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International Agreements and Memberships
International Trade Agreements
Arab Market Access
European Market Access
US Market Access
Asian Market Access
Bilateral Agreements
The series of economic reforms Jordan made between 1989 and 2004 enable us to leverage on good will we have long enjoyed with our neighbors in the Middle East and other countries, and enter into a wide range of bilateral and multilateral trade agreements. Our trade agreements give us access to more than one billion customers.
In accordance with the Kingdom’s expressed policy on increased trade liberalization and export-led growth, a series of international agreements have been negotiated and implemented by the government. These agreements can be separated into two types, bilateral and multilateral, and are examined in the subsections that follow.
International Trade Agreements
Jordan is currently party to a variety of multilateral treaties and agreements, both within the MENA region and outside its borders. A selection of these agreements follows in this section:
Jordan is a member of the World Trade Organization (WTO) since the year 2000.
Arab Market Access
The Greater Arab Free Trade Agreement, 1998. Declared within Social and Economic Council of the Arab League as an executive program to activate the Trade Facilitation and Development Agreement in its membership of 17 Arab Countries. These include: Jordan; USE; Bahrain, Saudi Arabia, Oman, Qatar, Morocco, Syria, Iraq, Palestine, Kuwait, Tunis, Libya, Sudan, Yemen.
The Arab Mediterranean Free Trade Agreement (Agadir Agreement) 2004, came into force in 2009.
Access to European Markets
The Jordan-EU Association Agreement signed in 1997 and entered into force on 2002: Aims at creating a free trade area between EU and Jordan, establishing a comprehensive framework for political, economic, trade and investment, social and financial cooperation.
Furthermore, the Agreement allows entry of Jordanian industrial exports into EU-member countries free of customs duties and other charges, having equivalent effect from the date the Agreement enters into force. EU industrial exports are allowed entry into Jordan free of customs duties and charges as well, having equivalent effect over a transitional period of 12 years starting from date the Agreement enters into force, excepting a list of specific products.
In addition to the elimination of tariffs and reduction of non-tariff barriers, the Agreement contains comprehensive provisions on the conduct of trade in agricultural and industrial products, right of establishment and services, payments and movement of capital, competition, intellectual property rights, financial co-operation, economic co-operation in the field of industry, standards, transportation, telecommunications, energy, science and technology, environment and tourism, statistics, and the fight against illegal drugs. Moreover, within the context of the Agreement, the EU has pledged to set up a Special Fund to assist in improving the export capacity and competitiveness of Jordanian industries.
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US Market Access
The Jordan-US Free Trade Agreement (FTA) was signed in the year 2000: Covers trade in goods and services, protection of intellectual property rights, environment, labor and e-commerce, trade will be fully liberalized through the gradual reduction of custom duties and charges having equivalent effect over a transitional period of ten years. This agreement was the fourth Free Trade Agreement that the United States had negotiated, after Canada, Mexico and Israel, and the first with an Arab country.
The Qualifying Industrial Zone (QIZ) Agreement was signed in year 1996. These zones provide duty and quota free access to the U.S. market for products manufactured in Jordan Currently, there are thirteen Qualified Industrial Zones in Jordan; three of which are governmental while the rest are owned by the private sector.
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Asian Market Access
The Jordan-Singapore FTA was signed in the year 2004: Aims at promoting economic relations and developing partnerships between Jordan and Singapore considering the distinguished experiences that Singapore enjoys in economic development, technology, and improving investment climate.
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Bilateral Agreements
Jordan has signed bilateral Investment Agreements with 38 countries in an effort to promote economic cooperation and activate the flow of private capital and transfer of technology, further stimulating economic development. Such agreements create and maintain a stable framework for investments which is essential for maximizing the utilization of economic resources and improving overall living standards. Such agreements provide the following basic guarantees:
- The bettering of national and most favored nation treatment, subject to certain limitations.
- Expropriation only in accordance with international law and upon payment of adequate compensation.
- The right to transfer all funds related to an investment without delay and using the market rate of exchange.
- Prohibition of performance specifications such as local content requirements or export quotas.
- The right of investors to submit investment disputes with the hosting country's government for international arbitration.
- The right to engage senior management personal regardless of nationality.
Similar agreements have been initiated with Libya, Latvia, Malta, Belgium, Yugoslavia, Qatar, Oman, United Arab Emirates, Slovakia, South Africa, and India.
Promotion and Reciprocal Protection of Investments agreements were signed and are in force between Jordan are the following countries: Germany France, UK, Italy, Romania, Turkey, Malaysia, Tunisia, Yemen, Algeria, USA, Poland, Croatia, Spain, Bahrain, Sudan, Austria, Kuwait, Syria, China, Bulgaria, Ukraine, Lithuania, Belarus, and Singapore.
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