1994 (e): $179 million -1995 (e): $220.1 million H) Imports from the U.S. -1993: $23.2 million -1994 (e): $27.4 million -1995 (e): $33.7 million I) Exchange rates: US$1 = DH 9.3 Comments: Imports of engineering/consulting services supply 90 percent of the Moroccan market. We see a 15 percent to 20 percent annual growth in demand for engineering services in Morocco. French companies, using diplomatic and political pressure to the fullest, continue to hold a good portion of the market. Local firms represent only 2 percent of total market sales of services. Lack of expertise and experience in engineering/consulting expertise prevents them from supplying such services. U.S. firms are not well represented in the market. The most promising subsector is Design Engineering. A) Rank of sector: 3 B) Name of sector: ELECTRICAL POWER SYSTEMS C) ITA Industry Sector Code: ELP D) Total Market Size: -1993: $170 million -1994 (e): $195 million -1995 (e): $210 million E) Total Local Production: -1993: 0 -1994 (e): 0 -1995 (e): 0 F) Total Exports: -1993: -1994 (e): -1995 (e): G) Total Imports: -1993: $170 million -1994 (e): $195 million -1995 (e): $210 million H) Imports from US -1993: $25.5 million -1994 (e): $29.3 million -1995 (e): $31.5 million I) Exchange Rates: US$ 1 = DH 9.3 Comments: Regional and local government are being given increasing authority to seek bids for medium and low voltage equipment. The National Office of Electricity equipment needs will probably grow at a rate of 15 percent per year during the period from 1993 to 2000. The GOM has budgeted significant public expenditures for a number of major energy generation projects and is also seeking private investment and management in future power projects. Most promising subsector: Electrical Generating Equipment. A) Rank of sector: 4 B) Name of sector: MINING INDUSTRY EQUIPMENT C) Three-Letter ITA Industry Sector Code: MIN D) Total Market Size -1993: $180 million -1994 (e): $200 million -1995 (e): $225 million E) Total local production: -1993: 0 -1994 (e): 0 -1995 (e): 0 F) Total exports: -1993: 0 -1994 (e): 0 -1995 (e): 0 G) Total Imports: -1993: $180 million -1994 (e): $200 million -1995 (e): $225 million H) Imports from US: -1993: $27 million -1994 (e): $30 million -1995 (e): $37 million I) Exchange rate: US$ 1 = DG 9.3 Comments: Morocco has the largest phosphate reserves in the world. The export of phosphates and its derivatives accounts for more than 25 percent of total Moroccan exports and meets 30 percent of demand worldwide. Morocco is developping local production of phosphoric acid and chemical fertilizers. Other mineral resources in Morocco include copper, fluorite, lead, iron and anthracite. Most of the large equipment supplied to Morocco carry U.S. brand names. Imports of mining equipment are expected to grow substantially. The most promising subsectors are: Open Pit Mining Equipment and Extraction/Processing Equipment. A) Rank of sector: 5 B) Name of sector: TELECOMMUNICATIONS EQUIPMENT C) ITA industry sector code: TEL D) Total market size: -1993: $133.9 million -1994 (e): $179.2 million -1995 (e): $215.0 million E) Total Local Production: -1993: 0 -1994 (e): 0 -1995 (e): 0 F) Total Exports: -1993: 0 -1994 (e) 0 -1995 (e) 0 G) Total Imports: -1993: $133.9 million -1994 (e): $179.2 million -1995 (e): $215 million H) Imports from the U.S. -1993: $18.5 million -1994 (e): $34.2 million -1995 (e): $41 million I) Exchange rates: US$1 = DH 9.3 Comments: In their 1993-1997 plan, the ONPT aims at increasing the actual number of phone subscribers from 654,000 to 1,560,000; the 8380,000 telephone lines to 1,700,000 and a 99.5 percent automation of the entire telecommunication network. The development of interurban networks will be reinforced with fiber optic cables from Tetouan to Agadir, from Oujda via Nador to Rabat, and from Agadir via Marrakech, Beni-Mellal, Khenifra to Meknes. The best sales prospects for U.S. manufacturers are in the high-tech areas where the U.S. continues to maintain a competitive edge over other countries. U.S. firms have a good reputation and are considered the pioneers in new technology. This factor opens the market to their products but U.S. exporters must be aware that competition from Europe is very strong. The most promising subsectors are: fiber optic transmission equipment; cellular telephone equipment; satellite receiving equipment. A) Rank of sector: 6 B) Name of sector: POLLUTION CONTROL EQUIPMENT C) Three-Letter ITA Industry Sector Code: POL D) Total Market Size -1993: $124 