Jordan Times
Tuesday, November 10, 1998
U.S. commerce secretary arrives tomorrow
AMMAN (J.T.) — U.S. Secretary of Commerce William Daley arrives in Amman tomorrow for talks with senior officials largely expected to centre on Jordan's frustration with obstacles to bilateral trade with the Palestinian self-rule territories that many believe are imposed by Israel to consolidate control over that market.
A senior official at the Ministry of Industry and Trade said the agenda of the discussions would not be finalised until later today but added that “the issue of bilateral trade, both with the Palestinians and Israel, will be a priority because the Americans are playing a role in making the region both peaceful and economically sound.”
Informed sources said that during his three-day visit, Daley is expected to meet with His Royal Highness Crown Prince Hassan, the Regent, Minister of Trade Mohammad Saleh Hourani, and members of the newly established Jordanian-American Businessmens' Association. The sources also said the idea of a tri- or quadri-lateral meeting with Israeli and Palestinian officials is being considered but could not yet be confirmed.
Daley's visit follows meetings two weeks ago between Jordanian officials and U.S. economic counsellors from the American embassies in Amman and Tel Aviv and the consulate in Jerusalem. During the meeting, Jordan complained that the volume of trade with the Palestinian territories did not reflect the potential that exists and said trade has been impeded by a “lack of transparency” in Israel's stringent security checks, procedures and standards that are lengthy and expensive and a limited list of goods that can be exported into the territories from Jordan.
An economic agreement between Israel and the Palestinians, known as the Paris Accord of 1994, listed quotas and products that the Palestinians are able to import from countries other than Israel, thus limiting Jordan's potential to export to the West Bank. The accord stipulated that Israel was to review the lists of products and quotas when self-rule extended to the West Bank, and although Israel doubled the quota on most goods in 1996, it has failed to expand the list of goods. Jordan is asking that an additional 88 goods be added to the list.
A World Bank report issued in September said that in light of crippling economic sanctions against Iraq, Jordan's largest trading partner, the only solution for revitalising the Jordanian economy is the opening of the Palestinian market to Jordanian exports.
Jordan also expressed concern about Israel's failure to encourage its traders to traffic goods originating from the Far East through the port of Aqaba.
An official at the Ministry of Trade and Industry said Jordan may also raise the issue of a “difference of opinion” between Jordan and Israel over the Qualifying Industrial Zone that has hamstrung its activity. Jordan is seeking to keep the required Israeli input into any project at the zone at eight per cent on a permanent basis rather than the two years agreed upon during a visit by Israeli Trade Minister Natan Sharansky last August. The percentage was lowered from 11.7 per cent to eight per cent after investors complained that the original level pushed the cost of production too high, thus discouraging Jordanian investment at the QIZ.