RESTRICTED
WORLD TRADE WT/ACC/JOR/9
4June1997
ORGANIZATION(97-2346)
Original: English Working Party onthe
Accession ofJordan
ACCESSION OFJORDAN
Questions andReplies
ontheMemorandum ontheForeign Trade Regime
(Documents L/7533, WT/ACC/JOR/2 and3)
TheadditionalquestionssubmittedbyMembersandtherepliestheretoprovidedbytheauthorities
oftheHashemite Kingdom ofJordan arereproduced hereunder. Theattachments mentioned inthis
document areavailable intheSecretariat (Accessions Division, Room 1126) forconsultation.
_______________WT/ACC/JOR/9
Pagei
TABLE OFCONTENTS
Page
No.Question
No.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN
TRADE
2. Economic Policies
(a) Main directions ofongoing economic policies 1 1-2
III. FRAMEWORK FOR MAKING AND ENFORCING
POLICIES AFFECTING FOREIGN TRADE INGOODS
AND TRADE INSERVICES
2. Government Entities Responsible forMaking and
Implementing Policies Affecting Foreign Trade 2 3
5. Laws andLegal Acts 2 4
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristics ofNational Tariff 2 5-6
(c) Tariff quotas, tariff exemptions 3 7-18
(e) Quantitative import restrictions 7 19
(f) Import licensing procedures 8 20-23
(h) Customs valuation 9 24
(l) Rules oforigin 9 25-26
(m-o) Anti-dumping, countervailing duties andsafeguards 10 27
2. Export Regulation
(d) Export licensing procedures 11 28-30
(f) Export financing, subsidy andpromotion policies 12 31-32
3. Internal Policies Affecting Foreign Trade inGoods
(c) Sanitary andphytosanitary measures 13 33-35
(d) Trade-related investment measures 14 36-39
(e) State-trading practices 16 40-42
(f) Freezones 17 43
(l) Government procurement practices 17 44-63
4. Policies Affecting Foreign Trade inAgricultural Products 22 64-84
V. TRADE-RELATED INTELLECTUAL PROPERTY
REGIME
1. General 32 85-88WT/ACC/JOR/9
Pageii
Page
No.Question
No.
2. Substantive Standards ofProtection
(a) Copyright andrelated rights 35 89-92
(b) Trademarks, including service marks 38 93-100
(c) Geographical indications, including appellations oforigin 39 101-103
(d) Industrial designs 40 104-107
(e) Patents 41 108-113
(f-g) Plant variety protection, layout designs ofintegrated circuits,
requirements onundisclosed information 42 114-116
4. Enforcement 42 117-119
VI. TRADE-RELATED SERVICES REGIME
2. Policies Affecting Trade inServices 43 120-127
3. Specific Sectors
(a) Financial services
(i) Banking 47 128-134
(ii) Insurance 49 135-145
(iii) Ammam Financial Market 52 146
(b) Telecommunications services 52 147-158
(c) Health services 55 159-160
(d) Tourism 56 161-162
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade
inGoods andTrade inServices 57 163-175WT/ACC/JOR/9
Page1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions ofongoing economic policies
Question 1.
Section 1.1,paragraph 3(L/7533) notes theGovernment ’sintention "tointroduce further trade
liberalization measures", section 1.3.1.1(1) states thataGovernment objective isto"eliminate
priceandproduction distortions". Weshould begrateful iftheJordanian authorities would provide
further information onwhatspecific measures willbeintroduced toeliminate price andproduction
distortions, andonwhat specific trade liberalization measures willbeintroduced, andinwhat
timeframe.
Answer:
TheGovernment ofJordan initsdrivetoliberalize tradehastaken sofarthefollowing measures:
- elimination ofimport licensing requirements except forcertain imports thatreceive exemptions
from customs duties according tobilateral trade agreements withsome Arab Countries and
Israel;
- removal ofsubsidies onwheat, sugar, riceandanimal fodder. However, families whose monthly
income islessthanJD500getcoupons fromtheMinistry ofSupply toobtain rice,sugar and
onebrand ofdried milknamed Halibuna atsubsidized prices;
- gradual removal ofprice fixing offooditems. Originally theprices of66items usedtobe
fixed bytheGovernment. Theitems whose prices arestillfixed are:bread, redmeat, rice,
sugar, salt,onebrand ofdried milk(Halibuna) andmilkforindustrial use;
- theGovernment isgradually moving outofimporting foodproducts. Theprivate sector can
import allitems thatwerepreviously government monopoly likerice,sugar, wheat, barley,
frozen meatandpoultry;
- streamlining andreduction oftariffrates. Thetariffbands werereduced tosixandtheaverage
tariff weight fellfrom 34.1percent/1994 to14.6percent/1996;
- thecustoms lawhasbeenrevised andamended tomake itcompatible withWTO requirements.
Question 2.
How doesJordan propose tostrike abalance between itsdesires "todevelop theregulatory and
supervisory roleoftheGovernment andtoreduce itsdirect roleinproduction"?
Answer:
Toachievesuchabalance,theGovernmenthasproceededwiththeliberalizationoftheeconomy
anditsinstitutions, elimination ofdistortions obstructing sound economic performance anddevelopment
ofanappropriate investment climate. TheGovernment move tookseveral tracks thatincluded: pursuing
oftherestructuring oftheeconomy, changing therequirements framework tocomplement thestructural
changes andtobecompatible withtherequirements ofliberalization andglobalization oftradeespeciallyWT/ACC/JOR/9
Page2
under theWTO. Another aspect istoreduce public sector involvement inproduction andtrade to
aminimum byprivatization andbyallowing theprivate sector toprovide infrastructure services.
III. FRAMEWORKFORMAKINGANDENFORCINGPOLICIESAFFECTINGFOREIGN
TRADE INGOODS AND TRADE INSERVICES
2. Government Entities Responsible forMaking andImplementing Policies Affecting Foreign
Trade
Question 3.
Section 3.1.2 (L/7533) states thatimport policy isdetermined bytheMinistry ofIndustry and
Trade incooperation withtheMinistries ofFinance, Supply, Agriculture andHealth. Weshould
begrateful iftheJordanian authorities would indicate whether theyintend tomaintain thisdegree
ofGovernment control overimport policy inrespect offoreign exchange.
Answer:
What ismeant bythisstatement isthattheMinistry ofIndustry andTrade coordinates with
theother ministries concerned withimports directly orindirectly when formulating theimport policy.
Asforeign exchange payments areconcerned current account dealings arenotrestricted in
Jordan. Jordan formally accepted theobligations ofArticle VIII, sections 2,3and4oftheFund
Agreement asfrom20February 1995. Onlyimports thatrequire animport licence require anexchange
permit which isgranted automatically onceanimport licence isobtained.
5. Laws andLegal Acts
Question 4.
Alllegislation referred tointheMemorandum (WT/ACC/JOR/3) should bemade available to
theWorking Party inaWTO language.
Answer:
Agood number oflawsarebeing revised andamended andothers newly drafted toconform
toWTO requirements andtoaccommodate changes anddevelopments intheeconomy. Once they
areapproved bythelegislative bodies, theywillbetranslated intotheEnglish language.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristics ofNational Tariff
Question 5.
Please listtheagricultural duties forwhich Jordan maintains specific orcombined dutyrates,
indicating thedutyrate(andunitusedwhere applicable).WT/ACC/JOR/9
Page3
Answer:
Acopyofthecustoms tariffisavailable indiskette formintheSecretariat (Accessions Division,
Room 1126) forconsultation.
Question 6.
HastheJordanian customs tariff been revised since publication oftheInternational Customs
Journal, No.77,3rdedition, 1987 to1988. Ifso,please provide acopy oftherevised customs
tariff.
With regard tothetable onpage 17(L/7533), dothe"consolidated" tariff rates shown therein
incorporate allseven extra types oftaxes listed above thetable? With regard to"duty freestatus",
what proportion ofimports under bilateral trade agreements enter dutyfree? What ismeant
bytheterm "protocol trade"? Isbarter orcounter-trade specified inanyofthebilateral trade
agreements? Ifso,what proportion oftotalimports arecarried outinsuchtransactions?
Answer:
Thecustoms tariff rateshavebeenrevised inrecent years. Tariff ratesandtariff bands have
beenreduced. There arenowsixtariff bands withthefollowing rates0.5,10,20,30and40percent.
Theweighted average rateisnowaround 15percentcompared to17.1in1995 and34.1in1994.
TheHarmonized System Nomenclature (HS)isapplied byJordan since thebeginning of1994.
Theextratypes offeesandtaxesyourefertohaveallbeenconsolidated intothetariffstructure
andarepartofitnow.
Jordan hasbilateral tradeagreements withtenArabcountries andIsrael. Under theseagreements
some items aregiven preferential treatment intheform offullorpartial exemptions from customs
duties. Insome agreements thetotalvalue ofsuchtrade items isalsospecified. Such preferential
treatments andthelistsofitems inmost ofthecases aredone inaprotocol annexed tothetrade
agreement, hence thename protocol trade.
(c) Tariff quotas, tariff exemptions
Question 7.
Please provide more specific details regarding tariff exemptions, including alistofHS6digits
ofallitems qualifying fortariff exemptions, andthecriteria forgranting suchexemptions.
Answer:
AcopyoftheCustomsTariffisavailableindisketteformintheSecretariat(AccessionsDivision,
Room 1126) forconsultation.
Question 8.
Please provide more details about theability ofcharitable organizations toimport goods duty
free. Forexample, cantheyimport alltypes ofgoods dutyfree? From allthird countries?WT/ACC/JOR/9
Page4
Answer:
Imports ofcharitable organizations withdutyfreestatus aresubject toCabinet approval.
Asforforeign charitable organizations theirimports areusually subject totheprovisions of
theagreementsignedbetweentheforeigncharitableorganizationandtheMinistryofSocialDevelopment.
Question 9.
IstheCabinet approval referred towhen charities import dutyfreerequired (a)forthecharity
tobeallowed toimport, (b)eachtimeashipment ismade, (c)both?
Answer:
Charitable organizations musthaveCabinet approval forfreedutyimports. Once theygain
thisapproval, thentheyhavetogetanimport licence from theMinistry ofIndustry andTrade each
timetheywanttoimport suchgoods. Thisissobecause thecharitable organizations cannot havean
import-card likeordinary importers.
Question 10.
Please provide alistofthecharities benefiting from dutyfreeimports.
Answer:
There isnopre-determined listofcharities benefiting from dutyfreeimports. Acharitable
organization must obtain theapproval oftheCabinet forimporting dutyfreegoods. Theproducts
thatareeligible forexemption from duties are:
- medical apparatus andequipment andmedicaments upon recommendation fromtheMinister
ofHealth;
- clothes, food, furniture thatcome asgiftsfromother organizations outside Jordan toorphans
andoldagehomes andtohospitals upon recommendation from theMinister ofSocial
Development;
- building materials asgiftstomosques, churches andschools anduponrecommendation from
theMinistry ofPublic Works andHousing;
- technical equipment andapparatus andmachines thataremounted inafixed manner, and
educational materials forschools andinstitutions credited bytheMinistry ofEducation, and
which areimported bysuchinstitutions.
There isnolimitation oncountry oforigin ofsuchimported products.
Question 11.
Please provide more details about theability ofeducational institutions toimport goods dutyfree?
Forexample, cantheyimport alltypes ofgoods dutyfree? From allthird countries?WT/ACC/JOR/9
Page5
Answer:
Seeanswer toquestion 10.
Question 12.
Please provide alistoftheeducational institutions benefiting from dutyfreeimports.
Answer:
There isnopre-determined listofeducational institutions (seeanswer toquestion 10).
Question 13.
Does Jordan have anyplans toeliminate theconsolidated surcharge of6percentonallitems
subject tocustoms duties? Ifnot,whynot?
Answer:
Theconsolidated surcharge referred tointheabove question hasbeenintegrated intothecustoms
tariff structure. Thisbrings them inlinewithArticle VIIIofGATT 1994.
Question 14.
Section 3.2.1 (L/7533) outlines thetariff structure, which ismulti-layered andincludes charges
which areunrelated toforeign trade, including municipalities anduniversity fees. Anexplanation
bytheJordanian authorities oftherationale forincluding charges unrelated toforeign trade in
thetariff structure would beappreciated, aswould anindication bytheJordanian authorities
oftheprospects forstreamlining thetariff structure andremoval ofextraneous charges.
Answer:
Allthese charges andfeeswereconsolidated intothetariff structure andarenotcharged any
moreseparately. Historically theimposition ofsome ofthesecharges likemunicipalities anduniversity
feessurcharge andtaxes wastofinance activities relating toeducation, environment andrecreation
forthepublic. Thelawsofsome organizations likeuniversities, municipalities sport citystipulated
thattheirresource willaccrue from asurcharge taxonimports.
Question 15.
Section 3.2.1 (L/7533) states thatimports which areexempt from customs duties aresubject to
anadvalorem surcharge of5percent. Weshould begrateful iftheJordanian authorities would
advise whether thissurcharge isbased onthesubmitted c.i.f. value ofthegoods oronacustoms
valuation, andtherationale fordoing so.
Answer:
Thesurcharge taxandtheother additional taxes andfeesthatusedtobelevied onimports
inaddition tocustoms duties havebeenconsolidated intothetariff structure, andarenowpartofthe
applicable tariff rates.WT/ACC/JOR/9
Page6
Question 16.
Weshould begrateful iftheJordanian authorities would advise whether, inaddition tothetariff
setoutinsection 3.2.1. (L/7533) acustoms overtime taxispayable onanyimports.
Answer:
There isacustoms overtime wage charged onimports, exports, re-exports andlocally sold
goods attherateof0.2percentofthevalue.
Question 17.
Weshould begrateful iftheJordanian authorities would advise whether anyimports are,in
addition tocharges specific toimports, subject tocharges which arelevied onallcommercial
contracts.
Answer:
Acharge intheform ofdutystamps islevied ongovernment tenders whether commercial
contracts orotherwise.
Question 18.
Section 3.2.1(4) (L/7533) indicates thatimports bygovernment institutions enjoy dutyfreestatus.
Weshould begrateful iftheJordanian authorities were toadvise whether thispolicy willbe
maintained.
Answer:
Theimportedcapitalgoodsandotherequipmentsormachineswhicharenecessaryforproduction
intheprojects ofthefollowing institutions areexempted from thecustoms duties:
I.
- Aqaba Authority Region;
- Jordanian Electricity Authority;
- Water Authority;
- Aqaba Railway Corporation;
- Vocational Training Organization;
- Amman Greater Municipality;
- Royal Jordanian Corporation;
- Villages andMunicipal Councils;
- Royal Scientific Society.
II. Imports ofthefollowing educational institutions ofmaterials, machines andequipments which
relate totheireducational functions:
- Jordan University;
- Yarmouk University;
- Jordan Science andTechnology University;
- Zarqa Public University;WT/ACC/JOR/9
Page7
- Al-Albayt University;
- Muta’aUniversity.
These exemptions inI&IIabove donotapply tothefollowing items:
- cars;
- furniture;
- office equipment;
- spare parts;
- other consumption goods.
III. Theprocurement ofthefollowing companies areexempted fromthecustoms duties uponspecial
decisions bytheCouncil ofMinisters:
- Phosphate Mining Company;
- Petroleum Refinery Company;
- Jordan Cement Factories Company;
- Fertilizers Company;
- Arab Bridge Maritime Company;
- Arab Potash Company;
- Jordanian Electric Company;
- Irbid Governorate Electric Company;
- Jordanian Tanning Company;
- Vegetable OilFactories Company;
- Arab Company forManufacturing White Cement.
These exemption inIIIdonotapply tothefollowing items:
- cars;
- tyres andcarspare parts;
- petroleum products;
- office equipment.
(e) Quantitative import restrictions
Question 19.