million -1994 (e): $150 million -1995 (e): $170 million E) Total Local Production -1993: 0 -1994 (e): 0 -1995 (e): 0 F) Total Exports: -1993: 0 -1994: 0 -1995: 0 G) Total Imports: -1993: $124 million -1994 (e): $150 million -1995 (e): $170 million H) Imports from the U.S. -1993: $25 million -1994: $30 million -1995: $33 million I) Exchange rate: US$ = DH 9.3 Comments: The government authorities in charge of pollution control management are concentrating their efforts to combat heavy industrial pollution due to rapid urbanization. The market is expanding each year.There are major opportunities in Morocco for resolving the ever increasing need for efficient pollution control. Water and waste water pollution control stands out as the most promising sector representing 20 percent of the investment expense in the National Investment Budget. The most promising subsector are: Water Pollution Control Equipment, Industrial Air Pollution and Solid Waste Control Equipment. A) Rank of sector: 7 B) Name of sector: FOOD PROCESSING AND PACKAGING EQUIPMENT C) ITA industry sector code: FPP D) Total market size: -1993: $59.6 million -1994 (e): $70.3 million -1995 (e): $86.5 million E) Total Local Production: -1993: 0 -1994 (e): 0 -1995 (e): 0 F) Total Exports: -1993: 0 -1994 (e) 0 -1995 (e) 0 G) Total Imports: -1993: $59.6 million -1994 (e): $70.3 million -1995 (e): $86.5 million H) Imports from the U.S. -1993: $8.9 million -1994 (e): $10.5 million -1995 (e): $12.9 million I) Exchange rates: US$1 = DH 9.3 Comments: The Moroccan market for food processing and packaging equipment is becoming increasingly export oriented. In order to export more fresh and prepared fruits and vegetables and canned fish mainly to demanding markets like Europe and America, Moroccan processors need to improve their technology and present a better product. The sector is also developing in response to a national policy to maintain agricultural self-reliance. The high growth rate of the Moroccan population is another factor requiring creation of many additional food processing plants in the medium and long term. USAID is funding a major Agribusiness promotion project. The most promising subsector is: processing and packaging equipment for the meat, Seafood, Fruit, Vegetable and dairy food industries. A) Rank of sector: 8 B) Name of sector: MEDICAL EQUIPMENT C) ITA industry sector code: MED D) Total market size: -1993: $43.2 million -1994 (e): $60.0 million -1995 (e): $72.0 million E) Total Local Production: -1993: 0 -1994 (e): 0 -1995 (e): 0 F) Total Exports: -1993: 0 -1994 (e) 0 -1995 (e) 0 G) Total Imports: -1993: $43.2 million -1994 (e): $60.0 million -1995 (e): $60.0 million H) Imports from the U.S. -1993: $ 8.6 million -1994 (e): $10.0 million -1995 (e): $22.0 million I) Exchange rates: US$1 = DH 9.3 Comments: The budget for Public Health increases annually by 20 to 25 percent. The budget for 1992 was about USD 11 million with electro-apparatus representing a share of 16.5 percent. In 1993, this share should increase to 30 percent. The World Bank, the African Development Bank and the UNDP have granted substantial loans to Morocco. All of these loans will have a direct positive impact on the amount of acquisition of new medical equipment. The most promising subsectors are: CAT/MRI/Radiology, Electro-Diagnostic Apparatus and disposable medical supplies. A) Rank of sector: 9 B) Name of sector: AGRICULTURAL MACHINERY C) ITA industry sector code: AGM D) Total market size: -1993: $50.9 million -1994 (e): $54.7 million -1995 (e): $67.2 million E) Total Local Production: -1993: 0 -1994 (e): 0 -1995 (e): 0 F) Total Exports: -1993: 0 -1994 (e) 0 -1995 (e) 0 G) Total Imports: -1993: $50.9 million -1994 (e): $54.7 million -1995 (e): $67.2 million H) Imports from the U.S. -1993: $7.6 million -1994 (e): $8.2 million -1995 (e): $10.8 million I) Exchange rates: US$ 1 = DH 9.3 Comments: Morocco is a good market for agricultural equipment. All imports of agricultural equipment have been exempted from import duties until the end of the century. Imports of agricultural machinery from the U.S. are slim, however, U.S. products are highly regarded. New-to-market U.S. exporters of agricultural machinery and irrigation equipment should try to penetrate this growing market. Agriculture remaims the most important sector of the economy. Substantial amounts for the purchase of agricultural equipment continue to be allocated by various financing institutions. Most promising subsector: Agricultural tractors. A) Rank of sector: 10 B) Name