Free Trade Agreements

Arab Free Trade Agreement (AFTA)
Jordan, along with ten other Arab countries, signed the Arab Free Trade Agreement and its implementation commenced on March 9, 1998. According to the agreement, all Arab products moving among Arab member states will be afforded the status of national goods in accordance with the principle of gradual liberalization, which took effect January 1, 1998. By way of annual reductions of 10% of customs duties, fees and taxes, goods are scheduled to be moving duty-free among the States through the establishment of the Arab Free Trade Zone by 2008.

Jordan has signed agreements guaranteeing 100% free trade with Bahrain, Egypt, Kuwait, Syria, Morocco and Tunisia.

Jordan has also signed bilateral Trade Cooperation Agreements with Saudi Arabia, Lebanon, Palestine and Algeria.

Euro-Jordanian Cooperation Agreement
In November 1997 the Hashemite Kingdom of Jordan and the European Union Signed the EU-Jordan Association Agreement, which is due to enter into force on May 1, 2002. This agreement will facilitate trade between Jordan and the European Union under the umbrella of global free trade and within WTO regulations. The Association Agreement will create an environment in which European companies (from EU member states) and Jordanian companies can both benefit from the advantages of tariff-free trade and clear, unified regulations.

Qualifying Industrial Zones (QIZ)
Further enhancing Jordan’s leverage over other neighboring countries in the MENA Region, Jordan was granted the unprecedented opportunity to establish Qualifying Industrial Zones (QIZs), zones which provide duty and quota free access to the U.S. market for products manufactured in Jordan.

World Trade Organization
Jordan's membership of the World Trade Organization (WTO) became effective on April 11, 2000. WTO membership assures access to the entire world market for Jordanian manufactured products, but will also expose Jordanian companies to direct competition with international firms. The government has revised its laws, particularly those governing Intellectual Property Rights and Trade Secrets, in order to come into regulatory compliance with WTO standards.

United States–Jordan Free Trade Agreement
Jordan and the USA signed an agreement to establish a free trade area (FTA) between the two countries on October 24, 2000. This Agreement has become effective on 1/1/2001. The FTA will eliminate tariffs on nearly all trade between the US and Jordan within a 10 year period.

EFTA States-Jordan
On June 21, 2001, Jordan and the EFTA states (Iceland, Liechtenstein, Norway and Switzerland) signed a free trade agreement which aims to create favorable conditions for the development and diversification of trade and to promote commercial and economic cooperation in areas of common interest on basis of equality, mutual benefit, non-discrimination and international law.

The free trade area between Jordan and the EFTA states will be fully operational through progressive liberalization extending over a period of 12 years. The agreement covers trade in industrial, agricultural and fish and marine products. As of the date of entry into force of the agreement, the EFTA states will abolish all customs duties and other charges on imports of industrial products originating in Jordan. Jordan will progressively abolish customs duties on the same products originating in the EFTA states according to 2 schemes extending over 4 to 12 years, while leaving tariffs on a limited number of categories of products to be negotiated after four years of entry into force of the agreement.

Jordan and the WTO

For further information please contact the Trade Protocols Division at JEDCO at the following address:

P. O. Box 7704
Amman 11118 Jordan
Tel: +962 6 5603507
Fax: +962 6 5684568