(a) Jordan 'srevised Memorandum ontheForeign Trade Regime (WT/ACC/JOR/3) doesnot
giveanentirely clear picture. Westillneedtoknow ifthere areanynon-automatic imports
licences, quantitative restrictions orother non-tariff barriers applied inthissector
(CNcode03,1604.1605).
Answer:
There arenorestrictions onimporting these items, quantitative orotherwise.
(b) Please explain thereason whytheimport andinitial distribution ofcigarettes iscarried
outbytheGovernment?WT/ACC/JOR/9
Page8
Answer:
TheGovernment isconsidering stopping importing anddistributing cigarettes, andallowing
theprivate sector todoso.
(c) Forthoseproductswhoseimportandinitialdistributionissubjecttogovernmentregulation,
canforeign contractors alsosubmit tenders andactasagents fortheMinistry ofSupply?
Answer:
Private sector contractors areselected through tendering andactasagents fortheMinistry
ofSupply infacilitating theimport ofthesecommodities. Theforeign traders canbidforsuchtenders
through localagents.
TheGovernment hasrecently allowed theprivate sector toimport rice,sugar andcigarettes.
Wheat isnolonger subsidized.
(f) Import licensing procedures
Question 20.
Therevised Memorandum ontheForeign Trade Regime (WT/ACC/JOR/3) states that“generally ”
imports donotrequire alicence. Arethere anygoods require animport licence? Ifso,please
listthegoods (with HSCodes).
Answer:
Import licensing inJordan hasalways beenapplied toimported goods without discrimination
onacountry basis. Thesystem isintended forrevenue collection andstatistical purposes, andnot
forrestricting imports. Since 1November 1995 andaccording toimport instruction No.1of1995,
import licensing isnomore apre-requisite forimporting goods. Products imported inaccordance
withbilateral trade protocols andagreements, andproducts thatneed prior approvals from other
ministries anddepartments arestillsubject toimport licensing.
Listofprior approvals isfound onpage24oftherevised Memorandum (WT/ACC/JOR/3).
Imports under protocol trade agreements varyaccording toeachagreements.
Question 21.
How doesJordan viewitslicensing requirements interms ofGATT Article XI?
Answer:
Thelicensing requirements arenotinconsistent withterms ofGATT Article XI.
Question 22.
How doesitviewthelicensing requirement imposed on“onebrand ofpowdered milk”interms
ofGATT Article I?WT/ACC/JOR/9
Page9
Answer:
Halibuna isalocalbrand name given topowdered milkimported fortheMinistry ofSupply
andsoldatsubsidized prices tolowincome foodcoupon holders. Theimport ofthismilkiscarried
outbyprivate sector companies through commercial tendering andbidding. There arenoconditions
orrestrictions onthesource ofimporting. Itistherefore notagainst theMFN principle ofArticle I.
Question 23.
Please provide alistofallgoods which require animport licence. Arelicences granted
automatically, ordoesimport licensing indicate quantitative restrictions?
Answer:
According toregulations fortheimport licensing system, allimports arepermitted without
licence except forthose goods thatneedprior approval fromtheconcerned government bodies, such
assome chemicals, foodstuffs, medicine, andforimports within bilateral protocol trade agreements.
Formore details seesection (e.2) onprior approvals page 28ofJordan ’srevised Foreign Trade
Memorandum(WT/ACC/JOR/3).Itisworthmentioningthatlicensingrequirementsandpriorapprovals
areautomatic anddonotconstitute anobstacle totrade.
(h) Customs valuation
Question 24.
Does Jordan have anyplans tochange itpresent lawsandregulations onthisissue?
Answer:
Jordan hasanewdraftCustoms Lawthatisconsistent withWTO requirements.
TheLawisnowbeing considered bytheLegislative authority. Formore details seeAnnex 4
onCustomsValuationofJordan'srevisedMemorandumontheForeignTradeRegime(WT/ACC/JOR/3).
(l) Rules oforigin
Question 25.
Arethere anyrules andregulations thathave been enacted todecide origin ofgoods? Ifso,
according towhat criteria areorigins decided?
Answer:
There arenospecific lawsconcerning theapplication ofrulesoforigin. Inpractice therules
applied depend onthebilateral agreement witheachcountry. TheChamber ofIndustry istheApproved
Authority forthepurpose ofissuing certificates oforigin.
TheChamber ofIndustry issues acertificate oforigin foralicensed factory, andtheIndustrial
DevelopmentDirectorateintheMinistryofIndustryandTradechecksthecertificate:whetherthefactoryWT/ACC/JOR/9
Page10
exists, whether theproduct isproduced inthefactory, andwhether thelocalmanufacturing percentage
complies withthepercentage agreed onbythebilateral agreement.
Therules oforigin usedtoidentify Protocol Imports forthepurpose ofissuing certificates
oforigin depends onthebilateral agreement witheachcountry.
Question 26.
Itappears thattheexportation andtheimportation ofgoods from andintoJordan must be
accompanied byacertificate oforigin:
- Please clarify whether proof oforigin isrequired forproducts originating fromallcountries
oronlyfrom those countries exporting toorimporting from Jordan under apreferential
scheme.
- Ifproof ororigin isrequired forproducts originating from andestined forallcountries,
please explain thereason why.
- What aretherules oforigin?
- Aretherules governing origin thesame forboth imports andexports? Ifnot,please
explain thedifference?
- Please provide theWorking Party withacopy oftherelevant legislation.
Answer:
Theproof oforigin isrequired forproducts originating fromallcountries. Theproof required
isacertificate issued bytheauthorized body intheexporting country toissue suchcertificates. The
certificate must show theinitial origin oftheproduct andthevalue added tothese products. The
authorized issuing body must beacknowledged bytheWorld Customs Organization.
InJordan there isnolegislation outlining therules oforigin. Jordan plans tohaveasetof
rules oforigin thatconform withWTO requirements oncetherules oforigin ofdifferent countries
arecoordinated andagreed upon within WTO.
(m-o) Anti-dumping, countervailing duties andsafeguards
Question 27.
There isnoinformation intheMemorandum ontheForeign Trade Regime ontrade remedy
provisions. Could Jordan please provide information onwhat anti-dumping, countervailing duty
andsafeguard lawsandregulations arenowpartofthetrade regime? Does Jordan needtopass
newlegislation inorder tomeet WTO obligations regarding trade remedies? Ifso,when will
thislegislation beimplemented?
Which products aresubject toquantitative import restrictions?WT/ACC/JOR/9
Page11
Answer:
Article 16ofthecurrent Customs Lawpartially addresses unfair competition. However, anew
safeguard lawhasbeen drafted andreferred toParliament andwillbediscussed inthenextsession
ofParliament aftertheparliamentary elections expected totakeplace sometime nextNovember.
Asforquantitative import restrictions, threeproducts arestillprohibited namely mineral water,
tablesaltandusedcarsthatarefiveyears oldormore, inaddition toimports ofnuclear waste. Some
companies haveexclusive rights forimport ofcertain products. These are:natural leather forJordan
TanningCompany;petroleumandpetroleumproducts,exceptmineraloils;andhouseholdgascylinders
forJordan Petroleum Refinery Company; black cement forJordan Cement Factories Company;
explosives andexplosives detonators, ammonium nitrate andphosphate oresforJordan Phosphate Mines
company.
2. Export Regulation
(d) Export licensing procedures
Question 28.
HowdoesJordan viewitsexport incentives interms ofArticle 3oftheSubsidies andCountervailing
Measures Agreement? When doesitintend tobring them intoconformity withtheprovisions
ofthisArticle?
Answer:
Incentives tomanufacturing enterprises topromote exports inJordan arenotcontingent on
export performance. Therefore, theyarenotsubject totheprovisions ofArticle 3oftheSCM
Agreement. Income taxexemption ofexport proceeds istheexception.
However, theyarepermitted under Article 27.2, paragraph (b)oftheSCM Agreement asthey
aregranted todeveloping countries likeJordan foraperiod ofeight years.
Question 29.
Are there any other incentives tolocal production than those mentioned in
paragraph 3.3(WT/ACC/JOR/2)? Inparticular, isthere anyincentive tiedtoalocal content
requirement?
Answer:
There arenoother incentives, andtolocaltherearenoincentives tolocalcontent requirement.
Question 30.
Please indicate whoarethebeneficiaries ofthetechnical andfinancial assistance granted by
JEDCO? Isthisassistance reserved forexporters?WT/ACC/JOR/9
Page12
Answer:
JEDCO ’sactivities areavailable toallindustrial enterprises whowishtomake useofthem.
JEDCO provides technical andpromotional assistance tothese enterprises tohelpthemupgrade their
products, adopt international standards anddevelop theirmarketing capabilities.
(f) Export financing, subsidy andpromotion policies
Question 31.
DoesJordan consider thatitsexport promotion andincentives outlined inthissection areconsistent
withWTO disciplines? How doesJordan plantomake those which arenotconsistent conform
withWTO obligations?
Answer:
Export promotion andincentives given toexports arenotinconsistent withtheprovisions of
theWTO disciplines astheydonotleadtoanincrease inJordanian exports intheworld market more
thanitsequitable share. However, some ofthese incentives havebeendiscontinued.
Question 32.
Please explain howloans totheIndustrial Development Bank would beadministered soastobe
consistent withtheprohibition onexport subsidies assetoutintheWTO Subsidies Agreement.
HowdoesJordan determine ifrawmaterials are"essential toindustrial export operations"? How
areloans processed, whodetermines theacceptability ofaloanapplication, andthrough what
financing mechanism istheloangranted ?
Answer:
TheIndustrial Development BankFacility forfinancing commodities stored forexport purposes
wascancelled on1January 1997.
Credit facility oftheCentral Bank ofJordan (CBJ): thisfacility isgiven tocommercial banks
toprovide financing toexporters against export letters ofcredit andbillsforcollection forproducts
ofatleast25percentlocalvalue added. Thetransaction between theenterprise andthecommercial
bankisapurecommercial transaction, without anyinterference bytheCentral Bank ofJordan. The
interest ratecharged onrefinancing ofexport credit is1percentbelow theprevailing discount rate.
However, volume ofexports subsidized islessthan1percentoftotalannual exports.
Income taxexemption: theexemption covers export salesthrough non-protocol tradeandalso
excludes exports ofphosphates, potash andfertilizers.
Article 27.2, paragraph 6oftheAgreement onSubsidies andCountervailing Measures allows
suchsubsidies todeveloping countries foraperiod ofeight years.WT/ACC/JOR/9
Page13
3. Internal Policies Affecting Foreign Trade inGoods
(c) Sanitary andphytosanitary measures
Question 33.
Does Jordan foresee anyproblems inimplementing theWTO Agreement onSanitary and
Phytosanitary Measures infullfrom thedateofaccession?
Answer:
Once Jordan accedes toWTO andstarts implementing theAgreement onSanitary and
Phytosanitary, itwillfacesome problems. Ifthevolume ofimports andexports offoodandagricultural
products increases, thentherewillbemore samples toanalyze forpesticides residue andpestdetection.
Theavailable laboratory capacities andcapabilities arenotenough tocopewithsuchincreased
demand. Establishing newlaboratories orexpanding anddeveloping thepresent oneswillbenecessary.
Question 34.
Section 3.2.2.4 (L/7533) specifies thatimports of66foodstuffs, including meat, white cheese and
butter, require permission from theMinistry ofSupply, butthattheMinistry grants permission
forthese imports automatically. Weshould begrateful iftheJordanian authorities would clarify
why, inthese circumstances, there isanyrequirement toapply forpermission toimport these
foods.
Answer:
Theprior approvals were partoftheimport policy measures thatwasintroduced inthelate
1970s when import licensing wasarequirement, andtheMinistry ofSupply started regulating theflow
offood products toensure thatthere isadequate strategic supplies ofsuchproducts. With the
liberalization oftrade onlyfivefoodcategories stillneedprior approvals. These categories include
wheat andwheat products, onebrand ofdried milk, sugar, riceandredmeat.
TheMinistry ofSupply intends tophase outsuchprior approvals inthenearfuture.
Question 35.
Wenote that theMemorandum (L/7533) does notdescribe theJordanian sanitary and
phytosanitary (SPS) regime. Weshould begrateful forafullaccount oftheSPSregime from
theJordanianauthorities,includinganyrelevantregulationsoftheMinistriesofSupplyandHealth.
Answer:
TheMinistry ofAgriculture andtheMinistry ofHealth maintain sanitary andphytosanitary
standards toensure thatallimported foods, plants, plant parts, plant by-products, animal, animal
by-products andagricultural chemicals aresafeanddonotendanger human, animal andplant health
andlife.These measures arejustified onthebasis oftheneedtoprotect thesafety oftheagriculture,
livestock andpoultry, aswellasnative plants andanimals.WT/ACC/JOR/9
Page14
Jordan isamember oftheCodex Alimentarius Commission, Prior Informed Consent (PIC),
International Office ofEpizootics (IOE), Food andAgriculture Organization (FAO), World Health
Organization (WHO), International Atomic Energy Agency (IAEA). Itworks together withthese
organizations onestablishing andapplying sanitary andphytosanitary measures.
Consignments ofanimals suchaslivestock (liveanimals, frozen andchilled meat, poultry meat,
hatching eggs, pesticides, seeds, animal fodder andorganic fertilizers) aresubject toMinistry of
Agriculture andMinistry ofHealth inspection andquarantine.
Attheborder inspection offoodandagricultural products iscarried outbyacommittee of
representatives form theJordanian Institution forStandards andMetrology, theMinistry ofHealth,
theMinistry ofAgriculture andtheCustoms Department. Samples aretaken fortesting inthe
laboratories oftheMinistry ofHealth ortheMinistry ofAgriculture orother accredited laboratories
toensure theymeetthesetstandards inJordan before being cleared bythecustoms authorities.
Importedgoodsthatdonotsatisfysanitaryandphytosanitaryrequirementsareeitherre-exported,
orifnotremoved, theywillbedestroyed.
(d) Trade-related investment measures
Question 36.
Does Jordan maintain anytrade related investment measures (TRIMs)? Ifso,areallTRIMs
applied byJordan consistent withArticle IIIandArticle XIofGATT 1994? When doesJordan
intend tonotify andeliminate anyTRIMs?
Does Jordan currently have anyobligations, either through national laws orinternational
agreements, toprovide foreign investors andtheirinvestments inJordan with: national treatment;
most-favoured-nation treatment; and/or fair, adequate and effective compensation for
nationalizationorexpropriation(ormeasurestheeffectsofwhicharetantamounttoexpropriation)?
What obligations existconcerning thetransfer offunds, state-to-state andinvestor-to-state dispute
settlement? Please specify ifandwhere there areexceptions tothese principles.
Answer:
Jordan doesnotmaintain anytrade related investment measures according totheInvestment
Promotion LawNo.16of1995.
According totheInvestment Promotion LawandRegulation ofthePromotion ofNon-Jordanian
Investors No.1of1996:
- foreign investors getthesame treatment aslocal investors. Theonlyexception isinthe
ownership ofsome sectors, where foreign ownership should notbemore than50percentof
anyproject inthefollowing sectors:
(i) landandairtransport;
(ii) construction contractors;
(iii) trade andtrade services;
(iv) banking andinsurance;
(v) telecommunications;WT/ACC/JOR/9
Page15
(vi) mining;
(vii) agricultural produce;
(viii) investment inAmman capital market;
- theInvestment Promotion Lawguarantees foreign investors thetransfer ofprofits onforeign
capital invested inthecountry, andtherepatriation oftheircapital, non-Jordanian employees
canrepatriate theirsalaries andcompensation. Article 25oftheInvestment Promotion Law
states thatnationalisation ormeasures leading toitarenotpermissible. However, should
expropriation takeplace, afaircompensation willbepaidtotheinvestor. Jordan isamember
oftheMultilateral Investment Guarantee Agency, andoftheInternational Centre forSettlement
ofDisputes towhich disputes between Jordan andtheforeign investor canbereferred ifthey
cannot besettled amicably (Article 33oftheInvestment Promotion Law).
