Jordan Times
Sunday, March 14, 1999
Jordan explores free trade with EFTA member states
AMMAN (J.T.) — Jordan and the members of the European Free Trade Association (EFTA) are scheduled to open talks in Amman on Wednesday to pave the ground for the conclusion of a free trade agreement between the two sides.
An official source at the Ministry of Industry and Trade here said that through negotiations with EFTA members (Switzerland, Norway, Iceland and Liechtenstein), Jordan hopes to acquire privileges and preferential treatment in trade similar to those it will enjoy under the Euro-Jordanian Partnership agreement and that grants Jordan customs and duty free access to EFTA markets.
Jordan and EFTA now are linked through a limited agreement which allowed Jordan to export to the four countries goods worth JD360,000 in l997. This figure dropped to JD20,000 in the first half of l998. EFTA countries exported JD64 million to the Kingdom in 1997 and JD26 million in the first half of 1998.
According to the sources, Jordan held preliminary talks with EFTA representatives last September. The upcoming meetings are likely to end with the signing of a new agreement, the sources added.
Meanwhile, Minister of Finance Michel Marto was quoted Wednesday as saying that Jordan will soon start negotiations with the Paris Club to reschedule $600 million of its foreign debt, payable from 1999-2001.
Marto was quoted by Al Ra'i Arabic daily as saying that the negotiations follow Jordan's agreement with the International Monetary Fund (IMF) to extend the economic restructuring programme for three more years, allowing Jordan to receive an additional $450 million in loans.
Marto said he expects Jordan's economic growth rate this year to be around three per cent, up by one per cent from last year.
The minister said Jordan is expected to increase the volume of its national exports this year, and to see an improvement in the rate of investment. He also said he hopes that demand for Jordanian workers in Arab Gulf states and additional U.S. and Japanese financial aid to Jordan's balance of payment will boost economic performance.