Jordan Times
Monday, June 7, 2004
Jordan, US officials to review trade accords, discuss boosting commercial exchange
By Rami Abdelrahman
AMMAN — Jordanian and US officials will focus on amending trade agreements to
boost commercial exchange between the two countries during talks expected to
start on Tuesday in Washington.
With the trade exchange reaching about $1 billion for the first time last year,
Jordanian trade officials are eyeing more opportunities by amending the
three-year-old Free Trade Agreement (FTA) between both countries, a senior trade
official told the press on Saturday.
Before heading a delegation to the US, Deputy Prime Minister and Minister of
Industry and Trade Mohammad Halaiqa said he would officially ask the US
government to accelerate customs reduction on different items in the FTA deal.
The deputy premier hinted that the meetings would discuss a larger Jordanian
role in the rebuilding of Iraq.
“His Majesty King Abdullah will chair an investment-related forum on the
sidelines of the Group of Eight (G-8) summit to review obstacles facing trade
between both countries,” Halaiqa told Al Rai Arabic daily.
According to US Ambassador Edward Gnehm, the trade talks will focus on
increasing exports through the Qualified Industrial Zones (QIZ) and the FTA.
Moreover, the ambassador said the talks will cover intellectual property
legislation in Jordan, environment and development, labour issues and the
establishment of the US-proposed “Middle East Free Trade Area.”
Both sides will also be raising their concerns such as easier movement of
businessmen into the US and intellectual property standards in Jordan.
“US businesses also find the Daman pre-shipping inspection measures inhibiting
trade,” Gnehm told the Jordanian press on Sunday.
“I am not entirely happy with US exports to Jordan, which have stayed static,
roughly even over the last few years,” he commented.
In the meantime, Jordan is branding itself through good relations with the US
companies and by exporting reliable products, the ambassador remarked.
Jordan was one of four countries sharing an FTA with the US, along with Mexico,
Canada and Israel. Regionally, Morocco and Bahrain took away Jordan's
exclusivity by signing and implementing FTA deals with the US.
Jordan signed similar agreements with the European Union (EU), other European
countries and Far East countries. During the World Economic Forum in May, the
Kingdom signed a memorandum of understanding with Israel to facilitate the rules
of origin in a QIZ-like agreement with the EU.
Also during the forum, Jordan signed an FTA with Singapore to establish
trilateral industrial arrangements with the US.
Gnehm said the US encourages Jordan's market diversification approach, and
called on Middle Eastern countries sharing an FTA with the US to establish
industrial cooperation as a first step in establishing the Middle East Free
Trade Area.
He reiterated that the Middle East Free Trade Area, also known as MEFTA, will be
on top of the meetings' agenda, and the G-8 summit's discussions.
In 2003, US President George W. Bush outlined a plan to create a US-Middle East
Free Trade Area within ten years
In reply to Bush's speech, Jordan hailed Bush's offer to extend US free trade
benefits already enjoyed by the Kingdom to other countries in the Middle East,
according to the initiative.
Secretary of State Colin Powell and Trade Representative Bob Zoellick, met later
during the World Economic Forum meetings in 2003 and 2004, with regional leaders
to discuss an agenda of economic and political and social progress.
The Jordan-US trade meetings are held on an annual basis in Washington, but the
ambassador said that next year's meeting is likely to take place in Amman.