Question 37.
What factors areconsidered indesignating an"approved economic project"? Doforeign investors
require thedesignation of"approved economic project" inorder totransfer profits andrepatriate
capital?
Answer:
Under thenewInvestment Promotion Lawthedesignation ofapproved economic projects does
notapply anymore. Transfer ofprofits andrepatriation ofcapital isnottiedtoeconomic performance
oranyother requirement.
Question 38.
Inwhat sectors isforeign ownership restricted tolessthan51percentofaproject? What criteria
dotheCouncil ofMinisters apply inapproving foreign investment? Ifrequired documents are
submitted, areapplications approved automatically?
Inaddition totheArab andForeign Investment LawNo.27,arethere anyother restrictions on
theestablishment ofacommercial presence byforeign service suppliers? Arethere anyrestrictions
onthetemporary entry andstayofnatural persons supplying services?
Answer:
Seeanswer toquestion 32.
Question 39.
Areforeign investors from allcountries treated thesame waywithrespect tothetransfer offunds
andtherepatriation ofcapital? What factors doestheInvestment Committee consider inapproving
"more liberal" transfers?
Answer:
ThenewInvestmentPromotionLawNo.16of1995supersedestheEncouragementofInvestment
LawNo.11of1987 andtheArab andForeign Investment LawNo.27of1992.WT/ACC/JOR/9
Page16
TheInvestment Promotion lawdoesnotdifferentiate between Jordanian andnon-Jordanian
investors andaccords themgenerous incentives, foreign investors fromallcountries aretreated inthe
same waywithrespect totransfer offunds andrepatriation ofcapital.
(e) State-trading practices
Question 40.
DoanyoftheState-owned enterprises ofpublic shareholding companies listed inthesection on
State-owned enterprises possess special orexclusive trading rights?
Answer:
Theremaining exclusive rights are:theMinistry ofSupply stillimports wheat andonebrand
ofdried milkHalibuna.
Theother products theMinistry usedtoimport arenowimported bytheprivate sector namely,
sugar andrice.
TheJordan Civil Consumer Society hasspecial rights toimport directly some products for
theconsumption ofitsmembers. Thephosphates Company hastheright toimport gunpowder,
explosives andammonium nitrates. TheJordan Cement Company hastheexclusive rightofimporting
portlandcement.EmptygascylindersforhouseholduseareimportedbytheJordanPetroleumCompany.
TheTanning Company imports rawnatural leather.
Question 41.
Does Jordan intend tonotify anyenterprises (whether ornotState-owned) under Article XVII
oftheGATT 1994 ofArticle VIIIoftheGATS?
Answer:
Once Jordan becomes aMember oftheWTO itintends toprovide theinformation referred
tointheabove-mentioned Articles when required todoso.
Question 42.
Please provide additional information onthemarketing practices oftheAgricultural Marketing
andProcessing Company. Thisisreferred toasaprivate company; arethethree organizations
which ownitprivate orstatecompanies? Doesitmarket anyother processed products domestically
orinternationally? Ifso,please provide details .
Answer:
TheAgricultural Marketing andProcessing Company isaprivate company owned byState
agenciesnamelytheJordanInvestmentCorporation,theSocialSecurityCorporationandtheAgricultural
Credit Corporation. Thecompany owns andoperates processing plants oftomatoes andcitrus fruit.
Italsomarkets agricultural produce bothlocally andinternationally.
Thecompany isnowintheprocess ofbeing privatized.WT/ACC/JOR/9
Page17
(f) Freezones
Question 43.
Please specify thecoverage ofthetaxexemption granted toenterprises operating inthefreezones,
namely whether theexemption from “anyother taxes”alsocover direct taxes.
Answer:
Thetaxexemptions granted toenterprises operating inthefreezones are:
- exemption ofprofits from income taxforaperiod oftwelve years;
- exemption oftheremuneration ofnon-Jordanian employees fromincome taxandsocial services
tax;
- exemption ofimported orexported goods fromthefreezones, otherthantothedomestic market,
from customs duties andanyother taxes andfees;
- exemption ofbuilding constructed therein from licensing feesandrealestate taxes.
(l) Government procurement
Question 44.
Does Jordan intend tojointheGovernment Procurement Agreement? Ifnot,why?
Answer:
Jordan willconsider suchadecision afteritaccedes toWTO.
Question 45.
Does Jordan plantosigntheAgreement onGovernment Procurement? Ifso,what timeframe
isenvisaged ?
Answer:
Jordan willconsider signing theAgreement onGovernment Procurement afterconducting the
appropriate studies andinvestigations regarding thismatter.
Question 46.
Does theGovernment ofJordan collect statistics onprocurement?
Answer:
Yes,theGovernment ofJordan collects suchstatistics.
Question 47.
What istheoverall value ofpublic sector purchasing inJordan?WT/ACC/JOR/9
Page18
Answer:
Theoverall value ofpublic sector goods andservices purchasing isaround JD145million
excluding procurement ofcertain public departments andagencies thatenjoy autonomy intheir
procurement according totheirrules andregulations.
Question 48.
Could theGovernment provide abreakdown ofthepublic procurement market bothbycontracting
entity andproduct type?
Answer:
Yes,theGovernment canprovide suchinformation.
Question 49.
How arebidsevaluated?
Answer:
Bidsareevaluated bytechnical committee fromGSD, thebeneficiary department, fieldexperts
andtheAudit Bureau bidsaregenerally evaluated according totechnical andfinancial merits.
Evaluation criteria forbidsusually depends onthegeneral andspecial conditions, technical
specifications setclearly bythetender documents.
Thequality oftheproduct isalsotaken intoconsideration.
Question 50.
Isprice theonlycriterion orarecontracts alsoevaluated byreference toan“economically most
advantageous offer”approach?
Answer:
Price isnottheonlycriterion (formore information refertoquestions 49-51).
Question 51.
Ifso,under what conditions arethedifferent evaluation methods used?
Answer:
Several elements areconsidered. These aretheprice, specs, running cost, spare parts,
maintenance, commercial capability andreputation ofthebidder. Consequently, thetender isawarded
tothemost economically advantageous offer.WT/ACC/JOR/9
Page19
Question 52.
Dodetailed rules existontherequirement topublish tender andcontract award notices?
Answer:
Yes,wedohavedetailed rules.
Question 53.
Ifso,what information must these notices contain?
Answer:
Regarding published tenders, theannouncement includes thefollowing information: No.of
tender, requested product, priceoftender documents, finaldateforselling tender documents andclosing
dateandtimeforsubmitting offers.
Theaward notice includes thefollowing information: theawarded bidder, number andname
oftheawarded item, unitandquantity, unitandtotalprice, delivery period, country oforigin,
manufacturer, reason forawarding thecontract andtheobjection period.
Question 54.
Where aretender andcontract award notices published?
Answer:
Tender notices arepublished inlocalnewspapers forthreeconsecutive days. Awarded notices
areposted onaspecial bulletin board intheGSD building. Allawarded notices arealsohanded to
allparticipants upon request.
Question 55.
Cansuppliers whodispute theaward ofacontract seekredress through national courts ora
tribunal system? What remedies areavailable?
Answer:
Suppliers whodispute theaward ofacontract canseekredress through thenational courts.
Available remedies are:
- adetailed written objection submitted totheCentral Procurement Committee inGSD. Itis
referred toatechnical committee forconsideration. Final decision willbetaken accordingly.
Question 56.
Isthere anoffset policy?WT/ACC/JOR/9
Page20
Answer:
Yes,there isanoffset policy.
Question 57.
Ifso,howoften areoffset arrangements negotiated onacase-by-case basis?
Answer:
Werarely havecases andifany,itishandled onacase-by-case basis.
Question 58.
What ismeant bya"preference isgiven forproducts soldonthelocalmarket whether produced
locally orimported"?
Answer:
Local products aregiven preference overimported products. Ifimported goods aretobe
procured, thenthecontractor should buythem fromthelocalmarket iftheyareavailable rather than
import them directly.
Question 59.
Does thisimply apreference forlocally produced goods?
Answer:
Yes,thisimplies preference forlocally produced goods. Aprivileged pricegranted tonational
products according toaspecified percentage implied bytheCabinet.
Question 60.
How isthispreference regime applied inpractice?
Answer:
Thepreference isgiven toalocalproducts according toaprevious criterion mentioned inthe
tender documents. When thespecifications terms andconditions areequal forbothlocalandimported
products 15percentisadded totheimported product prices
Question 61.
What other policies areapplied tosupport localindustry inJordan? Istheprocurement ofcertain
products reserved forlocal industry? Ifso,isalistofthese products available?WT/ACC/JOR/9
Page21
Answer:
Since itisnottheconcern ofGSD, thisquestion istobeanswered byMinistry ofIndustry
andTrade andMinistry ofPlanning.
Question 62.
What aretheprocedure andthecriteria toshort-list candidates inthecases oflimited tendering?
What aretheprocedure andtheselection criteria?
Answer:
Basically opentender isusually implemented. However, insome cases limited tendering cases
areimplemented asfollows:
1. Arequest forquotation method:
Ashort-list candidates isprepared according toaprevious qualification, experience, commercial
reputation, financial capabilities, execution andcontracts andaftersaleservice, etc.
2.(a) Anopen invitation forallpotential tenders isposted according tocertain requirements and
qualifications thepurpose ofthisinvitation istoqualify tenders.
(b) Accordingly, ashort listofqualified tenders isdrawn according totechnical merits and
experience.
(c) Theshort listtenders aretheninvited.
3.(a) Twoseparate envelopes arerequired tobesubmitted onetechnical andtheother financial.
(b) Thetechnical offer isopened andstudied carefully andashort listoftechnically successful
tenders isaccordingly composed.
(c) Thefinancial offeroftheshort listtender isopened andstudies andtheleastprice isusually
awarded thetender.
Question 63.
Does Jordan have anytrade agreements withother countries which cover public procurement?
Ifso,which countries?
Answer:
No,Jordan doesnothavesuchagreements.WT/ACC/JOR/9
Page22
4. Policies Affecting Foreign Trade inAgricultural Products
Question 64.
TheMemorandum ontheForeign Trade Regime (WT/ACC/JOR/2) mentions thatfoodstuffs is
major import category. Jordan isrequested toprovide theWTO withdetailed import (andexport)
figures foragricultural products forthelastthree years.
Answer:
Domestic Exports andImports ofAgricultural Products byHSTariff Chapters
(JDmillion)
Exports Imports
1994 1995 1994 1995
01.Liveanimals. 12.6 15.3 30.9 29.8
02.Meat andedible meatoffal. 1.5 3.6 43.2 29.4
03.Fishandcrustaceans, molluscs andother aquatic
invertebrates. -- -- 7.0 8.9
04.Dairy produce; birds’eggs; natural honey, edible
products ofanimal origin, notelsewhere specified
orincluded. 2.8 2.7 31.6 40.2
05.Products ofanimal origin, notelsewhere specified
orincluded. 0.4 1.2 0.1 0.1
06.Livetreesandother plants; bulbs, roots andthe
like;cutflowers andornamental foliage. 0.8 0.6 1.4 0.7
07.Edible vegetables andcertain roots andtubers. 40.3 48.2 13.9 18.4
08.Edible fruitandnuts; peelofcitrus fruitormelons. 21.4 14.3 7.4 17.4
09.Coffee, tea,mateandspices. 0.4 0.9 17.0 21.0
10.Cereals. -- --126.9 135.0
11.Products ofthemilling industry; malt; starches;
insulin; wheat gluten. 0.01 0.01 3.6 4.0
12.Oilseeds andoleaginous fruits miscellaneous
grains, seedandfruit; industrial ormedical plants;
straw andfodder. 0.3 0.3 13.4 19.3
13.Lac;gums; resins andother vegetable sapsand
extracts. -- -- 0.2 0.2
14.Vegetable plaiting materials; vegetable products not
elsewhere specified orincluded. -- 0.01 0.4 0.4
15.Animal orvegetable fatsandoilandtheircleavage
products; prepared edible fats;animal orvegetable
waxes. 63.1 148.8 82.6 95.2
16.Preparations ofmeat, offish,orofcrustaceans,
molluscs orother aquatic invertebrates. 1.3 1.4 10.5 13.3
17.Sugars andsugar confectionery. 0.4 0.2 58.8 33.3WT/ACC/JOR/9
Page23
Exports Imports
1994 1995 1994 1995
18.Cocoa andcocoa preparations. 0.3 0.6 2.3 2.5
19.Preparations ofcereals, flour starch; ormilk;
pastrycooks product. 1.9 3.3 2.3 3.2
20.Preparations ofvegetables, fruit, nutsorother parts
ofplants. 3.6 5.7 4.0 4.7
21.Miscellaneous edible preparations. 2.6 2.6 12.9 15.8
22.Beverages, spirits andvinegar. 3.1 5.1 2.1 2.4
23.Residues andwaste from thefoodindustries;
prepared animal fodder. 2.2 0.6 34.3 37.7
24.Tobacco andmanufactured tobacco substitutes. 1.0 0.2 12.4 8.2
*Source: Department ofStatistics
Question 65.
Jordan isalsorequested toprovide alistofcurrently applied import duties, import taxes and
import feesforallagricultural products.
Answer:
Import duties arefound intheinformation ontariffrateswhich isavailable inelectronic form
intheSecretariat (Accessions Division, Room 1126).
Question 66.
Under theJordanian Import/Export Law(which regulates theflowofimports andexports), import
ofsome agricultural products (rice, powdered milk-Halibuna brand, wheat flour, sugar, frozen
lamb, wheat, barley, corn, milkforindustrial use,frozen animal semen, liveanimals, potatoes,
onions andgarlic) requires prior approval from certain government institutions.
- Isthisautomatic licensing system formonitoring purposes, ordocriteria forrefusal exist?
- Isthere atimetable forelimination ofthissystem?
Answer:
Theprior approvals forcertain agricultural products serve thefollowing purposes:
- toregulate theflowofimports andexports offruits andvegetables between Jordan andArab
countries withwhom Jordan hasprotocol andbilateral trade agreement;
- toprevent excess orshortage ofsuchproducts inthedomestic market;
- toensure adequate supplies ofthese products andensure foodsecurity atalltimes.
Once theapproval isgranted itisconsidered animport licence.WT/ACC/JOR/9
Page24
Question 67.
Prior approval forimports ofsome fruitandvegetables (paragraph IV.1.(e-2), WT/ACC/JOR/3)
isrequired inorder toprevent excessive supply inthedomestic market during theseason of
production.
- Does thisapproval (import certificate?) apply forimports from allcountries?
- Isatimetable foreseen toeliminate thissystem?
- ImportsofallfruitandvegetablesfromArabcountriesaresubjecttoprotocolarrangements
andproduct exchange agendas between these countries andJordan, inorder toprevent
market disturbances intheseason ofproduction. Ontheother hand, import ofallfruits
andvegetables from allnonArab countries areallowed allyearround, which doesnot
seemtobeinconformity withtheabove-mentioned point. Please comment onthisapparent
contradiction.
Answer:
Theprior approvals forimports offruits andvegetables donotapply forimports from all
countries. Thesystem willbephased outwiththephasing outofprotocol trade between Jordan and
some Arab countries andIsrael.
Inother words prior approval forimports offruits andvegetables from Arab countries, the
National Palestinian Authority andIsrael whoarethemain exporters ofsuchproducts toJordan.
Question 68.
TheJordanian Government hasatender system forinterested private importers whofacilitate
State imports offivecommodities: sugar, wheat, rice,onebrand ofpowdered milkandcigarettes.
Prices aresetbytheGovernment (domestic consumer subsidy).
- Isthetender system open forforeign traders aswell?
- Isimport onaprivate basis allowed?
- Ifso,against market prices orfixed prices?
- Onpage27(WT/ACC/JOR/3) itissaidthatexcise duties apply toimports andexports.
