RESTRICTED  
  
WT/TPR/S/325  
 
13 October 2015  
(15-5336)  Page: 1/116  
Trade Policy Review Body   
 
 TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
JORDAN  
This report, prepared for the second Trade Polic y Review of Jordan, has been drawn up by the 
WTO Secretariat on its own responsibility. The Se cretariat has, as required by the Agreement 
establishing the Trade Policy Review Mech anism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from Jordan on its trade policies 
and practices.  Any technical questions arising from this report may be addressed to Ms Zheng Wang (tel.: 022 
739 5288), Mr. Usman Ali Khilji (tel.: 022 739 6936) and Mr. John Finn (tel.: 022 739 5081). 
 Document WT/TPR/G/325 contains the policy statement submitted by Jordan. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review  Body on Jordan. This report was drafted in 
English. WT/TPR/S/325 • Jordan 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 7 
1   ECONOMIC ENVIRONMENT ........................................................................................ 10  
1.1   Recent Econ omic Developments.................................................................................. 10 
1.2   Monetary and Ex change Rate  Policy ............................................................................ 12 
1.3   Fiscal Policy and Public Debt ....................................................................................... 12 
1.4   Other Measures ........................................................................................................ 13 
1.4.1   Employment issues ................................................................................................ 13 
1.4.2   Busine ss enviro nment ............................................................................................ 13 
1.4.3   Public utilities  and energy strategy ........................................................................... 14 
1.5   Balance of Payments ................................................................................................. 14 
1.6   Developments in Trade .............................................................................................. 15 
1.6.1   Composition of merchandise trade ............................................................................ 15 
1.6.2   Direction of  merchandis e trade ................................................................................ 16 
1.7   Foreign Dire ct Invest ment ......................................................................................... 18 
2   TRADE AND INVE STMENT RE GIME ............................................................................ 20  
2.1   General Constitutional and Institutiona l Framework ....................................................... 20 
2.2   Trade Policy Formulation and Implementation ............................................................... 20 
2.3   Trade Poli cy Objectives ............................................................................................. 22 
2.4   Trade Agreements and Arrangements .......................................................................... 22 
2.4.1   WTO ................................................................................................................... . 22 
2.4.2   Regional and bilateral agreements ............................................................................ 24 
2.4.3   Other preferen tial arrangements .............................................................................. 26 
2.5   Investme nt Regime .................................................................................................. 26 
3   TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 31  
3.1   Measures Direct ly Affectin g Imports ............................................................................ 31 
3.1.1   Customs procedures va luation and rules of origin ....................................................... 31 
3.1.2   Tariffs ............................................................................................................... ... 33 
3.1.2.1   M FN tari ffs .........................................................................................................  33 
3.1.2.2   Tariff preferences ................................................................................................ 37 
3.1.2.3   Tariff exemptions and reductions ........................................................................... 38 
3.1.3   Other charge s affecting imports ............................................................................... 38 
3.1.4   Import prohibitions, restrictions, an d licensing ........................................................... 39 
3.1.5   Continge ncy measures ........................................................................................... 40 
3.1.6   Standards and othe r technical requirements .............................................................. 42 
3.1.6.1   Standards and technical regulations ....................................................................... 42 
3.1.6.1.1   Standardization ................................................................................................ 42 
3.1.6.1.2   TBT notifications .............................................................................................. 43 
3.1.6.1.3   Conformity a ssessment, accr editation ................................................................. 43 
3.1.6.1.4   Labelling and packaging requirements ................................................................. 44 WT/TPR/S/325 • Jordan 
 
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  3.1.6.2   Sanitary and ph ytosanitary re quirements ............................................................... 44 
3.1.7   Governme nt procurement ....................................................................................... 47 
3.1.8   Trade-related investment measures (TRIMs) .............................................................. 49 
3.2   Measures Directly Affecting Exports ............................................................................. 49 
3.2.1   Export procedur es and requirements ........................................................................ 49 
3.2.2   Export fees ...........................................................................................................  49 
3.2.3   Export prohibitions, restrictions, and licensing ............................................................ 50 
3.2.4   Export subsidies, financ e, insurance, an d assist ance ................................................... 51 
3.2.4.1   Export subsidies.................................................................................................. 51 
3.2.5   Other export  support me asures ............................................................................... 52 
3.2.6   Zones ................................................................................................................. . 53 
3.2.6.1   Free zones, development areas, and indust rial estates ............................................. 53 
3.2.6.2   Aqaba spec ial economic zone ................................................................................ 54 
3.2.6.3   Qualifying industrial zones (QIZs) .......................................................................... 54 
3.3   Measures Affectin g Production and Trade ..................................................................... 55 
3.3.1   In centives ............................................................................................................  55 
3.3.2   Tax ...................................................................................................................... 56 
3.3.3   Competition policy and price controls ........................................................................ 58 
3.3.3.1   Competition policy .............................................................................................. 58 
3.3.3.2   Pric e contro ls ..................................................................................................... 59 
3.3.4   State-owned enterprises, privatization and state tr ading.............................................. 61 
3.3.4.1   SOEs and pr ivatization process ............................................................................. 61 
3.3.4.2   St ate trad ing ...................................................................................................... 62 
3.3.5   Intellectual property rights ...................................................................................... 63 
3.3.5.1   Overview ........................................................................................................... 63 
3.3.5.2   Patents .............................................................................................................. 65 
3.3.5.3   Copyright ........................................................................................................... 65 
3.3.5.4   Trademarks ........................................................................................................ 66 
3.3.5.5   Enforcement of intellectual property rights .............................................................. 66 
4   TRADE POLICIES BY SECTOR ..................................................................................... 68  
4.1   Agriculture ............................................................................................................. . 68 
4.1.1   Overview ..............................................................................................................  68 
4.1.2   Trade ................................................................................................................. .. 69 
4.1.3   Agriculture policies ................................................................................................. 71 
4.1.3.1   Trade ............................................................................................................... . 73 
4.1.3.2   Price-related measures ........................................................................................ 73 
4.1.3.3   WTO notifica tions ................................................................................................ 73 
4.2   Mining and Energy .................................................................................................... 75 
4.2.1   El ectricity ........................................................................................................... .. 76 
4.2.2   Petroleum refining and distribution sector .................................................................. 80 WT/TPR/S/325 • Jordan 
 
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  4.2.3   Alternativ e energy sources ...................................................................................... 80 
4.2.4   Minerals, oil and natural gas .................................................................................... 81 
4.2.4.1   Mineral extrac tion and manuf acturing .................................................................... 81 
4.2.5   Oil and natural gas ................................................................................................. 84 
4.3   Services ................................................................................................................ .. 84 
4.3.1   Financial services ................................................................................................... 84 
4.3.1.1   Banking sector .................................................................................................... 84 
4.3.1.2   Insu rance se ctor ................................................................................................. 87 
4.3.1.3   Capital market .................................................................................................... 89 
4.3.2   Telecommunications ............................................................................................... 91 
4.3.3   Transport .............................................................................................................  94 
4.3.3.1   Air transport ....................................................................................................... 94 
4.3.3.2   Road  transport ................................................................................................... 96 
4.3.3.3   Ra il transp ort ..................................................................................................... 98 
4.3.3.4   Mariti me tran sport .............................................................................................. 99 
4.3.4   Tourism .............................................................................................................. 100  
REFERENC ES ................................................................................................................ 104  
5   APPENDIX TABLES .................................................................................................. 107  
 
CHARTS 
 
Chart 1.1 Product composition of merchandise trad e, 2008 an d 2014 ...................................... 17 
Chart 1.2 Direction of merchandise trade, 2008 and 2014 ...................................................... 18 
Chart 1.3 Foreign Direct  Investment  2008- 14 ...................................................................... 19 
Chart 3.1 Breakdown of applied MFN tariffs, 2015 ................................................................. 36 
Chart 3.2 Simple average tariffs for applied MFN and FTAs, 2015 ............................................ 37 
Chart 3.3 Share of duty  free lines (%), 2015 ....................................................................... 37 
Chart 4.1 Support for agriculture 2005-12 (without inflation adjustment) ................................. 74 
Chart 4.2 Green Bo x Support 2005-12 ................................................................................ 74 
Chart 4.3 Amber Box Support 2005-12 (without inflation adjustment and including 
de minimis) ................................................................................................................... . 75 
 
TABLES 
 
Table 1.1 Selected economic indicators, 2008-14 .................................................................. 10 
Table 1.2 GDP by sector, 2008-1 4 ...................................................................................... 11 
Table 1.3 Balance of payments, 2008-14 ............................................................................. 14 
Table 2.1 Main trade and investment-related legislation issued/amended/revised since 
2008.. ............................................................................................................................ 21 
Table 2.2 Jordan's notifications under the WTO Agreements, 2008 - Augu st 2015 ..................... 22 
Table 2.3 Overview of Jordan's Regional  and Bilateral Trade Agreements, 2015 ........................ 24 
Table 2.4 FDI Re strictions ................................................................................................. 28 WT/TPR/S/325 • Jordan 
 
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  Table 3.1 Summary of procedures and do cuments for trading across bord ers, 2015................... 32 
Table 3.2 Jordan's rules of origin ........................................................................................ 33 
Table 3.3 Structure of MFN ta riffs in Jordan , 2008 and 2015 .................................................. 34 
Table 3.4 Jordan's applied MFN tariff summary, 2015 ............................................................ 35 
Table 3.5 Non- ad valorem  MFN ta riffs ................................................................................. 36 
Table 3.6 Revenue from customs duties and services allowances, 2008-14 ............................... 38 
Table 3.7 Services fees ..................................................................................................... 38 
Table 3.8 Goods subject to import prohib ition, 2015 ............................................................. 39 
Table 3.9 Safeguard notifica tions, 2008 – Au gust 2015 ......................................................... 41 
Table 3.10 Risk assessment system .................................................................................... 44 
Table 3.11 Notifications of sanitary and phytosanitary measures, 2008–August 2015 ................. 46 
Table 3.12 Public procurement institution and legislation ....................................................... 48 
Table 3.13 Export  fees, 2015 ............................................................................................. 49 
Table 3.14 Export licensing arrangement ............................................................................. 51 
Table 3.15 Export subsidies in the form of in come tax exemptions on export profits,   
2006-1 4 ....................................................................................................................... .. 52 
Table 3.16 Free zones, expo rts and import s, 2008 -13 ........................................................... 53 
Table 3.17 Textile exports from Jordan - und er the QIZs and under  the FTA,  2010-14 ............... 55 
Table 3.18 Revenues, taxes and expenditur es, 2009 -13 ........................................................ 56 
Table 3.19 Special sales tax .............................................................................................. 57 
Table 3.20 Competition poli cy: key charac teristics ................................................................ 58 
Table 3.21 Cases studied by the Co mpetition Direct orate, 2009-14  ......................................... 59 
Table 3.22 Goods subject to price controls, 2015 .................................................................. 60 
Table 3.23 Subsides to maintain price controls on fuel and food, 2008-14  ................................ 60 
Table 3.24 Selected large public undertakings with significant public holdings at December 
2014.. ............................................................................................................................ 62 
Table 3.25 IPR legislative framework, and inte rnational conventions ratified by Jordan ............... 63 
Table 3.26 Patent applications and patents gran ted, 2009- 14 ................................................. 65 
Table 3.27 Cases initiated by the Copyright Of fice, 2009 -14 ................................................... 66 
Table 3.28 Trademark applications, regi strations, and re jections, 2009-13 ............................... 66 
Table 4.1 Value of production of liv estock products an d crops, 2000-12 ................................... 68 
Table 4.2 Production volumes 2000-13 ............................................................................... 69 
Table 4.3 Exports of agricultural products, 20 09-14 and share of total agricultural exports 
in 2014 ....................................................................................................................... ... 70 
Table 4.4 Main export markets for Jordanian to matoes, 2008-14  ............................................ 70 
Table 4.5 Imports of agricultural products, 2009-14 .............................................................. 71 
Table 4.6 Primary energy consumption by source 2009-14 ..................................................... 75 
Table 4.7 Electricity tariffs ................................................................................................. 77 
Table 4.8 Exports of selected mineral products including metals and petroleum, 2008-14 
and share of the sector's  total export s in 2014 ..................................................................... 81 
Table 4.9 Overview of the mineral industry: selected commodities in '000 metric tonnes 
unless otherwise specified ................................................................................................. 83 WT/TPR/S/325 • Jordan 
 
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  Table 4.10 Jordan's financial system struct ure, 2008 -14 ........................................................ 85 
Table 4.11 Credit facilities by  economic acti vity, 2008- 14 ...................................................... 86 
Table 4.12 Insurance premiu ms collected, 2009-12 .............................................................. 88 
Table 4.13 Selected indicators of the Amman Stock Ex change, 2008-14................................... 91 
Table 4.14 Telecommunicati ons indicato rs, 2008- 14 ............................................................. 92 
Table 4.15 Charges for the use of civil airpor ts (2015) .......................................................... 95 
Table 4.16 Air traffic by aircraft, and nu mber of passengers  in '000,  2011-14 ........................... 96 
Table 4.17 Tourism sector  overview, 2008-14 .................................................................... 101  
Table 4.18 Arrivals by nationality, group, and means of transport, 2011-14 ............................ 101  
 
BOX 
 
Box 4.1 National Strategy 2004-10 and goals set for the National Strategy 2011-15 ................ 103  
 
APPENDIX TABLES 
 Table A1.1 Merchandise exports by produc t group, including re -exports, 2008-14 ................... 107
 
Table A1.2 Merchandise imports by product grou p, 2008-1 4 ................................................ 108  
Table A1.3 Merchandise exports by destin ation, including re -exports, 2008-14 ....................... 109  
Table A1.4 Merchandise imports by origins, 2008-14 ........................................................... 110  
 
Table A3.1 Major incentives schemes in Jo rdan, 2015  ......................................................... 111  
 
Table A4.1 Bilateral Air Services Agreements ..................................................................... 113  
 WT/TPR/S/325 • Jordan 
 
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  SUMMARY 
1. At the time of the last Trade Policy Review of Jordan in November 2008, Jordan was affected 
by the ongoing unrest in Iraq and the onset of the global financial crisis and, since 2011, it has been affected by the civil war in Syria. The comb ined effect of these factors has disrupted trade, 
reduced investment, and greatly increased the nu mber of refugees in the Kingdom. However, 
despite these problems, the economy has been ve ry resilient and economic growth averaged 
nearly 3.5% annually from 2008 to 2014 and imports and exports of both goods and services have 
increased. 
2. Jordan has a deficit in trade in goods, with exports of US$8.4 billion and imports of 
US$22.7 billion in 2014, but it has a surplus in trade in services plus remittances from Jordanians 
working abroad which reduce the deficit on the current account to US$2.4 billion, although this 
fluctuates from one year to the next. The ma in exports are chemicals (which are mainly 
phosphate-based fertilizers) and the main services-related inflows are workers' remittances and travel. 
3. Over the past seven years, Jordan has been actively working to increase its network of 
regional trade agreements with those with Cana da and Turkey coming into force in 2012 and 2011 
respectively. In addition, full implementation of several agreements already in force in 2008 was 
completed (EFTA in 2014, the EU in 2013, Singapore in 2014, and the United States in 2010). 
However, as Jordan exports are concentrated in a relatively narrow range of goods, the initial 
benefits of these agreements have been limited. 
4. To simplify business procedures and improve investment climate, a number of trade and 
investment related legislation was revised or amended, including the Customs Law (amended in 
2012), Investment Law (2014), Income Tax Law (2014), Competition Law (2011), and Public-Private-Partnership Law (2014). In particular, under the Investment Law No. 30 of 2014 all the 
government agencies responsible for different aspects of investment were brought under one 
agency, which has simplified investment proced ures. However, although foreign and domestic 
investors are treated equally in most ways, differences remain in restrictions on land ownership, 
minimum capital requirements, and some sectors have foreign equity restrictions of 49-50% 
(including construction, wholesale and retail trade, international trade, and several services sectors). Furthermore, foreign investment is prohibited in a number of areas including road transport, and real estate services. 
5. Customs procedures have changed significantly since 2008 with the introduction of single-
window procedures starting in 2009, full im plementation of ASYCUDA WORLD in 2010, and 
improvements to the system of preferred operators.  As a result, the time and cost (in real terms) 
of importing and exporting have been reduced.  On the other hand, applied tariffs have not 
changed greatly since 2008 with th e 2015 simple average of 10% - although they still remain 
below the bound rates which have a simple averag e of 16%. Agricultural products have both the 
highest tariffs (average 17%) and the greatest variation (standard deviation 27), with particularly 
high rates of up to 200% for some products in the category of beverages, spirits, and tobacco. 
Import prohibitions and non-automatic licensing are applied mainly for health, safety, security, or environmental reasons, to implement UN Security Council resolutions, or to protect public order 
and morals, and the conservation of natural resources.  
6. The laws relating to standards, technical regu lations, and conformity assessment procedures 
were not changed during the review period although, as at end-August 2015, amendments were 
waiting for approval by the Senate. These amendmen ts are designed to clarify the responsibilities 
of economic operators and to introduce a conformity mark. Only about 50% of Jordanian standards are equivalent to international standards although, in some cases, this is because there 
are no applicable international standards. 
7. Jordan is an observer to the Agreement on Government Procurement. Different systems of 
government procurement are applied by different  government agencies and regulated under a 
number of laws, which makes the overall situation complicated. Furthermore, foreign equity 
restrictions on construction and contracting firms also act to limit access to government 
procurement contracts. WT/TPR/S/325 • Jordan 
 
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  8. Export fees are applied to exports of a range of mining and quarrying products, 
manufacturing products, and agricultural products. Export restrictions are applied only to meet international obligations. An exemption from income tax on profits generated from exports was to be phased-out by end-2015, but Jordan has requested an extension to the phase-out period on the 
grounds that the industrial sector needs more time to adjust to the ongoing regional crises which 
have affected the cost of doing business. 
9. The complex systems of free zones, develo pment areas, and industrial estates was 
simplified by a 2010 amendment to the Development Areas Law which merged the administration 
of these zones into a single agency, the Jordan Investment Commission, while the Aqaba Special Economic Zone remains under a separate authority. Different zones provide a variety of incentives for investment including reduced fiscal and customs requirements and relaxed ownership 
restrictions. The use of Qualifying Industrial Zones has declined to a residual level. QIZs were set 
up to support exports of goods to the United States produced in Jordan and Israel, but manufacturers now find it easier to export to the US market under the Jordan-United States free 
trade agreement. 
10. Since 2011, the Government has liberalized prices for most bakery products.  However, the 
Ministry of Industry, Trade and Supplies is responsible for importing and purchasing domestically 
produced wheat and barley which it supplies to domestic bakeries. Flour for bread is sold to 
bakeries at subsidised prices and bread made from this flour is sold to consumers at fixed prices. Price controls are also applied to electricity, water, car insurance, postal services and public transport services. 
11. The State privatised a number of state-owne d enterprises under the Privatisation Law of 
2000. This Law was appealed and replaced in 2014 by the Public-Private-Partnership Law. A number of undertakings remain under public ownership, among these some utilities enterprises, 
such as the National Electrical Power Company (NEPCO), make significant losses which add to the 
fiscal deficit. 
12. Jordan submitted its instrument of accept ance of the Protocol Amending the TRIPS 
agreement in 2008, and notified the adoption of implementing legislation which incorporated the 
Paragraph 6 System into domestic law in 2013. Since 2008, Jordan has amended a number of IPR 
related legislation such as those related to trademarks and copyrights. Although Jordan has a comprehensive set of laws on intellectual proper ty, enforcement is recognized as a problem which 
is being addressed through training and public awareness campaigns. 
13. Agriculture represents a relatively small part of Jordan's economy and faces many 
constraints relating to the dry climate, lack of irrigation water, and small size of farms. Although 
Government policy stresses the importance of efficient use of water, irrigation for agriculture 
accounts for over two thirds of water used in Jordan and water is supplied to agricultural producers at prices that do not cover the cost of supply. Production of wheat and barley are also supported 
through minimum prices which vary from one year to another, while sheep and goat producers get 
subsidised feed barley.  
14. Electricity production in Jordan was affected by the end of natural gas supplies from Egypt, 
which were responsible for 80% of electricity, and replaced by higher priced oil. The State is 
extensively involved in the electricity sector through full or partial ownership of several generating 
plants, and full ownership of NEPCO which owns and operates the transmission network. In 2014 
NEPCO bought electricity at an average price of US$0.20 per kWh and sold it for an average price 
of US$0.15 per kWh and had accumulated government guaranteed losses of JD 4.6 billion, which 
are government guaranteed. In response to these losses a new Government strategy is overhauling the electricity tariff system, seeking cheaper sources of energy, limiting demand, and 
reducing line losses. 
15. Jordan's main goods export is potash and potash-related products like fertilizers. The mostly 
state-owned Jordan Phosphate Mines Company Ltd has exclusive rights for mining phosphate, the state-owned National Petroleum Company has exclusive rights for natural gas and crude oil, and 
the partly state-owned Arab Potash Company has exclusive rights to exploit, manufacture and 
market mineral resources from the Dead Sea. Exploration and exploitation rights in other areas are WT/TPR/S/325 • Jordan 
 
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  open to private companies, including foreigners  through agreements with the Natural Resource 
Authority or, since 2014, the Energy an d Minerals Regulatory Commission. 
16. Despite the turmoil in some neighbouring countries and the impact on Jordan's economy, 
the financial sector remains stable, efficient, and profitable. Furthermore, competition has 
increased as three new banks were granted licences in 2009 while the Central Bank of Jordan has 
continued to develop regulations and improve prudential requirements. 
17. As home to many religious and cultural sites, tourism is very important to the economy and 
employment. Although receipts from tourism increased considerably from 2011 to 2014 the 
number of tourist arrivals declined slightly over the same period. Furthermore, in the first quarter of 2015 both receipts and arrivals fell sharply due to the escalating crises in Syria and Iraq. 
18. Before and during the period under review Jo rdan has been affected by severe exogenous 
shocks that have led to large numbers of refugees fleeing to Jordan, disrupted trade routes, and 
affected inward investment. Despite these problems, Jordan has maintained an open economy with the value of trade in goods and services (imports and exports) greater than GDP, the 
economy has grown and reforms to improve the trade and investment climate have continued. 
Although many state-owned enterprises were privatised in the 1990s and early 2000s, the state continues to own or control several important enterprises, some of which make losses, particularly 
the electricity and water companies. These losses, al ong with the cost of bread subsidies, impose a 
considerable fiscal burden. The authorities are taki ng steps to reduce the burden and improve the 
efficiency of support to low-income households wh ich they have done already in other areas, by 
replacing fuel subsidies with direct income support. Other areas which may deserve attention by 
the authorities include the foreign ownership and investment restrictions and equity requirements 
that affect investment in  different sectors and may reduce foreign investment. 
 WT/TPR/S/325 • Jordan 
 