of sector: AIR CONDITIONING & REFRIGERATION EQ. C) ITA industry sector code: ACR D) Total market size: -1993: $46.8 million -1994 (e): $49.1 million -1995 (e): $60.4 million E) Total Local Production: -1993: 0 -1994 (e): 0 -1995 (e): 0 F) Total Exports: -1993: 0 -1994 (e) 0 -1995 (e) 0 G) Total Imports: -1993: $46.8 million -1994 (e): $49.1 million -1995 (e): $60.4 million H) Imports from the U.S. -1993: $7.9 million -1994 (e): $8.2 million -1995 (e): $9.8 million I) Exchange rates: US$ 1 = DH 9.3 Comments: Refrigeration is an essential segment of the economy and complements the agribusiness and food processing sectors. Cold storage capacity for the fishing industry is also increasing rapidly. Because of Morocco's growing needs and to preserve agricultural production for both local and export markets, the GOM plans the construction of cold storage chains throughout Morocco. The annual growth rate of imports from the U.S. is higher because U.S. equipment for both air conditioning and industrial refrigeration are in great demand. The most promising subsector is: Industrial refrigeration equipment. BEST PROSPECT SECTORS FOR U.S. EXPORTS TO MOROCCO (USD millions, unless otherwise noted) A. Rank:1 B. Name of Sector: AIRCRAFTS AND PARTS C. ITA or PS&D Code: AIR 1993 1994 1995 D. Total Market Size 70 84 100 E. Total Local Production 0 0 0 F. Total Exports 0 0 0 G. Total Imports 70 84 100 H. Total Imports from the U.S. 70 84 100 I. Exchange rate 9.3 9.3 9.3 Comments: Royal Air Maroc (RAM), with its all-Boeing fleet, makes Morocco a major purchaser of U.S. aviation equipment. A. Rank:2 B. Name of Sector: LABORATORY SCIENTIFIC INSTRUMENTS C. ITA or PS&D Code: LAB 1993 1994 1995 D. Total Market Size 19 22 25 E. Total Local Production 0 0 0 F. Total Exports 0 0 0 G. Total Imports 19 22 25 H. Total Imports from the U.S. 3 3.4 5 I. Exchange rate 9.3 9.3 9.3 Comments: This is considered to be a good sector for U.S. high-tech products and technology potential sales are hampered by lack of service back-up and cultural orientation toward European brands. A. Rank:3 B. Name of Sector: BUILDING PRODUCTS C. ITA or PS&D Code: BLD 1993 1994 1995 D. Total Market Size 104 124 148 E. Total Local Production 0 0 0 F. Total Exports 0 0 0 G. Total Imports 104 124 148 H. Total Imports from the U.S. 0.6 0.7 0.8 I. Exchange rate 9.3 9.3 9.3 Comments: The building and public works sector which softened in 1992, stabilized in 93 and is expected to increase in 94 due to a new public works program stimulated by an increase in public spending on capital equipment and an excellent agricultural year. Large demand for affordable housing has spurred government to focus funds on this sector. A. Rank:4 B. Name of Sector: AUTOMOTIVE PARTS & SERVICES EQ. C. ITA or PS&D Code: APS 1993 1994 1995 D. Total Market Size 74 85 97 E. Total Local Production 26 31 34 F. Total Exports 0 0 0 G. Total Imports 48 54 63 H. Total Imports from the U.S. 1.5 1.7 1.9 I. Exchange rate 9.3 9.3 9.3 Comments: With the slow penetration of U.S. cars and trucks in Morocco, the automotive parts and services equipment sector is strongly dominated by European suppliers, many of them American owned. Service equipment is largely French and Italian made but there is a growing interest in new U.S. technology in the sector. Local production of automotive parts is on the increase. A. Rank:5 B. Name of Sector: SPORTING GOODS AND RECREATIONAL EQ. C. ITA or PS&D Code: SPT 1993 1994 1995 D. Total Market Size 50 55 60 E. Total Local Production 10 11 13 F. Total Exports 0 0 0 G. Total Imports 40 44 47 H. Total Imports from the U.S. 7 7.4 8 I. Exchange rate 9.3 9.3 9.3 Comments: This is considered to be an excellent sector for growth. U.S. sporting goods and recreational equipment are highly regarded but higher than E.U prices and low quality Chinese made imports dominate. U.S. made exercise equipment is in growing demand. A. Rank:6 B. Name of Sector: APPAREL C. ITA or PS&D Code: APP 1993 1994 1995 D. Total Market Size 116 120 125 E. Total Local Production 109 112 116 F. Total Exports 0 0 0 G. Total Imports 7 8 9 H. Total Imports from U.S. 0.06 0.07 0.08 I. Exchange rate 9.3 9.3 9.3 Comments: The Moroccan textile industry employs one third of all industrial workers. This sector enjoys a steady growth. The apparel industry is already largely unrestricted with some government ownership which is slowly being privatized. There is significant foreign investment and licensing participation in Morocco oriented primarily toward export of leisure and knit wear.