Dothesame excise dutylevels apply todomestically produced products?
Answer:
Thetender system isopentoforeign traders through Jordanian agents. Import bytheprivate
sector isnowallowed forsugar, riceandcigarettes. TheGovernment isconsidering thepossibility
ofallowing theprivate sector toimport wheat afterabolishing thesubsidy onwheat. Import ofgood
isallowed against market prices. Excise duties applied todomestically produced products arethesame
asthose applied toimported goods.WT/ACC/JOR/9
Page25
Question 69.
The Government sets, according totheMemorandum ontheForeign Trade Regime
(WT/ACC/JOR/2), distribution margins andappropriate retail prices for: allkinds ofbread,
pasta,poultry,eggs,yoghurt,cookedcheese,fruitandvegetables,corn,lentils,fizzydrinks,barley,
frozen meat, canned meat, chilled imported meat, teaandcigarettes. Thisapplies forbothdomestic
andimported products.
- Howdoesthiscorrespond tothesentence thatthe“Ministry ofSupply setsprices forfive
commodities ”listed inparagraph IV.4. (WT/ACC/JOR/2)?
Answer:
Thefivecommodities youreferred to,weresubsidized commodities andtheMinistry ofSupply
usedtosettheprices according nottotheircostbuttoitsconviction thattheyarebasic products
consumed byall.Only partoftheprices ofsugar, riceandHalibuna arestillsubsidized tothefood
coupon holders. Theprices ofother products aresetbytheMinistry ofSupply butarenotsubsidized.
TheGovernment setsdistribution margins for19consumer goods produced inJordan. The
methodology forcalculating theretail price istodetermine thecostofproduction fromfieldsurveys
andthenallow a17percentmargin forperforming thenormal marketing functions ofdistribution,
storage andfinancing. Thesamemechanism ofpricing isapplied tosimilar imported goods. Inaddition,
acommittee ofgovernment officials, including officials from theMinistries ofAgriculture, Supply
andIndustry andTrade, studies market conditions intheAmman Central Market forAgricultural
Products andsetsappropriate retail prices forthese products. Thisisdoneonadailybasis andretail
prices arepublished inlocalnewspapers. However, theGovernment isconsidering thephasing out
ofsuchpractice oncethecompetition lawbecomes effective.
Question 70.
Onpages 36and69itissaidthattheAMO (Agricultural Marketing Organization) doesnot
interfere intheprices ofproducts exported orimported, butregulates import andexports from
andtoArab countries withwhom Jordan hasbilateral trade agreements ortrade protocols.
Isthistheonlyfunction oftheAMO?
Answer:
TheAgricultural Marketing Organization hasanumber offunctions inaddition toregulating
imports andexports from andtoArab countries withwhom Jordan hasbilateral trade protocol
agreements. These functions are:
- conducting market studies foragricultural products onbothlocalandinternational markets;
- issuing periodical statistical reports thathavedetailed information onfresh produce prices,
quantities, exports andimports;
- promote agricultural exports byfacilitating theparticipation oftheprivate sector inthe
international trade fairsandexhibitions;
- collecting information andfinding newexport markets;WT/ACC/JOR/9
Page26
- publishingbrochures,guidebooksandnewslettersforproducers,exportersandforeignimporters
ofagricultural products;
- monitoring thequality offresh produce exported from Jordan.
Question 71.
Does Jordan intend togiveexport subsidies foragricultural products inorder tocompete atthe
world market?
Answer:
Jordan doesnotgiveanyexport subsidies foragricultural products anddoesnotintend todo
so.
Question 72.
Section 4.3(L/7533) describes oneofthemain objectives ofagricultural policy inJordan as
increased food self-reliance. Weshould begrateful foranexplanation from theJordanian
authorities oftheimpact ofthispolicy onlevels oftrade protection foragricultural imports.
Answer:
Jordan hasbeenanetimporter offoodproducts. Agricultural production isinfluenced by
rainfall, andthisfluctuates from oneyeartoanother. In1994 ouragricultural exports covered
31percentonlyofouragricultural imports, while in1995 theratiowentupto47percent.
Thisreflects theamount offoreign exchange Jordan hastopaytofinance itsimports offood
products. Jordan istrying toreduce thedeficit intrade infoodproducts which accounts forabout
25percent,onaverage, ofthetotaltradedeficits bystimulating agricultural growth andbyimproving
resource management andnotthrough protectionist measures.
Question 73.
Section 4.4,paragraph 2(L/7533), outlines theretail price control system for19unspecified
consumer goods, andnotes thatacommittee ofgovernment officials isresponsible forsetting
retail prices insome cases. Weshould begrateful iftheJordanian authorities would advise whether
imported meat issubject tothisprice control system and,ifso,thereasons forthispolicy.
Answer:
Imported meatissubject toretail price fixing. Theother products whose prices arestillfixed
areonebrand ofdried milk, sugar, rice,tablesalt,bread andfizzy drinks withre-usable bottles.
Thepolicy oftheGovernment istophase outprice fixing.
Theretail prices ofanumber ofproducts havebeenfreed.WT/ACC/JOR/9
Page27
Question 74.
Please provide more details onthetypes ofmeasures being considered toderegulate agricultural
production andtrade andtoimprove "support services" forfarmers.
Answer:
Deregulation ofagricultural production andtrade envisaged bytheplanwastobeachieved
through thefollowing:
(a) removal ofallimport monopolies onagricultural commodities;
(b) deregulation ofretail price margins onfresh agricultural products andremoving controls on
output prices ofagricultural products;
(c) encouraging theprivate sector tomanufacture agricultural products by:
- withdrawal oftheGovernment fromtheprocess ofpricing manufactured agricultural
products;
- elimination ofcompetition bythepublic sector withtheprivate-sector intheagricultural
andfoodindustries.
Infactmost ofthese measures were realized.
There arenomore import monopolies onagricultural products. Theprice fixing offresh
vegetables andfruits wasremoved on22April 1997. Most oftheprices ofagricultural products are
decided bymarket forces now.
Question 75.
Please describe theproposed activities involved in"organizing agricultural marketing activities
andoperations, expanding theareaofcultivable land, andsecuring thenecessary financing for
agricultural activities" inmore detail ,including planned expenditure levels sowecanbetter assess
what category ofdomestic support these programmes willfallunder. Specific examples of
programmes which would beincluded inthiscategory would behelpful.
Answer:
Theplanenvisaged anumber ofmeasures andactivities toderegulate theagricultural sector
andtoorganize it.Theactivities andoperations were:
(a) establishing local markets parallel tothecentral markets tobemanaged bycooperatives of
thefarmers ’association andincreasing competition among wholesalers;
(b) enacting thenecessary legislations toprevent traders from engaging inwholesale andretail
trade atthesame time;
(c) establishing alinkage between transactions involving imported consumer goods withclear
concessionary arrangements forJordanian agricultural exports;
(d) freeing retail prices offresh vegetables andfruits andallowing direct salefrom farmers to
retailers andconsumers.WT/ACC/JOR/9
Page28
Question 76.
Please provide more detailed information regarding Jordan ’simports andexports ofagricultural
commodities, including principal supplier information forimports andprincipal destination
information forexports
Answer:
Thefollowing tableshows thevalue ofagricultural imports andexports:
(JDmillion)
Exports Imports
1994 1995 1994 1995
1. Live animals. 12.6 15.3 30.9 29.8
2. Meat andedible meat offal. 1.5 3.6 43.2 29.4
3. Fishandcrustaceans, molluscs andother aquatic
invertebrates. -- -- 7.0 8.9
4. Dairy produce; birds’eggs; natural honey, edible products
ofanimal origin, notelsewhere specified orincluded. 2.8 2.7 31.6 40.2
5. Products ofanimal origin, notelsewhere specified or
included. 0.4 1.2 0.1 0.1
6. Live trees andother plants; bulbs, roots andthelike; cut
flowers andornamental foliage. 0.8 0.6 1.4 0.7
7. Edible vegetables andcertain roots andtubers. 40.3 48.2 13.9 18.4
8. Edible fruitandnuts; peelofcitrus fruitormelons. 21.4 14.3 7.4 17.4
9. Coffee, tea,mate andspices. 0.4 0.9 17.0 21.0
10. Cereals. -- -- 126.9 1350
11. Products ofthemilling industry ;malt; starches; inulin;
wheat gluten. 0.01 0.01 3.6 4.0
12. oilseeds andoleaginous fruits miscellaneous grains, seed
andfruit; industrial ormedical plants; straw andfodder. 0.3 0.3 13.4 19.3
13. Lac; gums; resins andother vegetable sapsandextracts. -- -- 0.2 0.2
14. Vegetable plaiting materials; vegetable products not
elsewhere specified orincluded. -- 0.01 0.4 0.4
15. Animal orvegetable fatsandoilandtheir cleavage
products; prepared edible fats;animal orvegetable waxes. 63.1 148.8 82.6 95.2
16. Preparations ofmeat, offish, orofcrustaceans, molluscs
orother aquatic invertebrates. 1.3 1.4 10.5 13.3
17. Sugars andsugar confectionery. 0.4 0.2 58.8 33.3
18. Cocoa andcocoa preparations. 0.3 0.6 2.3 2.5
19. Preparations ofcereals, flour starch; ormilk; pastry cooks
product. 1.0 3.3 2.3 3.2
20. Preparations ofvegetables, fruit, nutsorother parts of
plants. 3.6 5.7 4.0 4.7
21. Miscellaneous edible preparations. 2.6 2.6 12.9 15.8
22. Beverages, spirits andvinegar. 3.1 5.1 2.1 2.4
23. Residues andwaste from thefood industries; Prepared
animal fodder. 2.2 0.6 34.3 37.7
24. Tobacco andmanufactured tobacco substitutes. 1.0 0.2 12.4 8.2
Total 159.11 255.8 519.2 541.1WT/ACC/JOR/9
Page29
Themajor markets foragricultural exports areSaudi Arabia, theUnited Arab Emirates,
other Gulfcountries andLebanon. Themajor suppliers ofagricultural products aretheUnited States,
theEuropean Union, Australia andTurkey.
Question 77.
HowdoesJordan plantobring itsimport prohibitions, "imports through Government" and"prior
approvals" inlinewithArticle IVoftheWTO Agreement onAgriculture?
Answer:
Agricultural products thattheGovernment usedtoimport exclusively arenowopenforthe
private sector toimport. Asforprior approvals, inthepast66items needed prior approval fromthe
Ministry ofSupply. Now there areonlyfiveagricultural products thatneedprior approval, namely
sugar, rice,wheat, milkanddried milkforindustrial purposes andredmeat. TheMinistry ofSupply
intends toabolish allprior approvals.
Therefore, Jordan should nothaveanyproblem incomplying withArticle IVoftheWTO
Agreement onAgriculture.
Question 78.
TheJordanian Memorandum (L/7533) states "theimports ofallfresh fruits andvegetables are
subject toaplan issued bytheAgricultural Marketing Organization which determines ona
quarterly basis which commodities canbeimported from which countries". This appears to
contradict theearlier statement thatquantitative import restrictions only apply toafew
manufactured products. Onwhat basis aresource countries selected? How doesJordan plan
toadjust these policies inlightofWTO requirements?
Why does theMinistry ofSupply have thepower togrant permission forimportation of
"66foodstuffs" ifpermission is"granted automatically"?
Answer:
TheimportsofallfreshfruitsandvegetablesfromArabcountrieswithwhomJordanhasbilateral
trade agreements aresubject toaquarterly planissued bytheAgricultural Marketing Organization,
which determines commodities butnotthequantities which canbeimported.
Theimports ofallfresh fruits andvegetables fromtheArab countries andIsrael withwhom
Jordan hasprotocol trade agreements aresubject toproduct exchange agendas signed between these
countries andtheGovernment ofJordan represented bytheAgricultural Marketing Organization. The
products exchange agendas determine onayearly basisthecommodities thatareallowed tobeimported
fromeachcountry andatwhattime. These measures aimatpreventing excessive supply intheJordanian
market during theseasons ofproduction which would adversely affect farmers. During off-seasons,
imports areallowed tomake agricultural products available atreasonable prices. Ontheother hand,
imports ofallfruits andvegetables from allnon-Arab countries areallowed allyearround.
TheMinistry ofSupply hasreduced thepriorapprovals forabout 66foodstuffs tofiveproducts
onlyandwithtimeitintends tophase outcompletely suchpermissions.WT/ACC/JOR/9
Page30
Question 79.
Could Jordan provide more information onagricultural policy, including thefoodproduction
anddistribution system?
How areprices ofvegetables andimported meat set,andhowoften arethese prices reviewed?
How dotheycompare toworld prices?
Answer:
Prices offresh vegetables andfruits arenowdetermined bymarket forces. TheGovernment
doesnotsettheirprices anymore. Inthepasttheprices weredetermined dailybyaspecial committee
inaccordancewiththesupplyanddemandconditionsofthesegoodsandtheirquality,usingthewholesale
price ofthecentral vegetable market asanindicator.
Theprices ofimported meat arestillsetbyacommittee composed ofemployees from the
Ministry ofSupply andtheMinistry ofAgriculture andrepresentatives oftheprivate sector merchants.
Amargin of17percentisadded totheimport priceofthemeat. Thismargin includes costofinternal
distribution andhandling costs andprofit.
Question 80.
What measures areusedto"encourage" agricultural exports? What products arecovered?
Answer:
There arenodirect measures toencourage agricultural exports. However, someothermeasures
could beconsidered tocontribute toencouraging agricultural exports suchas:
- exports areallowed alltheyearround without anyquantitative restrictions except tocountries
withwhom Jordan hasaprotocol trade agreement, andthevalue ofagricultural exports and
imports arespecified insuchagreements some times;
- theprofits ofagricultural income areexempted from income tax.
Question 81.
Howistherateofinterest calculated onagricultural credits extended tofarmers? Howdoesthis
compare tocommercial rates inJordan ?
Answer:
The Agricultural Credit Corporation (ASS) interest rateranges between 6percent
and8.5percentaccording tothevalue andtermoftheloan, typeofinvestment, andplotsize.
TheAgricultural Credit Corporation computes itsinterest ontheoutstanding capital according
tothefollowing equation (simple interest):WT/ACC/JOR/9
Page31
Outstanding Capital xInterest ratexNo.ofdaysforfullrepayment
100x365
Compared tocommercial banks, onecould saythat:
(a) average interest rateinthose banks ismore than10percent;
(b) banks usecompounding method intheirinterest calculation;
(c) ASSdoesnotcharge anyadditional feesorcommission, ascompared withbanks intheprivate
sector;
(d) inmost cases private banks charge theirinterest inadvance.
Question 82.
Howareprices determined fortheninecommodities listed insection III.3.2.2.3, WT/ACC/JOR/3
(sugar, wheat, flour, rice,onebrand ofdried milk, cigarettes, frozen chicken, lentils andolive
oil)? Please provide alistofthese guaranteed prices. How isthemark-up set?
HowdoesJordan plantoadjust itspricing policies inlightofWTO requirements? Arethere any
other mechanisms tosupport domestic prices?
Answer:
Thecommodities whose prices arestillfixed bytheMinistry ofSupply are:Halibuna milk,
sugar, rice,redmeat, salt,bread, cigarettes andfizzydrinks withre-usable bottles. When determining
thefixedprices, several considerations aretaken thatinclude thecostpriceoftheimported goods after
payment ofcustoms duties andthegeneral salestax.These factors include distribution andhandling
costs andanyother costs paidforservices likelaboratory examinations forhealth certificates, plus
amargin ofprofit fortheretailer. Thisaddsuptoamaximum 17percentmargin onthecostprice.
Jordan hasreduced itssubsidies andderegulated retailprices including those offreshvegetables
andfruits.
Question 83.
Please describe thefood subsidy programme. Does itextend beyond theimportation and
subsidization ofsugar, wheat, riceanddried milk mentioned insection III.3.2.2.3 andsection
IV.4.4 (document WT/ACC/JOR/4)? Does thegovernment purchase these items ontheopen
market?