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  1  ECONOMIC ENVIRONMENT 
1.1  Recent Economic Developments 1.1.  Jordan's economy has proved to be resili ent in a difficult environment. Real GDP growth 
averaged over 3.7% annually between 2008 and 2014 (T able 1.1), and is projected to be around 
4% in 2015.
1 Jordan's economy was able to grow despite facing adversities and a drain on its 
resources arising from the regional crises, an influx of refugees from Syria and Iraq, the global financial crisis, disruption of the natural gas supply from Egypt, and strikes in the potash and 
phosphate producing plants. 
Table 1.1 Selected economic indicators, 2008-14 
 2008 2009 2010 2011 2012 2013 2014 
Nominal GDP (JD million)a 15,593  16,912  18,762  20,477  21,965 23,852 25,437  
Nominal GDP (US$ million)a 21,962  23,820  26,425  28,841  30,937 33,594 35,827  
GDP growth rate at constant 1994 prices 7.2  5.5 2.3 2.6 2.7 2.8 3.1  
Population (in millions) 5.9 6.0 6.1 6.2 6.4 6.5 6.7 
GDP per capita at current market prices (US$) 3,722  3,970  4,332  4,652  4,834 5,168 5,347  
Unemployment (%) 12.7 12.9 12.5 12.9 12.2 12.6 .. 
Inflation (CPI, % change) 13.9  -0.7 4.8 4.2 4.5 4.8 ..  
GDP by type of expenditure at current pricesb (% of GDP)  
Private final consumption expenditure 79.5  75.0 75.4 85.9 .. .. ..  
Government final consumption expenditure 21.6 21.9 20.3 19.1 .. .. .. 
Gross fixed capital formation 27.9  25.2 23.6 21.6 .. .. ..  
Change in stock 2.0 1.1 1.9 1.6 .. .. .. 
Exports of goods and services 56.5  45.9 47.8 45.6 .. .. ..  
Imports of goods and services 87.5 69.1 69.0 73.9 .. .. .. 
 (% of GDP, unless otherwise indicated) 
Public Finance        
Total revenues and grants 32.7  26.7 24.9 26.4 23.0 24.1 28.6  
   Domestic revenues 28.1 24.8 22.7 20.5 21.5 21.5 23.7 
      Tax revenues 17.7  17.0 15.9 15.0 15.3 15.3 15.9  
   Foreign grants 4.6 2.0 2.1 5.9 1.5 2.7 4.9 
Total expenditures 34.8  35.7 30.4 33.2 31.3 29.7 30.9  
Deficit/Surplus including grants  -2.2 -8.9 -5.6 -6.8 -8.3 -5.5 -2.3 
Deficit/Surplus excluding grants  -6.8 -10.9  -7.7 -12.7  -9.8 -8.2 -7.2  
Central government gross domestic debt 36.9 41.9 42.5 48.8 57.7 56.3 57.5 
Net domestic debt of Central Governmentc 31.5 34.2 36.5 43.5 53.0 49.7 49.2  
External Sector        
JD /US$ (annual average) 0.7  0.7 0.7 0.7 0.7 0.7 0.7  
Real effective exchange rate (end of period, 
2005=100) .. .. .. .. 108.7 111.4 .. 
     % change (+=appreciation; end of period) ..  .. .. .. 1.6 2.5 ..  
Current Accountd -9.3 -5.2 -7.1 -10.2  -15.2 -10.3 -6.8 
Merchandise exports (% change)d, e 38.6 -19.6  10.2 13.9 -1.5 0.3 6.0  
Merchandise imports (% change)d, e 24.1 -16.3  9.3 21.7 9.5 6.1 3.2 
Service exports (% change)d, e 30.4 -1.6 22.1 0.2 11.9 -1.0 12.0  
Service imports (%change)d, e 17.4 -7.4 15.8 1.3 1.5 1.5 0.02 
Outstanding external public debt (US$ billion) 5.1  5.4 6.5 6.3 6.9 10.2 11.3  
   As a share of GDP 23.3 22.9 24.6 21.9 22.5 30.3 31.6 
Gross Official Reserves (US$ billion) 7.7  10.9 12.2 10.5 6.6 12.0 14.1  
   Coverage of prospective imports of goods and non-
factor services (in months) 6.1 7.8 7.3 5.9 3.5 6.2 7.3 
.. Not available. 
a Preliminary figures 2010-2014. 
b Preliminary figures 2008-2011. c Represents gross domestic debt  minus gross government's deposi ts with the  banking system. 
d Preliminary figures 2009-2014. e Based on current prices. 
Source: Department of Statistics, Jordan Statistical Yearbook 2013; online information from Department of 
Statistics. Viewed at: http://web.dos.gov.jo/sectors/national-account/?lang=en ; Central Bank of 
Jordan, Monthly Statistical Bulletin and Statistics Database. Viewed at:  
 http://www.cbj.gov.jo/index.php ; Central Bank of Jordan, Annua l Report (2013); and IMF Country 
Report No. 14/324, December 2014. 
                                               
1 IMF Country Report No. 14/324 December 2014. WT/TPR/S/325 • Jordan 
 
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  1.2.  In the 2008-14 period, economic growth was driven by tourism, distribution, and related 
services (wholesale and retail trade, restaurants and hotels, and transport, storage and communications), and to a lesser extent by mining and quarrying, construction, and financial services (Table 1.2). As a result of the expansion, GDP per capita rose from approximately 
US$3,800 in 2008 to nearly US$5,400 in 2014. 
Table 1.2 GDP by sector, 2008-14 
 2008 2009 2010 2011 2012 2013 2014 
Share of GDP at current basic prices (%)a        
Sectors        
   Agriculture, hunting, forestry and fishing 2.7  3.1 3.4 3.3 3.1 3.4  3.8 
   Mining and quarrying 6.0 3.7 3.8 4.5 3.7 2.7 3.0 
   Manufacturing  21.0  20.1 19.2 19.4 18.8 19.4  19.0 
   Elect ricity and wate r 1.8 2.4 2.3 2.3 2.5 2.5 2.6 
   Construction 5.0  5.9 5.5 4.9 5.0 5.1  5.1 
   Services 47.1 46.5 47.6 47.1 48.3 48.8 48.6 
       Wholesale & retail trade, restaurants and hotels  10.8 10.7 10.5 10.3 10.7 10.9  10.9 
       Transport, storage & communications 13.2 13.4 13.9 13.5 13.7 13.8 13.3 
       Finance, insurance, real estate and business services  18.9 18.2 19.1 19.4 19.9 20.0  20.2 
       Community, social and personal services 4.2 4.2 4.1 3.9 4.0 4.1 4.2 
Producers of government services 20.8  23.1 22.8 22.9 23.2 23.0  22.7 
Producers of private non-profit services to households  0.6 0.6 0.6 0.6 0.6 0.6 0.6 
Domestic services of households 0.4  0.4 0.3 0.3 0.3 0.3  0.3 
Less:  Imputed bank service charges 5.4 5.6 5.4 5.2 5.6 5.8 5.7 
Annual growth rate of GDP by economic activity at constant 1994 prices (%)a 
Sectors        
   Agriculture, hunting, forestry and fishing 8.6  12.8 6.9 3.9 -9.4 -3.5  7.5 
   Mining and quarrying 35.8 -46.0  19.5 17.7 -17.1 -11.0  27.7 
   Manufacturing 5.1  2.0 2.0 4.0 2.3 1.9  1.5 
   Electricity, gas and wate r -5.4 15.3 -2.5 5.1 6.7 0.8 3.3 
   Construction 13.4  13.2 -4.6 -4.3 -0.9 8.7  6.8 
   Services 8.7 3.2 4.3 3.3 5.2 3.9 2.7 
       Wholesale & retail trade, restaurants & hotels  9.9 3.9 -1.7 3.7 6.8 3.2  3.8 
       Transport, storage & communications 2.3 1.9 5.2 3.3 4.1 3.9 1.6 
       Finance, insurance, real estate and business services  13.2 2.3 7.0 3.4 5.2 4.0  2.5 
       Community, social and personal services 9.5 10.2 4.3 2.0 5.9 5.7 4.7 
Producers of gove rnment services 2.2  1.8 4.0 3.3 3.0 2.4  2.3 
Producers of private non-profit services to households  -11.3  6.0 1.2 -0.2 3.2 6.2 7.0 
Domestic services of households 6.3  7.7 5.1 4.0 0.6 0.0  0.2 
GDP at basic prices 6.6 2.1 3.4 3.3 2.5 2.8 3.2 
a Preliminary figures 2010-2014. 
 Source: Department of Statistics, Jordan Statistical Yearbook 2013; and online information from Department 
of Statistics . Viewed at: http://web.dos.gov.jo/sectors/national-account/?lang=en . 
1.3.  Trade continues to play a vital role in Jordan's economy as imports and exports of goods and 
non-factor services was the equivalent of 112% of  GDP in 2014, although this represents a decline 
from around 141% in 2008. The decline can be expl ained to some degree by a fall in the share of 
exports in GDP due to a disruption of trade routes (Syria and Iraq), as well as the composition of 
Jordan's exports. Exports are highly concentrated with food, mining, and chemicals (mainly 
fertilizer) accounting for nearly 60% of total exports; even slight changes in global factors concerning these products can have significant implications for Jordan's trade. 
1.4.  Jordan has a population of about 7 million. Despite the decline in the population growth rate, 
Jordan suffers from chronic unemployment and low labour force participation rates (36.6%), particularly among women (12.7%). Furthermore, nearly 15% of the population lives below the 
poverty line. The unemployment situation is further aggravated by the large influx of refugees 
from neighbouring countries which poses a challenge to Jordan's growth prospects. 
1.5.  Another factor affecting economic growth and poverty alleviation is the weak fiscal position, 
which is exacerbated by the large losses incurred by public utilities in the electricity and water 
sectors. Instability and conflict in Syria and Iraq have affected Jordan, and particularly investor 
sentiment. Furthermore, the cost of doing business is high, sometimes for domestic rather than external reasons: according to the World Bank's Doing Business Report, Jordan is ranked 117
th out WT/TPR/S/325 • Jordan 
 
- 12 - 
 
  of 189 economies with particularly low rankings for getting credit, protecting minority investors, 
resolving insolvency, and dealing with construction permits.2 
1.6.  The authorities have taken some remedial measures, including some structural changes 
which have been incorporated as performance criteria under the IMF's current Stand-by 
Arrangement with Jordan.3 Initiatives undertaken include: fiscal consolidation coupled with reform 
of public sector enterprises; improving the bu siness climate; reforming and restructuring the 
energy and power sectors; and labour market reform. The Jordan Vision 2025 Strategy , states 
that: "Jordan 2025 charts a path for the future and determines the integrated economic and social 
framework that will govern the economic and soci al policies based on providing opportunities for 
all."4 The strategy focuses on improving infrastructure, enhancing education and health services 
and strengthening the role of the private sector and civil society institutions to achieve its 
objectives. 
1.2  Monetary and Exchange Rate Policy 1.7.  Under the provisions of the Central Bank of Jordan Law (No. 23/1971), the Central Bank of 
Jordan (CBJ) is mandated to conduct monetary policy in Jordan. Under the Law, the CBJ is an 
independent and autonomous body, although its ca pital is totally owned by the Government. The 
objectives of the CBJ are to maintain monetary stability (price stability for goods and services, and 
an appropriate interest rate structure), to maintain exchange rate stability, to ensure the 
convertibility of the Jordan dinar (JD), and to help promote sustained economic growth. 
1.8.  The Jordanian dinar is fully convertible and, since 23 October 1995, has been linked to the 
U.S. dollar at a fixed exchange rate of 1 JD to US$1.41. 
1.9.  During 2014, the CBJ cut interest rates twic e, by a cumulative 75 basis points from 3.75% 
and 3.5% for the weekly repo rate and overnight window facility respectively. According to the 
authorities, this accommodative stance was prompted by a relatively benign inflationary 
environment, continued positive momentum in the economy (including a strong external position 
and a shrinking fiscal deficit), and the need to stimulate spending. 
1.10.  Under this backdrop, the CBJ is ready to adjust monetary policy as required to meet its 
objectives. The exchange rate peg will continue to  be the anchor of monetary policy, with the CBJ 
continuing to focus on limiting inflationary pr essures and sustaining the attractiveness of JD-
denominated assets. Furthermore, to maintain an appropriate level of international reserves, the CBJ is committed to using all policy instruments at its disposal. 
1.11.  Inflation, as measured by the consumer price index (CPI), declined from a high of nearly 
14% in 2008 to probably under 3% in 2014. The decl ine has come about due to falling food and oil 
prices. However, core inflation has been over 5% reflecting increased demand by refugees.
5 The 
authorities expect pressures on core inflation to subside resulting in overall CPI falling below 2% in 
2015. 
1.3  Fiscal Policy and Public Debt 
1.12.  Jordan has been running persistent fiscal deficits during the review period. The deficit 
exceeded 8% of GDP in both 2009 and 2012, but fell to 2.3% of GDP in 2014. Consequently, government debt as a proportion of GDP has ri sen from about 55% in 2008 to nearly 80% in 
2014. 
1.13.  Since 2009, total revenues and grants as a proportion of GDP have increased modestly 
while tax revenue as a proportion of GDP has declined. In contrast, total expenditures as a 
                                               
2 World Bank (2015), Doing Business 2015: Going Beyond Efficiency, Washington D.C.: World Bank. 
DOI: 10.1596/978-1-4648-0351-2. License: Creative Commons Attribution CC BY 3.0 IGO. 
3 IMF Country Report 14/324 December 2014. 
4 Jordan Vision 2025: information provided by the authorities. 
5 Core inflation is defined as the CPI excluding food, “fuels and lighting” and tr ansportation. Food prices 
are excluded because most of these items are imported and accordingly are mainly affected by international 
prices. The same goes for “fuels and lighting” and transp ortation because they are largely affected by energy 
prices. WT/TPR/S/325 • Jordan 
 
- 13 - 
 
  proportion of GDP has shown a more pronounced decline. Measures taken by the authorities to 
continue this declining trend in spending included, inter alia : abolishing the politically-sensitive fuel 
subsidy; and curtailing public sector wage expenditure. 
1.14.  The 2015 budget reflects a more ambitious fiscal consolidation, targeting a 2.5% of GDP 
reduction in the overall public deficit. Most of the measures to achieve this target have already 
been adopted. On the spending side, these includ e imposing a cap on the wage bill and reducing 
food subsidies.6 The new Income Tax Law, which entered into force on 1 January 2015, raised tax 
rates, reduced the basic exemption allowance, and introduced a tax on the foreign branches of 
Jordanian companies.7 Additionally, petroleum excise revenue, which had previously been 
earmarked for extra-budgetary trust accounts will now be transferred to the budget resulting in a 
revenue gain of 0.7% of GDP. 
1.15.  With respect to fiscal consolidation, th e authorities are modernizing the system of tax 
administration, particularly for the General Sales Tax (GST) which applies to value added by a business with refunds of GST paid on inputs (section 3.3.2). The Central Refund Unit was given 
increased powers to coordinate the audit of refund  claims. Furthermore, Jordan is working towards 
establishing a proper taxpayer database. All GST re fund claims are to be submitted electronically 
to the Income and Sales Tax Department the list of their transactions from the previous year, in 
line with international best practice. The stock of tax arrears between collectable and non-
collectable has been defined, with the former esti mated at about JD 300 million and is expected to 
be collected within five years. Additionally, the Income and Sales Tax Department has completed an extensive database with information on households’ income, expenditure, and wealth, which 
will help assess the focus for financial help. A committee has also been established to address the 
health fund arrears and better target the coverage  of medical treatment. In this connection, the 
authorities plan to use savings in current spending to expedite the clearance of arrears. 
1.4  Other Measures 
1.4.1  Employment issues 1.16.  With a view to addressing chronic unem ployment the authorities launched the National 
Employment Strategy (NES) in 2012. The strate gy focuses on reducing skills mismatches, 
changing public sector hiring and compensation policies, and harnessing the employment potential 
of women. Initiatives under the NES include upgr ading vocational training programs to more 
closely match private sector needs; carrying out several job matching campaigns; giving financial 
incentives to export-oriented firms in the qualified industrial zones to build factories in villages and 
rural areas and hire from the large pool of unemployed females there; and establishing affordable and reliable day-care for children to boost female labour market participation in the private sector. 
1.17.  With the aim of reducing youth unempl oyment the Government started the Jordan Job 
Compact initiative to assist unskilled, semi-skilled and skilled youths to find jobs through a combination of training, stimulus packages to em ployers, and small and medium enterprise (SME) 
finance. 
1.4.2  Business environment 1.18.  With a view towards improving the busi ness environment, reducing the cost of doing 
business and increasing transparency, a new Investment Law was enacted in 2014. 
1.19.  The Law provides for streamlined procedures and creates a one-stop shop for investors, 
with increased delegated powers to act as the sole and impartial reference point for all 
                                               
6 The wage bill will be capped at JD 1.4 billion (savings of JD 71 million or 0.3% of GDP). The food 
subsidy will also be reduce d by signing forward contracts for buying wh eat, locking in the currently low prices 
(both measures yielding savings of JD 62 million or 0. 2% of GDP). The authorities are also streamlining the 
administration of the food subsidy, which is expected to reduce waste and abuse. 
7 The authorities expect the new Income Tax Law to increase revenue by 0.3% of GDP in 2015 and by 
0.6% of GDP from 2016 onward. In particular, the Law br ought the corporate income tax and personal income 
tax rates more in line with Jordan's regional peers; br oadened the corporate income base by taxing at 10% of 
the net income generated by branches of Jordanian companies working outside the country; and introduced stronger penalties to im prove tax enforcement. WT/TPR/S/325 • Jordan 
 
- 14 - 
 
  administrative procedures related to foreign an d domestic investment, streamlining procedures 
and reducing lags for getting permits and licenses. The Law also allows the Government to grant exemptions from a variety of taxes and fees for new investments. In addition, a Public-Private-
Partnership Law was also enacted in 2014 to encourage private sector investment in public sector 
infrastructure projects and strengthen public  investment planning and implementation. The 
authorities are also in the process of amending the law regulating the Anti-Corruption Commission 
to make it more effective, shifting from ex-ante to ex-post auditing, and aligning the role of the 
external auditor with international best practice. To allow people and businesses to actively 
participate in reforms, all draft laws and by-laws will be published on the Legislative and Opinions Bureau website for a minimum of 10 days for comments before Cabinet approval. 
1.4.3  Public utilities and energy strategy 
1.20.  To mitigate the effects of the disruption  in gas supply from Egypt, which resulted in 
significant losses at the National Electrical Power Company (NEPCO), which in turn had to be financed through the budget, the authorities initia ted an energy policy focused on diversifying the 
energy mix. In this regard, a liquefied natural gas (LNG) terminal in Aqaba was expected to have 
become operational by mid-2015, and LNG supply is  expected to double within the next three 
years. Renewable energy plants are also expected to start operations in 2016 to ease energy 
supply constraints. Coupled with the planned tariff increases, these efforts are designed to help 
NEPCO achieve cost recovery by 2018. 
1.21.  Jordan is one of the most water-poor countries in the world, and is becoming increasingly 
dependent on expensive non-conventional water resources. Tariffs cover only about two thirds of 
the costs of the water companies, which run an  aggregate loss of about 1% of GDP per year. 
There are inefficiencies in revenue collection, high operation and maintenance costs, and high technical losses (estimated at about 40%). The authorities were expected to develop a reform plan 
for the sector. 
1.5  Balance of Payments 1.22.  During the period under review, Jordan's current account deficit was 9.3% of GDP in 2008 
(US$2.1 billion), and 6.8% of GDP in 2014 (US$2.4 billion) but it has changed significantly from 
year to the next during this period, from as low as 5.2% of GDP in 2009 to over 15% of GDP in 2012 (Table 1.1 and 1.3). 
Table 1.3 Balance of payments, 2008-14 
(US$ million) 
  2008 2009a 2010a 2011a 2012a 2013a 2014a 
Current account -2,055.3  -1,245.3  -1,884.8  -2,960.2  -4,718.3  -3,466.9  -2,440.6  
Trade balance (net) -7,171.2  -6,274.8  -6,803.7  -8,831.7  -10,559.4  -11,664.5  -11,814.1  
   Exports, f.o.b., o/w: 7,945.0  6,384.1  7,038.2  8,017.6  7,897.7 7,923.7 8,397.2  
        Non-monetary gold 82.1 237.4  200.4  263.3  142.9 15.2 1.0 
   Imports, f.o.b., o/w: 15,116.2  12,658.8  13,841.9  16,849.4  18,457.1 19,588.2 20,211.3  
        Non-monetary gold 153.6  22.8 14.2 31.3 45.1 523.1 545.1  
Services account 636.2  869.7  1,306.3  1,263.8  1,879.1  1,747.8  2,511.7  
   Travel (net) b 1,941.0  1,849.6  2,016.2  2,267.3  2,922.0 3,025.0 3,238.2  
        Receipts 2,945.7  2,915.1  3,590.0  3,429.5  4,067.1 4,122.7 4,381.7  
        Payments 1,004.7  1,065.4  1,573.8  1,162.2  1,145.1 1,097.7 1,143.4  
   Transportation (net) b -1,405.6  -1,153.0  -1,008.3  -1,224.5  -1,153.0 -1,262.6 -1,078.3  
        Receipts 836.5  796.2  1,120.2  1,279.3  1,449.9 1,404.1 1,585.5  
        Payments, o/w: 2,242.2  1,949.2  2,128.5  2,503.8  2,603.0 2,666.7 2,663.8  
             Freight 1,528.6  1,280.3  1,399.9  1,703.8  1,866.3 1,981.0 2,043.9  
   Government services (net) 208.6  344.6  396.6  369.3  312.1 219.0 462.1  
        Receipts 409.2  490.1  503.7  488.2  391.5 331.7 543.6  
        Payments 200.6  145.6  107.1  118.9  79.4 112.7 81.5  
   Other services (net) -107.8  -171.5  -98.2  -148.2  -202.0 -233.6 -110.3  
        Receipts 575.5  491.3  517.8  548.7  521.3 508.2 620.7  
        Payments 683.2  662.8  615.9  696.9  723.3 741.7 731.0  
Income account 412.0  376.0  -215.0  -264.9  -389.1  -339.1  -417.3  
   Compensation of Employees (net) 295.6  287.9  293.8  285.5  295.2 310.7 315.4  
        Receipts 351.3  347.1  352.3  337.4  349.5 364.7 374.3  
        Payments 55.7 59.2 58.5 51.9 54.3 54.0 59.0 
   Investment Income (net) 116.4  88.2 -508.7  -550.4  -684.3 -649.8 -732.7  
        Receipts 701.4  615.2  536.2  374.2  341.0 430.2 506.9  
        Payments 585.0  527.1  1,045.0  924.5  1,025.4 1,080.0 1,239.6  WT/TPR/S/325 • Jordan 
 
