[Intl-tobacco] Morocco: Parliament adopts bill on privatization of tobacco company

[Robert Weissman]

Does anyone have information in the claim in the story below that this
privatization is required as a precondition for entry into the EU? Any
European colleagues interested in following up on this?

Parliament adopts bill on privatization of tobacco company
Source: ArabicNews.com, 2001-12-27

The house of representatives (lower house of the Moroccan
parliament) adopted on Wednesday a bill on the privatization of the
Moroccan tobacco company.

The bill authorizing the transfer of this public company to the
private sector was adopted by 33 votes, 10 against and 4
abstentions.

Moroccan minister of economy, finance, privatization and tourism,
Fathallah Oualalou, said the government's decision to privatize the
company is not due to financial reasons only but was also made after
a study was conducted on the liberalization of the tobacco sector.
He further explained that the association accord with the European
Union provides for the liberalization of the tobacco sector over
five years.

The Moroccan tobacco company was set up in 1906. In 1967, the
Moroccan state recovered monopoly on tobacco and placed the company
under the tutelage of the ministry of finance. The company, which
holds monopoly on the purchase, production, marketing and
distribution of tobacco in the country, posted sales of 8.41 billion
Dirhams (nearly US$ 731.73 million) in 2000. Its distribution
networks cover the whole national territory with nearly 20,000
tobacco selling shops. It operates plants in the major regions of
the country and employs about 2,400 persons. Part of its production
is exported to other Maghreban and African countries.

The bill adopted Wednesday also provides for the privatization of La
Societe Nouvelle des Imprimeries Reunies (Sonir), a printing
company, whose capital was purchased up to 73 percent by the state
in 1973.

Fathallah Oualalou explained that the privatization of this printing
company was justified as it operates in a competitive economic
sector where the private sector is playing a key role. He added that
the reasons having prompted the state to purchase 73 percent of the
company's capital, namely the printing of two Moroccan dailies Maroc
Soir and le Matin du Sahara, no longer exist. The two dailies were
lately purchased by private BMCE group.