WORLD TRADE  
ORGANIZATION  WT/REG141/3 
19 March 2004  
 
(04-1225) 
Committee on Regional Trade Agreements Original:   English 
   
EUROPEAN COMMUNITIES – JORDAN EURO-MEDITERRANEAN AGREEMENT 
 
  The following communication, dated 18 March 2004, is being circulated at the request of the Delegations of the European Communities and Jordan.  
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Communication from the Parties
 
  I. BACKGROUND INFORMATION ON THE AGREEMENT 
1. Membership And Dates Of Signature, Ratification And Entry Into Force 
 The Euro-Mediterranean Agreement establis hing an association between the European 
Communities and their Member States, of the one part, and the Hashemite Kingdom of Jordan, of the other part, was signed on 24 November 1997  and entered into force on 1 May 2002. 
 
2. Type Of Agreement 
 The Agreement establishes an association between the Parties. It establishes a free-trade area 
over a transitional period lasting a maximum of 12 year s starting from the date of entry into force of 
the Agreement.  
 The objectives of the Agreement are: to provi de an appropriate framework for the political 
dialogue; establish the conditions for the gradual lib eralisation of trade in goods, services and capital; 
to foster the development of balanced economic and social relations between the Parties though 
dialogue and co-operation; to improve living a nd employment conditions and enhance productivity 
and financial stability; to encourage co-operation with a view to the consolidation of peaceful 
coexistence and economic and political stability; to pr omote co-operation in others areas which are of 
reciprocal interest. 
 3. Scope 
 Industrial and agricultural products. 
 
4. Trade Data 
 Jordan exports to the EU in 2002 amounted to € 184 million.  Jordan imports from the EU 
during the same period amounted to € 1659 million.   For the period January to September 2003, 
Jordan exports to the EU amounted to € 113 million a nd Jordan imports from the EU amounted to      
€ 1063 million.
1 
 
                                                      
1 Source for trade data: IMF. WT/REG141/3 
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II. TRADE PROVISIONS 
1. Import Restrictions 
 1.1 Duties And Charges 
  Industrial products originating in Jordan ar e imported into the Community free of customs 
duties and charges having equivalent effect. 
  Customs duties and charges having equivalent effect applicable on import into Jordan of 
products originating in the Community other than those listed in Annexes 2 to 4 are abolished on 
entry into force of the Agreement. 
 
 Customs duties and charges having equivalent effect applicable on import into Jordan of 
products originating in the Community listed in A nnex 2 are partially eliminated over a period of 
eight years beginning four years after entry into force of the Agreement. 
 
 Customs duties and charges having equivalent effect applicable on import into Jordan of 
products originating in the Community listed in lis t A of the Annex 3 are eliminated progressively 
over a period of four years after entry into force of the agreement.   Customs duties and charges having equivalent effect applicable on import into Jordan of 
products originating in the Community listed in lis t B of the Annex 3 are eliminated progressively 
over a period of twelve years beginning four years after entry into force of the Agreement. 
  The progressive elimination of customs duties and charges having equiva lent effect does not 
apply to products listed in Anne x 4. The arrangements to be app lied to these products shall be re 
examined by the Association Council four years after the entry into force of the Agreement.  At the 
time of that re-examination, the Association Counc il will establish a tariff dismantling timetable for 
all products listed in Annex 4.   1.2 Quantitative Restrictions   Quantitative restrictions on imports and measure s having equivalent effect on trade between 
the Community and Jordan shall be abolished upon the entry into force of the Agreement. 
  No new quantitative restrictions on imports an d measures having equivalent effect shall be 
introduced in trade between Jordan and the EC.  
 1.3 Common External Tariff 
   The Agreement does not include any provision for the establishment of a common external 
tariff.  2. Export Restrictions 
 The Agreement prohibits the application of customs duties or measures having equivalent 
effect on exports between the EC and Jordan. Qu antitative restrictions on exports and measures 
having equivalent effect between Jordan and the EC are also prohibited.   WT/REG141/3 
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3. Rules Of Origin 
 The definition of the concept of “originating products” is set out in Protocol 3 of the 
Agreement.  Evidence of the originating status of products is furnished by the EUR.1 movement 
certificate.  Cumulation of origin is foreseen in Protocol 3.  
4. Standards 
 The Agreement provides that the Parties shoul d aim at reducing differences in conformity 
assessment.  Co-operation in that field should aim at  increasing the application of Community rules.  
 5. Safeguards 
 Exceptional measures of limited duration which derogate from the tariff elimination schedule 
may be taken by Jordan in the form of an in crease or reintroduction of customs duties.  These 
measures may only concern infant industries or certain sectors undergoing restructuring or facing serious difficulties, particularly where these di fficulties produce major social problems.  These 
measures shall be applied for a period not exceeding five years unless a longer duration is authorised 
by the Association Committee.  They shall cease to  apply at the latest on the expiry of the maximum 
transitional period of 12 years.   The EC or Jordan may take appropriate meas ures, where the increase in imports of a product 
occurs in such quantities and under such c onditions as to cause or threaten to cause: 
 