- 15 - 
 
    2008 2009a 2010a 2011a 2012a 2013a 2014a 
Current transfers (net) 4,067.7  3,783.8  3,827.5  4,872.6  4,351.1  6,788.9  7,279.1  
  Public (Net) 1,323.4  947.0  1,099.3  2,019.6  1,478.3 2,284.9 1,892.0  
        Inflows 1,326.0  964.9  1,103.0  2,021.3  1,480.4 2,286.0 1,893.2  
        Outflows 2.5  17.9 3.7 1.7 2.1 1.1 1.3  
   Other Sectors (net) 2,744.3  2,836.8  2,728.2  2,853.0  2,872.8 4,503.9 5,387.2  
        Inflows, o/w: 3,376.7  3,475.2  3,275.7  3,351.8  3,504.2 4,985.6 6,004.4  
             Workers' remittances 3,162.2  3,123.0  3,169.7  3,035.4  3,145.0 3,283.1 3,368.1  
       Outflows, o/w: 632.4  638.4  547.5  498.7  631.5 481.7 617.2  
            Workers' remittances 416.5  443.7  437.0  388.2  406.1 403.2 440.8  
Capital and financial account  1,836.0  854.2  1,089.7  3,285.6  5,379.3  2,380.8  1,632.3  
Capital account 283.9  0.6 0.3 0.0 2.5 2.4 4.4 
Financial account 1,552.0  853.6  1,089.4  3,285.6  5,376.7 2,378.4 1,627.9  
   Direct investment 2,816.1  2,344.0  1,624.7  1,444.7  1,494.1 1,734.3 1,679.4  
   Portfolio investment 573.8  -630.5  771.5  294.1  460.9 1,789.0 1,106.5  
   Other investment -697.0  2,256.0  147.0  -106.6  141.6 4,092.8 1,208.7  
   Reserve assets -1,140.8  -3,115.9  -1,453.7  1,653.5  3,280.1 -5,237.7 -2,366.7  
        Monetary gold 39.8 0.0 0.0 0.0 -59.8 -77.6 -155.1  
        Special Drawing Rights -1.1  -226.0  4.4 -1.3 5.6 6.8 34.7  
        Foreign exchange -1,179.4  -2,890.0  -1,458.1  1,654.7  3,350.8 -5,168.0 -2,241.5  
Net Errors and Omissions 219.3  391.0  795.1  -325.4  -660.9 1071.9 808.3  
a Preliminary data. 
b The receipts and the payments of travel and transport items were re-estimated since the 1st quarter 
of 2010, according to the survey results of arrivals and departures (August 2010-July 2011) carried out by DOS. 
Source: Central Bank of Jordan and info rmation provided by the authorities. 
1.23.  During the review period, the trade-in-goods deficit increased considerably as exports 
remained almost static, while imports increased. The latter can be attributed to increased demand on account of Syrian refugees and increased oil imports and higher oil prices. The income account 
also declined from a surplus in 2008 to a deficit in 2014.
8 
1.24.  In contrast, the trade in services surplus increased nearly four-fold due to growth in the 
tourism sector, which in turn has resulted in a marked increase in travel and transportation 
receipts. Furthermore, current transfers also increased considerably. This was on the back of 
sustained workers' remittances and other inflows both  in the public and private sectors. Part of the 
other sector transfers is directed towards Syrian refugees, this item was estimated to account for Syrian refugees spending that is financed by non-resident transfers. 
1.25.  The capital and financial account, which traditionally finances the current account deficit, 
has also been volatile. Foreign direct investment inflows have declined from over US$2.8 billion in 2008 to under US$1.7 billion in 2014. On the other ha nd, other capital flows have been significant 
in recent years resulting in an overall surplus. Consequently, gross official reserves have nearly 
doubled from US$7.7 billion in 2008 to over US$14 billion in 2014, representing over seven months of import cover. 
1.6  Developments in Trade 
1.26.   During 2008-14, the nominal value of expo rts and imports of goods and non-factor services 
increased from US$32.0 billion to US$40.4 billion, despite a sharp decline in 2009.  However, total trade of goods and services has declined relative to GDP, from 146% in 2008 to 113% in 2014 
(Table 1.1 and Table 1.3). 
1.6.1  Composition of merchandise trade 1.27.  The structure of exports has changed somewh at over the period 2008-14 as exports of food 
products (particularly tomatoes and live sheep and goats), and clothing increased while exports of 
phosphates and phosphate-based fertilizers, an d machinery and transport equipment declined 
(Chart 1.1 and Table A1.1). To some extent, the decline in exports of phosphate-based products 
follows the trend in international prices which increased between 2008 and 2011 and then fell from 
2012 to 2014.  
                                               
8 A new methodology was introduced in 2010 to account for the re-invested earnings (on the payments 
side). The reinvested earnings entry is now an imputed transaction in the BOP methodology. WT/TPR/S/325 • Jordan 
 
- 16 - 
 
  1.28.   As in most countries, the structure of Jordan's imports is less concentrated than exports. 
The largest single import category continues to be fuels, and its share has increased during the review period (Chart 1.1 and Table A1.2), which in  turn has led to an increase in the share of 
primary products in the total import bill. Fuel imports have risen due to increased demand for 
relatively more expensive oil as a substitute for gas, the supply of which from Egypt was 
disrupted. Consequently, the share of manufactures in total imports has fallen. Within manufactures, the decline is mainly due to a fall in the share of machinery and transport 
equipment and, to a lesser extent, iron and steel. In  both cases the decline can be attributed to a 
subdued investment environment as the goods are mainly capital goods or industrial raw materials.  
1.6.2  Direction of merchandise trade 
1.29.  Jordan's largest export markets are the United States, Iraq, Saudi Arabia, and India 
(Chart 1.2 and Table A1.3). The shares of both Iraq and India have declined during the period 
under review due to a decline in fertilizer exports to India and the security situation prevailing in 
Iraq. On the other hand, the shares of Saudi Arabia  and the United States have risen significantly 
since 2008  due mainly to increased exports of clothing to the United States, and increased exports 
of live animals, and fruits and vegetables to Saudi Arabia. 
1.30.  In 2014, Jordan's largest import supplier  was the EU followed by Saudi Arabia, and China 
(Chart 1.2 and Table A1.4). The shares of EU and Saudi Arabia have declined since 2008 while the shares of India and the United Arab Emirates ha ve increased. The increases were mainly due to 
increased imports of petroleum products. WT/TPR/S/325 • Jordan 
 
- 17 - 
 
  Chart 1.1 Product composition of merchandise trade, 2008 and 2014 
(%) 
2008 2014
(a)    Exports (f.o.b.), including re-exports
Other 
manufactures
7.4%
Manufactures
76.1%Other 
manufactures
8.7%
Machinery & 
transport 
equip.
10.0%
Other semi-
manufactures
6.4%Food
19.6%Other 
0.6%
Mining
7.5%
Chemicals
31.8%Clothing
15.4%
Total:   US$7.8 billion Total:  US$8.4 billion
(b)    Imports (c.i.f.)
Chemicals
9.5%Other 
consumer 
goods
4.6%
Manufactures
55.2%Machinery and 
transport 
equip.
23.6%Ores and other 
minerals & Non-
ferrous metals
2.8%
Iron & steel
5.1%Textiles & 
clothing
5.8%
Chemicals
10.1% Iron & steel
3.3%Textiles & 
clothing
5.4%Other 
consumer 
goods
4.8%
Ores and other 
minerals & Non-
ferrous metals
1.9%
Machinery and 
transport 
equip.
18.4%Other
5.2%
Other semi-manuf.  
5.8%Fuels
27.2%Manufactures
47.8%
Total:   US$16.9 billion Total:   US$22.7 billionManufactures
72.3%Machinery & 
transport 
equip.
15.3%
Other
3.6%Other semi-
manufactures
6.2%
Other semi-manuf.
6.5%Food
13.5%
Food
17.8%Food
16.6%Other 
1.7%
Fuels
21.8%Mining
8.7%
Chemicals
33.9%Clothing
13.4%
 
Source: UNSD, Comtrade database (SITC Rev.3). WT/TPR/S/325 • Jordan 
 
- 18 - 
 
  Chart 1.2 Direction of merchandise trade, 2008 and 2014 
(%) 
2008 2014
(a)    Exports (f.o.b.), including re-exports
Iraq
15.3%
Europe
6.3%Other
11.9%
United States
15.8%
Africa
5.9%Middle East
45.4%India
7.8%
Other Asia
6.9%
Saudi Arabia
12.4%United Arab 
Emirates
4.0%Other 
Middle East
13.8%
Total:   US$7.8 billion Total:  US$8.4 billion
(b)    Imports (c.i.f.)
Other 
0.02%
EU (28)
20.9%United States
4.6%
Other 
Europe
4.3%China
10.4%
India
3.0%
Other Asia
12.3Other Middle East
8.2%
Saudi Arabia
21.6%
Other America
3.5%
CIS
4.6%
EU (28)
19.7%United 
States
5.8%
Other 
Europe
6.2%China
10.5%India
5.5%
Other Asia
12.8%Other Middle 
East
8.1%
Saudi Arabia
19.6%
Africa
3.0%Middle East
27.7%
Total:   US$16.9 billion T otal:   US$22.7 billionIraq
16.5%
Middle East
29.8%Europe
5.1%Other
9.3%
United States
13.5%
Africa
5.3%Africa
6.9%Middle East
40.7%
CIS
6.8%Other America
2.7%India
16.5
Other Asia
8.1%
Saudi Arabia
7.0%United Arab 
Emirates
4.7%Other 
Middle East
12.4%
 
Source: UNSD, Comtrade database. 
1.7  Foreign Direct Investment 
1.31.  FDI inflows showed a marked decline betw een 2008 and 2012 (Chart 1.3). This was mainly 
due to the manifestation of the global financial crisis. Although inflows have improved since then, they continue to be supressed mainly due to concerns about the due to political instability and 
conflict in the region. WT/TPR/S/325 • Jordan 
 
- 19 - 
 
  Chart 1.3 Foreign Direct Investment 2008-14 
(US$ million) 
 - 500 1,000 1,500 2,000 2,500 3,000
 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000
2008 2009 2010 2011 2012 2013 2014Stock (left axis) Annual flow (right axis)
 
Source: Information provided by the authorities. 
 
 WT/TPR/S/325 • Jordan 
 
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  2  TRADE AND INVESTMENT REGIME 
2.1  General Constitutional and Institutional Framework 
2.1.  The Hashemite Kingdom of Jordan is a cons titutional monarchy. Jordan's Constitution was 
formulated and adopted by the Legislative Council on 28 November 1947, and ratified on 
1 January 1952.1 Article 25 of the Constitution stipulates th at the legislative power is vested in the 
National Assembly (Parliament) and the King. The National Assembly consists of a Senate (upper house, with 55 Senators) and a Chamber of Deputi es (lower house, with 110 elected deputies). 
Article 26 of the Constitution states that the exec utive power is vested in the King, together with 
the Council of Ministers headed by the Prime Minister. The King appoints and dismisses the Prime Minister, the Ministers (upon the recommend ation of the Prime Minister), and the members 
of the Senate. As the head of the State, the King has the right to propose laws, and is the 
ratification and promulgation authority. 
2.2.  Courts comprise civil courts, religious (Sharia) courts, and special courts. Civil Courts have 
jurisdiction over commercial disputes concerning private-sector parties, government departments 
or authorities, and general establishments. Religious courts, in addition to hearing cases involving 
marriages, divorces, wills, and legacies, also have jurisdiction in civil or criminal cases related to domestic and foreign trade. Special courts deal with issues such as customs and income tax. 
Article 97 of the Constitution stipulates that th e judiciary is an independent and separate body. 
Judges of the civil and Sharia courts are appointed and dismissed by Royal Decree. 
2.2  Trade Policy Formulation and Implementation 2.3.  Trade and industrial policies are formulated  and executed by the Ministry of Industry, Trade 
and Supplies (MITS). In 2013, the Ministry of Indu stry and Trade became the Ministry of Industry, 
Trade and Supplies with added responsibilities for ensuring the continued availability of goods and fair competition in the market, and preventing anti-competitive behaviours. 
2.4.  The Foreign Trade Policy and Relations Department in the MITS is responsible for all matters 
relating to multilateral trade agreements (WTO), an d regional and bilateral trade agreements. It is 
in charge of negotiating and preparing draft agreements, supervising their implementation, 
evaluating their impact, and amending them to  enhance and develop Jordan's economy. The 
Department is the focal point for the WTO, functioning as Jordan's Notification Point for various WTO agreements (except for notifications related to agriculture, TBT, and SPS measures). It is Jordan's inquiry point for trade in services. The Department is responsible for ensuring that Jordan 
complies with all its commitments towards the WTO and its regional and bilateral agreements.  It 
cooperates with other government agencies as well as private sector institutions. It is also Jordan's focal point for the Social and Economic Council of the Arab League. The Department deals closely 
with Jordan's economic counsellor offices worldwide to follow up on international and bilateral 
issues.  
2.5.  The Ministry of Planning and International Cooperation (MOPIC) established a central 
government portal ( http://inform.gov.jo/en-us/ ) in 2014, where information on plans and 
strategies of the Government are available to a ll. The plans and strategies cover all aspects of 
Jordan's development, including: reducing poverty, increasing employment, reforming 
government, and building an environment for business growth and entrepreneurship.2 The 
Government considers that making this information accessible to the public facilitates public 
discussion and improves the decision making proc edure in both the public and private sectors. 
According to the authorities, the Government made important progress towards greater fiscal 
transparency, as it provides the public with some information related to its expenditures and other 
fiscal activities.  The public may challenge the Government on its management of public funds. The Civil Service Bureau (CSB) took measures recently  to improve transparency, such as automating 
                                               
1 Constitution of Jordan. Viewed at: http://www.kinghussein.gov. jo/constitution_jo.html  [09/02/15]. 
The most recent amendment to the Constitution was in 2014, to expand the jurisdiction of the Independent 
Elections Commission to administer municipal polls and any other elections assigned by the Government. 
2 Jordan issued its national entrep reneurship and SME growth strategy 2015-19, to foster job creation 
and income generation by promoting the entry of new start-ups and improving the performance and growth of 
existing small, micro, an d medium enterprises.  WT/TPR/S/325 • Jordan 
 
- 21 - 
 
  candidacy and employment data, and establishing an audit unit at the CSB to ensure its 
compliance with transparency and integrity in recruitment. 
2.6.  The procedure to formulate laws remains the same as the previous Review. Bills, once 
prepared by the relevant ministry, are presente d to the Council of Ministers, the Chamber of 
Deputies, and the Senate. The King ratifies thos e bills passed by both the Chamber of Deputies 
and the Senate. A law becomes effective 30 days after publication in the Official Gazette  or as 
stipulated in the law.3 All policies (including trade policies) must be formulated and implemented 
by means of legal instrument. In descending orde r of importance, the Constitution is followed by 
Royal decrees, laws, and ministerial and administrative decisions.  
2.7.  Treaties and international agreements concluded by Jordan have legal power in national 
courts.4 In case of conflict between international and domestic laws, applicable international 
agreements take precedence. 
2.8.  The main legislation on international trade remains the Import and Export Law No. 21 of 
2001, which provides the general principles of foreign trade and mechanisms for the import, 
export, and transit through Jordan. Since the previous Review, several trade-related laws or other 
legal instruments have been issued, amended, or revised (Table 2.1). 
Table 2.1 Main trade and investment-related  legislation issued/amended/revised since 
2008 
Subject Legislation  
Customs procedures Customs Law 1998 amended in 2012 
Import prohibitions, restrictions, 
and licensing Import instructions (1) for 2012 and its amendments. 
Standards and technical 
requirements Draft Amendment of Law No. 22/2000 on Standards and Metrology (not 
yet endorsed) 
Sanitary and phytosanitary 
requirements A draft Food Law is under review by the Parliament 
Government procurement Instructions Regulating Tendering Procedures and Participating 
Conditions No. 1 of 2008; 
Jordan is preparing a unified procurement by-law 
Zones Economic Zone Law of 2010 
Tax and incentives Investment Law No. 30 for 2014; 
Income Tax Law No. 34 of 2014 
Competition policy , price controls Competition Law No. 18 of 2011 
State owned enterprises, 
privatization, and state trading Public-private-partnership (PPP) Law of 13 December 2014 
Intellectual property rights 
protection Trademark Law No. 15 of 2008; 
Trademark Regulation No. 128 of 2009, No. 22 of 2010; 
Law No. 23 of 2014 amending the Copyright Protection Law No. 22 of 
1992  and its Amendments. 
Financial services Amended Regulations for Banks’ Licensing Fees No. 85 of 2012; 
Anti-Money laundering and Counter Te rrorist Financing Instructions No. 
51 of 2010; 
Temporary Credit Information Law No. 15 of 2010; Islamic Finance Sukuk Law No. 30 of 2012; and 
Corporate Governance Code of 2008 
Telecommunications Telecommunications law No.21 of 2011 
Transportation Transportation Law and amendments No. 37 of 2008; 
Railways law No. 24 of 2012; Law of Jordan Maritime Authority and Amendments No. 38 of 2008; 
Land Transport Regulatory Commission law No. 4 of 2011; 
Law of Transportation of Goods by Road No. 14 of 2012;and 
Law of Transportation of Passengers by Road No. 33 of 2010. 
Foreign investment  Investment Law No. 30 for 2014 
Source: Information provided by the authorities. 
                                               
3 Details of the law preparation procedure are available in the TPR of Jordan (2008), page 11. 
4 Article 33 of the Constitution and Judicial Verdicts. WT/TPR/S/325 • Jordan 
 
- 22 - 
 
  2.3  Trade Policy Objectives 
2.9.  Jordan's trade policy objectives are: enhancing trade and economic openness through rapid 
integration into the global economy; enhancing the competitiveness of the economy; improving 
trade performance; and promoting a stimulating environment for economic and investment 
activities.  
2.10.  In pursuit of these objectives, the Government aims to develop an economy that is open to 
regional and international markets, ensure that Jord an is safe and an appropriate place to live and 
work for current and future generations, enhance the self-reliance of Jordanians, and help those 
who are unable to meet their basic needs.5 The authorities consider that trade, particularly 
exports, are the major channel for Jordan's economic growth. Thus, the Government has been making efforts to promote economic growth, reduce the trade deficit, and increase investment into 
the economy.  
2.11.  Jordan released its 10-year economic blueprint - Jordan Vision 2025 Strategy  - in May 2015, 
which intends to enable Jordan to move quickly to diversify resources, develop infrastructure, and 
capitalize on its strengths. Its basic principles include promoting the rule of law and equal 
opportunities, increasing participation in policy making, achieving fiscal sustainability, and strengthening institutions.
 The authorities stated that the Strategy represents a long-term national 
vision upon which detailed government action plans would be based.6 
2.4  Trade Agreements and Arrangements 2.4.1  WTO 2.12.  Jordan became a Member of the WTO on 11 April 2000. It is a signatory to the Information 
Technology Agreement (ITA), and an observer to  the Government Procurement Agreement (GPA). 
So far, Jordan has not participated in any dispute settlement proceeding at the WTO, as complainant, respondent, or third party. Jordan's trade policies were reviewed once in November 
2008. 
2.13.  Jordan has made a number of trade-related notifications to the WTO (Table 2.2). At 
September 2015, it had 10 outstanding notifications in the WTO Central Registry of Notifications.
7 
Table 2.2 Jordan's notifications under  the WTO Agreements, 2008 - August 2015 
WTO Agreement Requirement/content WTO document and date 
Agreement on Agriculture 
Article 18.2 Domestic support  G/AG/N/JOR/17, 10 March 2015 
G/AG/N/JOR/16, 1 Oct 2013 
G/AG/N/JOR/14, 10 Oct 2011 
G/AG/N/JOR/11, 9 Oct 2009 
G/AG/N/JOR/10, 8 Oct 2009 
Article 10 and 18.2 Export subsidies G/AG/N/JOR/15, 12 July 2013 
G/AG/N/JOR/13, 5 Oct 2011 G/AG/N/JOR/12, 26 Oct 2009 
GATT 1994 Article XXIV: 7(a) (Free-Trade Areas) 
Article XXIV: 7(a) (Free-Trade Areas) Canada – Jordan  
Turkey - Jordan WT/REG335/N/1, 12 April 2013 
WT/REG294/N/1, 8 March 2011  
GATT 1994 Article XXVIII: 5 (Market Access) 
Article XXVIII: 5 Jordan reserves the right to modify its 
Schedule  G/MA/274, 19 Dec 2011 
G/MA/234, 5 March 2009 
PSI Article 5 
Article 5 Jordan has no laws or regulations 
relating to preshipment inspection G/PSI/N/1/Add.11, 24 June 2008 
Quantitative restrictions (G/L/59)  
G/L/59 Notifications of no quantitative 
restrictions G/MA/NTM/QR/1/Add.12, 3 May 2011 
                                               
5 Ministry of Planning and International Cooper ation (MOPIC) online in formation. Viewed at: 
http://www.mop.gov.jo/Page s/viewpage.aspx?pageID=196  [13/02/15]. 
6 MOPIC online information. Viewed at:  http://inform.gov.jo/en-us/By-Date/Report-
Details/ArticleId/247/Jordan-2025  [26/06/15]. 
7 WTO online information. Viewed at: 
http://stat.wto.org/CountryProfile/WSDBC ountryPFView.aspx?Language=E&Country=JO  [30/06/15]. WT/TPR/S/325 • Jordan 
 