Forthefourbasic items which arebeing imported andsubsidized bytheGovernment (wheat,
sugar, riceanddried milk),what arethelevels ofthese subsidies?
DoesJordanhaveanyexportsubsidiesonagriculturalandagri-foodproducts?Ifso,pleaseprovide
details.
Answer:
Subsidy policy hastwoobjectives:
(a) providing basic foodstuffs atastable price topreserve thestandard ofliving oflimited and
lowincome groups;WT/ACC/JOR/9
Page32
(b) promoting investment inlivestock toreduce dependence onimported redmeats.
Based onthis,theGovernment provided, inthepast, consumer subsidies forthirteen basic
commodities suchaswheat, barley, rice,sugar, dried milk, frozen meats, olive oil.
However, subsidies werenottargeted inthepast,thusreaching allgroups ofconsumers and
producers.
Inthelateeighties, thegovernment started reducing andtargeting subsidies. Presently, only
threebasic items arebeing partially imported andsubsidized bytheGovernment: sugar, riceandone
brand ofpowdered milk. Theprivate sector isnowallowed toimport subsidized items andsellthem
atunsubsidized butfixed prices.
Targeting wasachieved through theintroduction ofcoupons which arenowdistributed only
tofamilies withamonthly income ofJD500orless.Three commodities arecovered bythesecoupons
sugar, riceandonebrand ofdried milk. Thesubsidy ofwheat wasremoved inAugust 1995.
Question 84.
Please provide further information onthemarketing practices oftheAgricultural Marketing
Organization forexample, howdoestheOrganization "setagricultural marketing policies" and
"regulate domestic markets"? Does theOrganization setprices? Ifso,please provide details.
Answer:
TheAgriculturalMarketingOrganization(AMO)contributestoformulatingagriculturalmarketing
policies byitsactivities inmarket research andprovision ofinformation onexports andimports of
fresh products.
Asfortheregulation ofthedomestic market AMO publishes aquarterly planwhich determines
thefresh vegetable andfruitproducts thatcanbeimported from Arab countries withwhom Jordan
hasbilateral trade agreements.
Italsopublishes ayearly planforimports offresh fruits andvegetables from Arab countries
withwhom Jordan hasprotocol trade agreements thatdetermine thevegetables andfruits thatcanbe
exchanged between Jordan andthese countries.
Botharrangements areaimed atpreventing excessive supply intheJordanian market during
theseasons ofproduction, which would adversely affect farmers.
AMO doesnotengage insetting prices ofagricultural goods.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
Question 85.
What kind orresponsibilities dotelevision andradio stations have inimplementing laws and
regulations onintellectual property? Please explain.WT/ACC/JOR/9
Page33
Answer:
TheProtection ofCopyright LawNo.22of1992 applies totheBroadcasting Television
Corporation since thecopyrightable work ofothers areusedbythem. Under theLaw, theyhaveto
implement andabide bytheprotection requirements forcopyrightable works.
Question 86.
What time-frame doestheGovernment ofJordan envisage toaccede tothemajor international
conventions intheareaofintellectual property rights (aslisted under V.1.(c), WT/ACC/JOR/3)?
Answer:
Thetime-frame foracceding tothese agreements willrange between 5-7years. However,
untilJordan accedes tothese major international conventions itwillcomply withtherequirements of
TRIPS when itaccedes totheWTO.
Question 87.
Could theGovernment ofJordan bemore specific about thefollowing statement (V.1.(d),
WT/ACC/JOR/3):"Asfortheworksofforeignauthorspublishedabroad,internationalconventions
andreciprocity shall betaken intoconsideration inthisrespect"?
Answer:
Works offoreign (non-Jordanian) authors thatarepublished outside Jordan areprotected in
accordance withArticle 53ofthecurrent law,bytheprinciple ofreciprocity andinternational
conventions towhich thecountry oftheauthor andJordan arebothmembers. Jordan isnowinthe
process ofjoining theBerne Convention.
Question 88.
Please describe Jordan ’scurrent legislation withregard tocopyright andrelated rights, trademark
rights, rights relating togeographical indications, rights toindustrial designs, patent rights, rights
relating tolayout design (topographies )ofintegrated circuits, andrights relating totheprotection
ofundisclosed information. Please alsodescribe anynewlegislation affecting these subjects which
isnowplanned orawaiting enactment.
With regard toeachcategory ofintellectual property rights detailed above, please describe the
basis onwhich foreigners have access tothefacilities offered bythedomestic regime.
With regard toeachcategory ofintellectual property rights detailed above, please describe any
subject matter inrelation towhich Jordan doesnotaccord national treatment toforeigners (i.e.,
treatment nolessfavourable thanJordan accords toitsownnationals).
With regard toeachcategory ofintellectual property rights detailed above, doesJordan grant
favour, privilege, orimmunity which Jordan doesnotgrant tonationals ofother foreign countries?
Ifso,please describe andindicate onwhat basis thenationals ofoneormore countries aremore
favoured thanthenationals ofother countries.
With regard toeachcategory ofintellectual property rights detailed above, please describe civil,
criminal andadministrative procedures fortheenforcement ofintellectual property rights.WT/ACC/JOR/9
Page34
Answer:
Thecurrent Jordanian lawsregarding protection ofintellectual property rights are:
- Copyright Protection LawNo.22of1992;
- Trademarks LawNo.33of1952;
- Merchandise Marks LawNo.22of1953;
- Patents andDesigns LawNo.22of1953;
These lawsprovide adequate protection, buttheyarebeing reviewed andamended tobe
compatible withWTO requirements. Jordan isalsoconsidering tojoinsome oftheinternational
agreements andconventions relating toprotection ofintellectual property rights.
(a) Copyright andrelated rights
TheCopyright Protection LawNo.22of1992governs theprotection ofcopyright inJordan.
Protection covers original works ofliterature, artandscience nomatter whattheirtype, importance
orpurpose is.Thisincludes theworks ofartexpressed inwriting, sound, drawing, photography and
motion suchasbooks, speeches, plays, musical compositions, films, applied art,three-dimensional
works andcomputer software. Theworks oftheauthor areprotected forhislifetimeandforthirty
years afterhisdeath orafterthedeath ofthelastsurviving co-author.
(b) Thetrade marks areprotected bytheTrademarks LawNo.33of1953. Thislawdoesnot
protect service marks orwell-known marks.
TheInternational classification ofgoods according totheNiceAgreement isfollowed inJordan.
TheTrademark Lawdoesnotprovide fortheprotection ofservice marks ininternational classes 35
to42oftheNiceAgreement. Separate application should befiledwithrespect toeachclassofgoods.
Trademark applications accepted bytheRegistrar arepublished intheOfficial Gazette. There
isathree-month period openforfiling opposition byanyinterested party. Intheabsence ofopposition,
however, apublished trademark isregistered, andthecertificate ofregistration isissued.
Atrademark registration isvalid forseven years asfrom thedateoffiling theapplication.
Thereafter, atrademark registration isrenewable forperiods of14years each. Noprovision inthe
Jordanian lawprohibits thelicensing oftrademarks.
(c) Geographical indications, including appellations oforigin
Nopresent legislation available.
(d) Industrial designs
Patent andDesign LawNo.22of1953; effective 17February 1953; Patents andDesigns
Order No.1of1953. Designs areprotected inJordan through registration withthePatent andIndustrial
Design Office oftheMinistry ofIndustry andTrade. Suchregistration iseffected without anynovelty
examination attheapplicant ’sresponsibility. According totheJordanian Patents Designs Law, there
are15classes under which designs canberegistered. Theclassification isbased onthematerials which
thegoods aremade fromsuchasmetals, glass, wood, paper, leather, etc.Anapplication maybefiled
toregister thesame design formore thanoneclass; aseparate application isrequired foreachclass.
Rejections bytheRegistrar canbeappealed tothecourt ofcassation within onemonth.WT/ACC/JOR/9
Page35
Adesign registration isvalid forfiveyears starting asofthedateoffiling theapplication.
Aregistration canberenewed fortwosimilar periods offiveyeareach.
There isnoprovision inthecurrent Design LawofJordan forcompulsory working orlicensing
withrespect todesigns.
Anyinfringement orunauthorized useofaregistered design ispunishable under thecurrent
Design Law.
(e) Patents
Patents andDesigns LawNo.22of1953, effective 17February 1953; Patent andDesign
Order No.1of1953 .
Jordan isamember oftheParis Convention. Once anapplication forthegrant ofapatent
isfiled, itisexamined withrespect tocompliance withformalities andpatentability provided forunder
thePatent LawinJordan.
ThePatent Office mayrequire whatever amendments thatmaybenecessary tobring the
application intoconformity withthelaw.
Working ofpatents inJordan isanofficial requirement. Intheevent thattheowner ofapatented
invention inJordan doesnotsatisfy thestipulated working requirements ofthecountry within three
years asfromthedateofgrant ofapatent, thenthepatent willbesubject tocompulsory licensing under
theprovisions ofthelaw.
Infringement oftherightofapatentee ispunishable under theprovisions ofthecurrent patent
lawinJordan.
(f) Layout designs ofintegrated circuits
Nopresent legislation available.
(g) Requirements onundisclosed information, including trade secrets andtestdata
Nopresent legislation available.
Asfornational treatment oftheprotection ofindustrial property, thecurrent lawprovides
foreign nationals treatment equal tothatofnationals. Concerning copyright protection, works published
orreproduced inJordan forJordanian andforeign authors receive same protection inJordan. Works
offoreign (non-Jordanian) authors thatarepublished outside Jordan, areprotected inaccordance with
Article 53ofthecurrent Copyright Lawbytheprinciple ofreciprocity andinternational conventions
towhich thecountry oftheauthor andJordan arebothmembers. Formore information onintellectual
property rights seeJordan ’srevised Memorandum ontheForeign Trade Regime (WT/ACC/JOR/3).
2. Substantive Standards ofProtection
(a) Copyright andrelated rights
Question 89.
Could theGovernment ofJordan describe inmore detail itssystem ofprotection ofcopyrights
andrelated rights?WT/ACC/JOR/9
Page36
Answer:
1. Article 3(a)and(b)ofthecurrent lawclassifies theworks thatareprotected, asfollows:
(a) Works created inthefields ofliterature, artandscience, whatever theirnature, theirimportance
orthepurpose forwhich theyweremade, shallenjoy protection inaccordance withthisLaw;
(b) thesaidprotection shallextend toworks expressed inwriting, sound, drawing, painting or
movement, andinparticular:
(i) books, booklets andother written matter;
(ii) oralworks suchaslectures, speeches andsermons;
(iii) dramatic works; dramatic-musical andmimed works;
(iv) musicalworks,whetherinwrittenformornotandwithorwithoutaccompanyingworks;
(v) audiovisual, cinematographic andbroadcast works;
(vi) paintings, drawings, sculptures, engraving, andworks ofarchitecture andofapplied
anddecorative art;
(vii) illustrations, maps, plans, diagrams, three-dimensional works relating togeography
andtopographical maps;
(viii) computer programs.
2. Inaccordance withArticle 4,theperson towhom theworkisattributed onpublication, whether
bythemention ofhisname onthework orinanyother way, shallbedeemed tobetheauthor inthe
absence ofevidence tothecontrary. Theforegoing shallapply topseudonyms, insofarasthere is
nodoubt astothetrueidentity oftheauthor.
3. Inaccordance withArticle 8,theexclusive rights oftheauthor are:
(a) Tohavehiswork attributed tohimandtobenamed onallcopies whenever hiswork ismade
available tothepublic, butnotwhen thework ismentioned incidentally inthecourse ofanews
report oncurrent events;
(b) todecide onthepublication ofhiswork andtodetermine themanner anddatethereof;
(c) tomake anymodification tohiswork whether byalteration, editing, deletion oraddition;
(d) tooppose anyinfringement ofhiswork andtoprevent anydistortion, mutilation orother
modification thereof, oranyother actprejudicial tohisreputation andhonour; however, if
suchdeletion, alteration, addition orother modification occurs inthetranslation ofthework,
theauthor shallnothavetherighttoprevent it,savewhere thetranslator omits tospecify the
location ofthemodification orwhere thetranslation isliable toprejudice thereputation of
theauthor andhiscultural orartistic standing, orisdetrimental tothecontent ofthework;
(e) towithdraw hiswork ifthere areserious andlegitimate reasons therefore; insuchacasethe
author shallbeliable topayfaircompensation totheperson towhom theeconomic rights have
passed.
4. Article 9identifies thefinancial rights oftheauthor. Theauthor shallhavetherighttoexploit
hiswork forgaininwhatever manner hechooses. Noother person mayexercise thatrightwithout
written authorization from himorhissuccessors, which authorization shallinclude:
(a) therighttoprint, broadcast orproduce hiswork;WT/ACC/JOR/9
Page37
(b) therighttoreproduce hisworkinanymaterial form, including photographic orcinematographic
reproduction, orrecording;
(c) therighttotranslate oradapt hiswork, totransform itintoamusical work, ortomake any
change therein;
(d) theright toauthorize persons toutilize oneormore copies ofhiswork forexploitation by
means ofrental, lending oranyother actserving tomake thework available tothepublic;
(e) therighttoconvey hiswork tothepublic bymeans orrecitation, exhibition, performance,
radio ortelevision broadcasting, cinematographic production orbyanyother means.
5. Theterms ofprotection fortheworks oftheauthor arecovered asfollows:
(a) Inaccordance withArticle 30,theworks oftheauthor shallbeprotected forhislifetime and
forthirty years afterhisdeath orafterthedeath ofthelastsurviving co-author;
(b) inaccordance withArticle 31,thefollowing works shallbeprotected for30years starting
from thedateofpublication:
(i) cinematographic andtelevision works;
(ii) anywork whose author orrightholder isalegalentity;
(iii) anywork published forthefirsttimeafterthedeath ofitsauthor;
(iv) anonymous orpseudonymous works, provided that,iftheauthor reveals hisidentity
within theperiod ofprotection, thatperiod shallcommence onthedateofthedeath
oftheauthor.
(c) inaccordance withArticle 32,thefollowing works shallbeprotected for15years afterthe
death oftheauthor:
(i) computer programs;
(ii) translated works;
(iii) paintings, manuscripts, sculptures, drawings, pictures, architectural andgeographical
maps ortopography, surface orthree dimensional maps.
Question 90.
How arecomputer programs andcompilations ofdataprotected?
Answer:
Computer programs areprotected inaccordance withArticle 3(a)and(b)asindicated inthe
answer totheprevious question. Compilations ofselected excerpts from poetry, prose, music orthe
likeareprotected inaccordance withArticle 5(c),provided thatthesource oftheexcerpts andauthor
ofthecompilations arementioned. Thisprotection includes compilations ofdatacollections.
Question 91.
How areperformers, producers ofphonograms andbroadcasting organizations protected?WT/ACC/JOR/9
Page38
Answer:
Performers aregranted thename author inaccordance with Article 5(b). Producers of
phonograms andbroadcasting organizations arealsogranted thename author inaccordance with
Article 4.
Question 92.
TheGovernment ofJordan states thatitscopyright lawisbeing revised. Could theGovernment
ofJordan explain what steps have been taken andwhat time-frame hasbeen envisaged?
Answer:
Therevisions tothelawareintended tobring theamended lawintoconformity withthe
copyright requirements oftheTRIPS Agreement. Theamended Draft Lawwassubmitted tothe
Parliament andisexpected tobecome effective before theendof1997.
(b) Trademarks, including services marks
Question 93.
Istheunderstanding correct thatservice marks arenotprotected inJordan?
Answer:
Thecurrent Trademarks Lawdoesnotprotect service marks.
Question 94.
Ifso,what istheintention oftheGovernment withaviewtochanging thissituation?