- serious injury to domestic producers of like or directly competitive products in the 
territory of one of the Parties or 
 - serious disturbances in any sector of the economy or difficulties which could bring 
about serious deterioration in th e economic situation of a region. 
 
 In the selection of measures, priority sha ll be given to those which least disturb the 
functioning of the Agreement.   In the case of serious balance of payment diffi culties, or threat thereof, the Community or 
Jordan may adopt for a limited period restricti ons on current transactions, in accordance with the 
conditions established under the GATT and Articles V III and XIV of the Articles of Agreement of the 
International Monetary Fund. These restrictions  may not go beyond what is strictly necessary to 
remedy the balance of payments situation.  6. Anti-Dumping And Countervailing Measures 
 If one of the Parties finds that dumping is taking place in its trad e with the other Party, the EC 
or Jordan may take appropriate measures in acco rdance with the WTO Agreement on Implementation 
of Article VI of GATT 1994, its related internal le gislation and respecting th e information exchange 
procedures established by the Agreement.  In the se lection of measures, priority shall be given to 
those which least disturb the functioning of the Agreement.  
7. Subsidies And State-Aid 
 Any public aid distorting or threatening to dist ort competition is incompatible with the proper 
functioning of the Agreement in so far as it affe cts trade between the Parties.  The Association 
Council shall adopt within five years of the en try into force of the Agreement the necessary 
implementing rules.  WT/REG141/3 
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 During the first five year of the entry into fo rce of the Agreement, any State-aid granted by 
Jordan is assessed taking into account the fact that Jordan is regarded as an area identical to those 
areas of the Community benefiting from aid for development.   The Member States and Jordan progressively adjust, without affecting commitments made 
under GATT, any state monopolies of a commercial charact er so as to ensure that, by the end of the 
fifth year following the entry into force of the Agreement, no discrimination exists regarding the 
conditions under whic h goods are procured and marketed betwee n nationals of the Member States and 
of Jordan.  
8. Sector-Specific Provisions 
 Agricultural products
 
 
(a) Agricultural products originating in Jordan  benefit on import into the EC from the 
provisions set out in Protocol 1. 
For more than 250 tariff lines (8-digit ta riff lines, notably fruit and vegetables) 
originating in Jordan customs duties are el iminated or reduced. For certain products 
where the customs tariff foresees the application of an ad valorem  duty, rates of 
reduction apply only to the ad valorem  duty. For certain products customs duties are 
eliminated within the limits of tariff quotas or in the framework of reference 
quantities. 
(b) Agricultural products originating in the Community benefit on import into Jordan 
from the provisions set out in Protocol 2. Jo rdan applies reduced customs duties to the 
Community for 105 tariff lines. 
(c) The Agreement specifies that the EC and Jo rdan will gradually implement a greater 
liberalisation of their trade in agricultu ral products. To this end, the Agreement 
provides that from 1 January 2002 the Community and Jordan will assess the 
situation of their trade in agricultural products with a view to determining the 
liberalisation measures to be applied by th e Community and Jordan with effect from  
1 January 2003.  The European Commission received a negotiating mandate from the European Council for this purpose in July 2 002. Negotiations are expected to start in 
the near future. 
 Processed Agricultural Products
 