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  WTO Agreement Requirement/content WTO document and date 
Notification under paragraph 4 of Annex II  of the Agreement on Rules of Origin 
Paragraph 4 of 
Annex II Preferential rules of origin under 
Jordan – Canada FTA G/RO/N/101, 19 Sept 2013 
Agreement on Import Licensing 
Article 7.3 Questionnaire on import licensing G/LIC/N/3/JOR/2, 4 Aug 2015 
Agreement on Subsidies and Countervailing Measures  
Article 25.1 Notification of export subsidies G/SCM/N/284/JOR, 19 June 2015 
G/SCM/N/260/JOR, 13 Aug 2013 
G/SCM/N/253/JOR, 13 Aug 2013 G/SCM/N/226/JOR, 5 July 2011 G/SCM/N/220/JOR, 5 July 2011 G/SCM/N/192/JOR, 23 June 2009 G/SCM/N/186/JOR, 23 June 2009 
Article 27.4 The transition period for the 
elimination of export subsidies G/SCM/N/290/JOR, 19 June 2015 
G/SCM/N/275/JOR, 26 June 2014 
G/SCM/N/260/JOR, 13 Aug 2013 
G/SCM/N/253/JOR, 13 Aug 2013 
G/SCM/N/251/JOR, 8 Jan 2013 
G/SCM/N/243/JOR, 4 July 2012 
G/SCM/N/226/JOR, 5 July 2011 
G/SCM/N/220/JOR, 5 July 2011 
G/SCM/N/211/JOR, 27 July 2010 
G/SCM/N/192/JOR, 23 June 2009 
G/SCM/N/186/JOR, 23 June 2009 
Agreement on Safeguards 
 Notification on termination of 
safeguard investigations with no 
safeguard measure imposed G/SG/N/9/JOR/9, 13 Oct 2010 
G/SG/N/9/JOR/8, 2 June 2009 
Article 12.1 (A) Notification on initiation of an 
investigation and the reason for it G/SG/N/6/JOR/17, 1 Sept 2014 
G/SG/N/6/JOR/16, 13 Apr 2012 G/SG/N/6/JOR/15, 27 Sept 2010 
G/SG/N/6/JOR/14, 28 Nov 2008 
G/SG/N/6/JOR/13, 25 Nov 2008 
Article 12.1 (B) 
findings, 12.1 (c) 
decisions, and 
Article 9.1 footnote 
2 Notification of a proposal to impose a 
measure G/SG/N/8/JOR/9, 20 April 2015 
G/SG/N/10/JOR/9, 20 April 2015 
G/SG/N/11/JOR/5, 20 April 2015 
 
G/SG/N/8/JOR/8/Suppl.1/Corr.1, 8 July 2013 
G/SG/N/10/JOR/8/Suppl.1/Corr.1, 8 July 2013 
G/SG/N/11/JOR/4/Suppl.1/Corr.1, 8 July 2013 
 
G/SG/N/8/JOR/8/Suppl.1, 1 July 2013 
G/SG/N/10/JOR/8/Suppl.1, 1 July 2013 
G/SG/N/11/JOR/4/Suppl.1, 1 July 2013 
 
G/SG/N/8/JOR/8, 13 Feb 2013 
G/SG/N/10/JOR/8, 13 Feb 2013 
G/SG/N/11/JOR/4, 13 Feb 2013 
 
G/SG/N/8/JOR/7, 22 July 2009 
G/SG/N/10/JOR/7, 22 July 2009 
G/SG/N/11/JOR/3, 22 July 2009 
Agreement on the Application of Sanitary and Phytosanitary Measures 
Article 7 Annex B Emergency measures G/SPS/N/JOR/34, 1 July 2015 
G/SPS/N/JOR/33, 1 July 2015 
G/SPS/N/JOR/32, 28 Apr 2015 
G/SPS/N/JOR/31, 27 Apr 2015 
G/SPS/N/JOR/30, 10 Dec 2014 
G/SPS/N/JOR/29, 10 Dec 2014 
G/SPS/N/JOR/28, 25 Nov 2014 
G/SPS/N/JOR/27, 25 Nov 2014 
G/SPS/N/JOR/26, 24 Oct 2014  
G/SPS/N/JOR/25, 12 Dec 2013 
G/SPS/N/JOR/24, 15 May 2013 
G/SPS/N/JOR/23, 3 Aug 2010 
G/SPS/N/JOR/22, 4 May 2010 
G/SPS/N/JOR/21, 21 Oct 2009 
G/SPS/N/JOR/20, 25 May 2009 
G/SPS/N/JOR/19, 11 Feb 2009  WT/TPR/S/325 • Jordan 
 
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  WTO Agreement Requirement/content WTO document and date 
Agreement on Technical Barriers to Trade 
Article 2.9 Notifications on proposed technical 
regulations G/TBT/N/JOR/11 – 47, 2012 
G/TBT/N/JOR/10, 30 Sept 2011 
G/TBT/N/JOR/8, 4 May 2010 
Articles 2.9.2 and 
5.6.2 Notifications of instructions G/TBT/N/JOR/9, 3 Nov 2010 
G/TBT/N/JOR/7, 8 Sept 2008 G/TBT/N/JOR/6, 10 July 2008 
G/TBT/N/JOR/5, 10 July 2008 
Article 5.6 Decision for ending the 
implementation of the International 
Product Conformity Certification 
Program (Daman) G/TBT/N/JOR/4, 17 March 2008 
Agreement on Trade Facilitation 
WT/L/911 Notification of Category A 
Commitments  WT/PCTF/N/JOR/1, 18 Sept 2014 
Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) 
Article 63.2 Legislation IP/N/1/JOR/2, 26 Apr 2013 
IP/N/1/JOR/P/2, 26 Apr 2013  
Source: WTO Secretariat. 
2.14.  Jordan grants at least most-favoured-nation (MFN) treatment to all its trading partners. It is 
a member of the Recently Acceded Members (RAM) group, the WTO Arab Group, and has 
submitted proposals with other Members as an small and vulnerable economy (SVE), and as a net 
food-importing developing country (NFIDC). The authorities stated that Jordan is strongly committed to the multilateral trading system and to the rules and principles of the WTO as a 
means to curb harmful protectionist measures, reduce barriers to global trade and enhance market 
access conditions especially for exports of developing member states. The authorities also stated 
that the RAMS made significant and extensive co mmitments upon their accession to the WTO, as 
compared to those made by Members that joined the WTO during previous rounds of negotiations. 
Jordan, as an SVE and a NFIDC, calls for additional flexibilities within the agriculture negotiations 
to assure food security elements for developing countries.  
2.4.2  Regional and bilateral agreements 
2.15.  Jordan has seven RTAs in force: the Pan-Arab Free Trade Agreement (PAFTA), and bilateral 
agreements with Canada, EFTA, EU, Singapore, Turkey, and the United States (Table 2.3). Jordan also has an agreement with Israel, and is negotiating with Mexico.  
Table 2.3 Overview of Jordan's Region al and Bilateral Trade Agreements, 2015 
Agreement Description 
 PAFTA  
Title Pan-Arab Free Trade Area Agreement 
Parties Bahrain, Egypt, Iraq, Jordan, Ku wait, Lebanon, Libyan Arab Jamahiriya, 
Morocco, Oman, Qatar, Saudi Arabia , Sudan, Syrian Arab Republic, 
Tunisia, United Arab Em irates, Yemen, and later joined by the State of 
Palestine, and Algeria. 
Coverage and type Goods, FTA 
Date of signature 19 Feb 1997 
Date of entry into force 01 Jan 1998 
Transition for full implementation (goods) Full implementation realized in 2005 instead of 2007 
Jordan merchandise trade with 
PAFTA countries (2014) 30.2% of Jordan's imports came fro m other PAFTA member states, and 
48.6% of its exportsa went to other PAFTA member statesb 
WTO document series WT/REG223 
 Jordan–Canada FTA  
Title Canada–Jordan Free Trade Agreement 
Parties Canada, Jordan 
Coverage and type Good s, FTA; investment 
Date of signature 28 June 2009 
Date of entry into force 01 Oct 2012 WT/TPR/S/325 • Jordan 
 
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  Agreement Description 
End of implementation period 2016 
Main products excluded from 
liberalization (Jordan) Tariffs remain dutiable in  HS sections I and IV (live animals and animal 
products and prepared foods). 
Jordan merchandise trade with 
Canada (2014) 0.3% of Jordan's imports and 0.6% of its exportsa were with Canada. 
WTO document series WT/REG335 
 EFTA-Jordan 
Title Agreement between the EFTA States and Jordan  
Parties Iceland, Liechtenstein, No rway, Switzerland, Jordan 
Coverage and type Goods, FTA; government procurement, intellectu al property rights 
Date of signature 21 June 2001 
Date of entry into force 01 Sept 2002 
End of implementation period 2014 
Jordan merchandise trade with 
EFTA countries (2014) 2.4% of Jordan's imports and 0.1% of its exportsa were with EFTA states. 
WTO document series WT/REG133 
 EU-Jordan 
Title Association Agreement between the European Union and Jordan 
Parties Austria; Belgium; Bulgaria; Croa tia; Cyprus; Czech Republic; Denmark; 
Estonia; Finland; France; Germany; Greece; Hungary; Ireland; Italy; 
Latvia; Lithuania; Luxembourg; Malta; Netherlands; Poland; Portugal; Romania; Slovak Republic; Slovenia ; Spain; Sweden; United Kingdom; 
Jordan 
Coverage and type Goods, FTA; investment, government procurement, intellectual property 
rights 
Date of signature 24 Nov 1997 
Date of entry into force 01 May 2002 
End of implementation period 2013 
Jordan merchandise trade with 
the EU28 (2014) 19.7% of Jordan's imports and 4.1% of its exportsa were with the EU28. 
WTO document series WT/REG141 
 Jordan-Singapore 
Title Jordan–Singapore  Free Trade Agreement 
Parties Jordan, Singapore 
Coverage and type Goods and services, FTA and Economic Integration Ag reement; denial of 
benefits, domestic regulation, government procurement, intellectual property rights, investment 
Date of signature 16 May 2004 
Date of entry into force 22 Aug 2005 
End of implementation period 2014 
Main products excluded from 
liberalization (Jordan) 153 lines remain dutiable, in HS sections II, III, IV, and XVII. 
Jordan merchandise trade with 
Singapore (2014) 0.4% of Jordan's imports and 0.3% of its exportsa were with Singapore. 
WTO document series WT/REG215 
 Jordan-Turkey 
Title Jordan–Turkey FTA 
Parties Jordan, Turkey 
Coverage and type Goods, FTA; intellectual property rights 
Date of signature 01 Dec 2009 
Date of entry into force 01 Mar 2011 
End of implementation period 2022 
Main products excluded from 
liberalization (Jordan) No tariffs in HS Sections I-IV are li beralized under the FTA. At the end of 
implementation the lines remaining subject to tariffs for imports from 
Turkey are mainly found in Sections I-IV, XI and XII. WT/TPR/S/325 • Jordan 
 
- 26 - 
 
  Agreement Description 
Jordan merchandise trade with 
Turkey (2014) 3.7% of Jordan's imports and 2% of its exportsa were with Turkey. 
WTO document series WT/REG294 
 Jordan–United States 
Title Agreement between the United States and Jordan on the Establishment 
of a Free Trade Area 
Parties Jordan, the United States 
Coverage and type Goods and services, FT A and Economic Integration Agreement; 
government procurement,  intellectual property rights, domestic 
regulation, and mutual recognition on services 
Date of signature 24 Oct 2000 
Date of entry into force 17 Dec 2001 
End of implementation period 2010 
Jordan merchandise trade with 
the United States (2014) 5.8% of Jordan's imports and 15.8% of its exportsa were with the United 
States 
WTO document series WT/REG134 
a Export data include re-export figures. b Trade with PAFTA members include trade with  Agadir members (namely Egypt, Morocco and 
Tunisia). 
 Source:  WTO Secretariat, WTO RTA Database, Fa ctual Presentations (WT/REG335/Rev.1, 
WT/REG/215/2/Rev.1, WT/REG294/1), and info rmation provided by the authorities . 
2.16.  The authorities stated that the RTAs have resulted in significant increase in trade flows 
between Jordan and its RTA partners. The authoritie s consider that there has been a clear increase 
in exports from Jordan to its different trade pa rtners, although Jordan, as a small economy, has 
not benefited from all the preferential market access opportunities. 
2.4.3  Other preferential arrangements 
2.17.  Jordan receives trade preferences unde r the Generalized System of Preferences (GSP) 
schemes of Australia; Japan; New Zealand; Belarus, Kazakhstan, and the Russian Federation. Based on figures from the Amman Chambers of Commerce and Industry, 0.14% of total exports 
were exported under the GSP schemes. 
2.18.  Jordan does not participate in the Global System of Trade Preferences (GSTP). 2.19.  Jordan also has a tripartite agreement with Israel and the United States, which established 
Qualified Industrial Zones (QIZs) (section 3.2.5.3). Products manufactured in these zones can be 
exported to the United States duty free and quota free. However, following the full implementation 
of the Jordan – U.S. FTA in 2010, most QIZ factories export their products to the United States under the FTA. 
2.5  Investment Regime 
2.20.  In 2015, the World Bank Group Doing Business Report ranked Jordan 117
th among 189 
economies for ease of doing business.8 Jordan was ranked 64th out of 144 economies in the Global 
Competitiveness Index in 2014-15, showing improvement from its ranking of 71st in 2011-12.9 
According to the Global Competitiveness Report, the improvement mainly reflected a lower budget 
deficit and some progress made in educ ation and financial market development.10 The UNCTAD 
World Investment Report stated that FDI to Jordan increased by 20% in 2014 to US$1.8 billion, 
                                               
8 World Bank (2015), Doing Business 2015 – Jordan.  Viewed at: 
http://www.doingbusiness.org/~/media/GIAWB/Doing %20Business/Documents/Profiles/Country/JOR.pdf  
[17/02/15]. 
9 World Economic Forum (2015), The Global Competitiveness Report 2014-2015: Country/Economy 
Profiles.  Viewed at: http://www3.weforum.org/docs/GCR2014-15/Jordan.pdf  [17/02/15]. 
10 World Economic Forum (2015), The Global Competitiveness Report 2014-2015: Country/Economy 
Highlights.  Viewed at: http://www3.weforum.org/docs/GCR2014-15/GCR_Highlights_2014-2015.pdf  
[17/02/15]. WT/TPR/S/325 • Jordan 
 
- 27 - 
 
  despite regional unrest and sluggish economic growth.11 The authorities consider this is due to the 
policies and reforms in Jordan, making the country a secure and stable location for investment. 
2.21.  Since the previous Review, there have been  significant legislative and institutional changes 
to the investment regime. Investment Law No. 30 of 2014 came into force, according to which all 
the departments and commissions concerned with investment are unified into one entity to 
facilitate investment procedures. An Investment  Council was established to endorse investment 
strategies and policies. 
2.22.  The Jordan Investment Commission (JIC) is responsible for promoting and facilitating 
investment in Jordan. According to the authorities, the JIC is formulating a new national investment strategy with an intention to enhance the one-stop shop. The board of directors of the JIC was replaced by the Investment Council from 2014, which is chaired by the Prime Minister and 
includes the following members: the Minister of  Industry, Trade and Supply; the Minister of 
Finance; the Minister of Labour; the Minister of Planning and International Cooperation; the Chairman of the Investment Commission; the Central Bank Governor; the Head of Jordan 
Chamber of Industry; and the Head of Jordan  Chamber of Commerce. In addition, four 
representatives from the private sector are to be nominated by the Cabinet upon the recommendation of the Prime Minister. The term of these representatives is for two years, 
renewable for one extra term of 2 years. Their term may be terminated by nominating a 
substitute. 
2.23.  The JIC provides "one-stop services" to facilitate investors with all related administrative 
procedures including registration and licensing applications. It takes maximum 14 days for the 
one-stop shop to obtain from the concerned government bodies the necessary approval for 
registration and licences.  
2.24.  The Government has been trying to attract more FDI through creating an investment-
friendly legislative environment, and a hospitable, bureaucracy-free business environment. The 
Government launched a list of national mega-projects, particularly in the energy sector, where the Government can seek public-private partnerships. 
2.25.  Another measure which should improve the investment climate was the creation, in 2008,  
of the Office of the Ombudsman. The Office receives complaints to decisions taken by the public administration. From 2009 to 2014, 725 complaints were received by the Ombudsman, concerning mainly the procedures of the Jordan Standards an d Metrology Organization, and the customs fees.  
2.26.  Foreign investors in general have the same treatment as domestic investors, with some 
exceptions. Differences exist in: 
 land ownership: land ownership for foreigners is allowed in Jordan provided 
ownership is related to a business activity, except in free zones where land may 
only be leased; 
 minimum capital requirements: foreign investment must have at least JD 50,000 of 
capital (about US$70,000), while the minimum capital requirement for domestic 
companies is JD 1; and  
 prohibited or restricted sectors: some sectors are prohibited from foreign 
investment, and some have foreign equity restrictions of 50% or 49% (Table 2.4). 
                                               
11 UNCTAD (2014), World Investment Report 2014.  Viewed at: http://unctad.org/en/PublicationsLibrary/ 
wir2014_en.pdf  [17/02/15]. WT/TPR/S/325 • Jordan 
 
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  Table 2.4 FDI Restrictions 
Foreign investment restrictions/prohibitions Notes 
Foreign ownership is limite d to a maximum of 50% in:  
Trade activities:  
Purchasing of goods for purposes of leasing or  renting  Excluding financial leasing services 
Purchasing of goods and other moveable tangibles to be 
sold for profit  
Wholesale trade Except for fire arms and pharmaceuticals where 
foreign investment is not allowed 
Retail trade Except for pharmaceuticals where foreign 
investment is not allowed 
Franchising  A Jordanian juridical entity is required for 
franchising in meal servic es (with full restaurant 
services or in self-serving  facilities or beverage 
serving services for co nsumption on premises) 
except when these services are operated in hotels and motels 
Import and export  
Distribution of goods and services  
Supply services Excluding food catering not conducted by 
restaurants, cafe s and cafeterias 
Services:  
Professional services: engineering services including 
architectural services, construction services, technical 
testing services for co nstruction purposes  
Maintenance and repair services of land transport and of 
audiovisual equipment  
Photographic services Excluding military portraits and aerial photocopy 
of the Jordanian territory, where foreign 
investment is not allowed 
Audio-visual services (mot ion picture and video-tape 
distribution services)  
Placement and supply se rvices of personnel  
Brokerage  Excluding financial brokerage  
Money exchange services Excluding those provided through banks or 
financial companies 
Advertising services  
Commercial and insurance agents  
Restaurants, cafés, and cafeterias Exclud ing those provided within hotels, motels, 
and on-board of ships and trains 
Tourism and travel-related services: meal services Except when operated in hotels, ships or trains 
Travel agencies and tour op erators Service provider must be a Jordanian specialised 
(i.e. licensed) tourist firm 
Convention services  
Research and development services on  natural sciences  Excluding geol ogy-related sciences where foreign 
investment is not allowed 
Leasing or rental services without operator relating to 
ships, machinery and equipment Excluding agricultural machinery and equipment 
and engines and turbines 
Printing and publishing Ownership of pe riodical publicatio ns is restricted 
to Jordanian natural persons or judicial entities wholly owned by Jordanians 
Related scientific and technical consulting services  Cabinet authorization is required, and excluding 
prospecting, surveying, ex ploration, exploitation 
and map making, where foreign investment is not 
allowed 
Refuse disposal services: collection and treatment of solid 
waste services Excluding collection and treatment of hazardous 
waste (50% limitation and any other limitations on legal form provided by the Jordanian law, establishment and provision of services subject to Cabinet authorization and to an agreement with 
the Jordanian government, the number of service 
providers may be restricted) 
Services incidental to agriculture and manufacturing  
Advisory and consultancy services incidental to animal husbandry  WT/TPR/S/325 • Jordan 
 
- 29 - 
 
  Foreign investment restrictions/prohibitions Notes 
Transport services and transportation auxiliary 
services:  
Maritime transport and auxiliary services  Ex cept for maintenance and repair of vessels, 
shipping agents, maritime  freight services and 
food supply catering where access is restricted to Jordanian national or legal entities 
Air transportation services Excluding freight forwarding services, packing 
and crating services, and freight inspection 
services where access is restricted to Jordanian 
national or legal entities; and excluding engine 
overhaul, airports duty- free shops, simulators 
training and computer reservation systems 
Rail transport auxiliary services Excludin g  passenger and cargo transportation;  
pushing and towing services; supporting services 
for rail transport such as  rail passenger terminal 
services 
Road transport auxiliary services  Excluding passenger and freight road transport 
which is prohibited to foreign investors 
Road transport services Including specialised tourist transportation 
services and supportin g services of road 
transport 
Clearance services linked to the listed transport services  
Foreign ownership is limited to a maximum of 49%:  
Scheduled and non-scheduled passenger, freight and mail 
air transport services  
Rental services of aircraft with operator  
Foreign investment is prohibited:  
Passenger and freight road tr ansport services (including 
taxi, bus and truck services)  
Quarries for natural sand  and stones (dimension, 
aggregates and construction stones) used for construction 
purposes  
Security and investigation services  
Sports clubs (including organization of sports events 
services) Excluding health fitness clubs services 
Clearance services Foreign owners hip is limited to 50% for the 
clearance services linked to certain transport 
services 
Geology-related sciences; scientific and technical 
consulting services related to prospecting, surveying, 
exploration, exploitation and map making  
Real estate services  
Pension consultancy  
Dental services  
Source: Regulation No. 54 of 2000; OECD (2013), OECD Investment Policy Reviews: Jordan 2013 , OECD 
Publishing; and information provided by the authorities. 
2.27.  The equity level may be increased by the Council of Ministers. According to the authorities, 
this has happened in practice, on the grounds of increasing employment and technology transfer. 
2.28.  The authorities stated that there are no restrictions on investment abroad by Jordan 
nationals. 
2.29.  Jordan has signed 53 bilateral investment treaties (BITs), of which 45 have been ratified.12 
Since the previous Review in 2008, Jordan has si gned BITs with Azerbaijan, Armenia, Canada, 
Cyprus, Estonia, Iraq, Libya, Portugal, Qatar, Slovakia, Tanzania, and the United Arab Emirates. The Association Agreement between the EU and Jordan contains provisions on the promotion and 
protection of investment. Jordan has double taxation avoidance agreements with 27 economies: 
Algeria, Azerbaijan, Bahrain, Bulgaria, Canada, Croatia, Egypt, France, India, Indonesia, Iran, Kuwait, Lebanon, Malaysia, Morocco, Netherlands, Oman, Pakistan, Poland, Romania, Republic of 
Korea, Syria, Tunisia, Turkey, United Kingdom, Ukraine, and Yemen. 
                                               