Answer:
TheGovernment isintheprocess ofintroducing protection forservice marks through the
amendment ofthecurrent Trademarks Law.
Question 95.
Isthere anytime-frame fortheintroduction ofaprotection scheme?
Answer:
TheTrademarks Draft Amended LawwillbesenttoParliament soon. Once thelegislative
procedures arefinal, theamended lawwillbecome effective most probably bytheendof1997.
Question 96.
If,however, suchaprotection exists, please explain howthesystem functions.
Answer:
Noprotection forservice marks exists inthecurrent Trademarks Law.WT/ACC/JOR/9
Page39
Question 97.
Arewell-known marks protected?
Answer:
Well-known marks arenotprotected inthecurrent Trademarks Law.
Question 98.
Ifyes,howaretheyprotected?
Answer:
Protection afforded totrademarks canbeextended towell-known trademarks.
Question 99.
Ifno,what aretheintentions oftheGovernment ofJordan inthisrespect?
Answer:
Thecurrent Trademarks Lawisbeing amended toprotect well-know marks.
Question 100.
Isitnecessary thatatrademark isusedtomaintain aregistration?
Answer:
Thecontinuity ofregistration ofatrademark islinked toitsuse. There isatwo-year grace
period ofnon-use.
(c) Geographical indications, including appellations oforigin
Question 101.
What istheplanfortheadoption withregard togeographical indications, including appellations
oforigin, plant variety protection, layout designs ofintegrated circuits andrequirements on
undisclosed information, including trade secrets andtestdata.
Answer:
TheGovernment ofJordan hasnottaken adecision tointroduce asystem ofprotection for
theabove-mentioned categories.
Question 102.
TheGovernment ofJordan states thatthere isnolegislation available. Doesitenvisage introducing
suchlegislation andifso,when?WT/ACC/JOR/9
Page40
Answer:
Itisexpectedthattheintroductionoflegislationtoprotectgeographicalindications,plantvariety,
layout designs ofintegrated circuits andtradesecrets willbeunder consideration andstudy induecourse.
Question 103.
Ifthere arealready plans tointroduce such legislation, what arethemain elements ofsuch
legislation?
Answer:
There arenoplans yetfortheintroduction ofsuchlegislation.
(d) Industrial designs
Question 104.
Itisthataregistration ofanindustrial design iseffected without anynovelty examination. Are
there anyother conditions forregistration? Please explain.
Answer:
Forregistration purposes anindustrial design isnotsubject tonovelty examination. Butit
musthaveadegree ofnovelty andquality, beuseful withdistinguished design andarrangement. The
decision onsuchconsideration islefttotheindustrial design registrar.
Question 105.
Inthedocumentation (V.2.(d), WT/ACC/JOR/3) itisstated thatunder thelegislation ofJordan
industrial designs canberegistered in15classes. What happens ifanapplicant requests the
registration ofanindustrial design which doesnotbelong tooneofthe15classes? Please explain.
Answer:
Ifanindustrial design istoberegistered anddoesnotfallwithin anyofthe15classes specified,
thenitwillberegistered intheclassthatisnearest tothenature ofthedesign.
Question 106.
Arethere anyconditions thathave tobefulfilled forrenewing theregistration ofanindustrial
design?
Answer:
Allisneeded forrenewing theregistration ofanindustrial design isthepayment ofrenewal
feesandthefeesfortheuseofthedesign.
Question 107.
Does Jordanian legislation provide forprotection oftextile designs? Please explain.WT/ACC/JOR/9
Page41
Answer:
Yes,theJordanian legislation provides forprotection oftextile designs. They canprotected
under thePatent andDesigns Laworunder theCopyright Lawdepending onthepurpose oftheuse.
(e) Patents
Question 108.
Arethere anyexceptions from patentability?
Answer:
Chemical products especially medical drugs andpharmaceutical compositions offoodarenot
patentable.TheAmendedPatentandDesignsLawNo.8of1986initsArticle2definessuchexceptions.
"APatent ofinvention maynotbegranted inrespect ofchemical products relating tomedical
drugs,pharmaceuticalcompositionsoffoodsexceptwhensuchproductsaremadeaccordingtoparticular
chemical methods andprocess. Insuchcases thePatent shallnotapply tothefinished form ofany
ofthese products, butrather tothemanufacturing process only."
Question 109.
What istheterm ofprotection forpatents?
Answer:
Thetermofprotection forpatents under thecurrent Lawis16sixteen years.
Question 110.
DoestheJordanian lawallow forusebyathird person without theauthorization oftherightholder?
What aretheconditions?
Answer:
Thelawallows theuseofapatent withtheauthorization oftherightholder. Theconditions
arespecified inArticle 22(1) ofthePatents Design Lawasfollows:
Under Article 22oftheLaw: "Any person interested maypresent apetition totheRegistrar
alleging thatthereasonable requirements ofthepublic withrespect toapatented invention havenot
beensatisfied andaskforthegrant ofacompulsory licence, orinthealternative, fortherevocation
ofapatent".
Question 111.
How doestheJordanian lawdefine "working ofpatents"?
Answer:
There isnodefinition of“working ofpatents ”inthecurrent Patent Law.WT/ACC/JOR/9
Page42
Question 112.
Does importation ofthepatented good fulfil thecondition of“working apatent ”?
Answer:
Thecurrent Lawdoesnotinclude suchprovisions.
Question 113.
Does Jordanian legislation recognize valid reasons fornot“working apatent ”?Please explain.
Answer:
Thecurrent Lawprotects registered patents foramaximum period of16years. After this
period theprotection islifted.
(f-g)Plant variety protection, layout design ofintegrated circuits, requirements onundisclosed
information
Question 114.
Does theGovernment ofJordan intend tointroduce asystem ofprotection?
Answer:
Seeanswer toquestion 103.
Question 115.
What time-frame isenvisaged?
Answer:
Seeanswer toquestion 103.
Question 116.
What steps have already been taken? Please explain.
Answer:
Nosteps havebeentaken sofar.
4. Enforcement
Question 117.
DoestheGovernment ofJordan intend tointroduce asystem ofenforcement asforeseen inPartIII
oftheTRIPS Agreement?WT/ACC/JOR/9
Page43
Answer:
Theamendments tothelawsrelated toprotection ofintellectual property rights takes into
consideration therequirements ofenforcement asforeseen inpartIIIoftheTRIPS Agreement.
Question 118.
What isthetime-frame?
Answer:
Anumber oflawsarebeing amended toconform toTRIPS requirements. Thetime-frame
forthese changes tobecome effective depends onthelength oftimeofthelegislative procedures take
toapprove suchamendments.
Question 119.
What steps have already been taken? Please explain.
Answer:
Seeanswers toquestions 117and118above.
VI. TRADE-RELATED SERVICES REGIME
2. Policies Affecting Trade inServices
Question 120.
Could Jordan explain howthegeneral principles toreduce theGovernment ’sroleinanumber
ofservices sectors isbeing implemented andmore inparticular indistribution services; hotels
andrestaurants andfinance andbusiness services.
Answer:
Privatization ofenterprises partially orwholly owned bytheGovernment isadeclared policy.
Toensure thesmooth operation ofprivatization theCouncil ofMinisters decided initssession held
on6July1996 thefollowing:
- toestablish aHigher Ministerial Committee todrawupthegeneral policy fortheprivatization
process inamanner thatwillensure theachievement ofeconomic growth andenhances the
efficiency andproductivity ofthedifferent enterprises;
- toestablish aTechnical UnitinthePrime Ministry tooversee theimplementation ofthe
privatization policy laiddown bytheHigher Ministerial Committee. TheGovernment has
beenselling partofitsshares inpublic share holding companies. Itsolditsshare inJordan
Hotels andTourism Company anditsshare intheArab International Hotels. Ithasstarted
theprocess ofprivatising theState-owned enterprises including those inservices suchasthe
Telecommunication Corporation, Jordan Electricity Authority which werecommercialised in
thesecond halfof1996.WT/ACC/JOR/9
Page44
Question 121.
Howisinvestment intheprivate sector being activated? Could Jordan explain which amendments
totheEncouragement ofInvestment Lawaretaken soastoincrease theinvestment incentives?
Answer:
TheGovernment hastaken several stepstoenhance theroleoftheprivate sector ineconomic
activity andinparticular ininvestment. These stepsaimed atstreamlining procedures intrade, customs
andinvestment, andcreating anenabling legal environment. Aswellasdecreasing government
investment inenterprises through privatization ofgovernment-owned enterprises andselling government
shares inpublic share holding companies.
AsfortheInvestment Promotion LawNo.16of1996 which replaced theEncouragement of
Investment Law, thefollowing changes arethemost important:
Approval ofinvestment projects
According totheInvestment LawNo.16of1995, economic project doesnotexistanymore;
anyproject inthefieldofindustry, agriculture, hotels, hospitals, maritime transport andrailways is
considered anapproved project andthusenjoy theexemptions andbenefits provided bytheInvestment
Promotion Law.
Investment Policy
Non-Jordanian investors canhavefullownership ofenterprises inindustry, andthatincludes
allindustries.
According toRegulation No.1of1996 (theRegulation ofthePromotion ofNon-Jordanian
Investments):
Anon-Jordanian investor mayownnomorethan50percentofanyproject oreconomic activity
inthefollowing sectors:
- landandairtransport;
- construction contracting;
- trade andtrade service;
- banking andinsurance;
- telecommunications;
- mining; and
- agricultural produce.
Anon-Jordanian investor maypurchase securities listed ontheAmman financial market in
Jordanian currency, provided thatthefunds aretransferred from aconvertible foreign currency.
Non-Jordanian ownership inapublic-shareholding company maynotexceed 50percentunless
thepercentage ofthenon-Jordanian ownership wasmore than50percentatthetimeofclosing of
subscription, inwhich casethemaximum limit onnon-Jordanian ownership shall befixed atthat
percentage.
Theminimum amount ofnon-Jordanian investment inanyproject shallbeJD100,000 with
exception ofinvestment intheAmman financial market, where theminimum amount shallbeJD1,000.WT/ACC/JOR/9
Page45
Theabove-mentioned minimum amounts aretobeabolished asrecommended bytheHigher
Council fortheInvestment Promotion initsResolution No.6/96, however, theResolution isstillunder
consideration bytheCouncil ofMinisters.
Question 122.
What isconsidered asbasic services inJordan?
Answer:
Basicservicesmeantheinfrastructuralservicesliketelecommunications,health,publictransport
andcompulsory education.
Question 123.
Does Jordan envisage anychanges toitspresent regime relating topayments forinvisibles, in
particular withrespect totheceiling amounts (JD35,000) thataresident cantakeout?
Answer:
Theceiling ofJD35,000 which aresident cantakeoutortransfer inforeign exchange isfor
meeting current payments ofinvisibles comprising travel, education, medication, pilgrimage, residence
abroad, family assistance without priorapproval oftheCentral Bank ofJordan andwithout providing
documents tojustify these payments.
Amounts inexcess ofJD35,000 areconsidered positively inlightoftheapplicant ’sneedif
supportive documents arepresented. TheCentral BankofJordan mayconsider liberalizing thistransfer
ceiling when circumstances permit.
Question 124.
What aretheprocedures toobtain approval ofoutward transfers ofcapital, i.e.normally not
permitted unless approval byCentral Bank: whoneeds approval? Isapproval limited tospecific
activities?
Answer:
Outward capital transfers aresubject toCentral BankofJordan approval. Residents mayapply
forapproval forinvesting abroad inthesectors ofindustry, trade, agriculture andtourism only.
Non-residents aregranted automatic approval tooutward transfer oftheircapital already invested in
Jordan andaccruing profits upon showing thatitwasbrought inthrough thebanking system.
Question 125.
Cananon-Jordanian investor ownmore than50percentequity intheservices sectors other than
those listed intheInvestment Promotion ofnon-Jordanians?
Answer:
The50percentequity ownership ofnon-Jordanians islimited tothefollowing service sectors:
- landandairtransportation;WT/ACC/JOR/9
Page46
- construction contractors;
- trade andtrade services;
- banking andinsurance;
- investment intheAmman financial market.
Question 126.
What aretheconditions toregister asaJordanian company attheMinistry ofIndustry andTrade:
Please specify whether shareholders and/or members oftheboard ofdirectors havetobeofJordan
nationality? What about theexecutive director?
Answer:
Forregistering acompany inJordan, allthatisneeded from theinvestor isthefollowing:
- registering theproject attheDirectorate ofIndustrial Development intheMinistry ofIndustry
andTrade (MIT), followed by:
- submitting anapplication totheController ofCompanies attheMinistry ofIndustry
andTrade;
- theController ofCompanies thenpursues thematter withtheCouncil ofMinisters
forapproval.
Iftheinvestor isestablishing abranch ofaforeign company, thenauthorization fromthemother
company forestablishing abranch inJordan andthename oftheperson authorized tosignonbehalf
ofthemother company must besubmitted withtheapplication.
Foreign shareholders canbemembers oftheboard ofdirectors, andeventakeuptheposition
ofexecutive director.
Question 127.
What aretheconditions toobtain awork permit from theMinistry ofLabour: canalltypes of
personnel obtain such apermit? Isaneconomic needs applied toallortosome categories of
employment? Arethere anyquantitative restrictions?
Answer:
Anon-Jordanian wishing totakeupemployment inJordan must obtain awork permit from
theMinistry ofLabour andaresidence permit from theMinistry ofInterior. Labour LawNo.27
of1988 andResidency andForeigners Affairs LawNo.5of1991 govern theemployment andstay
forforeigners inJordan.
Theconditions toobtain awork permit are:
(a) twocopies ofawork contract signed bytheemployer andtheemployee;
(b) professional licence oftheagency employing him;
(c) health certificate issued bytheMinistry ofHealth;
(d) avalid passport foratleastsixmonths;
(e) personal photographs oftheperson tobeemployed.WT/ACC/JOR/9
Page47
There arenolimitations onthenumber offoreign employees. However, theeconomic activity isusually
whataffects thenumber.
3. Specific Sectors
(a) Financial services
(i) Banking
Question 128.
Could Jordan explain what ismeant bya“justified economic need”criteria upon which alicence
from CBD isgranted forestablishing abank inJordan?
Answer:
Principles thatgovern licensing newbanks:
(a) General particulars oftheeconomy;
(b) study ofcapital market status;
(c) general banking system situation, available economic infrastructure andbanking system
sufficiency tocopewithnewentrants;
(d) services tobeextended bythebank;
(e) bank’spaid-up capital;
(f) founders background;
(g) feasibility study fortheestablishment ofthebank.
Question 129.
Could Jordan explain about the“limited privileges ”which aregiven totheHousing Bank and
theIndustrial Development Bank?
Answer:
Thetwobanks thatenjoy limited privileges aretheHousing Bank andIndustrial Developments
Bank. AsfortheHousing Bank, there iscurrently anewdraftlawunder legislative process. This
draftlawabolishes allpreferential treatment theBank enjoys under itspresent law.Privileges granted
totheHousing Bank bytheCentral Bank ofJordan havebeenalready abolished.
AsfortheIndustrial Development Bank, astudy isbeing prepared toassess itsprivileges but
noaction hasbeentaken sofar.
Question 130.
Establishment ofabank issubject toaneconomic needs test,except asregards foreign bank
branches. Jordan should provide further details asthecriteria ofsuchaneconomic needs test.
Answer:
Seeanswer toquestion 131.WT/ACC/JOR/9
Page48
Question 131.
Jordan should laydown other limitations which apply toforeign banks: isdirect branching
permitted without anylimitations (except asregards minimum capital requirements); does a
50percentceiling apply toforeign shareholding inlocal banks? Ifso,howcould thenew
Investment Production Lawensure thatforeign capital isgranted thesame treatment asdomestic
capital?
Answer:
Condition forestablishing foreign banks andbranches:
1.(a) Reciprocity treatment principle;
(b) theextent ofapplying sound supervision bymother bank andhome country authority in
accordance withBasel requirements;
(c) banking system capability toabsorb establishing newbanks;
(d) financial status ofmother bank.
