Jordan’s Experience….
Foreign Trade
Mr. Ahmad Hammad
Deputy Director,
Foreign Trade Policy Directorate
Jordan’s Foreign Trade Policy

A foreign trade policy based on the norms of
economic openness and integration into the
world economy.

It incorporates the country’s vision in viewing
economic partnerships as necessarily achieving
both mutual interests and fair dividends.
World Wide Market Access
Opportunities…
Multilateral
World Trade Organization (WTO)
2000
Regional
Greater Arab Free Trade Area (GAFTA)
Agadir Agreement
Organization of Islamic States (OIC)
1997
2004
1993
Bilateral
Unites States of America FTA
European Union Association Agreement
EFTA States FTA
Singapore FTA
Canada FTA
Turkey FTA
2000
1997
2001
2004
2009
2009



Jordan and the WTO
Jordan’s Accession to the WTO in brief….
1994
• Jordan applied for accession to the General
Agreement on Tariffs and Trade (GATT).
1995
• The application was changed to a request to join the
WTO (the legal successor to GATT)
2000
• Signing the Accession Protocol that became part of
Law No. 4 for the year 2000 (Law of Ratification of
Jordan's Accession to the World Trade
Organization).
• Jordan became the 136th Member of the WTO in
April 2000.
Jordan’s WTO Commitments…
Schedule of Concessions in Goods
In general, concessions were made over a ten year transitional
period for a number of items under tariff rates 30% and 35%. A
20% tariff rate will be reached by the year 2010 according to the
following reductions (with some exceptions):
30% - March 2000
25% - March 2005
20% - March 2010
6
Exceptions:
-Cigarettes & Tobacco
-Tomatoes
-Cucumbers
-Olive Oil
Jordan’s WTO Commitments…
Schedule of Concessions in Goods
- Information Technology Agreement (ITA): bound at 0%
- Medical Equipment Sectoral Initiative: bound at 0%
- Agricultural Equipment Sectoral Initiative: bound at 0%
- Chemical Harmonization Sectoral Initiative: bound at
0%, 5.5%, 6.5%
7
Jordan’s WTO Commitments…
Schedule of Specific Commitments in Services
Specific Commitments

Commitments covered (106) services sectors and sub-sectors out
of 155 sectors of the UN CPC

Commitments covered four modes of supply for services as
identified in GATS

Full foreign equity participation in investments allowed in
various sectors such as: financial, telecommunications, computer
and related services, research and development, hotels and
catering services, management consultancy, market research,
packaging services, production and projection of movies, …etc.
8
Jordan’s WTO Commitments…
Schedule of Specific Commitments in Services
Transitional periods
- Telecommunications sector
- Insurance services sector
- Courier services
- Education services
- Health and Social services
9
Regional and Bilateral FTAs
Jordan – US FTA

The FTA was signed on 24/10/2000 and entered into
force on 17/12/2001, and by 1/1/2010 it entered its full
implementation.

Jordan is the fourth country to sign an FTA with the
United States.

Comprehensive agreement covering trade in goods and
services, protection of intellectual property rights,
environment, labor and electronic commerce
Jordan – US FTA

Simple rules of origin: the cost or value of materials
produced in Jordan and/or the direct cost of processing
performed in Jordan account to at least 35% of the US
customs appraised value of the good.

Possibilities of accumulation of origin among
countries that have concluded FTA’s with the US (Arab
countries and Singapore)
 Since the entry into force of the agreement, Jordanian
exports to the United States had more than tripled,
reaching 1037 and 863 million USD in 2008 and 2009
respectively.
Jordan - EU
Association Agreement

Jordan and the EU signed the Association Agreement
on November 24th, 1997 with the aim of creating a free
trade area as well as establishing a comprehensive
framework for political, economic, trade and
investment, social, cultural and financial cooperation.

The agreement was concluded within the framework
of the Barcelona Process 1995, the goal of which is to
create a larger area of peace and economic prosperity in
the Mediterranean Area.
Jordan - EU
Association Agreement

The agreement entered into force on May 1st, 2002.

From date of entry into force, Jordanian exports into
EU-member countries will be exempted from customs
duties and other charges having equivalent effect.
While EU exports are allowed entry into Jordan free of
customs duties and charges having equivalent effect
over a transitional period of 12 years.
Jordan - EU
Association Agreement

The Agreement contains comprehensive provisions on
the conduct of trade in agricultural and industrial
products, right of establishment and services,
payments and movement of capital, competition,
intellectual property rights, financial co-operation,
economic co-operation in the field of industry,
standards, transportation, telecommunications, energy,
science and technology, environment and tourism,
statistics, and the fight against illegal drugs.
Jordan - EU
Association Agreement

Jordan has faced difficulties in seizing the
opportunities granted by the Association Agreement as
Jordanian exports to the EU are still way below
expectations, mainly due to obstacles concerning the
rules of origin and standards.

The Pan euro-med rules of origin is currently under
revision by the regional convention on rules of origin,
aiming at simplifying these rules in a way that meets
the characteristics and capabilities of the industrial
sector in the southern Mediterranean countries,
including Jordan.
Jordan - EU
Association Agreement

As for standards, the government has worked
intensively with the European partners, to promote
and harmonize the current Jordanian standards to
meet those applied in the EU, which will also enhance
the competitiveness for the Jordanian products in
other international markets.
GAFTA

Greater Arab Free Trade Area was declared within
the Social and Economic Council of the Arab League
to activate the Trade Facilitation and Development
Agreement that has been in force since January 1st,
1998, including in its membership 17 Arab countries.