12 OECD (2013), OECD Investment Policy Reviews: Jordan 2013 , OECD Publishing. WT/TPR/S/325 • Jordan 
 
- 30 - 
 
  2.30.  Jordan is a party to the New York Convention on Recognition and Enforcement of Arbitral 
Awards (ratified in 1980), and the Convention on the Settlement of Investment Disputes between 
States and Nationals of Other States (ICSID Convention) (ratified in 1972). 
2.31.  At the regional level, Jordan signed inve stment-related agreements within the framework of 
the League of Arab States (LAS), and the Organization of the Islamic Conference (OIS). The Arab 
Investment and Export Credit Guarantee Corporation and the JIB signed a MOU on investment in December 2013. The MOU provides direct and regular exchange of information to encourage 
investment in the Arab region.
13 
 
                                               
13 Kuwait News Agency online information. Viewed at:  
http://www.kuna.net.kw/ArticleDetails.aspx?id=2350072&language=en  [14/10/14]. WT/TPR/S/325 • Jordan 
 
- 31 - 
 
  3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports 3.1.1  Customs procedures valuation and rules of origin 3.1.  Since the previous Review in 2008, there have been significant changes to customs 
procedures. Jordan started implementing single-window procedures from 2009, with 15 single-
window centres operating in 2015. The Customs Law of 1998, last amended in 2012, regulates 
customs procedures in Jordan.
1 Jordan Customs implements the Customs Law and conducts 
customs clearance, and other competent authorit ies are involved in implementing TBT and SPS 
related inspections and licensing procedures at the border, such as the Jordanian Standards and Metrology Organization (JSMO), the Jordanian Food  and Drug Administration (JFDA), the Ministry 
of Agriculture, and the Ministry of Energy and Natural Resources. 
3.2.  Companies (both local and foreign) registered as commercial importers/exporters with the 
Ministry of Industry, Trade and Supply (MITS) may import and export for commercial purposes. 
Foreign commercial traders are subject to a foreign equity limit of 50%; the Council of Ministers 
may allow a foreign investor to own or contribute with higher percentages in projects of large scale 
or special importance. For a company to be registered as an importer/exporter, it must become a member of the Chamber of Commerce, or Chamber of Industry, and its premises must have been 
inspected and approved by the local municipality. 
3.3.  Once registered as a commercial importer, a company must obtain an importer card from the 
MITS (according to the authorities, this takes ab out 30 minutes). Under the Import and Export Law 
of 2001 (Article 3A), the importer card provides the commercial trader with a specific number and 
file that facilitates customs clearance.
2 Companies without valid importer cards may still import 
goods for commercial purposes, subject to a penalt y equal to 2.5% of the value of the imported 
goods. Individuals are not eligible for a card; he nce, such importers are always subject to the 
2.5% penalty. 
3.4.  Since 2010 Jordan has fully implemented ASYCUDA WORLD, allowing online customs 
declaration submissions, which has reduced the customs clearance time for traders (Table 3.1). 
The e-declaration share is 100%. Jordan has also implemented a number of other reforms during 
the review period to facilitate trade. For exampl e, Jordan initiated a "golden list" programme in 
2005 and upgraded it in 2010, which gives preferred operator status to companies demonstrating low risk and strong compliance history with customs requirements. Jordan Customs also reduced 
the ratio of containers subject to physical insp ection to 35-38%, from 100% before 1999, and 
60% in 2000. According to the World Bank's Doing Business reports, in 2015 Jordan ranked 54
th 
among 178 economies in terms of the ease of trading across borders, compared to 59th in 2008.3 
3.5.  Customs declarations may be made either by the owners of the goods (or their authorized 
representatives), or by licensed customs agents. No foreign firms may import goods without appointing an agent registered in Jordan.
4 The agent may be a branch office, or a wholly-owned 
subsidiary of the foreign firm. The agent's connection to the foreign company must be direct, 
without a sub-agent or intermediary. 
3.6.  In 2008, Jordan notified the WTO that it had no laws or regulations relating to pre-shipment 
inspection5 and the authorities stated that there has been no change. 
                                               
1 Main areas of amendments concern services fees (a new service fee wa s introduced on people crossing 
the border), and Customs Court (it is ab le to receive cases on services tax). 
2 A farmer who imports goods necessary for farming and a person who imports goods for personal use 
are not required to have an import card. 
3 World Bank (2015), Doing Business 2015 – Jordan.  Viewed at: 
http://www.doingbusiness.org/~/media/GIAWB/Doing %20Business/Documents/Profiles/Country/JOR.pdf   
[17/02/15]. 
4 U.S. Department of State: 2014 Investment Climate Statement , June. Viewed at: 
http://www.state.gov/documents/organization/229087.pdf  [16/10/14]. 
5 WTO document G/PSI/N/1/Add.11, 24 June 2008. WT/TPR/S/325 • Jordan 
 
- 32 - 
 
  Table 3.1 Summary of procedures and docu ments for trading across borders, 2015 
Customs procedures Import procedure Export procedure 
Time (days) Cost (US$) Time(days) Cost (US$) 
Documents preparation 8 385 6 135 
Customs clearance and technical 
control 3 65 2 80 
Ports and terminal handling 2 130 2 110 
Inland transportation and handling 2 655 2 500 
Total 15 1,235 12 825 
Documents required Bill of lading, 
cargo release order, certificate of origin, commercial invoice, customs import declaration, packing list, technical standard certificate Bill of lading, 
certificate of origin, commercial invoice, custom export declaration, packing list 
Source: World Bank (2015), Doing Business 2015 – Jordan.  Viewed at: 
http://www.doingbusiness.org/~/media/GIAWB/Doi ng%20Business/Documents/Profiles/Country/JO
R.pdf  [17/02/15]. 
3.7.  Jordan notified the WTO on 18 September 201 4 that, pursuant to the Ministerial Decision of 
7 December 2013, it designated all of the provisions contained in Section I of the Agreement on Trade Facilitation under Category A for implementation in full upon the entry into force of the 
Agreement, except: publication; information available through internet; enquiry points; advance 
rulings; general disciplines on fees and charges imposed on or in connection with importation and 
exportation; pre-arrival processing; formalities and documentation requirements; acceptance of 
copies; single window; and transit procedures and controls.
6 
3.8.  According to the OECD Trade Facilitation  Indicators, compared with the average for the 
Middle East and North Africa (MENA) region and upper middle income countries, Jordan performs better in the areas of information availability, simplification and harmonization of documents, 
automation, internal border agency cooperation, and governance and impartiality. Its performance 
of fees and charges are below average for MENA and upper middle income countries.
7 
3.9.  According to the authorities, customs valuation is based on the WTO Agreement on the 
Implementation of Article VII of GATT 1994. According to the Customs Law (Articles 28-32), 
customs value is determined as the transaction value of the imported goods.  If the transaction 
value cannot be determined, the following alternative methods may be used in order of 
preference: (1) transaction value of identical goods; (2) transaction value of similar goods; 
(3) deductive value; and (4) computed value. As in the last Review, reference prices (not published) are used as a last resort to provide guidance when an importer fails to submit the required transaction value or the customs administration has reason to doubt the accuracy of the 
declared price. Cars manufactured more than five years ago are not allowed to be imported into 
Jordan. For second-hand cars less than five years old, Customs uses a depreciation percentage to calculate their value.  
3.10.  Decisions by Jordan Customs may be contested before the Customs Court, with the 
possibility of appeal to the Customs Court of Appeal. 
3.11.  Articles 24-26 of the Customs Law stipulate non-preferential rules of origin. According to 
Article 27 of the Customs Law, preferential rule s of origin are determined and implemented in 
accordance with the RTA agreements that Jordan has signed (Table 3.2). 
                                               
6 WTO document WT/PCTF/N/JOR/1, 18 September 2014.  
7 OECD online information. Viewed at: http://www.oecd.org/tad/facilitation/Jordan_OECD-Trade-
Facilitation-Indicators.pdf  [22/09/2014]. WT/TPR/S/325 • Jordan 
 
- 33 - 
 
  Table 3.2 Jordan's rules of origin 
Non-preferential rules of origin  
Products are generally considered as originating from th e country where they are wholly obtained, or undergo 
substantial transformation that results in a change of th e six-digit tariff classification of the goods, or contain 
at least 40% domestic content. A certificate of origin is required for imported products from all countries. 
Preferential rules of origin  
Agreement Rules 
GAFTA All goods of Arab origin are exempted from customs tariffs if consignments are:  
(a) accompanied by a certificate of origin (CO) issued by the relevant authorities of the 
country of production. In Jordan the CO is issued by the Chamber of Industry and the 
Chamber of Commerce, both authorized by the MITS. The CO is then authenticated by the MITS. 
(b) the added value of the production taking place in the Arabic country is no less than 
40% of its final value; from 1 July 2008, product-specific rules of origin started to be applied for some goods. 
Pan-EUROMED Jordan - EU Association Agreem ent, Jordan - EFTA FTA, the Agadir Agreement, Jordan - 
Israel Trade Agreement, and Jordan - Turkey FTA:   
Allowing for diagonal cumulation of origin among member countries. 
Products are generally considered as originating from the EUROMED member countries if 
they are wholly obtained in the member count ries; or if they have undergone sufficient 
working or processing. Sufficient working or processing must satisfy product-specific 
rules of origin listed in Appendix 2 of the Agreement. 
Jordan-U.S. FTA A certificate of origin is not required. A good is deemed to have originated in the 
territory of a party where (i) the goods must be wholly obtained or produced, or substantially transformed in the territory of a party; (ii) they must contain at least 35% 
domestic content, i.e. no less than 35% of  the customs value of the imported product 
must be attributed to domestic origin ma terials and/or domestic direct costs of 
processing; origin cumulation with the other party is permitted up to a ceiling of 15% of the customs value; and (iii) the imported product must be shipped directly between 
parties, subject to specified exceptions. 
Special rules of origin apply to textiles and apparel. 
Jordan-Singapore 
FTA A good shall be deemed to have originated in  the territory of a party where (i) the good 
must be wholly obtained or produced in the territory of a party; (ii) there must be at 
least 35% local content of the customs value, with the possibility of bilateral origin 
cumulation; and (iii) the good must be transp orted directly between parties. Textiles and 
apparels are subject to special rules of origin. 
Jordan-Canada 
FTA A good shall be deemed to have originated in  the territory of a party where (i) the good 
must be wholly obtained or produced in the territory of a party; (ii) each of the non-originating materials used in the production of the good undergoes an applicable change 
in tariff classification as set out in Annex 4.1 of the Agreement; (iii) product-specific 
rules of origin apply. 
Source:  MITS online information. Viewed at: 
http://mit.gov.jo/portals/0/Facilitate%20and %20Develop%20Trade%20A mong%20Arab%20States.
pdf [26/09/2014]; System of Pan-Euro Mediterranean Cumulation: 
http://ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/preferential/article_783
_en.htm  [26/09/2014]; Jordan-U.S. FTA: http://mit.gov.jo/Portals/0/TextOA/ANNEX%202-2-
RULE.pdf  [26/09/2014]; Jordan-Singapore FTA: 
http://mit.gov.jo/Portals/0/Jordan_20Singapore_20FTA.pdf  [26/09/2014]; Jordan-Canada FTA: 
http://mit.gov.jo/PORTALS/0/EN%20-
%20Jordan%20FTA%20_Rev%2023%20Jun e%202009_%20Jordanian%20version.pdf  
[26/09/2014]; Jordan-Turkey FTA: Joint Declaration: 
http://mit.gov.jo/portals/0/JO%20EN%20Agreement%20Text.pdf  [26/09/2014]. 
3.1.2  Tariffs 
3.1.2.1  MFN tariffs 
3.12.  In acceding to the WTO, Jordan bound its tariffs on all products, and the simple average of 
the final bound tariffs is 16.3%: 24.1% for agricultural products (WTO definition), and 15.2% for WT/TPR/S/325 • Jordan 
 
- 34 - 
 
  non-agricultural products (Table 3.3). Jordan ch arges at most MFN duty rates to all WTO Members.  
Taxes on international trade accounted for less than 10% of total tax revenue (section 3.3.2). 
3.13.  Jordan does not have tariff quotas, except under the Jordan–Turkey FTA. In accordance 
with this FTA, both parties apply tariff rate quotas (TRQs) on imports of certain agricultural 
products (defined according to the WTO Agreement on Agriculture). Jordan's TRQs are for products 
including mainly fish, fruit and vegetables, nuts, sugar, chocolate, pasta and bread. In general imports of these products within the annual quota are subject to zero rates of duty (100% margin 
of preference over the prevailing MFN rate) with in some cases a 20% margin of preference over 
the MFN rate being provided. There are no provis ions in the Agreement either to phase out the 
TRQ or to increase the quota once the Agreement is fully implemented.
8 
Table 3.3 Structure of MFN tariffs in Jordan, 2008 and 2015 
 2008 2015 Final bounda 
Bound tariff lines (% of all tariff lines) n.a. n.a. 100.0 
Simple average tariff rate 10.9 10.2 16.3 
Agricultural products (WTO definition) 17.1 16.8 24.1 
Non-agricultural products (WTO definition) 9.9 9.1 15.2 
Agriculture, hunting, forestry and fishing (ISIC 1) 16.7 14.9 21.4 
Mining and quarrying (ISIC 2) 7.3 7.1 15.3 
Manufacturing (ISIC 3) 10.6 9.9 16.0 
Duty-free tariff lines (% of all tariff lines) 49.0 52.4 6.4 
Simple average rate of dutiable lines only 21.4 21.4 17.4 
Tariff quotas (% of all tariff lines) 0.0 0.0 0.0 
Non-ad valorem  tariffs (% of all ta riff lines) 0.1 0.1 0.1 
Non-ad valorem  tariffs with no AVEs (% of all tariff lines)  0.1 0.1 0.1 
Domestic tariff peaks (% of all tariff lines)b 0.5 0.4 0.5 
International tariff peaks (% of all tariff lines)c 35.7 33.6 46.7 
Overall standard deviation of applied rates 14.7 15.3 15.0 
Nuisance applied rates (% of all tariff lines)d 0.0 0.0 0.0 
n.a. Not applicable. 
 a Final bound rates are based on CT S schedule in HS07 nomenclature. 
b Domestic tariff peaks are defined as those exceed ing three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%. d Nuisance rates are those greater than zero, but less than or equal to 2%. 
  Note: The 2008 tariff is based on HS07 nomenclature co nsisting of 6,206 tariff lines (at 8-digit tariff line 
level). The 2015 tariff is based on HS12 nomenclature consisting of 6,676 tariff lines (at 8-digit tariff 
line level). The ad valorem  part is used for compound rates for non- ad valorem tariffs. 
 
Source: WTO Secretariat calculations based on tariff information provided by the authorities and WTO CTS 
database. 
3.14.  Based on data provided by the authorit ies, Jordan's 2015 applied MFN tariff consisted of 
6,676 lines at the HS 8-digit level (HS 2012) (Table 3. 4). More than half (52.4%) of the tariff lines 
are duty free. Applied MFN tariffs are within the range of 0–200%, with 16 different rates 
(Chart 3.1). The highest rates are applied to certain alcoholic beverages (where tariffs on some 
products were increased from 180% in 2008 to 200% in 2015), and tobacco and tobacco products (where tariffs were increased from 100% to 150%). The dispersion in applied MFN rates, indicated by the standard deviation, was up slightly from 14.7% in 2008 to 15.3% in 2015, reflecting the 
increase in these tariff rates. 
                                               
8 WTO document WT/REG/294/1, 29 August 2012. WT/TPR/S/325 • Jordan 
 
- 35 - 
 
  Table 3.4 Jordan's applied MFN tariff summary, 2015  
 Number of 
lines Average 
(%) Range 
(%) Share of 
duty free 
lines (%) SDa 
Total 6,676 10.2 0-200 52.4 15.3 
HS 01-24 1,100 16.5 0-200 34.8 25.8 
HS 25-97 5,576 8.9 0-30 55.9 11.8 
By WTO category      
WTO agricultural products 946 16.8 0-200 36.3 27.5 
Animals and products thereof 123 10.7 0-30 19.5 9.3 
Dairy products 30 6.3 0-30 66.7 10.1 
Fruit, vegetables, and plants 270 18.2 0-35 21.1 11.6 
Coffee and tea 29 14.5 0-30 34.5 11.3 
Cereals and preparations 122 10.9 0-40 41.0 11.0 
Oils seeds, fats, oil and their products 111 9.8 0-30 60.4 13.1 
Sugars and confectionary 23 10.0 0-30 60.9 12.9 
Beverages, spirits and tobacco 76 65.2 0-200 25.0 74.8 
Cotton 5 0.0 0.0 100.0 0.0 
Other agricultural products, n.e.s. 157 10.4 0-30 49.0 12.4 
WTO non-agricultural products 5,730 9.1 0-30 55.1 11.7 
Fish and fishery products 227 10.9 0-30 45.8 10.5 
Minerals and metals 1,233 11.1 0-30 44.0 12.5 
Chemicals and phot ographic supplies 1,054 1.7 0-30 79.6 4.2 
Wood, pulp, paper and furniture 374 12.1 0-30 47.3 13.1 
Textiles 615 4.8 0-30 74.6 8.7 
Clothing 221 19.5 0-20 0.9 2.8 
Leather, rubber, footwear and travel 
goods 191 13.0 0-30 47.6 13.3 
Non-electric machinery 699 7.1 0-30 67.0 11.3 
Electric machinery 369 11.6 0-30 52.0 13.3 
Transport equipment 209 8.6 0-30 57.4 11.5 
Non-agricultural products, n.e.s. 509 16.4 0-30 29.9 13.0 
Petroleum 29 12.6 0-20 31.0 9.2 
By ISIC sectorb      
ISIC 1 - Agriculture, hunting and 
fishing 417 14.9 0-150 28.8 16.7 
ISIC 2 - Mining and quarrying 105 7.1 0-30 67.6 11.9 
ISIC 3 - Manufacturing 6,153 9.9 0-200 53.7 15.1 
By stage of processing      
First stage of processing 817 10.4 0-150 47.7 14.5 
Semi-processed products 2,090 4.4 0-30 73.2 8.8 
Fully processe d products 3,769 13.3 0-200 41.9 17.2 
a Standard deviation. 
b International Standard Industrial  Classification (Rev.2). Electricity, gas and water are excluded 
(1 tariff line). 
 Note: The 2015 tariff is based on HS12 nomenclature co nsisting of 6,676 tariff lines (at 8-digit tariff line 
level). 
 Source:  WTO Secretariat calculations, based on data provided by the authorities. WT/TPR/S/325 • Jordan 
 
- 36 - 
 
  Chart 3.1 Breakdown of applied MFN tariffs, 2015 
(52.4)
(12.9)(16.1)(18.1)
(0.03) (0.07) (0.3)
05001,0001,5002,0002,5003,0003,5004,000
0 0-10 >10-20 >20-30 >30-40 >40-50 >50Number of tariff lines
N 
Note: Figures in parentheses indicate the share of total lines.  They do not add to 100% due to no 
availability of AVEs for non- ad valorem  tariffs. 
 Source: WTO Secretariat calculations based on tariff information provided by the authorities. 
3.15.  The bound tariffs for nine lines, mostly agricultural products, are compound duties 
(Table 3.5). Three of the nine tariff lines bound with non- ad valorem  duties have non- ad valorem  
duties applied in 2015. 
Table 3.5 Non- ad valorem  MFN tariffs 
Tariff 
linesa Product description Bindings Applied MFN 
tariffs 
2008 Applied MFN tariffs 
2015 
010210000 Bovine animals: pure-
bred breeding animals 5% +10 JD/head 5% + 10 
JD/head 0 
010290000 Bovine animals: other 5% +10 JD/head 5% +10 
JD/head 0 
010410000 Sheep 5% +2 JD/head 5% + 2 
JD/head 0 
010420000 Goats 5% +2 JD/head 5% + 2 
JD/head 0 
080300100 Bananas 30% +250 
JD/tonne 30% + 250 
JD/tonne 30% + 250 JD/tonne 
080610100 Grapes from 1 May to 
31 October 40% +250 
JD/tonne 30% + 250 
JD/tonne 30% + 250 JD/tonne 
080810100 Apples from 1 June to 
31 October 30% +250 
JD/tonne 30% + 250 
JD/tonne 30% + 250 JD/tonne; 30%b 
961310000 Pocket lighters, gas 
fuelled, non-refillable 35% + 30 
Fils/lighter 66% 30% 
961320100 Lighters with plastic 
gas containers 35% + 30 
Fils/lighter 50% 30% 
a Tariff codes (HS 2007 nomenclature) from CTS database. 
b HS 080810100 (apples from 1 June to 31 October) in 2015 applied tariff schedule consists of two 
tariff codes with two different descriptions. 
 Note: 1,000 Fils = 1 Jordanian dinar. 
 
