Jordan Times
Thursday, November 15, 2007

Jordan, Germany issue joint statement

Following is the full text of joint German-Jordanian press statement issued after the meeting between His Majesty King Abdullah and German Chancellor Angela Merkel on Wednesday:

The Federal Chancellor Ms Angela Merkel and His Majesty King Abdullah met today and had a very fruitful and constructive exchange. Their discussions focused on current regional challenges, advancing international cooperation and bilateral cooperation between Germany and Jordan. In the framework of this exchange both sides underscored inter alia on the following issues:

1. The two leaders discussed key regional issues focusing especially on the Middle East peace process. Germany and Jordan stressed the urgency of supporting a process leading to a two-state solution with the establishment of an independent, democratic and viable Palestinian state living side-by-side in peace and security with Israel and its neighbors. Both sides strongly support the Annapolis summit later this month and hope it will allow for substantial progress towards a comprehensive settlement of the Israeli-Palestinian problem. Both sides consider the Arab Peace Initiative to be a major element in moving the process forward.

The two leaders also discussed the situation in Iraq and Lebanon.

2. Chancellor Ms Angela Merkel and His Majesty King Abdullah met today also in their capacity as presidents of the G-8 and G-11 respectively. In this light, the Chair’s Summary of Heiligendamm G-8 Summit earlier in June was recalled in which the G-8 leaders welcomed holding this meeting between the presidents of the two groups.

Both sides agreed that the meeting today was an important one. They exchanged views on several related issues of mutual concern. Germany will report on the discussions of this meeting to the remaining G-8 members and the upcoming G-8 presidency.

Germany welcomed the effort by His Majesty King Abdullah to advance the G-11 initiative and applauds the countries of the G-11 on their determination to move forward with economic, political and social reforms.

Both sides stressed the value of the relationship between the developed and developing countries and the importance of supporting developing countries who are performing well, particularly those pushing forward with their reform efforts and delivering on their commitments.

3. The growth in bilateral trade volume by 45 per cent in 2006 to an amount of 839 million euros is an expression of the outstanding bilateral economic relations, which have continued to develop dynamically in recent years.

In addition, German companies have shown increasing interest in Jordan as a hub for German trade relations, with Iraq. For this reason the German government supports the participation of German companies at the “Rebuild Iraq Trade Fair” in Amman. German foreign trade policy instruments like the Hermes Export Credit Insurance or a new German-Jordanian Investment Protection Agreement will further enhance our bilateral economic relations. In this context the success of the German Jordanian University as a pilot project in the region has been welcomed.

4. It was highlighted that Germany firmly supported Jordan’s proposal regarding the early repayment of its debts to the Paris Club. Germany therefore signed the multilateral early repayment agreement between the Paris Club and Jordan in Paris on October 18, 2007. The German government intends to make it possible for Jordan to repurchase its debt in line with the agreement and has asked parliament to grant the necessary approval for this transaction. In this way, Germany would make yet another important contribution towards improving Jordan’s debt situation, in line with its engagement in the past.

5. Germany and Jordan signed a new Investment Protection Agreement. The agreement offers investors a high level of comprehensive legal protection. In particular, it ensures national treatment and most-favored nation status, free transfer of capital and profits, appropriate compensation in case of expropriation, and the possibility for investor recourse to international legal procedures in the event of investment disputes. At the same time, the Investment Protection Agreement is the fundamental precondition enabling the German government to provide investment guarantees covering non-commercial risks. This agreement will give strong impetus for further improvement of the bilateral investment relations.

6. In the past four decades, development cooperation has proven to be a positive element in Jordanian-German relations. German official development assistance to Jordan now totals as much as 1.2 billion euros. Since 2001, German official support for water-scarce Jordan has focused on integrated water resource management that is economically efficient, socially equitable and ecologically sustainable. Integrated water resource management is the goal of the two countries’ joint longer term strategy on which current cooperation between Germany and Jordan is based. The strategy has also been well-coordinated with other donors. Additionally, there are support endeavors in other areas, mainly concerning the construction of primary schools.

Germany has granted Jordan debt swaps amounting to a total of 234 million euros. These debt swaps granted debt cancellations with the proviso that the resources freed up are used for environmental protection, education or poverty reduction projects. This amount makes Jordan one of the top countries to have enjoyed such swaps under German Financial Cooperation.

7. Germany and Jordan emphasize the importance of their cooperation within the framework of the European Neighborhood Policy. The Federal Ministry of Economics and Technology implements two Twinning projects to support institution building in Jordan; one targeting standards and metrology and the other focusing on trade policy and the implementation of the accession to World Trade Organization. Twinning projects are intensifying the bilateral economic relations between both countries and are creating a complementary basis for close cooperation between Germany and Jordan.


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