It is one of the most important economic achievements
towards establishing the Arab Common Market. As of
January 1st, 2005, the agreement reached full trade
liberalization of goods (full exemption of customs
duties) between all Arab countries members of the
GAFTA, except Sudan and Yemen being less
developed countries.
GAFTA

The Agreement’s rules of origin apply a flat rate of
40% as local added value.

12 Arab countries do not require authentication of
certificates of origin and accompanying documents by
embassies and consulates.

About 42% of Jordan’s foreign trade is directed within
the GAFTA area. (50% exports and 35% imports – Nov
2010).
Jordan - EFTA FTA

It was signed on June 21, 2001, with the EFTA states
(Iceland, Liechtenstein, Norway and Switzerland), and
it entered into force on September 1st, 2002.

The Agreement complements both parties efforts to
contribute to the creation and strengthening of an
enlarged
free trade area between European and
Mediterranean countries, thus constituting an
important contribution to Euro – Mediterranean
integration.
Agadir Agreement

The Agreement Establishing a Free Trade Area
Amongst Arab Euro-Mediterranean Countries (Agadir
Agreement) was signed in Rabat on Feb. 25th , 2004
between by Jordan, Egypt, Tunisia and Morocco on
May 8th. 2001.

The Agreement entered into force on July 6th 2006.

The Agreement aims as enhancing economic and
industrial integration between the member countries
as well promoting trade with the EU.
Jordan Singapore FTA

Jordan and Singapore signed an agreement to establish
a free trade area between the two countries on May 16th
2004. The agreement, which entered into force on
August 22, 2005, aims at promoting economic relations
and developing partnerships between the two
countries as well as promoting bilateral trade in goods
and services between the two countries.
Jordan-Turkey Association
Agreement



Jordan signed with Turkey on 1/12/2009 and entered
into force on 1 March 2011.
The agreement covers both industrial and agricultural
products.
The agreement allows accumulation of origin for the
purpose of exporting to the EU.
Bilateral Trade between Jordan &
Turkey
Year
Jordan
Exports to
Turkey
Trade
balance
39.2
Jordan
Imports
from
Turkey
412.9
2009
2010
60.8
558.4
-497.6
2011
98.1
548.9
-450.8
9/2012
109.2
557.4
-448.2
-373.7
Jordan-Canada FTA



The agreement was signed on 26 June 2009 and
entered into force on October 1st 2012.
The agreement covers industrial and agricultural
products.
Jordanian products enter into Canadian market
duty free as of the date of entry into force while
Canadian products are exempted on a
transitional period of 5 years.
Millions USD
Trade with Canada
$100
$77
$80
$60
$85
$76
$56
$49
$40
$20
$11
$10
$10
$14
$14
$0
2007
2008
2009
2010
2011
($20)
($40)
($60)
($39)
($44)
($62)
($66)
($72)
($80)
Import
Export
Balance
‫تطور التجارة للخارجية لالردن‬
‫‪15‬‬
‫‪10‬‬
‫المستوردات‬
‫‪0‬‬
‫الميزان التجاري‬
‫‪2010‬‬
‫‪2009‬‬
‫‪2008‬‬
‫‪2007‬‬
‫‪2006‬‬
‫‪2005‬‬
‫‪2004‬‬
‫‪2003‬‬
‫‪-5‬‬
‫‪-10‬‬
‫مليار دينار‬
‫الصادرات الوطنية‬
‫‪5‬‬
‫التوزيع الجغرافي للصادرات الوطنية‬
‫الدول العربية‬
‫آسيا‬
‫امريكا الشمالية‬
‫اخرى‬
‫االتحاد االوروبي‬
‫‪2010‬‬
‫‪2009‬‬
‫‪2008‬‬
‫‪2007‬‬
‫‪2006‬‬
‫مليار دينار‬
‫‪5.00‬‬
‫‪4.50‬‬
‫‪4.00‬‬
‫‪3.50‬‬
‫‪3.00‬‬
‫‪2.50‬‬
‫‪2.00‬‬
‫‪1.50‬‬
‫‪1.00‬‬
‫‪0.50‬‬
‫‪-‬‬
‫أهم السلع المصدرة (‪)2010-2006‬‬
‫‪1,400,000.00‬‬
‫‪1,000,000.00‬‬
‫المواد الكيميائية‬
‫المواد الخام (الفوسفات والبوتاس)‬
‫‪800,000.00‬‬
‫المالبس‬
‫‪600,000.00‬‬
‫المواد الغذائية والحيوانات الحية‬
‫‪400,000.00‬‬
‫‪200,000.00‬‬
‫‪0.00‬‬
‫‪2010‬‬
‫‪2009‬‬
‫‪2008‬‬
‫السنة‬
‫‪2007‬‬
‫‪2006‬‬
‫مجموع الصادرات (‪ 1000‬دينار)‬
‫‪1,200,000.00‬‬
Trade with FTA Partners (USD Million)
Agreement
GAFTA
EU Association
Agreement
US FTA
EFTA
Agadir
Agreement
Singapore FTA
Turkey FTA
Canada
Exports
3190
315
Imports
6838
3773
1035
20
148
1078
173
784
6.5
89
13
25
549
85
Jordan’s Foreign Trade
Imports (2009)
Jordan’s Foreign Trade
Exports (2009)
Thank You!
Ahmed.h@mit.gov.jo