Source: Information based on applied MFN tariffs provided by the authorities for 2015 tariffs, and WTO CTS 
database (HS 2007). 
3.16.  The simple average applied MFN tariff rate decreased slightly from 10.9% in 2008, to 
10.2% in 2015, possibly reflecting nomenclature changes (from HS 2007 to HS 2012). The simple average MFN tariff rate for agricultural products (WTO definition) fell from 17.1% in 2008 to WT/TPR/S/325 • Jordan 
 
- 37 - 
 
  16.8% in 2015, and the simple average for non-agri cultural products (WTO definition) fell from 
9.9% in 2008 to 9.1% in 2015. 
3.17.  Tariff escalation seems to exist on a number of products; for example, tariff rates for 
cotton, cotton yarn, and clothing of cotton are 0%, 0.3%, and 20%, respectively. 
3.18.  Tariff schedule may be amended by a decision from the Council of Ministers, upon the 
recommendation of the Customs Tariff Council. The Council is formed and consists of Ministers of the Ministries of Finance (chairman), and of Trade, Industry and Supply. 
3.1.2.2  Tariff preferences 
3.19.  In Jordan's preferential trade agreements, not only are simple average tariff rates lower 
than MFN rates, the duty-free coverage is also wider (Chart 3.2). For instance, the FTA with the United States has a simple average tariff rate of 0.6% with 99% of lines duty free (Chart 3.3). 
Regarding the non-duty-free treatment in the FTAs, tariffs remain mainly for beverages, spirits 
and tobacco; animals and products thereof; and other agricultural products not elsewhere specified. 
Chart 3.2 Simple average tariffs for applied MFN and FTAs, 2015 
(%) 
10.2
1.72.8
1.0
0.99.3
0.93.1
0.616.8
5.815.4
4.54.916.3
5.914.8
3.49.1
1.1
0.7 0.40.28.2
0.11.2
0.1
0.02.04.06.08.010.012.014.016.018.0
MFN Canada EFTA EU GAFTA Israel Singapore Turkey USAAll products WTO Agriculture WTO Non-agriculture
 
Source: WTO Secretariat calculations based on tariff information provided by the authorities. 
Chart 3.3 Share of duty free lines (%), 2015 
0 1 02 03 04 05 06 07 08 09 0 1 0 0United StatesSingaporeGAFTAEuropean UnionEFTACanadaTurkeyIsraelMFN
 
Note: The end of the implementation period of FTAs with Canada and Turkey is 2016 and 2022, 
respectively. 
Source: WTO Secretariat calculations based on tariff information provided by the authorities WT/TPR/S/325 • Jordan 
 
- 38 - 
 
  3.1.2.3  Tariff exemptions and reductions 
3.20.  Goods imported into Jordan, on which customs duties and other taxes were not collected, 
must be re-exported, or used in the free-trade zone or the Aqaba Special Economic Zone. Goods imported by specific state-owned enterprises and non-profit organizations are also exempted from 
import duties. The Investment Law No.30 of 2014 regulates situations where exemptions may be 
applied to import duties (section 3.4.1). 
3.21.  Since the time of accession to the WTO, goods imported by the following state-owned 
enterprises have been exempted from import du ties: Jordan Petroleum Refinery Company, Arab 
Bridge Maritime Company, Arab Potash Compan y, Jordanian Electric Power Company (JEPCO), 
Irbid District Electricity Company (IDECO), and the Arab Company for Manufacturing White Cement. The eligible products must be used by the exempted companies for production and 
operations purposes.
9 
3.1.3  Other charges affecting imports 3.22.  According to the Customs Law, Jordan Cust oms collects a number of services allowances on 
imports, including: an import processing fee, which is levied at the rate of 0.2% of the transaction 
value, with a minimum of JD 10 and maximum of JD  250 per declaration; a transit fee of JD 20 per 
transaction; and a re-export fee of JD 15 per transaction. The revenue from services allowances 
remains rather stable, while revenue from customs tariffs has been increasing during the review 
period (Table 3.6). 
Table 3.6 Revenue from customs duti es and services allowances, 2008-14 
(US$ million) 
Fiscal year Services allowances Customs tariffs 
2008 28.5  272.4 
2009 30 257.8 
2010 30.1 262.7 
2011 30.4 274 
2012 30.5 273.6 
2013 29.4 311.9 
2014 28.6 307.1 
Source: Information provided by the authorities. 
3.23.  In addition, according to the Import and Export Licence and Cards By-Law No. 114 for 2004, 
the MITS collects fees for services (Table 3.7), and importers must pay the cost of complying with specific SPS and TBT related measures. 
Table 3.7 Services fees 
Type of fees Rates 
Import licensing fee  JD 10 
Export licensing fee JD 5 
Registration fee in the import ers/exporters registry JD 10 
Issuing or renewing importer card JD 15 
Modifying the data of the importers/ex porters registry, or the data of the 
import/export licence, or the importer/exporter cards JD 2 
Issuing importer/exporter cards that were lost or damaged JD 5 
Issuing importer/exporter licence that was lost or damaged JD 5 
Issuing an additional certified copy of an importer/exporter card JD 5 
Transfer or waiver the licence JD 10 
Source: Import and Export Licence and Cards By-Law No. 114, 2004, Article 12. 
3.24.  A general sales tax (GST), and a Special tax, are levied on both imported and locally 
produced goods (section 3.3.2). They apply equally to the duty-inclusive customs value of 
                                               
9 WTO document WT/ACC/JOR/33, 3 December 1999, para. 61. WT/TPR/S/325 • Jordan 
 
- 39 - 
 
  imported goods, and the sale price of locally-produced goods. Special taxes are levied on, 
inter alia , cars, tobacco and tobacco products, alcoholic beverages, and mobile phone and radio 
subscription services. 
3.25.  There are no other internal taxes collected at the border. 
3.1.4  Import prohibitions, restrictions, and licensing 
3.26.  In accordance with Jordan's notification made in 2003, the import prohibitions, restrictions 
and licensing regime is governed by the Import and Export Law No. 21 of 2001, as amended by 
Temporary Law No. 18 of 2003.10 The Law does not apply to the Aqaba Special Economic Zone and 
the free zones, which have their own legislatio n. The Import and Export Licences and Cards 
Regulation No. 114 for 2004 and its amendments do not apply to the free zones.  
3.27.  The Council of Ministers issues decisions fo r the prohibition or the restriction of imports, 
taking into account Jordan’s international commitments. The authorities stated that some goods 
are prohibited from importation for reasons of publ ic safety, health and environment, or protection 
of national resources, or to implement UN  Security Council resolutions (Table 3.8). 
Table 3.8 Goods subject to import prohibition, 2015  
Products Rationale  
Plastic waste Environmental protection 
Diesel powered saloon cars  Environmental protection 
Tractors older than one year Safety of public transport 
Khat Public health 
Coral  Protect marine life from extinction 
Hexavalent chromium except for paint and coating industry use Public health, environmental protection 
Fireworks (certain kinds) Safety  
Toy guns shooting  bead bullets Public health, safety 
Laser pens and other laser me dals Public health, safety 
Holy water (Baptism water) Religious reasons 
Additional installations on cars , including calling devices and 
flashers Security protection, safety 
Photo blocker spray Safety and security 
Alarm systems and high-light devices for cars, except when 
imported for the Ministry of Health, Armed forces, General 
Intelligence Department of Jordan, Public Security Directorate, the 
Jordanian Civil Defence, and Jord an Customs, and ambulances for 
private hospitals Safety and security 
Danger alarms, bells, gongs and the like flash-lamp Safety and security 
Doll that resembles the living organism, consisting of human 
genes and animals Safety 
Arcs crossbow Safety and security  
Candy in the form of underwear and other forms Security  
Mosaics Protection of national artistic and historic 
treasures 
Lighters like pistols Safety and security  
Freight cars intended for the transport of goods and include 
(tractors and trailer and tractor and semi-trailer), which were 
manufactured five years ago or more, except vehicles 
manufactured ten years ago or more for private use Safety of public transport 
Games in the form of balloons and paper (wishing lamp)  Air safety 
Fireworks toy guns Public safety and security 
Dry plant materials containing substances (jwh – 18K jwh -73) 
manufactured from mate rials resembling the impact of marijuana 
and hashish  Public health 
Materials with similar effects of marijuana and hashish Narcotic  Public health 
                                               
10WTO document G/LIC/N/1/JOR/2/Add.1, 3 September 2003. WT/TPR/S/325 • Jordan 
 
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  Products Rationale  
Automobiles with tinted glassa National security, protection of human 
health and safety 
Materials and equipment containing camouflaged cameras and 
apparatus combined with video and/or sound recording Public safety and security 
Articles used in the manufacturing of illegal narcotic substances Public health 
Video games presenting pornography Public safety and security 
Somali charcoal UN Security Council Resolution 
a In accordance with a TBT notification made on  4 May 2010, automobiles with tinted glass with 
opacity above 10% are banned from importation, unle ss they are imported by official institutions 
requiring tinted glass (WTO document G/TBT/N/JOR/8). According to the authorities, this is for national security and protection of  human health and safety purposes. 
 Source:  Information provided by the authorities. 
3.28.  Import licences, both automatic and non-automatic, are issued mainly by the MITS, 
although, depending on the product, other ministries and government entities are also involved. 
The list of products subject to import licences is contained in Jordan's notification to the WTO.11 
Among the 164 types of products requiring import  licences, 40 are subject to automatic import 
licensing, while the remaining ones are subject to non-automatic import licensing. The duration of 
an import/export licence is one year. The licence is considered to be personal, but may be transferred or waived with the consent of th e competent authority, subject to any legal 
requirements for such a conversion or waiver.
12 
3.29.  Non-automatic import licences are used for the protection of health, safety, the 
environment, national security, public order and morals, and the conservation of natural resources. They may also be issued for goods subject to qu antitative restrictions although the authorities 
stated that Jordan does not apply any quantitative restrictions.
13 Non-automatic licences are 
issued within 15 working days of submission of documents. The licensee has the right to import 
the quantity specified in the licence during the period of its validity. 
3.30.  According to the authorities, automatic import licences are applied for administrative and 
statistical purposes. Automatic licences are issued normally within one working day after submission of all relevant documentation. 
3.31.  Import licences may be cancelled in certain circumstances, for example, in case of a disease 
outbreak in the exporting country. Cancellation of a licence may be appealed  before the High Court 
of Justice. During the review period, no import licence was cancelled. 
3.1.5  Contingency measures 
3.32.  Since the previous Review, there has been no change to the legislative and institutional 
framework on contingency measures in Jordan. Contingency measures, i.e., safeguards, anti-
dumping and countervailing duties, are regulated under the National Production Protection Law 
No. 21 of 2004, together with the Regulations on Safeguard of National Production No. 55 of 2000, 
and the Anti-dumping and Anti-Subsidies Regulati on No. 26 of 2003. The authorities consider that 
Jordan's legislation on trade remedies is broadly aligned with WTO provisions. 
3.33.  Petitions for trade remedy measures may be submitted by domestic producers or their 
representatives, the Ministry of Agriculture (in the case of agricultural products), or the National 
Production Protection Directorate of the MITS. Investigations may be terminated or provisional measures may be imposed; final measures are subject to approval by the Council of Ministers and 
can be appealed to the High Court of Justice. 
3.34.  According to Jordan's Accession Protocol, Jordan does not have the right to invoke the 
Special Agricultural Safeguard (Article 5 of the Agreement on Agriculture). 
                                               
11 WTO document, G/LIC/N/3/JOR/2, 4 August 2015. 
12 Import & Export Law No. 21 of 2001, Article 9. 
13 Jordan notified the WTO that it did not maintain any quantitative restrictions in 2009 (WTO document 
G/MA/NTM/QR/1/Add.12, 3 May 2011). WT/TPR/S/325 • Jordan 
 
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  3.35.  Jordan has not taken any countervailing or anti-dumping actions. 
3.36.  Jordan notified that it had initiated safeguard investigations during the review period on a 
number of products; of the six investigations initiated, three resulted in the imposition of measures, two were terminated without measures, and one is ongoing with definitive measures 
proposed for three years (Table 3.9). All safeguard measures were implemented in the form of 
specific and digressive tariff surcharges of between two and three years' duration. Jordan has notified each of its safeguards investigations to the Committee on Safeguards, and its measure 
relating to ceramic tiles attracted substantial discussion in the Committee.
14 It is Jordan's practice 
to revise the list of developing Members exclud ed from the imposition of a safeguard measure 
pursuant to Article 9.1 of the Agreement on Safeguards in light of changes in the volume of imports.
15 
Table 3.9 Safeguard notifi cations, 2008 – August 2015  
Safeguard notifications 
White cement, whether or not artificially coloured 
Initiation of an investigation: 16 Nov 2008 Petition party:  Arab Company for 
White Cement Industry G/SG/N/6/JOR/13 
(25 Nov 2008) 
Investigation terminated: 19 May 2009 No safeguard measure imposed G/SG/N/9/JOR/8 
(2 June 2009) 
Clinker 
 
Initiation of an investigation: 16 Sept 2010 Petition party: MITS G/SG/N/6/JOR/15 
(27 Sept 2010) 
Investigation terminated: 5 Oct 2010 No safeguard measure imposed G/SG/N/9/JOR/9 
(13 Oct 2010) 
Footwear  
Type of definitive measur e:  Specific surcharge 
per pair subject to annual liberalization 3 years: 19 Feb 2007-18 Feb 
2010 G/SG/N/8/JOR/6/s1 
G/SG/N/10/JOR/6/s1 
G/SG/N/11/JOR/2/s1 
(22 Feb 2007) 
 
G/SG/N/10/JOR/6/Supp
l.2 (13 Jan 2010) 
Ceramic tiles 
 
Initiation of an investigation: 23 Nov 2008 Petition party: Jordan Ceramic 
Industrial Co. Ltd. G/SG/N/6/JOR/14 
(28 Nov 2008) 
Type of definitive measure: Specific surcharge per square meter subject to annual liberalization 2 years: 1 Sept 2010-16 Dec 
2011 G/SG/N/8/JOR/7 
(22 July 2009)  G/SG/N/10/JOR/7/s2 G/SG/N/11/JOR/3/s2 (20 Sept 2010)  G/SG/N/10/JOR/7/s3 (9 Jan 2012) 
Bars and rods of iron and steel 
 
Initiation of an investigation: 4 April 2012 Petition party: Whole domestic 
producers of steel rods and bars G/SG/N/6/JOR/16 
(13 April 2012) 
Type of definitive measure: specific surcharge 
per ton subject to annual liberalization 2.5 years:  16 June 2013-16 Dec 
2015 G/SG/N/8/JOR/8/s1 
G/SG/N/10/JOR/8/s1 
G/SG/N/11/JOR/4/s1 
(1 July 2013) 
G/SG/N/11/JOR/4/s2 
(13 October 2014) 
                                               
14 Minutes of the Regular Meetings held on 6 May 2009 (G/SG/M/35), on 19 October 2009 (G/SG/M/36), 
on 26 April 2010 (G/SG/M/37), on 25 October 2010 (G/SG/M/38), on 2 May 2011 (G/SG/M/39). 
15 WTO documents, G/SG/N/11/JOR/4/Suppl.2 (13 October 2014), and G/SG/N/11/JOR/4/Suppl.3. WT/TPR/S/325 • Jordan 
 
- 42 - 
 
  Safeguard notifications 
Writing and printing papers size A4 
 
Initiation of an investigation: 28 Aug 2014 Petition party: Domestic industry G/SG/N/6/JOR/17 
(1 Sept 2014) 
Proposed to take definitive measure: specific surcharge per ton subject to annual liberalization Proposed duration of the 
measure: three years G/SG/N/8/JOR/9 
G/SG/N/10/JOR/9 G/SG/N/11/JOR/5 (20 April 2015) 
Source: WTO documents, G/SG-series, and information provided by the authorities. 
3.1.6  Standards and other technical requirements 
3.1.6.1  Standards and technical regulations 3.1.6.1.1  Standardization 
3.37.  The authorities indicated that about 50% of Jordanian standards are equivalent to 
international standards, and about 40% of Jordanian technical regulations are based on relevant international norms. According to the authorities, in many cases, such as standards relating to products from the Dead Sea, there are no equivalent international norms. 
3.38.  The Standards and Metrology Law No.22 of 2000 covers the preparation, adoption and 
application of standards, technical regulations, and conformity assessment procedures. Draft amendments, which aim to protect the health an d safety of consumers and prevent deceptive 
practices including trade in counterfeit products, were discussed by Parliament and are waiting for 
approval by the Senate. The draft amendments in clude new provisions on product safety, market 
surveillance activities, conformity mark and le gal metrology, and penalties and sanctions. The 
objectives of the amendments are: 
 to ensure that only safe and genuine products are placed on the market, and to provide 
the inspectors with the required power to perform inspections, through proactive market surveillance activities; 
 to identify the responsibilities and obligations of economic operators (industrialists, 
importers, traders and distributors) so that on ly safe products are placed on the market, 
and to specify sanction measures in the event of nonconforming or supplying counterfeit 
products or violating the legislation; and 
 to introduce a conformity mark to demonstrate the compliance of products to requirements 
stated in technical regulations, and designat e conformity assessment bodies as regulatory 
bodies. 
3.39.  The Jordanian Standards and Metrology Organization (JSMO) is the national standardization 
body and the TBT enquiry point. The procedure to develop national standards and technical 
regulations remains the same as in the previous Review. Jordan applies the Code of Good Practice 
for the Preparation, Adoption, Application and Notification of Standards and Technical Regulations 
in accordance with the TBT Agreement. Standards and technical regulations may be proposed by any interested party, and prepared by technical committees comprising experts from interested 
parties in Jordan and are open for comments for 60 days. The JSMO is authorized to decide 
whether to approve national standards and technical regulations. Technical regulations may also be issued by other government bodies su ch as the Ministry of Environment, the 
Telecommunications Regulatory Commission, and the Ministry of Health.  
3.40.  Foreign business people may participate in technical committees to develop standards as 
experts through the Chamber of Industry, the Chamber of Commerce, or any other national 
stakeholders. They can provide their input to th e technical content of the standard during the 
technical committee meetings, or during the inquiry stage. In case there is a need for voting, 
foreign business people do not have the right to vote. 
3.41.  From 2008 to 2014, 1,328 Jordanian standards (voluntary) were issued, covering mainly: 
electrical engineering; domestic and commercial equipment for entertainment and sport; WT/TPR/S/325 • Jordan 
 
- 43 - 
 
  environment, health and safety protection; te lecommunications, audio and video engineering; 
construction materials and building; and food te chnology. During the same period, 239 Jordanian 
technical regulations (compulsory) were issued, about half of which concern food technology. 
3.42.  Jordan is a member of several international standards organizations, including: a member 
body of the International Organization for Standardization (ISO); an associate member of 
International Electro-technical Committee (IEC); a member in Codex Alimentarius; and an associated member of the International Organization of Legal Metrology (OIML). 
3.1.6.1.2  TBT notifications 
3.43.  Between January 2008 and August 2015, Jordan made 44 notifications on standards and 
technical regulations to the WTO. Among these, 39 were notified under Article 2.9 of the TBT Agreement. One notification was submitted by the MITS, on the import prohibition of automobiles 
with tinted glass with opacity above 10% (section 3.1.4).
16 The other 38 notifications, on proposed 
technical regulations, were submitted by the JSMO, each with a comment period of 60 days. The products concerned include household electronic a ppliances, automobiles, toys, and energy related 
products. According to these notifications, all draft technical regulations approximate EU 
regulations or directives. 
3.44.  Jordan also submitted four notifications und er both Article 2.9.2, and Article 5.6.2 of the 
TBT Agreement, on safety instructions of toys, appliances burning gaseous fuels, and electrical 
equipment designed for use within certain vo ltage limits. The comment period for these 
instructions was 30 days. 
3.45.  Since January 2008, no concern has been raised by WTO Members in the TBT Committee 
over Jordan's technical regulations.
17 
3.1.6.1.3  Conformity a ssessment, accreditation 
3.46.  Jordan's accreditation system of conformi ty assessment bodies was designed to meet the 
requirements of the ISO/IEC 17011 standard for a ccreditation bodies. The draft Accreditation Law 
establishing an autonomous national accreditation body (“Jordan Accreditation Commission”) was recently withdrawn from the Parliament; according to the authorities, this was because the 
international requirements of the International Laboratory Accreditation Corporation (ILAC) 
regarding the independence of national accreditation bodies had changed. Thus, Jordan's accreditation system is still under the JSMO, although the Accreditation Unit is now connected directly to the JSMO's Board of Directors. A bylaw is under preparation to ensure the integrity and 
impartiality of the accreditation system, and to remove the conflicts of interest with other functions 
of the JSMO (such as testing and certification ac tivities). Amendments to the Law on Standards 
and Metrology expanded the scope of accreditation to include inspection bodies, from the current 
scope of including laboratories (testing, calibration and medical laboratories) and certification 
bodies. 
3.47.  After the termination of the Daman prog ramme (the International Product Conformity 
Certification Program) on 1 September 2007, imported products are now subject to inspection, 
sampling and testing when necessary at the border, instead of inspection and testing in the country of supply. Locally-produced goods remain subject to inspection, sampling and testing when necessary. The percentage of inspection of imported products and domestically-produced 
ones is based on a risk assessment system with in ASYCUDA. In accordance with this system, 
Customs declarations are automatically grouped into three channels, on the basis of the nature and origin of the product, the country of the exporter and the importer (Table 3.10). 
3.48.  Importers, if they submit conformity certificates or test report, may have their import 
consignments tested inside Jordan. These conformity certificates or test reports must be checked for genuineness, validity and relevance (same manufac turer, product, model, etc.), and must be 
issued by conformity assessment bodies accredited by accreditation bodies which are MLA 
                                               
16 WTO document G/TBT/N/JOR/8, 4 May 2010. 
17 WTO TBT website: http://tbtims.wto.org/web/pages/search/stc/Search.aspx  [25/08/2015]. WT/TPR/S/325 • Jordan 
 
- 44 - 
 
  signatories of the ILAC (International Laboratory Accreditation Corporation)/IAF (International 
Accreditation Forum).18 
Table 3.10 Risk assessment system  
Customs 
declarations Channels Inspection procedures 
High-risk  Red channel Each shipment is subject to full examination involving documentary 
check, physical inspection, sampling and laboratory testing, or submission of a genuine and valid conf ormity certificate and test report 
issued by an accredited conformity assessment body. 
The shipment examined receives a provisional release authorization, 
which allows importers to stor e the goods until the conformity 
assessment results are concluded. 
Medium-risk  Yellow channel From documentary check to  physical inspection. 
Low-risk  Green channel Clearance order is is sued immediately with a summary check of the 
documents lodged. Also applies to shipments for which their importers 
have joined the Compliant Trader Scheme. 
Source: Information provided by the authorities. 
3.49.  To conduct a border inspection, the JSMO ch arges a fee of JD 10 for goods with a value less 
than or equal to JD 1,000, and JD 20 for goods with a value more than JD 1,000. 
3.50.  The Jordan Quality Mark (JQM) is a voluntary system assuring the quality of products. It is 
granted by the JSMO based on JQM Instruction 4/2007. The Quality Mark certificate is valid for 
3 years, covering all products except for pharmaceuticals and veterinary products.  
3.1.6.1.4  Labelling and packaging requirements 3.51.  Labelling and packaging requirements are issued as technical regulations or voluntary 
standards. Labelling for food and toys must be in Arabic; for other products the label is in Arabic 
and/or English. 
3.52.  For Halal food, labels are in Arabic, or in any other language optionally together with Arabic. 
Where a food product contains components of fat, meat products or meat extracts, gelatine and 
rennet, this content of animal origin must be illustrated and listed on the label. When using the mark "Halal" on the product, the certificate number and the certification body should be stated on 
the product.  
3.53.  Genetically modified organisms (GMOs) are not allowed to be imported into Jordan, 
according to an instruction published by the Minist ry of Environment in 2009.  JFDA took a decision 
through its supreme committee for the control of food to prohibit the importation of all GMOs and 
their products intended to be used  as food or in food production. 
3.1.6.2  Sanitary and phytosanitary requirements 3.54.  Jordan is a member of the Codex Alimentarius Commission, and the World Organisation for 
Animal Health (OIE), and a contracting party to  the International Plant Protection Convention 
(IPPC). The authorities stated that SPS requirements in Jordan are based on international standards. According to the authorities, nation al standards and technical regulations comply 
completely with international standards in food safety, animal and plant health areas. In case 
there is any conflict between national requirements and international standards, international standards prevail. 
3.55.  The SPS regime is governed mainly under the Food Control Law, the Drug and Pharmacy 
Law, the Food and Drug Administration Law, and the Law on Agriculture. The authorities stated 
that a draft Food Law is under review by the Parliament. 
                                               
