Jordan Times
Monday, December 27, 2004
Trade agreement under the spotlight at Lower House session
AMMAN (JT) — The government on Sunday told MPs that the trade agreement signed with Israel last week was designed to boost Jordan's exports to the EU, stressing that the Qualifying Industrial Zones (QIZs) have had a positive effect on the national economy.
Prime Minister Faisal Fayez told the Lower House Sunday that the Free Trade Agreements it has entered with various parties are likely to enhance the economy, noting that the Kingdom's 11 QIZs have created thousands of job opportunities for Jordanians, the Jordan News Agency, Petra, reported.
Jordan and Israel signed a long-awaited agreement on Thursday to reduce customs duties on trade exchange between businesses seeking to export to the European Union (EU).
The agreement paves the way for full elimination of customs duties between the two countries, scheduled in 2010, the same year the EU-proposed EU-Mediterranean Free Trade Area (EMFTA) take place. It cuts duties on imports from Israel by one third and reduces duties on exports to Israel by half. Minister of Industry and Trade Ahmad Hindawi said the trade agreement between the two countries was signed in 1995, a year after they signed a peace treaty. The new agreement, he added, lists the commodities and production inputs that allow accumulation of rules of origin. On the QIZs, through which exports will head to the EU, Hindawi said that they had attracted JD400 million in investment and seen the establishment of 88 factories that employ 30,000 Jordanians.
Meanwhile, Hindawi rejected as baseless the theory that the Kingdom's trade relationship with Israel has allowed the latter to penetrate Arab markets. He said Jordan's strict trade regulations with regard to origin of products ensures that only Jordanian-made products make their way to Arab markets. Goods manufactured in the QIZs, he said, are not destined for Arab countries. During the `unscheduled topics' discussion, MPs commented on various issues related to the general situation in the country, with focus on the economic situation, poverty and unemployment, especially in areas like the Jordan Valley.
The deputies also demanded the addition of the two-year military service to the period of civil service calculated for pension purposes. They also requested the government to supply the House with details of the deal to sell Jordan TV Channel 2 to a private investor. Ministers took turn in replying to the deputies' remarks on an array of issues such as the effects of the cold front on farmers, the establishment of a university in Tafileh, which will open in the next scholastic year, the work of the National Aid Fund and the debt burden of municipalities, among others. At the beginning of the meeting, the House referred the amended Education Law for deliberation to the Education Committee.