Us Jordan Free Trade Agreement

To benefit from the benefits to U.S. products under this agreement, exporters need to understand how they can see that their products originated or that they can receive preferential tariff treatment in accordance with the free trade rules of the U.S.-Jordan Free Trade Agreement. Text by Jordan FTA: The full text of the agreement. The free trade agreement with Jordan is a significant and comprehensive liberalisation on a wide range of trade issues. It will remove all tariff and non-tariff barriers to bilateral trade in virtually all industrial and agricultural products within ten years. As part of the U.S.-Jordan Free Trade Agreement, Jordan is required to adopt stricter provisions for the protection and enforcement of copyrights, trademarks, patents and trade secrets. The free trade agreement will also open up the Jordanian market for services to U.S. businesses. These changes will provide, among other things, a more accessible and manageable market base for U.S. and Jordanian companies.

The Free Trade Agreement is the first trade agreement to contain substantial provisions on e-commerce, a step that should help promote a global free trade agenda in a critical sector for U.S. high-tech and multimedia companies. The two countries agreed to seek to avoid tariffs on electronic transmissions, impose unnecessary barriers to market access for digitized products, and impede the ability to provide services electronically. These provisions are also part of service commitments, which together aim to encourage investment in new technologies and encourage the innovative use of networks for the provision of products and services. The agreement will significantly liberalize bilateral trade in services in a wide range of service sectors. Jordan has become a “clothing magnet” as U.S. companies such as Wal-Mart, Target and Hanes have set up factories to reduce costs by eliminating tariffs. In the first year, Jordan increased its exports by 213% and created 30,000 jobs. Until 2002, Jordan had a marginal trade surplus with the United States. [1] Five years after the free trade agreement came into force, Jordan`s exports to the United States had increased twenty-fold; Jordan`s clothing exports to the United States totaled $1.2 billion in 2005.

[6] Most Jordanian exports to the United States come from one in 114 companies. [7] In addition, the Skilled Industrial Zones (QIZs) created in 1996 under President Bill Clinton, manufactured in Israel, Jordan, Egypt or the West Bank and the Gaza Strip, have allowed duty-free entry into the United States. Exports must have at least 35% of their added value from Israel, Jordan (i.e. QIZ) and the West Bank or Gaza to be eligible as beneficiaries of QIZ. Jordanian exports also needed at least 8% of their added value to come from Israel. [1] The U.S.-Jordan Free Trade Agreement came into force on December 17, 2001.

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