2. Foreign participation inJordanian banks ’capital isnottoexceed 50percent.
3. Foreign participation isgranted national treatment. Inaddition, there arenorestrictions on
thetransfer abroad oftheprincipal andprofits offoreign capital inforeign currency.
Asforalready existing foreign banks inJordan, theyaresubject tothesamerulesforbranching
aslocalbanks.
Question 132.
Areminimum capital requirements applied inanon-discriminatory treatment, ordothese
requirements differ depending onthepercentage offoreign participation inabank?
Answer:
Aminimum capital requirement ofJD20million applies inanon-discriminatory treatment
toalllocally established banks regardless ofthepercentage offoreign participation inthebank.
Asforbranches offoreign banks, capital requirement must notbelessthanJD5million.
TheBasel capital adequacy ratioisapplied uniformly toalldomestic andforeign banks.
Question 133.
CanJordan setoutthetiming forthephasing outofpreferential treatment ofthetwodomestic
banks?
Answer:
Seeanswer toquestion 131.WT/ACC/JOR/9
Page49
Question 134.
Areforeign banks already established inJordan granted fullnational treatment withrespect to
their operations? Jordan hasonlystated thatnolimitations apply asregards thenumber oftotal
value ofoperations?
Answer:
Foreign banks established inJordan receive thesame national treatment likedomestic banks
including theiroperations inJordan.
(ii) Insurance
Question 135.
What aretherequirements forinsurance companies tojointhe“Federation ”?
Answer:
Therequirements formembership ofthe‘Federation ”isthattheinsurance company should
beregistered inJordan.
Question 136.
Jordan hasindicated thatallinsurance companies havetobemembers ofthenational federation.
Wewould liketoreceive further information astomembership ofthefederation: isequal access
guaranteed toforeign insurers? Furthermore, Jordan states thatinsurance rates andprices are
fixed bythisfederation. What aretheperspectives ofliberalizing insurance rates andprices in
order toallow realcompetition inthelocal market?
Answer:
Insurance companies haveafederation thatcomprises allinsurance companies including foreign
companies. Nocompany isallowed tooperate inJordan ifitisnotamember ofthefederation.
Thefederation looks aftertheinterest ofitsmembers. Thefederation setsinsurance ratesand
prices onlyforcompulsory insurance onmotor vehicles. Other functions areunifying insurance
contracts, andforeseeing theadoption ofprofessional codeofbehaviour among theinsurance companies.
Question 137.
What arethecriteria fortheMinister ofIndustry andTrade togiveapproval foremploying more
thanthree non-Jordanian experts?
Answer:
FortheMinister ofIndustry andTrade toapprove arequest foremploying more thanthree
non-Jordanian experts, thefollowing steps havetobetaken:
(a) thecompany mustsubmit arequest totheController ofInsurance explaining theneedforthe
services ofanon-Jordanian expert inaddition tothethree non-Jordanians itemploys;WT/ACC/JOR/9
Page50
(b) theController ofInsurance studies therequest andifhefinds therequest justified thenhe
recommends totheMinister ofIndustry andTrade theapproval ofsucharequest explaining
thecaseforarealneedfortheservices ofsuchanexpert.
Question 138.
Howmany foreign insurance companies actually employ more thanthree non-Jordanian experts?
Answer:
There arenoforeign ordomestic insurance companies thatareemploying more thanthree
non-Jordanian experts.
Question 139.
According totheMemorandum, anyinsurance company must beregistered inJordan andmust
beapublic share holding company. Does thisexclude direct branching byforeign companies
without prior establishment ofasubsidiary, except forthenewgrandfathered foreign branches?
Moreover, itwould behelpful ifJordan could confirm thatnoother limitations apply tothe
establishment ofacommercial presence, inparticular that100percentforeign ownership is
allowed. Thisdoesnotseem tobeobvious, since foreign participation hasreached onlybetween
10and45percentinexisting companies sofar.
Answer:
Thecommercial presence ofaforeign insurance company inJordan isbased ontherightof
reciprocity except forthose companies thatwere present inJordan before 1984. These areusually
intheform ofabranch ofaforeign company oranaccredited agent fortheforeign company. The
minimum capital ofalocalinsurance company isJD2million, while thatforabranch ofaforeign
company oritsaccredited agent isJD4million.
According totheInvestment Promotion Lawof1995, foreigners canownupto50percent
ofthecapital ofaninsurance company.
Question 140.
Theprinciple ofreciprocity isapplied inJordan, except forsome grandfathered companies. On
What basis isJordan justifying thisreciprocity?
Answer:
AccordingtotheInsuranceLawNo.30of1984,aforeigninsurancecompanywillnotbeallowed
tooperate inJordan unless itprovides evidence thatthestateitbelongs toallows foreign insurance
companies tooperate initsterritory. Exception tothisrequirement wasgiven toforeign insurance
companies thatwere present inJordan before thelawbecame effective, i.e.before 1984.
Question 141.
National treatment conditions should beclarified withrespect tothefollowing:
- Discriminatory treatment offoreign insurers appears tobelimited tominimum capital
requirements andthedeposit ofcertain amounts forspecific activities atcommercial banks.WT/ACC/JOR/9
Page51
Answer:
Thisistrue.
Question 142.
DoesJordan intend tomaintain discriminatory capital requirements imposed onforeign branches
andaccredited agents which istwice ashighascapital requirements onlocal subsidiaries?
Answer:
Forthetimebeing therewillbenochange. Thechange willbeconsidered inthefuture within
thegovernment general policy.
Question 143.
Deposits atcommercial banks forcertain insurance activities result inanincreased discrimination
against foreign competitors; inaddition tocapital requirements twice ashigh, theyarerequired
todouble deposits comparison tolocal companies.
Thisisaburdensome requirement forforeign companies. Jordan should explain why, inaddition
todiscriminatory capital requirements, itwishes tomaintain such discriminatory deposit
requirements.
Answer:
Thisrequirement istoprotect therights oftheholders ofinsurance policies.
Question 144.
CanJordan confirm thatnoother discriminatory treatment willbeapplied toforeign insurance
companies?
Answer:
These requirements areinaccordance withtheInsurance Law, andinsurance regulations which
areissued usually inaccordance withthelaw.
Question 145.
Insurance licences areapparently granted onanannual basis. Jordan should clarify whether
foreign andlocal companies aretreated equally andwhich specific conditions doapply tothe
renewal ofalicence, forexample whether licences aregranted automatically.
Answer:
Insurancecompanies,domesticandforeign,aregrantedayearlypermissiontoperforminsurance
activities. Thepermission isrenewable upon submitting arequest onemonth before theendofeach
calendar year.WT/ACC/JOR/9
Page52
(iii) Amman Financial Market
Question 146.
Information provided withrespect tomarket access andnational treatment offoreign securities
firms isextremely limited. Wewould seektoobtain more detailed information withrespect to
thepossibilities ofmarket access inallforms, whether itbethrough theestablishment ofa
commercial presence (subsidiaries, branches) orthrough thesupply ofservices across theborder,
aswellasregards thetreatment ofoperations offoreign firms already established inJordan.
Answer:
Information regarding “market access andnational treatment offoreign securities firms”is
readily available intheEncouragement ofInvestment Lawwhich isavailable ondiskette andalsoin
hardcopy. TheAmman financial market (AFM) frequently receives enquiries onthissame issue and
responds promptly byfaxfollowed bythehardcopy airmailed toinvestors indifferent partsoftheworld.
Furthermore, thelicensed brokerage firms attheAFM, which number 28,respond tosimilar inquiries
from potential andexisting clients from Europe, North America, andother parts oftheworld.
Other means ofdisseminating information available tonon-Jordanian investors include:
- datavendors viamodem (such asAccess andNets);
- daily trading information viaJordan Television;
- dissemination ofAFM publications tomember firms andallinterested parties bothinside and
outside Jordan;
- e-mail through theInternet (theAFM address is:afm@go.com.jo, while theACCESS Web
pageaddress is:http://accessme.com).
(b) Telecommunication services
Question 147.
Itisindicated thatthetelecom sector inJordan iscurrently undergoing arestructuring process;
what arethenextmilestones? What lawsarestilltobeexpected? What istheindicative timetable?
Answer:
Thenextmilestones andtiming:
- thetransformation ofTCC intoacompany, wholly owned bytheGovernment andoperating
incompliance withtheCompanies Law.
Timing: doneattheendofOctober 1996;
- privatization ofTCC in2phases:
- theintroduction ofaStrategic Partner, most probably inthesecond halfof1997;
- public offering, afterassessment offirstphase;
- expected laws: noneinthenearfuture.WT/ACC/JOR/9
Page53
Question 148.
Arevalue added services liberalized? Ifso,howarevalue added services defined?
Answer:
Value added services areliberalized using theexisting infrastructure.
Question 149.
TCC issaidtobethemonopolistic provider ofthebasic telephone service: arethere anyplans
toliberalize atleastresale? Arethere anydates envisaged forthecomplete liberalization ofpublic
voice?
Answer:
Thepolicy onresale isnotyetapproved. Complete liberalization ofthepublic voice isnot
ontheagenda, buttheintroduction ofanother competitor isbeing considered.
Question 150.
Isprivate voice telephony liberalized? Ifso,under what conditions?
Answer:
Thepolicy onprivate circuits forvoice hasnotbeenapproved yet.
Question 151.
Arethere anyplans fornewlicences oncellular andpaging? Aretheonlycurrent licensees related
inanyway(e.g.subsidiaries) tothemonopoly ofbasic voice telephony?
Answer:
Theapproved policy istolicence another operator foreachservice asfollows: introduce a
second cellular operator byyear1998 andasecond paging operator immediately. Bothlicences will
begranted through openbidding. Existing cellular andpaging operators areprivate companies and
innowayrelated tothePSTN operator.
Question 152.
Arenewlicences envisaged fordata? Istheonlycurrent licensees related inanyway(e.g.
subsidiaries) tothemonopoly ofbasic voice telephony?
Answer:
Currently, seven operators arelicensed toprovide dataservices. Allofthem areprivate
companies andnotrelated tothePSTN operator. Licensing ofdataservices isopen, provided that
theconditions laidbytheRegulator aremet.WT/ACC/JOR/9
Page54
Question 153.
Telecom Regulatory Commission (TRC) issaidtobe“financially independent entity ”;arethere
anynon-financial links between TRC andtheregulator, i.e.some shared personnel, directors,
etc.?
Answer:
TRC istheRegulator. Iftheintention ofthequestion iswhether TCC havelinkswithTRC,
theanswer isno.There isnofinancial ornon-financial linksbetween TRCandTCC oranyoperator.
Question 154.
Itissaidthatthere arelimitations onthenumber ofservices suppliers: under which criteria?
Only frequency spectrum availability oralsoothers?
Answer:
Itisapolicy matter. Thepolicy statement, approved bytheCouncil ofMinisters, decides
thenumber ofproviders foraparticular service.
Question 155.
Which istheregime forinterconnection, ifany? Arethere guarantees thatoperators wanting
toprovide forexample value added ordataservices willhaveaccess toleased linesinobjective,
cost-related andnon-discriminatory terms?
Answer:
There willbeapolicy statement oninterconnection inthenearfuture. TheRegulator will
ensure thatcost-related andnon-discriminatory terms aremaintained.
Question 156.
Licences: arelicensing procedures public andtransparent?
Answer:
Licensing procedures areopenandtransparent.
Question 157.
Arethere anylegal provisions oncompetition suchaslackofabuse ofmarket position orlack
ofcross-subsidies? Ifso,which ones?
Answer:
TheTelecommunications Lawstates:WT/ACC/JOR/9
Page55
Chapter II,"The Ministry shallundertake thefollowing tasks andduties:
Article 3(b) ...create acompetitive environment among theproviders ofsaidservices, so
astoensure state-of-the-art telecommunications services atacceptable costs
andaffordable prices."
Chapter III,6:"The Commission shallundertake thefollowing tasks:
(a) Toregulate thetelecommunications sector intheKingdom through theapplication of
thedeclared policy fortheprovision ofeffective telecommunications services to
beneficiaries, insuch amanner thatkeeps pace with developments inthe
telecommunications technology, andmeets theneeds ofthose wishing tobenefit from
saidservices onnon-monopolistic basis, andencouraging investment andcompetition
inthetelecommunications sector;
(b) tospread public awareness ofthesignificance ofthetelecommunications utility,
endeavouring toprovide telecommunications services ofalltypes, insuchamanner
thatfulfils theneeds andwishes ofbeneficiaries throughout theKingdom, andgiving
dueattention totheprovision ofservices ofacceptable standards, ataffordable costs,
inaccordance withtherules ofcompetition."
Question 158.
Itissaidthatthenational operator (TCC) willbetransformed before October 1996intoacompany
wholly owned bytheGovernment "assteptowards privatization". Please clarify.
Answer:
Thenational operator, theTelecommunication Corporation (TCC), hasbeencommercialized
asacompany wholly owned bytheGovernment asastepforward toselling partofitsshares tothe
private sector. Thefirstphase ofthisoperation willbetheintroduction ofastrategic partner andis
expected totakeplace inthesecond halfof1997. Apublic offering willbemade laterafterassessment
ofthefirstphase.
(c) Health services
Question 159.
What typeofincentives areoffered tohospitals established inJordan byforeigners?
Answer:
TheInvestment Promotion LawNo.16of1995offers incentives andfullownership ofhospitals
established inJordan byforeigners. Hospitals inJordan whether owned byJordanians orforeigners
(100percentownership) enjoy theincentives offered bytheInvestment Promotion LawNo.16of
1995 which include:
- exemption from customs duties andimport feesduring theestablishment ofthehospital for
expanding anddeveloping itatalaterstage;
- income taxexemptions ranging from25-75 percentdepending ontheareawhere thehospital
isestablished andforaduration of10years;WT/ACC/JOR/9
Page56
- exemptions from feesandtaxes onthepurchase offurniture andsupplies forrenewal or
renovation aregranted onceevery seven years.
Question 160.
What arethecriteria taken intoaccount todecide whether there isaneedtoestablish ahospital?
Answer:
Toestablish ahospital inJordan there areasetofrequirements thathavetobesubmitted to
theMinistry ofHealth before itgives itspermission thatthenewhospital mayberegistered atthe
Ministry ofIndustry andTrade asaprivate enterprise orcompany.
Therequired information includes:
- theownership ofthehospital: could beindividual orcompany orcharitable, orcooperative
organization. Oneoftheowners must beadoctor;
- thetypeofservices tobeoffered bythehospital, andthenumber ofbeds;
- number ofdoctors andnurses andother staffthatwillbeworking there;
- theareaandsitewhere thehospital isgoing tobeestablished, andthearchitectural and
engineering plans.
TheMinistry ofHealth gives apermission forestablishing thehospital andwhen thehospital
isready toassume operation itisgranted atemporary licence fortwoyears bytheMinistry ofHealth.
(d) Tourism
Question 161.
From theexplanation under 8.3.4 (WT/ACC/JOR/2), itappears thatintheprocess ofprivatization,
thehotel andtourism business isnowinthehands ofonecompany. Isthiscorrect? Isthisa
national orforeign company?
Answer:
TheJordan Hotels andTourism Company isoneofthecompanies thatownandrunhotels.
Thiscompany hasbeensoldcompletely totheprivate sector.
Another company known astheArabInternational Hotels wassoldrecently totheprivate sector.
There aremany other companies thatownhotels inthecountry andtheyareallprivately owned.
Question 162.
What isunderstood bytourist transport?
Answer:
Itmeans bustransport asitwasmentioned intheMemorandum.WT/ACC/JOR/9
Page57
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
1. Bilateral orPlurilateral Agreements Relating toForeign Trade inGoods andTrade in
Services
Question 163.