18 WTO document G/TBT/N/JOR/4, 17 March 2008. WT/TPR/S/325 • Jordan 
 
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  3.56.  The Ministry of Agriculture is responsible for SPS measures to protect animal and plant 
health against pests and diseases. The Ministry is also the national enquiry point under the WTO SPS Agreement. The Jordan Food and Drug Administ ration (JFDA) is responsible for the safety and 
quality of food and drugs.  
3.57.  Imports (and exports) of animals and animal  products must be accompanied by a veterinary 
certificate issued in the country of origin. Importers of animals and animal products, and plants and plant products, need to register with the MITS before they apply for an import licence. The 
competent authority in the country of origin is required to provide veterinary certificates, 
phytosanitary certificates, and food safety certificates. 
3.58.  Imports of live animals or their produc ts are subject to quarantine procedures, which 
include risk assessment studies before importation, pre- and post-import quarantine, checking the 
health situation in the country of origin, and requiring each consignment to be accompanied by 
veterinary health certificates issued by the competent authorities in the country of origin. Veterinary quarantine procedures are stipulated in  Veterinary Quarantine Regulations No. (Z/5) for 
2015, in accordance with Article 46, 50, and 51 of interim Agriculture Law No. 13 of 2015. 
Exceptions from quarantine requirements may be granted for shipments from exporting countries or regions with disease-free status according to OIE. Jordan recognizes equivalent SPS measures 
in those exporting countries with which it has mutual recognition agreements (MRAs); so far, 
Jordan has MRAs with respect to quarantine procedures for live animals with Algeria, Egypt, Hungary, Iraq, Kazakhstan, Lebanon, Libya, Moro cco, the State of Palestine, Sudan, Syria, and 
Yemen. 
3.59.  Imports of plants and their products are subj ect to quarantine requirements, as stipulated in 
Plant Quarantine Regulations No. (Z/2) for 2003. This Regulation was issued in accordance with Article 22, 23, and 26 of the Agriculture Law No. 13 of 2015. Jordan has MRAs with respect to 
quarantine requirements on plants and plant pr oducts with: Egypt, Hungary, Iraq, Kazakhstan, 
Kuwait, Libya, the State of Palestine, Syria, and Yemen. 
3.60.  Testing and inspection at the border is conducted by the Customs, the Ministry of 
Agriculture, and the JFDA. Inspection procedures are in accordance with International Sanitary and 
Phytosanitary Measures (ISPM), Codex, and national standards. 
3.61.  Food is classified as high-risk or low-risk items, according to their country of origin, the 
history of trader, and features of the food items (i f they are perishable), with different testing and 
inspection procedures. Most food items (72%) are imported through "yellow channel", where the 
shipment is subject to documentary check and physical inspection. The rest (28%) is imported through "red channel", where shipment is subject to sampling and laboratory testing, in addition to 
documentary check and physical inspection. The classification is decided by the Risk Management 
Unit and Technical Committee, and approved  by the Food Control High Committee. 
3.62.  The JFDA charges JD 30 for the inspection and testing of each sample (physical, chemical, 
or microbiological test). The importer or his representative bears the inspection cost. It takes 
between 24 hours to one week to conduct such insp ection and testing. If a consignment is not in 
conformity with SPS requirements, it will be re-e xported during a period specified by the Minister, 
or destroyed. 
3.63.  All products in the market are inspected, with different inspection frequency.  
3.64.  From January 2008 to August 2015, Jordan made 16 notifications to the WTO for sanitary 
and phytosanitary measures (Table 3.11). All the notifications were made by the Ministry of 
Agriculture. Many notifications concern temporary import bans adopted in emergency situations. 
However, in most cases Jordan has not submitted addenda to say whether these temporary restrictions were lifted, nor has it submitted adde nda to indicate whether notified draft regulations 
have been finalized and adopted. The authorities indicated that emergency measures continue to 
be valid until the affected country returns to free status according to international standards (OIE, IPPC, CODEX). According to the authorities, Jordan intends to submit addenda in the future. WT/TPR/S/325 • Jordan 
 
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  Table 3.11 Notifications of sanitary an d phytosanitary measures, 2008–August 2015  
Notification 
G/SPS/N/ Products 
covered Objective/ 
rationale Description Regions/ 
countries 
likely to be 
affected International 
standard 
applicable 
JOR/19 
(11 Feb 09) Bovine meat 
and meat products Food safety, animal 
health Allowed the importation 
of bovine meat and meat products from negligible BSE risk 
countries and countries 
of controlled BSE risk All trading 
partners OIE 
JOR/20 
(25 May 09) Live swine, 
their meat 
and meat 
products  Food safety, animal 
health, and protect 
humans from 
animal/plant pest or 
disease Exempted heat-treated 
products to the level 
necessary to overcome 
the disease causes All trading 
partners OIE 
JOR/21 
(21 Oct 09) Live poultry 
and poultry meat Food safety, animal 
health, and protect humans from animal/plant pest or disease Temporary import ban State of 
Minnesota (U.S.) IPPC (e.g. 
ISPM number) 
JOR/22 
(4 May 10) Live poultry 
and poultry 
products Food safety, animal 
health Temporary import ban State of 
Virginia 
(U.S.) OIE 
JOR/23 (3 Aug 10) Poultry and 
poultry products Animal health Eliminated the import 
ban on poultry and poultry products from countries infected with H1N1 All trading 
partners OIE 
JOR/24 
(15 May 13) Live poultry 
and poultry 
meat Food safety, animal 
health, and protect 
humans from 
animal/plant pest or 
disease Temporary import ban Netherlands OIE 
JOR/25 
12 Dec 13) Plants (fruits 
and vegetables) and other plant products Plant protection, 
protect humans from animal/plant pest or disease, protect territory from other damage from pests Phytosanitary measures 
concerning importing plant and plant products from trade partners to prevent quarantine pests entering the country All trading 
partners IPPC (e.g. 
ISPM number 20) 
JOR/26 
(24 Oct 14) Apples Plant protection, 
protect territory from 
other damage from 
pests Phytosanitary measures 
concerning the imports 
of apples to prevent 
quarantine pests 
entering the country All trading 
partners IPPC (e.g. 
ISPM number 
20) 
JOR/27 (25 Nov 14) Mango and 
avocado Plant protection, 
protect territory from other damage from pests Temporary import ban Israel IPPC (e.g. 
ISPM number 10) 
JOR/28 
(25 Nov 14) Live poultry, 
and poultry 
products Food safety, animal 
health, and protect 
humans from 
animal/plant pest or 
disease Temporary import ban Germany OIE 
JOR/29 (10 Dec 14) Live poultry 
and poultry 
products Animal health, protect 
humans from 
animal/plant pest or 
disease, protect territory from other damage from pests Temporary import ban Netherland OIE 
JOR/30 
(10 Dec 14) Live poultry 
and poultry 
products Animal health, protect 
humans from 
animal/plant pest or 
disease, protect 
territory from other 
damage from pests Temporary import ban United 
Kingdom OIE WT/TPR/S/325 • Jordan 
 
- 47 - 
 
  Notification 
G/SPS/N/ Products 
covered Objective/ 
rationale Description Regions/ 
countries 
likely to be 
affected International 
standard 
applicable 
JOR/31 
(27 Apr 15) Live poultry, 
poultry 
products including poultry meat  Food safety, animal 
health, protect humans 
from animal/plant pest or disease Temporary import ban Israel, the 
State of 
Palestine OIE 
JOR/32 
(28 Apr 15) Live poultry, 
poultry 
products 
including 
poultry meat  Food safety, animal 
health, protect humans 
from animal/plant pest 
or disease Temporary import ban Hungary OIE 
JOR/33 
(1 July 15) Live poultry, 
poultry 
products 
including poultry meat  Food safety, animal 
health, protect humans 
from animal/plant pest 
or disease Temporary import ban Turkey OIE 
JOR/34 
(1 July 15) Live poultry, 
poultry 
products 
including 
poultry meat  Food safety, animal 
health, protect humans 
from animal/plant pest 
or disease Temporary import ban Canada OIE 
Source: WTO notifications. 
3.65.  During the review period, one trade concern was raised in the SPS Committee with regard 
to Jordan: in June 2009 Mexico raised concerns on the import restrictions of pork products due to 
influenza A/H1N1, which were apparently maintained by countries including Jordan.19 According to 
the authorities, import restrictions will be lifted after a confirmation from the OIE in a report that the affected country is free of the disease. 
3.1.7  Government procurement 
3.66.  Jordan is an observer to the WTO plurilateral Agreement on Government Procurement (GPA) 
and has a commitment regarding GPA accession in its WTO accession protocol. It commenced the 
GPA accession process in 2000, and since then, it has notified the GPA Committee on information 
about its procurement legislation and practices, and submitted several offers of market access in response to requests by GPA Parties for improv ements. However, no progress on the accession 
process has been made since 2012. The authorities stated that Jordan intends to pursue its 
accession process after finalizing the ratification  of the new procurement by-law. The authorities 
also emphasize that Jordan faces several obstacles in joining the GPA, such as the current economic and political conditions at the national level, and the difficulties faced by the private 
sector due to regional instability. 
3.67.  The authorities stated that the main targets for the public procurement regime in Jordan are 
to select the best evaluated bidder with the lowe st possible price to execute the work, taking into 
consideration transparency, parity and neutrality issues. It also has secondary targets such as 
protecting the environment and facilitating innovation. 
3.68.  Jordan has not signed any regional ag reements covering government procurement. 
3.69.  Government procurement in Jordan is gr ouped into three types, and is regulated by 
different government agencies, under different  legislation (Table 3.12). Some government 
departments and corporations, such as the Aqaba Special Economic Zone, and sub-central government entities, have their own procurement legislation. SOEs also have their own 
procurement regulations. Jordan is preparing a unified procurement by-law, which is awaiting 
ratification by the Cabinet. The new by-law has provisions for almost all types of government procurement with several key reform features. It intends to separate policy and regulatory 
functions from operational functions, and to establish a policy and legislation unit, and a complaint 
remedy system. 
                                               
19 WTO SPS online information. Viewed at: http://spsims.wto.org/web/pages/search/stc/Search.aspx  
[25/08/15]. WT/TPR/S/325 • Jordan 
 
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  Table 3.12 Public procurement institution and legislation  
 Public works and 
engineering services Goods and services Medicine and medical 
appliances 
Legislation Regulation of Government 
Works No. 71 of 1986 Procurement Regulation 
No.32 of 1993 and the Instructions Regulating Tendering Procedures and Participating Conditions No.1 of 2008  Joint Procurement Law of 
Medicines and Medical Supplies for 2002 
Institution Government Tenders 
Department (GTD) General Supplies Department 
(GSD) Joint Procurement 
Department (JPD)  
Ministry Ministry of Public Works and 
Households Ministry of Finance Ministry of Health 
Local 
preference No local preference Restricted 
to Jordanian contractors and 
consultants  Price preference to local 
sourced goods: 15%  Price preference to local 
sourced goods: 15%  
Definition of 
local goods n.a. 40% of the final product must 
be locally sourced One manufacture step is done 
in Jordan 
Share in 
GDP (2013) .. .. 2.1% 
Share of foreign participation in value terms (2013) .. 87% 76% 
Appeal 
mechanism No appeal mechanism Tenderers who are not 
satisfied with the 
administrative review decision 
may resort to the Supreme 
Court of Justice for appeal. Tenderers who are not 
satisfied with the 
administrative review decision 
may resort to the Supreme 
Court of Justice for appeal. 
Website http://www.gtd.gov.jo/?page
=en  http://www.gsd.gov.jo/?page
=en  http://www.jpd.gov.jo/index_
en.php   
.. Not available. 
n.a. Not applicable.  Source: Information provided by the authorities. Euro pean Bank for Reconstructi on and Development report: 
Public Procurement Sector Assessment - Review of laws and practice in the SEMDED region Egypt, 
Jordan, Morocco, Tunisia, viewed at: http://semed.ppl.ebrd.com/ma terials/eng_ebrd_report.pdf  
[08/10/14]). 
3.70.  The execution of public works and technical services is restricted to Jordanian contractors 
and consultants, provided that they meet the required conditions. The GTD maintains lists of 
classified local contractors and qualified local consultants. Direct bids by foreigners are permitted 
in some cases, such as donor-financed projects. Foreign equity in Jordanian construction and contracting firms is limited to 50%. Otherwise, foreign construction and contracting firms may 
provide services in public procurement only through a contractual association with Jordanian firms 
for the purpose of implementing a specific project or tender. 
3.71.  There are three procurement methods: open tendering, selective tendering, and direct 
awards.  Open tendering is the default method, while the contracting entity may apply any of the 
other two procurement methods in exceptional circumstances. Qualification requirements of the suppliers are stipulated in each procurement operation, including vocational license from Greater Amman Municipality or any other municipality in Jordan, trade record certificate from MITS and/or 
the Companies Control Department. 
3.72.  Tender awards are posted on the notice  board of the relevant agencies. Unsuccessful 
tenders may complain within four days from the date when tender awards are announced; a 
shorter period (not less than two days) for the submission of complaints may be determined by 
the Tender Committee (TC). However, complaints are submitted to and reviewed by the TC, which launched and supervised the tender and is thus not an independent review mechanism. The GSD 
stated that bidders may complain more than once.  WT/TPR/S/325 • Jordan 
 
- 49 - 
 
  3.73.  Bidders who violate the procurement regu lations by engaging in corrupt practices to 
influence the procurement decision (and who are convicted by a court ruling) will be prohibited from bidding in the future; however, an OECD report noted there are very few examples of this.
20 
According to the authorities, this is because it is difficult to prove corruption in government 
procurement. 
3.1.8  Trade-related investment measures (TRIMs) 3.74.  The authorities state that Jordan does not maintain any trade-related investment measures 
(TRIMs). 
3.2  Measures Directly Affecting Exports 3.2.1  Export procedures and requirements 3.75.  According to the World Bank's Ease of Doing Business Report, in 2015 Jordan ranked 54 out 
of 189 economies in trading across borders. The average cost to export a container was US$825 
and time required was 12 days, which was much lower than for other economies in the Middle East and North African region (US$1,166.3 and 19.4 days) and compares favourably with OECD 
countries (US$1,080 and 10.5 days). 
3.76.  To export, enterprises (both local and foreign) must register at the MITS and obtain a 
certificate of registration. The natural and legal persons of these enterprises must be members of 
the Chamber of Commerce, or Chamber of Indust ry in Jordan, and their premises must be 
inspected and approved by the local municipality. The authorities indicate that the Chambers of 
Commerce or Industry do not refuse membership of  any enterprise if the registration requirement 
is met. 
3.77.  Export procedures and requirements are li sted in Table 3.1. Among the documents required, 
certificates of origin for non-agricultural products are issued by the Jordan Chamber of Industry, examined and authenticated by the MITS. The certificates of origin for agricultural products are 
issued by the Chamber of Commerce. An exporter card is not required for traders to export. 
3.2.2  Export fees 3.78.  A number of products are subject to export fees. Export fees were collected on mining and 
quarrying products by the Natural Resources Auth ority, and on agricultural products by the 
Ministry of Agriculture (Table 3.13). 
Table 3.13 Export fees, 2015  
Products Export fees 
Mining and quarrying products   
Raw material  Rate (JD per tonne)  
Crushed stones 1 
Silica sand (class sand) 4 
Blocks (marble, basalt) 4 
Conglomerate 4.5 
Blocks (granite, travertine) 4.5 
Small items of marble 1.5 
Crushed basalt 1 
Trepoly, feldspar gypsum 1 
Gypsum 4 
Crushed marble and granite 1 
Swelih sandstone 1 
Clay, kaolin, bentonite 1 
Dead Sea mud (packages of more than 2 kg) 100 
Dead Sea salts 4 
                                               
20 OECD (2013), OECD Investment Policy Reviews: Jordan 2013 , OECD Publishing. WT/TPR/S/325 • Jordan 
 
- 50 - 
 
  Products Export fees 
Pure limestone 1.5 
Salt 1 
Manufactured products Rate JD per tonne 
Marble, basalt 3.5 
Granite, conglomerate 4.5 
Travertine 4.5 
Building stones 3.5 
Tuff, pozzolana, zeolite 2 
Dead Sea mud (packages of less than 2 kg) 100 
Pure limestone (cal cium carbonate) 0.5 
Agricultural products  Rate 
Fumigation of consignments 2,000f/tonne 
Inspection and checking 1-500f/tonne 
Inspection of live animals:  
 Bovines, camels and pigs 50 f/head 
 Horses 50 f/head 
 Sheep, goats and deer 30 f/head 
 Cats, dogs and wild animals 30 f/head 
 Birds 20 f/bird 
Quarantine  
 Bovines, camels and pigs 200 - 400 f/head 
 Horses 200 - 400 f/head 
 Sheep, goats and deer 50 - 100 f/head 
 Cats, dogs and wild animals 100 - 200 f/head 
 Birds 10 -20 f/bird 
Animal watering  
 Camels, horses, bovines and big animals 150 f/head/day 
 Sheep, goats and small animals 15 f/head/day 
Disinfection fees:  
 Ships transporting less than 1,000 head JD 4 
 Ships transporting 1,000-10,000 head JD 8 
 Ships transporting 10,000-30,000 head JD 12 
 Ships transporting 30,000-50,000 head JD 18 
 Ships transporting more than 50,000 head JD 24 
 Any other vehicles JD 0.5 each 
Note: 1 Jordanian dinar = 1,000 fils (f). 
Source:  Information provided by the authorities. 
3.79.  Temporary export fees apply to the exports of scrap iron at JD 50 per tonne, for a period of 
six months from 2 November 2014. According to a Prime Minister Decision on 16 February 2015, if 
an exporter exports less than or equal to 3,500 tonn es of paper spoilage of waste every month, he 
is subject to an export fee of JD 25 per tonne; if the exporter exports more than 3,500 tonnes a 
month, the export fee increases to JD 100 per tonne. Exports of scrap cardboard are subject to a 
fee of JD 10 per tonne. According to the authoritie s, the rationale is to secure the needs of the 
domestic industry. 
3.2.3  Export prohibitions, restrictions, and licensing 3.80.  Export prohibitions, restrictions, and lice nsing are regulated under the Import and Export 
Law No. 21 of 2001, amended by Temporary Law No. 18 of 2003 (Table 3.14). According to the 
authorities, all export licences are issued by the MITS. WT/TPR/S/325 • Jordan 
 
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  Table 3.14 Export licensing arrangement  
Item Type of licence 
Wheat products (flour, semolina, bulgur, frike)  Non-automatic licence 
Flour products (cakes, cookies, swee ts of all kinds, mixed cake, etc.) Non-automatic licence 
Semolina and products (pasta, Moroccan couscous) Automatic licence 
Sugar and rice Automatic licence 
Legumes (beans, chickpeas, lentils, beans, cowpeas, etc.) Automatic licence 
Dual-use materials Non-automatic licence 
Source: Information provided by the authorities. 
3.81.  Wheat flour and other wheat products are su bject to export licensing arrangement to ensure 
that the consumer subsidies granted to these pr oducts are reimbursed by exporters when the 
products are exported. 
3.82.  The authorities state that Jordan does not pr ohibit any products from exportation, except to 
fulfil international obligations such as for nuclear weapons and chemical products, and those on 
endangered species. Jordan is a contracting party to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a signatory to the Chemical Weapons 
Convention, and the Treaty on the No n-Proliferation of Nuclear Weapons. 
3.83.  According to the authorities, Jordan does not apply export quotas. 3.2.4  Export subsidies, finance, insurance, and assistance 3.2.4.1  Export subsidies 
3.84.  In 2002, Jordan notified the Committee on Subsidies and Countervailing Measures (SCM 
Committee) that it provided export subsidies in the form of income tax exemptions on profits generated from exports.
21 Although this programme constitutes a prohibited subsidy under 
Article 3 of the Agreement on Subsidies and Coun tervailing Measures (SCM Agreement), Jordan 
requested and was granted by the SCM Committee (pursuant to a Ministerial Decision adopted in 2001
22 and a General Council Decision adopted in 200723), annual extensions under Article 27.4 of 
the SCM Agreement of the transition period for the e limination of export subsidies, in respect of its 
export subsidy programme. Pursuant to the Genera l Council decision, the export subsidies are to 
be phased out by 31 December 2015. In January 2013, Jordan circulated a document indicating that it wished to consult with the SCM Committee on a possible extension of the waiver.
24 
3.85.  In October 2014, Jordan submitted to the Council for Trade in Goods a request to extend 
beyond 2015 the transition period for the elimination of export subsidies, and revised its request in June 2015.
25 The authorities stated that a confluence of exogenous factors which have significantly 
worsened since the last Review, have had a detrimental effect on trade, investment and industry 
and, therefore, Jordan had requested an extens ion to the waiver for four years to allow the 
economy time to adjust. 
3.86.  Pursuant to the Income Tax Law No. 34 of 2014, which replaced the Temporary Income Tax 
Law No. 28 of 2009 amending the Income Tax Law No. 25 of 2001 amending the Income Tax Law No. 57 for 1985, this export subsidy programme was launched to stimulate export performance, and to promote exports to non-traditional markets. In accordance with regulation No. 70 for 2010, 
profits earned on some exports are excluded from this income tax exemption: 
 exports of phosphate, potash, cement and fe rtilizers, and any of their components or 
derivatives; 
                                               
