Jordan Times
Monday, May 17, 2004
Jordan, Israel seek
European access for industry
By Sahar Aloul
DEAD SEA — Jordan and Israel upgraded the trade
agreement between them, on the sidelines of the World Economic Forum on Sunday,
offering improved terms for rules of origin on exports manufactured jointly by
the two countries for entry to the US and later possibly to the European Union.
"This agreement is a trade protocol to help promote QIZ exports to the EU, these
exports will have the same market access to Europe as they have with the US,"
Deputy Prime Minister and Minister of Industry and Trade Mohammad Halaiqa told
the press during the signing ceremony.
The agreement allows several components to enter the two countries duty and tax
free. These components are used to produce a product that will be exported to
the US under the existing Qualified Industrial Zones (QIZs) agreement and later
to the EU, should an agreement with them be reached.
Both sides still have to negotiate the terms of the agreement with the EU.
The new agreement upgrades the existing trade accord between Israel and Jordan,
namely, the QIZ that allows preferential entry of products manufactured in these
zones to the US.
In response to a question on the timing of improving trade relations with Israel
in light of the growing Israeli aggression in the West Bank and Gaza, Halaiqa
stressed that "this is part of the economic activity between the two countries
and is in isolation of Jordan's political stand which we have made clear over
and over again."
He told The Jordan Times that "sometimes countries freeze their political
relations [with another country] for the sake of economy."
Several European countries, including Sweden, are considering imposing economic
sanctions on Israel for its actions against the Palestinians by restricting
Israeli exports produced in settlements from entering their markets.
Israeli Minister of Industry, Trade, Labour and Communications and Vice Prime
Minister Ehud Olmert, who signed the agreement on behalf of Israel, regarded the
agreement as a boost to bilateral relations with Jordan.
"This is one step forward in the growing Israeli-Jordanian relations protocol,"
said Olmert.
Jordan's exports to the US reached some $600 million last year and are
forecasted to reach $700 million by year's end. Most of these exports are
manufactured in the country's QIZs.
The trade balance between Israel and Jordan remains in favour of Israel, with
Jordan's exports to Israel reaching $12 million during the first quarter of the
year comparing to $30 million of imports. Jordan exported $44 million worth of
goods to Israel comparing to $87 million of imports by the end of 2003.