Section 3.2.1 (L/7533) states thatdutyfreestatus isgranted toimports governed bybilateral trade
agreements (protocol trade). Weshould begrateful iftheJordanian authorities would advise
whatspecific imports arecovered bythisarrangement inrespect ofeachofthebilateral agreements
specified inAnnex 3.Section 5.1describes thecustoms exemptions granted tospecific goods
includedinbilateralagreementsbetweenJordanandArabcountries.CantheJordanianauthorities
advise whether customs exemptions areapplied tospecific goods included inbilateral agreements
between Jordan andnon-Arab countries?
Answer:
Thefollowing outlines thepreferential treatment given bythebilateral agreement withthe
following countries:
- Egypt:
themain objective oftheagreement istocreate afreetrade areabytheyear2005. Customs
duties andother equivalent taxes willbereduced by10percentannually onalltariff lines
except forsome 48products comprising 1,450 six-digit tariff lines which aretemporarily
excluded from theagreement. Agricultural products alsofallunder thereduction oftenper
centannually withtheexception ofanumber offruits andvegetables which aresubject to
specific seasonal restrictions;
- Qatar:
thebilateral agreement exempts theagricultural products andthenatural resources exchanged
between thetwocountries from customs duties. Inaddition tothattheagreement stipulates
thattheJointCommittee shallagree ontwolistsofindustrial products tobeexempted from
customs duties;
- Oman:
itprovides freemovement fortheagricultural andlivestock products andfishproducts;
- Kuwait:
itprovides forfreemovement foragricultural andlivestock products. Customs duties and
other equivalent taxeshavebeenreduced by20percentannually onaspecific listofindustrial
products. Thislistenjoys dutyfreemovement now, buttrading isextremely limited now;
- Bahrain:
fullfreetrade areaagreement;WT/ACC/JOR/9
Page58
- Saudi Arabia:
itgrants dutyfreetreatment forsome 166products;
- Libya:
itprovides freemovement forallproducts originating inbothcountries;
- Sudan:
itgrantscustomsdutiesexemptionsforagricultural,livestockandindustrialproducts,buttrading
isextremely limited;
- Syria:
itgrants customs duties exemptions foragriculture, natural resources andindustrial products;
- Palestinian National Authority:
itgrants dutyfreeaccess fortwolistswithatotalof60products originating inthePalestinian
Territories. Itcovers mainly processed industrial supplies, parts andaccessories forcapital
goods, consumer semi-durable andfoodforhousehold consumption;
- Israel:
itgrants a10percenttariffreduction for66products originating inIsrael. Thislistcomprised
mainly processed industrial supplies, capital goods andparts forcapital goods, consumer
semi-durable andfoodforhousehold consumption.
Inaddition, itisworth mentioning thatJordan lately initiated dialogue withmost ofthese
countries toendprotocol trade andmove toward freetrade onabilateral basis.
Question 164.
Please provide acomprehensive listtoHS6digits ofallgoods benefiting from tariff exemptions
under theAgreement forFacilitating andDeveloping Trade Exchange Among Arab States.
Answer:
Thefollowing aretarifflinesbyCCCN benefiting fromtariffexemptions under theAgreement
forFacilitating andDeveloping Trade Exchange Among Arab States:
(a) agricultural andlivestock products:
- Chapter 1: 01-03 (Pigs) tobeexcluded
- Chapter 2: 02.05 (Pork meat) tobeexcluded
- Chapter 3: Thewhole chapter
- From chapter 4: 04.01 -04.06
- Chapter 5: Thewhole Chapter
- Chapter 6: Thewhole chapter
- Chapter 7: Thewhole Chapter
- From chapter 8: 08.01-08.09&08.11-08.13WT/ACC/JOR/9
Page59
- From chapter 9: 09.01, 09.04 and09.09
- Chapter 10: Thewhole chapter
- From chapter 11: 11.01-11.07 and11.09
- Chapter 12: Thewhole chapter
- From chapter 13: 13.02
- Chapter 14: Thewhole chapter
- From chapter 15: 15.02, 15.03, 15.05,15.06, 15.07
(b) Chapter 25
25:01
From 25:02
25:03
25:04
25:05
25:06
25:07
25:08
25:10
25:11
25:12
From 25:13
From 25:14
From 25:15
25:16
25:17
25:18
From 25:19
From 25:20
25:21
25:22
25:24
25:28
From 25:26
25:27
- Chapter 26: Thewhole chapter
- From chapter 27: 27.01- 27.04
- From chapter 40: 40.01 and40.04
- From chapter 41: 41.01 and40.09
- From chapter 43: 43.01.
- From chapter 44: 44.01 -44.05 and44.12
- From chapter 45: 45.01.
- From chapter 50: 50.01-50.03
- From chapter 53: 53.01-53.04
- From chapter 54: 54.01-54.02
- From chapter 55: 55.01-55.04
- From chapter 57: 57.01
grapes From 57.02: andJutefrom 57.03
- From chapter 73: 73.01-73.05
- From chapter 74: 74.01-74.02
- From chapter 75: 75.01
- From chapter 76: 76.01WT/ACC/JOR/9
Page60
- From chapter 77: 77.01
- From chapter 78: 78.01
- From chapter 79: 79.01
- From chapter 80: 80.01
- From chapter 81: alltherawmaterials inthischapter
- Chapter 47: Thewhole chapter
Concerningtheindustrialproducts,thefollowingproducts(tarifflines)areagreedtobeexempted
from customs duties andother duties:
- capsules gelatin 19.07
- preparations ofkinds usedinanimal 23.07
- gypsum 25.20
- sulphuric acids 28.08
- caustic soda 28.17
- ethylene 29.01
- methanol 29.04
- antisera andvaccines 30.02
- medicaments fortherapeutic orprophylactic uses 30.03
- ammonium sulphate 31.02
- urea 31.02
- plastic granules 39.01
- polypropylene 39.02
- polystyrene 39.02
- cotton yarns andmixed 55.05/55.06.
- rockwool 68.07
- ceramic pipes conduits guttering andpipefittings 69.06
- floatglass andsurface ground orpolished glass insheets 70.05/70.06
- electrical wires andcables 85.23
- medical syringes (plastic) 90.17
Question 165.
What percentage oftrade between Jordan andeach ofthecountries listed benefit from tariff
exemptions orreductions under theAgreement forFacilitating andDeveloping Trade Exchange
Among Arab States?
Answer:
Since theAgreement isnotimplemented bymostmembers, itisdifficult toidentify thevolume
orpercentage oftrade between Jordan andtheother Arab countries signatory totheAgreement, that
benefit from tariff exemptions orreductions.
Question 166.
Please provide details oftherules oforigin applied todetermine thatgoods andproducts fall
under categories 3and4.
Answer:
TheAgreement itself doesnotspecify therules oforigin. Theimplementation oftherules
oforigin hasbeenlefttotheapplied rules inthemember States.WT/ACC/JOR/9
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Question 167.
What istheGATT justification fordeviating from Article Iasaresult oftheAgreement for
Facilitating andDeveloping Trade Exchange Among Arab States?
Answer:
ThisAgreement isleading totheformation ofafree-trade area. Ithasbeendecided bymember
countries tomodify theAgreement toaFreeTrade Area Agreement.
Given thisfact,theAgreement fallswithin theprovisions oftheGATT anddoesnotdeviate
from Article I(MFN).
Question 168.
Please confirm thattheonlytrade agreement withaspecific Arab country which remains isthat
withtheLebanon?
Answer:
Thebilateral trade agreements withpreferential treatment are:
Country Preferential treatment given bythebilateral agreement
Egypt Themain objective oftheagreement istocreate afreetrade areabythe
year2005. Customs duties andother equivalent taxes willbereduced by
10%annually onalltariff linesexcept forsome 48products comprising
1,450 six-digit tariff lineswhich aretemporarily excluded from the
Agreement. Agricultural products alsofallunder thereduction of10%
annually withtheexemption ofanumber offruits andvegetables which
aresubject tospecific seasonal restrictions.
Qatar Thebilateral agreement exempts theagricultural products andthenatural
resources exchanged between thetwocountries from customs duties.
Inaddition tothat,theagreement stipulates thattheJoint Committee shall
agree ontwolistsofindustrial products tobeexempted from customs
duties.
Oman Itprovides freemovement fortheagricultural andlivestock products and
fishproducts.
Kuwait -Itprovides forfreemovement foragricultural andlivestock products.
-Customs duties andother equivalent taxes havebeenreduced by20%
annually onaspecific listofindustrial products. Thislistenjoys duty
freemovement now.
Bahrain FullFreeTrade Area Agreement.
Saudi Arabia Itgrants duty-free treatment forsome 166products.
Libya Itprovides forfreemovement forallproducts originated inboth
countries.
Sudan Itgrants forcustoms duties exemptions foragricultural, livestock and
industrial products, buttrading isextremely limited.
Syria Itgrants customs duties exemptions foragricultural, natural resources and
industrial products.WT/ACC/JOR/9
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Country Preferential treatment given bythebilateral agreement
Palestinian National
Authority (PNA)Itgrants, dutyfreeaccess fortwolistswithatotalof60products
originating inthePalestinian territories. Itcovers mainly processed
industrial supplies, parts andaccessories forcapital goods, consumer
semi-durable andfoodforhousehold consumption.
Israel Itgrants a10%tariff reduction for66products originating inIsrael. This
listcomprised mainly processed industrial supplies, capital goods and
parts forcapital goods, consumer semi-durable andfoodforhousehold
consumption.
Jordan lately initiated talkswithmostofthese countries toputanendtoprotocol trade and
move towards freetrade onabilateral basis.
TheArab League/the Economic andSocial Council (ESC) isexecuting thedecision thathas
beenagreed upon intheArab Summit heldinJune1996, toestablish afree-trade area, tocarry out
thisdecision, theESChadrevised theAgreement forFacilitating andDeveloping Trade Exchange
Among Arab States inorder toreplace itbythenewFTAAgreement. Thework onthenewFTA
isunder way.
Question 169.
Please provide theWorking Party withacopyoftheAgreement withLebanon inaWTO language,
including theprotocol listing thetariff exemptions andreductions.
Answer:
TheAgreement withLebanon isavailable onlyinArabic.
Question 170.
What percentage oftrade between Jordan andLebanon iscovered by(a)tariff reductions and
(b)tariff exemptions.
Answer:
According to1996 figures bytheendofOctober:
- totalvolume oftrade wasJD48.3million;
- Jordanian exports volume wasJD19.5million. Around JD5.1million enjoyed thepreferential
treatment, outofthose 5.1millions around JD0.5million enjoyed tariff exemptions and
JD4.6million enjoyed a33percent tariff reduction;
- Lebanese exports volume wasJD28.8million. Around JD3.3million enjoyed thepreferential
treatment, outofthose 3.3million around JD0.33million enjoyed thetariff exemptions and
around JD2.97million enjoyed a33percenttariff reduction.
Question 171.
What istheGATT justification formaintaining thepreferential trade agreement withLebanon.WT/ACC/JOR/9
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Answer:
Asithasbeenmentioned inJordan ’srevised Memorandum ontheForeign Trade Regime
(WT/ACC/JOR/3), thistradeprotocol withLebanon willbereviewed inthenextmeeting fortheJoint
Committee which wasexpected totakeplace attheendof1996 andhasbeenpostponed to1997.
Question 172.
Please provide theWorking Party withacopyoftheAgreement withEgypt, including thenegative
list.
Answer:
TheAgreement isavailable onlyinArabic.
Question 173.
What percentage oftrade between Jordan andEgypt iscovered by(a)dutyfreetrade and(b)
tariff reductions?
Answer:
TheFreeTrade Area Agreement isnoteffective yet.
Question 174.
Arethecountries listed inAnnex 3thesame countries involved inthe"multilateral agreement
organizing trade among 17Arab countries"? Ifso,given thatonly15Arab countries arelisted
inAnnex 3,which other country isincluded intheagreement?
Does thismultilateral agreement cover agri-food products? Areall"agricultural andlivestock
products" dutyfree? Ifnot,please provide details ofwhich products arenotcovered.
Please provide details ofthepreferences orfavourable market access arrangements granted to
those countries listed inAnnex 3(non-Arab Countries).
Answer:
(a) Jordan ismember oftheAgreement forFacilitating andDeveloping Trade Exchange Among
ArabStates.ThememberStatesare:Jordan,theUnitedArabEmirates,Bahrain,Tunisia,SaudiArabia,
Sudan, Syria, Somalia, Iraq,Palestine, Qatar, Kuwait, Lebanon, Libya, Morocco andYemen Republic.
TheAgreement stipulates thatthefollowing products areexempted from customs duties and
taxes:
- agricultural andlivestock products;
- rawmaterials;
- goods andproducts with40percentvalue added intheexporting country. Thispercentage
could godown to20percentifallinputs areimported from Arab countries;
- goods andproducts produced byjointArab enterprises;
- anyother good orproduct agreed upon.WT/ACC/JOR/9
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Additional exemptions arediscussed butnotagreed upon yet,buttheywillbeintheformof
reductions incustoms duties.
TheAgreement isnotfunctioning atthemoment.
TheAgreement forFacilitating andDeveloping Trade Exchange Among Arab States was
reviewed bymembers inthelastmeeting oftheArab Economic andSocial Council. Themembers
decided tomodify theAgreement toafree-trade area.
(b) Thismultilateral agreement doescover agri-food products, where allagricultural andlivestock
products areexempted from thecustoms duties andtaxes.
(c) Concerning thepreferences given tonon-Arab countries inAnnex 3(a)oftheMemorandum,
Jordan initstrade agreements withthefollowing non-Arab countries hasgiven them thetreatment
ofthemost-favoured-nation within theconditions mentioned below.
People'sRepublicofChina,Ethiopia,Hungary,India,Indonesia,DemocraticRepublicofKorea,
Pakistan,Poland,Portugal,Romania,Spain,Switzerland,Turkey,Malaysia,CanadaandBrazil.
Conditions:
(i) benefits, favours, privileges andexemptions which either ofthecontracting parties grants or
shallinthefuture grant, toanyofitsneighbouring countries tofacilitate frontier traffic;
(ii) benefits, favours, privileges andexemptions which havebeengranted orshallbeinthefuture
granted byeither contracting party asaconsequence ofitsparticipation infreetrade zones
andcustoms unions;
(iii) benefits, favours, privileges andexemptions which havebeengranted orshallinthefuture
begranted byJordan toanymember stateoftheArab league;
Question 175.
Please elaborate onJordan ’spreferential trading agreement withtheEuropean Union. Please
givedetails regarding theextent towhich agricultural goods arecovered, andthemargins of
preference.
Jordan states thatitsagreement withtheEuropean Union wasreviewed andfound tobeconsistent
with theGATT. While thereport oftheworking party ontheagreement (L/4662 adopted
17May1978) didindicate thattheparties totheagreement feltthatitwasGATT consistent,
"other members oftheworking party heldtheviewthatitwasdoubtful thattheagreement was
entirely compatible withtherequirements oftheGeneral Agreement". Arethere anyplans to
amend orexpand theagreement withtheEuropean Union inanymanner which would likely
increase itsconsistency withGATT obligations?
Answer:
Jordan ’sCooperation Agreement withtheEuropean Communities wasreplaced byanew
partnership agreement within theEuro-Mediterranean partnership agreements. Itisbasically afree-trade
area, MFN based agreement andwillleadtoafree-trade areaafter12years from thedateofentry
intoforce. Itprovides forentry ofallJordanian industrial products andnatural resources dutyfreeWT/ACC/JOR/9
Page65
status intotheEuropean Communities 'market. European Communities 'industrial products shallhave
access totheJordanian market based onannual dutyreduction overthe12years implementation period.
TheAgreement willexclude some products originating intheEuropean Communities from
thepreferential treatment.
Agricultural products will have adifferent setofmeasures forentry into the
European Communities 'market.
TheAgreement covers trade inservices aswellassocial andcultural affairs andfinancial
cooperation.