  The provisions on free movement of goods do not preclude the retention by the Community 
of an agricultural component on imports of certain  processed agricultural products originating in 
Jordan.  Similarly, Jordan may sp ecify a separate agricultural component in the import duties in force 
on the import of certain processed agricultural products originating in the Community.  The 
provisions of Title II of the Agreement a pplicable to agricultural products apply mutatis mutandis  to 
these agricultural components.   
III. GENERAL PROVISIONS OF THE AGREEMENT 
1. Exceptions And Reservations 
 The Agreement does not preclude prohibitions or  restrictions on imports, exports or goods in 
transit justified on grounds of public  morality, public policy, public security, the protection of health 
and life of humans, animals or plants, the protec tion of national treasures of artistic, historic or  WT/REG141/3 
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archaeological value or the protection of intellectua l and commercial property or rules relating to gold 
and silver.  3. Dispute Settlement Procedures 
 Either Party may refer to the Association C ouncil any dispute relating to the application or 
interpretation of the Agreement: differences are settled  by means of a decision.  In the contrary case, 
either Party may notify the appointment of an arbitrator to the other Party, which must then appoint a second arbitrator within two months.  The Associat ion Council shall appoint a third arbitrator.  The 
arbitrators’ decisions are taken by majority vote.  
4. Relation With Other Trade Agreements 
 The Agreement does not preclude the maintena nce or establishment of customs unions, free 
trade areas or arrangements for frontier trade insofa r as they do not have the effect of altering the 
trade arrangements provided for in the Agreement.  
 The Agreement provides for consultations betw een the Parties in the Association Committee 
concerning agreements establishing customs unions or free trade areas and, where appropriate, on 
other major issues related to their respective trade po licies with third countries.  In particular, in the 
event of EU Enlargement, such consultations should ta ke place to ensure that account is taken of the 
mutual interests of the Community an d Jordan stated in  the Agreement. 
 
5. Institutional Provisions 
 An Association Council, meeting at Minister ial level at least once a year, examines any 
significant issues arising in the framework of  the Agreement; an Association Committee is 
responsible the implementation of the Agreement and areas for which the Association Council has 
delegated power to it. 
 
6. Duration 
 The Agreement is concluded for an unlim ited period.  Either Party may denounce the 
Agreement by notifying the other Party.  Six mont hs after such notification the Agreement would 
cease to apply.  
7. Previous Agreements 
  From its entry into force, the Associati on Agreement replaced the Co-operation Agreement 
between the European Community and the Hash emite Kingdom of Jordan and the Agreement 
between the Member States of th e European Coal and Steel Community and the Hashemite Kingdom 
of Jordan signed on 18 January 1977. 
  
IV. OTHER 
 Provisions On Right Of Establishment And Services
 
 
 The Parties agree to widen the scope of the Ag reement to cover the right of establishment of 
one Party’s firms on the territory of the other and liberalisation of the provision of services by one 
Party’s firms to consumers of services in the othe r. Both parties listed reservations receptively in 
annexes 5 and 6. WT/REG141/3 
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 The Agreement also includes the cross-border supply of services which will allow progressively the supply of services by Community or  Jordanian companies which are established in 
the territory of a party other than that of the person for whom the services are intended. 
  The Agreement specifies that the Asso ciation Council shall make the necessary 
recommendations for the implementation of this obj ective and further that the Council should make a 
first assessment of the achievement of this objec tive no later than five years after the Agreement 
enters into force.   Intellectual, Industrial And Commercial Property Rights
 
 
 The Agreement commits the Parties to provi ding and ensuring adequate and effective 
protection of intellectual, industrial and comme rcial property rights in line with the highest 
international standards.  To this end, the Ag reement identifies a number of relevant multilateral 
conventions, to which Jordan should accede according to the provisions stipulated in annex 7 of the 
Agreement.  In addition, the Parties confirm the im portance they attach to the obligations arising from 
certain other relevant multilatera l conventions, to which they are both already Party.  If any 
difficulties arise in this area affecting trade, the Part ies agree to consult bilaterally in order to resolve 
them.    Public Procurement
 
 
 The Agreement sets as a common objective a reciprocal and gradual liberalisation of public procurement contracts and provides that the Asso ciation Council shall take the steps necessary to 
implement this objective.   
 Co-operation
 
  The Agreement is not limited to the establishm ent of a free-trade area but also establishes a 
partnership between the two Parties with the object ive of supporting Jordan’s own efforts to achieve 
sustainable economic and social development.  This  co-operation is targeted at areas of activity 
affected by the process of liberalising Jordan’s econo my and more particularly by the liberalisation of 
trade between Jordan and the European Community. 
  This co-operation involves economic co-opera tion in a broad sense covering a large number 
of areas, for example social co-operation concerning  Jordan workers, cultural co-operation as well as 
financial co-operation. 
 
 
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