Suzuki Keisuke, state minister for foreign affairs of Japan, and Mohcine Jazouli, minister delegate to the minister of foreign affairs of Morocco, signed the ‘Agreement between Japan and the Kingdom of Morocco for the Promotion and Protection of Investment’ (the Japan-Morocco Investment Agreement)
This agreement aims at further protection and promotion of investment between the Contracting Parties.
It stipulates the treatments accorded to investment activities and investments when an investor (an enterprise etc.) of a Contracting Party invests in the other Contracting Party, such as national treatment and most-favoured-nation treatment at the post-establishment phase of investments, fair and equitable treatment, conditions for expropriation and compensation, freedom of transfers, and procedures for dispute settlements.
Morocco is actively attracting foreign investments by creating free economic zones while taking advantage of its proximity to European and African countries and of its abundant young and cheap labour force.
The number of Japanese companies set up in Morocco is steadily increasing and its investment in the future is expected to grow. At the Seventh Tokyo International Conference on African Development (TICAD7) held in August 2019, Prime Minister ABE announced Japan will put forth every possible effort so that Japanese private investment in Africa, which was worth US$20bn over the past three years, will grow further.
The agreement is expected to materialize this announcement, promote the improvement of the investment climate in Morocco, achieve closer economic relations between the two countries and increase Japan’s investment in Africa.
Each Contracting Party will send the notification confirming that its internal procedures necessary for the entry into force of this Agreement have been completed (in case of Japan, the approval of the National Diet will be required). This Agreement will enter into force on the thirtieth day after the date of receipt of the latter notification.