Jordan Times
Sunday, January 24, 1999
Telecom industry can be basis for economic cooperation between Jordan, Canada
By Hind-Lara Mango
AMMAN — Canadian Minister of Industry John Manley paid a two-day working visit to the Kingdom where he met with Jordanian counterparts and officials in the fields of telecommunications, industry, and public works.
“The Jordanian and Canadian governments enjoy quite an active relationship in telecommunications particularly in the regulatory area,” Manley told the Jordan Times Saturday.
He said: “The Canadian experience in telecommunications can be offered on the basis of structure and framework as the world moves from a regulated monopoly in telecommunications to a competitive environment.”
Some Canadian regulatory models are already being used in Jordan's new regulatory system, and the Canadian government has assisted in providing some of the legal background for the new telecommunications regulatory structures that are being put in place.
“We can offer useful experience to Jordan as [Canada has also] tried to bring advanced telecommunications infrastructure to parts of Canada that are remote, that have low levels of service, and are difficult to reach,” said the minister.
Manley is responsible for his country's telecommunications policy, and has led the development of Canada's Information Highway Strategy not only in traditional hard-wired telecommunications, but also in wireless and satellite telecommunication.
Canada is the first country in the world to have a domestic satellite system.
Over the last ten years Jordan has received approximately $40 million in bilateral assistance from the Canadian government, the largest chunk of which has been invested in what is considered to be a pioneer study of oil and gas potentials in the Kingdom.
This year, Canada has allocated its annual budget of $3 million to Jordan.
Discussions with the Minister of Public Works and Housing and Transport Naser Lawzi focused on investment opportunities for Canadian firms in restructuring and privatisation projects currently under way in the kingdom.
“There are some Canadian firms such as S.N.C Lavalin and Bombarge, which are interested in participating and investing in projects anticipated by the Jordanian government,” the minister said.
In addition, Canada and Jordan are negotiating a bilateral foreign investment protection agreement and a double taxation treaty. “Both of these agreements have been under discussion for a period of time and are close to being completed,” Manley said.
The investment protection agreement essentially aims to ensure that both countries agree to treat each other's companies in a manner equivalent to domestic companies.
“Most of the hurdles have been overcome in this respect and our hope is that they will be ready to sign early this year,” the minister said.
Annual Canadian export values over the past five years have averaged $10 million with Jordan. The current balance of trade tilts in Canada's favour with Canadian exports to the Kingdom amounting to $10 million (compared to $30 million in 1996) against a total of $500,000 million in imports from Jordan.
“There is a lot of room for growth,” Manley said. “[Discussions have been] about efforts that could be made to increase Jordanian companies' to Canada.”
Canadian exports to the Kingdom include telecommunications equipment, technology, aircraft, radar apparatus, automobiles and wood. Main imports from Jordan have consisted largely of cotton apparel and textiles.
The Department of Statistics rates the value of Canadian exports to the Kingdom to be $18 million. The discrepancy in figures is explained by the fact that goods of Canadian origin are not always shipped directly to Jordan from Canada, but reexported from other countries notably the U.S., Europe and the Gulf. Jordanian authorities classify the goods as being of Canadian origin regardless of the supply source.
Discussions with the Minister of Industry, Trade and Supply Mohammad Saleh Hourani focused on Jordan's accession to the World Trade Organisation (WTO).
“This would enhance Jordan's trading relationship with many countries including Canada as Jordan would be able to rely on the WTO,” the minister said.
“We also spoke about the possibility of increasing the number of Canadian firms coming here to invest and enhancing the trade between the two countries,” Hourani said.
The Canadian minister also met with Minister of Water, Energy and Mineral Resources Hani Mulki.
There are six major projects in the process of being jointly implemented by Jordan and Canada in the spheres of human resources development and the environment.
This minister's visit is part of a regional visit during which he is expected to visit Israel and the West Bank.