The Administration of Customs and Indirect Taxes (ADII) has just published a circular on the latest modifications made to the System of Trade Preferences among the Member States of the Organization of Islamic Cooperation (SPC-OIC). This update, which entered into force on January 1, 2025, aims to increase trade between the Kingdom and other OIC member countries.
In a global context marked by geopolitical and economic tensions, Morocco is strengthening its South-South trade ties in 2025 through an update of two preferential tariff lists of the System of Trade Preferences with the member states of the Organization of Islamic Cooperation ( SPC-OIC).
This update follows “changes to the customs nomenclature introduced by the order of the Minister of Economy and Finance n°2471.24 of October 10, 2024 and the Finance Law for 2025”, as indicated in circular n° 6631/221 from the Customs Administration.
Concretely, the two updated lists of products benefit from a reduction in customs duties: List 1 with a reduction to 25%, and List 2 with a reduction to 15%.
The first list therefore includes around thirty products ranging from meat and edible offal to vegetables, fruits, spices, teas, fabrics and hats. It mainly focuses on agricultural and food products (vegetables, spices, rice, etc.), textiles (cotton fabrics, synthetic fibers, wool, etc.) and perfumes. A wide range of everyday consumer products is therefore affected.
The second mainly concerns steel products such as flat rolled products, seamless tubes and pipes made of iron or non-alloy steel. A clear competitive advantage for Moroccan companies importing these raw materials.
For an international trade professional contacted, “the SPC-OCI remains an essential tool for stimulating South-South trade flows despite limited progress so far. The 2025 update of the lists in Morocco goes in the right direction by targeting products with high trade potential.
“Indeed, by targeting products with high trade potential, this update should allow Morocco to strengthen its commercial position and increase its economic opportunities. A concrete example of this strategy could be the inclusion of certain agricultural products in trade lists. Morocco is renowned for the quality of its agricultural production, particularly tomatoes and vegetables. By facilitating trade in these products with foreign countries, the Kingdom could not only increase its exports, but also diversify its commercial outlets.
Likewise, the integration of manufactured products with high added value, such as fashion items, perfumes and textiles, could open up new prospects for Moroccan companies. Indeed, these sectors are experiencing significant growth in Morocco and have considerable export potential, particularly to European and African markets.
Some value-added manufactured products concerned
According to the information provided in the annex of the circular, among the main value-added manufactured products included in List 1 (import duty reduced to 25%) of the System of Trade Preferences among OIC Member States (SPC -OCI) include printed or unprinted cotton fabrics, printed synthetic fiber fabrics, wool or fine hair fabrics, perfumes, other than creams, emulsions and oils.
Regarding List 2 (import duty reduced to 15%), the main value-added manufactured products that we have been able to identify are flat rolled iron or non-alloy steel, hot or cold rolled, seamless tubes and pipes made of iron or non-alloy steel.
These iron and non-alloy steel products represent high value-added intermediate products, essential for many manufacturing industries, including construction, automotive and machinery and equipment manufacturing.
Optimization of tariff advantages for importers
In its circular, the Customs Administration emphasizes that it has adopted a pragmatic approach by removing from Lists 1 and 2 the products for which the import duty under common law is more advantageous than the SPC-OCI preferential rate.
This decision aims to maximize profits for economic operators by allowing them to benefit from the lowest possible rates. For example, if the standard import duty for any product is 5%, while the SPC-OCI preferential rate is 8%, it would be more beneficial for the importer to pay the common duty of 5%.
Thus, product X is removed from Lists 1 and 2, allowing importers to benefit from the lowest rate of 5%. This pragmatic approach helps optimize import costs and avoid situations where preferential tariff benefits would actually be less favorable than standard customs duties. Enough to strengthen the competitiveness of economic operators by offering them the best possible pricing conditions.
Intra-OIC trade integration, a persistent challenge
Although progress has been made in recent years, with a modest increase in intra-OIC trade volume of 1.23% in 2023, the ambitious target of 25% trade integration remains a significant challenge for the Organization of Islamic Cooperation.
In 2023, only 27 countries out of the 57 OIC members had reached this threshold set for 2025, highlighting the persistent difficulties in strengthening trade between member countries. This objective aims to stimulate intra-OIC trade and reduce the dependence of member countries on external markets.
However, various barriers such as regulatory differences, logistical obstacles, geopolitical tensions and economic divergences among member countries continue to hinder the achievement of this trade integration goal.
To address this challenge, concerted efforts are needed to harmonize regulations, improve transport and trade facilitation infrastructure, resolve trade disputes and promote enhanced economic cooperation among OIC member countries.
Align trade policies
In a world shaken by crises, economic cooperation remains a key lever of development and stability for the 1.9 billion Muslims in the OIC. The alignment of trade policies now appears to be an imperative to transform challenges into opportunities.
Faced with economic, geopolitical and environmental turbulence, solidarity and regional integration are essential as a bulwark against vulnerability to external shocks. By strengthening their trade and promoting their sectoral complementarities, OIC countries can thus create a dynamic common market, an engine of sustainable growth.
However, this ambition can only be achieved through strategic coordination of regulations, trade facilitation and harmonization of standards. A true multilateral roadmap is essential to remove persistent barriers and establish the OIC as an essential regional economic hub on the global stage.
Bilal Cherraji / ECO Inspirations