21 WTO document G/SCM/N/71/JOR, 7 March 2002. 
22 WTO document WT/MIN(01)/17, paragraph 10.6, 20 November 2001. 
23 WTO document WT/L/691, 27 July 2007. 
24 WTO document G/SCM/N/251/JOR, 8 January 2013. 
25 WTO document G/C/W/705/Rev.1, 23 June 2015. WT/TPR/S/325 • Jordan 
 
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   exports of goods and services subject to trade protocols, bilateral payments, and 
repayment agreements, and any agreements concluded by the Government that includes exchange of any goods or services with any other country; and 
 exports of any goods approved by the Council of Ministers upon a joint 
recommendation of Minister of Finance and the competent Minister. 
3.87.  After a significant decline in 2007 and 2008, the value of the export subsidy increased again 
from 2009 and onwards. The value of income tax exemptions in 2013 doubled that in 2009, and 
the coverage of the measure increased from 58% in 2009, to 85% in 2013 (Table 3.15). The 
coverage dropped in 2014. 
Table 3.15 Export subsidies in the form of income tax exemptions on export profits, 
2006-14
 
(US$ million) 
 Income tax 
exemptions  
(export subsidy) Total exports 
benefiting from 
the export 
subsidy 
(1) Total export 
value 
(2) Coverage of the 
measure in % 
(1)/(2) 
2006 32.2 2,148 4,800 44.8 
2007 8.0 534 5,700 9.4 
2008 9.2 612 7,900 7.7 
2009 49.4 3,801 6,500 58.5 
2010 59.8 3,985 7,000 56.9 
2011 62.2 4,143 8,000 51.8 
2012 86.2 5,747 8,000 71.8 
2013 98.2 6,822 8,000 85.3 
2014 87.4 4,856 8,400 57.8 
Source: WTO documents G/SCM/N/186/JOR, 23 June 2009; G/SCM/N/211/JOR, 27 July 2010; 
G/SCM/N/220/JOR, 5 July 2011; G/SCM/N/243/JOR, 4 July 2012; G/SCM/N/253/JOR, 13 Aug 2013; G/SCM/N/275/JOR, 26 June 2014, and G/SCM/N/284/JOR, 19 June 2015. 
3.88.  In 2014, 23.5% of the total value of tax foregone under income tax relief for exports was 
given to the activities within HS Chapters 26 - 30 (ores slag and ash; mineral fuels, oils, waxes 
and bituminous sub; inorganic chemicals, organic and inorganic compounds of precious metals, isotopes; organic chemicals; and pharmaceutical products), 20.4% to HS Chapters 84-85 (mechanical appliances, electrical machinery), and 20.3% to HS Chapters 50 - 63 (textiles). 
3.89.  According to the authorities, Jordan mana ged to maintain its total export value in 2012-13 
when exports of the large companies (phosphate, potash, cement) declined by 25%-30%; this reflected an improved export performance of smal l- and medium-sized exporters. In addition, to 
the extent possible, exporters were preparing the termination of the export subsidy programme by 
2015, motivating them to look for new markets.  As the subsidies target SMEs, and are intended to promote exports to non-traditional markets, the coverage of the export subsidies increased and 
reached its peak in 2013. 
3.2.5  Other export support measures 3.90.  Jordanian customs maintains a duty draw back scheme, which refunds customs duties and 
taxes levied on imported raw materials used in  the production of exports, and a temporary 
admission scheme, which gives enterprises manufac turing for exports duty exemptions for their 
direct imports, and for their imports from the free zones.
26 
3.91.  In accordance with the Investment Law No.30 of 2014, export promotion activities were 
transferred from the Jordan Enterprise Develo pment Corporation (JEDCO), to the Jordanian 
Investment Commission. Export-promotion activities cover electronic promotion, participation in international trade fairs, market research and analysis, and industrial studies. The JEDCO may 
                                               
26 Customs online information. Viewed at 
http://www.customs.gov.jo/CustomsDynamic/Public_News/Ins_instructions.aspx?lang=3[13/10/14 ]. WT/TPR/S/325 • Jordan 
 
- 53 - 
 
  facilitate financing and guarantee schemes of the Islamic Development Bank (IDB), the export 
credit guarantee scheme of  the Inter-Arab Investment Guarantee Corporation, or any other 
organizations.27 
3.92.  The Jordan Loan Guarantee Corporation (J LGC) provides export credit guarantees to 
exporters against the risk of non-payment by the importers and buyers of Jordanian goods. JLGC 
guarantees 90% of post shipment export losses caused by any risks covered by the guarantee 
contract. It reinsures the guaranteed capital through agreements with regional and international 
insurance companies. In October 2013, the JLGC signed an agency agreement with the Islamic 
Corporation for the Insurance of Investment and Export Credit (ICIEC), which is a member of the Islamic Development Bank (IDB) Group. Accordin g to the JLGC, the agreement enables it to 
promote and introduce export credit insurance products in accordance with Islamic Shari'ah 
principles.
28 
3.2.6  Zones 3.93.  Jordan has a number of zones, with diffe rent purposes and different incentive schemes. 
Some of the zones are intended to promote exports, some have low export content, while others 
may not be functioning. The Government is trying  to adopt policies to unify some of the zones. 
3.2.6.1  Free zones, development areas, and industrial estates 
3.94.  The Development Areas Law was amended in 2010, and became the Economic Zone Law, 
regulating free zones, development areas, and industrial estates. The three entities administering the different zones, i.e. the Free Zones Corpor ation for free zones, the Development Areas 
Corporation for development areas, and the Jordan Industrial Estates Corporation for industrial 
estates, were merged into one, the Developmen t and Free Zones Commission (DFZC) and later the 
Investment Commission, wholly owned by the Jordanian Government. 
3.95.  Free zones were established to promote expo rt-oriented industries and transit trade. They 
are open to foreign and local investors. Investment in the free zones are required to meet certain 
criteria, such as introducing new technology, using local raw materials and manufactured parts, improving labour skills, and achieving import substitution. Investors operating in free zones benefit 
from certain incentiv es (Table A3.1). 
3.96.  Free zones are outside the jurisdiction of  Jordan Customs, and provide duty-free and tax-
free environment for the storage of goods transiting in Jordan. Goods produced in these zones may be exported, or sold to the domestic market, when normal customs procedures, tariffs, and 
taxes are applied. The Chamber of Industry issues certificates of origin for exports of goods 
processed or produced in the free zones, with a lo cal content of at least 40%. The value of exports 
from these zones, and the value of sales to domestic market, as well as the import value, is listed 
in Table 3.16. 
Table 3.16 Free zones, expo rts and imports, 2008-13 
 2008  2009  2010  2011  2012 2013  
Exports 1,012 805 450 454 423 444 
  Domestic market  175 147 152 181 175 192 
  International 837 658 298 273 248 265 
Imports 944 832 490 483 460 448 
Trade balance 68 -27 -40 -29 -37 -4 
Source: Information provided by the authorities. 
3.97.  Jordan has six public free zones (Zarqa , Sahab near Amman, Queen Alia International 
Airport, Al-Karak, Mouqar, and Al-Karama), which are predominately commercial free zones 
serving the transit trade and the local market. Two of them (Sahab and Al-Karak) are located 
within industrial estates. Land in public free zones may only be leased. Jordan also has over 30 
                                               
27 JEDCO online information. Viewed at: http://www.jedco.gov.jo/services.html#export  [13/10/14]. 
28 JLGC (2014), 20th Annual Report 2013 . Viewed online at:  
http://www.jlgc.com/pdf/JLG C%20Annual%20Report%202013%20En.pdf  [14/10/14]. WT/TPR/S/325 • Jordan 
 
- 54 - 
 
  private free zones which are managed by the private sector.29 Real estate in the private free zones 
can be purchased regardless of the investor's nationality. 
3.98.  There are five development areas (also called development zones) in Jordan: the King 
Hussein Bin Talal Development Area in Mafraq, the Ma'an Development Area, the Irbid 
Development Area, the Dead Sea Development Zone, and the Jabal Ajloun Development Zone. 
These development zones aim to create an investment and regulatory framework similar to the Aqaba Special Economic Zone. Projects operating in development areas can be fully owned by non-
Jordanians and are subject to a more favourable fi scal and customs regime (Table A3.1). There are 
no export performance requirement, and no local content requirement.  
3.99.  There are currently six industrial estates (also called industrial parks) in Jordan: in Irbid, 
Karak, Aqaba, Amman, Ma'an, and Muwaqar. In early 2014, Jordan announced plans for a new 
industrial site in Balqa governorate, with an intention to establish industrial estates in each of 
Jordanian governorate. These estates provide basic infrastructure networks for a wide variety of manufacturing activities, reducing the cost of utilities and providing cost-effective land and factory 
buildings. There are no export performance requ irement, and no local content requirement. 
Investors also receive incentives in various forms (Table A3.1). In 2014, the industrial estates contributed to about 20% of Jordan's total merchandise exports. 
3.2.6.2  Aqaba special economic zone 
3.100.  The Aqaba Special Economic Zone is not governed by the JIC. It is a duty-free, low-tax, 
development zone, spreading over 375 square kilometres and the entire 27 kilometres coast line of Jordan. The Aqaba Special Economic Zone Authority (ASEZA), established under the Aqaba 
Special Economic Zone Authority Law of 2000, is the statutory institution empowered with 
regulatory, administrative, fiscal, and economic responsibility within the zone. 
3.101.  The primary target of the ASEZA is to attract domestic and foreign investment from the 
private sector. The investment regime is more liberal than in other parts of the country: there are 
no foreign equity restrictions on investment, land  can be leased or purchased by foreigners, and 
up to 70% of the workforce in each project ma y be foreigners. Goods originating in the Aqaba 
Special Economic Zone and shipped to the custom s territory of Jordan are treated as Jordanian 
origin provided that they meet the rules of origin requirements. A number of incentives are 
provided to companies registered in the zone (Table A3.1).  
3.102.  Investment so far has been concentrated in projects in hotel and property development. In 
2010, the Government initiated the Aqaba New Port Project (expected to be completed in 2016) 
with an intention to attract investment in commerce and tourism. The Port Project includes relocating the current port 20km south, adding four new terminals, and expanding ship berthing, 
marine services, and capacity including for energy and natural resources such as natural gas, 
phosphates, and propane. ASEZA adopted a comprehe nsive Master Plan to promote portal, urban, 
tourist, commercial, industrial, logistics and other investment sectors. According to ASEZA 2020 
master plan, investment in the Zone is divided into: 50% in tourism, 30% in services, 13% heavy 
industries, and 7% light industries. 
3.2.6.3  Qualifying in dustrial zones (QIZs) 
3.103.  After the full implementation of tariff concessions (textiles) under the U.S.–Jordan FTA, the 
private sector may choose to export either through the QIZs, or through the FTA arrangement. 
Most QIZ factories shifted their exports to FTA arrangement in order to reduce time and cost of production (Table 3.17). 
                                               
29 U.S. Department of State: 2014 Investment Climate Statement , June. Viewed online at: 
http://www.state.gov/documents/organization/229087.pdf  [16/10/14]. WT/TPR/S/325 • Jordan 
 
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  Table 3.17 Textile exports from Jordan - under the QIZs and under the FTA, 2010-14 
 QIZs FTA 
 Export value 
(US$ million) Growth rate (%) Export value 
(US$ million) Growth rate (%) 
2010 59.4 - 883.7 - 
2011 33.8 -43.1% 970.9 9.9% 
2012 28.3 -16.3% 1,021.3 5.2% 
2013 13.7 -51.4% 1,116.0 9.2% 
2014 1.2 -91.1% 1,238.2 10.9% 
Source: Information provided by the authorities. 
3.104.  Qualifying Industrial Zone (QIZ) initiative was launched to support the peace process and 
economic cooperation between Israel and its neighbours (Jordan and Egypt). QIZs are designated industrial parks in Egypt and Jordan from which goods can be exported duty-free and quota-free to 
the United States. For goods moving into and out of the zones, customs procedures are 
streamlined and tariffs do not apply. Qualifying businesses must meet certain criteria such as promoting economic cooperation, and satisfying local content requirement: at least 35% must be 
produced locally, of which a minimum of 11.7% must be Jordanian and 8% Israeli (7% for high-
tech products). The other 15.3% may come from either a Jordanian QIZ, Israel, the West Bank and the Gaza Strip, or the United States (a maximum 15% U.S. content). The QIZ initiative has no 
expiry date and thus does not require renewal by the U.S. Congress. 
3.105.  QIZs differ from other types of zones as they operate in two countries (Jordan and Israel), 
produce goods only for export to the United Stat es, and operate under the oversight authority of 
the United States. Currently there are 13 QIZs approved by the USTR in Jordan. 
3.106.  Following the implementation of the QIZs , the textile industry grew quickly. Foreign 
investment (mainly from Asia) accounted for more than 90% of total investment in QIZs, with more than half of the workforce being expatriate s. Although these investors are mainly operating 
simple assembly plants at the low end of the value chain, the authorities still consider that QIZ’s 
attracted multinational companies to invest in Jordan and helped in know-how transfer. Local workers acquired technical, managerial and marketing skills, with which they were able to start 
their own factories. Almost 25% of the 45,000 employees of QIZ factories were Jordanian workers. 
Foreign investors signed subcontracting agreements with small domestic firms. Hence supporting services for the textile and garment factories flourished to provide food and housing services, logistics services, and financial services. The designated QIZ areas and their surrounding areas 
become clusters, and thus helped the surrounding areas to develop. Besides, exporting to the 
United States provided exposure for Jordanian manufacturers in the world market and recognition from international buyers. The authorities consider that QIZ has positioned Jordan as a key 
manufacturer of apparel in the global sourcing map. 
3.3  Measures Affecting Production and Trade 3.3.1  Incentives 
3.107.  The incentive scheme in Jordan is regulated under the Investment Law No. 30 of 2014. 
Incentives are provided under various schemes, both for different zones (such as defined zones of investment, preferential economic zones), and for certain sectors and activities (Table A3.1). The 
Council of Ministers may grant benefits and exemptio ns from tax and fees to an investment project 
for a period with conditions it deems appropriate. Although the Council of Ministers considers many 
factors (such as the development impact of the pr oject, R&D, increase in exports, transfer of 
technology, job creation, and geographical location), its prerogative to grant benefits and 
exemptions may create some uncertainty and may lead to questions on the transparency and 
effectiveness of the incentive scheme. 
3.108.  From 1 January 2010, the interim Income Tax Law of 2009 eliminated income tax 
exemptions except for selected social matters
30, concession agreements, development zones, and 
                                               
30 Examples of "social matters" include ZAKA Fund, Al Hussein Cancer Centre, and King Abdulla The II 
Development Fund.  WT/TPR/S/325 • Jordan 
 
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  the Aqaba Special Economic Zone.31 Thus, the range of tax incentives available to investors was 
reduced: in most cases they no longer cover income tax exemptions, and relate mainly to customs tariffs and sales tax incentives. 
3.3.2  Tax 
3.109.  Tax revenue accounts for around 70% of domestic revenues in Jordan, and about 15% of 
its GDP (Table 3.18). Some reports consider that Jordan has relatively few taxes, the tax rates are low, and the overall tax burden is not particularly high.
32 According to the World Bank, Jordan 
ranks 45 out of 189 economies for paying taxes with an effective total tax rate of 29% on profits 
(almost entirely from corporate income tax and social security contributions by enterprises).33 On 
the other hand, a WEF Report ranked Jordan 64th out of 144 countries in the world for 
competitiveness, and tax regulations and tax rates were among the four most problematic factors 
for doing business in Jordan.34 
Table 3.18 Revenues, taxes and expenditures, 2009-13 
(JD million) 
 2009  2010  2011  2012 2013a 
Domestic revenues and foreign 
grants 4,521 4,662.8 5,413.9 5,054.3 5,758.2 
  Foreign grants 333 401.7 1,215.0 327.3 639.1 
  Domestic revenues 4,188 4,261.1 4,198.9 4,726.9 5,119.1 
  Tax revenues 2,880 2,986.0 3,062.2 3,351.4 3,652.4 
Ratio to domestic revenues (%) .. 70.1 72.9 70.9 71.3 
Ratio to GDP (%) 17% 15.9 15.0 15.3 15.3 
    General sales tax 1,682 1,987 2,033 2,275 2,527 
       Border collections 777.8 759 806 824 1,025 
    SST (excises) 334 589 555 664 .. 
       Border collections N.A. 60 70 92 .. 
    Corporate income tax 585 472 520 557 550 
    Personal income tax 179 152 148 132 131.9 
    International trade taxes 270 275 287 285 324.9 
    Other tax revenues 145 100 89 90 134.8 
  Non-tax revenues 1,287 1,254.4 1,116.0 1,351.2 1,444.6 
Total government expenditure .. 5,708.0 6,796.6 6,878.2 7,065.4 
.. Not available. 
 a Preliminary.  Source: Central Bank of Jordan (2014), Annual Report 2013 . Viewed online at: 
http://www.cbj.gov.jo/pages.php?menu_id=12&local_type=0&local_id=0&local_details=0&  
[17/10/14]. USAID, Benchmarking the tax system in Jordan, July 2013. 
3.110.  Major taxes include the general sales tax (GST), taxes on income and profits, and taxes on 
international trade and transactions. The biggest source of tax revenue is the GST, accounting for 
about 2/3 of total tax revenue. GST has several rates: 0%, 4%, 8%, and 16%, and is exempted 
on some products. GST has several registration thresholds depending on the type of business: 
 importers must register from the first Jordanian dinar of imports, unless they import for 
personal use; 
                                               
31 Article 67 of the 2009 Income Tax Law stipulates that "no provisions provided for in any other 
legislation related to wholly or partially tax exemptions will be applicable", except for the provisions of listed laws that mainly refers to social issues, concession agreements, development zones and the Aqaba Special Economic Zone. 
32 USAID, Benchmarking the tax system in Jordan, July 2013. 
33 World Bank (2015), Doing Business 2015 – Jordan.  Viewed at: 
http://www.doingbusiness.org/~/media/GIAWB/Doing %20Business/Documents/Profiles/Country/JOR.pdf   
[17/02/15]. 
34 World Economic Forum (2014), The Global Competitiveness Report 2014-2015 , p. 228. WT/TPR/S/325 • Jordan 
 
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   the registration threshold is JD 75,000 for wholesalers and retailers; 
 the registration threshold is JD 10,000 for manufacturers subject to SST (special sales 
tax – see below), and JD 50,000 for manufacturers subject to GST; and 
 the registration threshold is JD 30,000 for the services sector. 
3.111.  According to the authorities, the Govern ment is planning to unify the threshold for 
businesses to register for GST. 
3.112.  Jordan's General Sales Tax Law allows the Government to impose a "special sales tax" 
(SST), which is an excise tax (Table 3.19). These SSTs are applied on both imported goods and 
services, and domestically produced ones. 
Table 3.19 Special sales tax 
Description of goods Reference unit Tax rate per unit 
Cement, except for those “imported and locally purchased by 
manufacturers of products where cement is an input. They 
should be registered at the Department and determined by the Minister” Tonne  JD 2 
Beer, including non-alcoholic beer Litre  900 Fils  
Spirits and alcoholic beverages, including wines and other 
fermented beverages Litre (diluted)  1500 Fils  
Tobacco, and tobacco products:   
(a) Tobacco   
   - Ordinary Net kg  2000 Fils  
       - Sweetened Net kg  2000 Fils  
(b) cigarettes   
   - Put to home use Pack of 20 
cigarettes/value 230 Fils plus 102% plus those 
amounts, whichever is higher: 
  - Consumer 
selling price 
(Fils) 
 
550 
600 
650 
700 
750 
800 
850 
900 
1000 
1200 - Ad valorem  
tax in currency 
terms (Fils)  
 
130 
150 
170 
195 
215 
240 
260 
280 
325 
410 
      - supplied to the Jordanian Armed Force, Public Security, 
Intelligence, and Civil Defence Pack of 20 
cigarettes/value 190 Fils plus 102%  
Motor vehicles:   
(a) Motor cars and other motor vehicles principally designed 
for the transport of persons (other than those of heading No. 8702), including station wagons and racing cars, whether 
imported or locally-produced, more than five years ago. Value
 25% 
(b) Motor cars and other motor vehicles principally designed 
for the transport of persons (other than those of heading No. 
8702), including station wagons and racing cars, whether 
imported or locally produced  less than five years ago. Value  45% 
(c) Motor vehicles for the transport of ten or more persons, 
including the driver, motor vehicles for the transport of goods, and special motor vehicles, produced five years or more earlier, which come under heading No. 8702, 8704, 8705 of Tariff Tables. Value
 16% 
Mobile phones and radio subscription service, whether post-
paid or pre-paid. Value  4% 
Source: Regulations No. 80 of 2001 Pertaining to the Special Tax, as amended by Regulations No. 2 of 2002, 
Regulations No. 57 of 2003, Regulations No. 32 of 2005, and Regulations No.1 of 2006, Enacted by virtue of Paragraph (b) of Article (6) of the General Sales Tax Law No. 6 of 1994, as amended. WT/TPR/S/325 • Jordan 
 
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  3.113.  The second largest source of tax is taxes on profits and income, accounting for roughly 
20% of total tax revenue. On 31 December 2014, the Income Tax Law No.34 of 2014 was promulgated, and became effective on 1 January 2015.  The Law increased corporate income tax rates on companies in some businesses, and raised personal income tax rates. The rates are the 
same for foreign and domestic companies. Corporate income tax rates in Jordan are:  
 14% for the industrial sector; 
 24% for telecommunication companies, electric ity generation and distribution companies, 
mining companies of basic materials, insurance and reinsurance companies, financial 
companies, financial intermediation companies, and other legal persons practicing capital lease activities; 
 35% for banks; and 
 20% for all other legal persons. 
3.114.  The personal income tax rate is, after all the deductions, 7% for the first JD 10,000, 14% 
for JD 10,000 to JD 20,000, and 20% thereafter. 
3.115.  Taxes on international trade, although in creasing during the review period, accounted for 
less than 10% of total tax revenue.  
3.3.3  Competition policy and price controls 
3.3.3.1  Competition policy 
3.116.  Since the previous review in 2008, there have been significant changes to Jordan's 
competition policy framework. The Competition Law of 2004, amended in 2011 (Competition Law 
No. 18 of 2011), regulates anti-competitive ag reements, abuse of dominant positions, and 
mergers and acquisitions (Table 3.20). The Law applies to all production, commerce and service 
activities in Jordan, and any economic activities occurring outside Jordan but having an effect inside the country. The core objectives of the Law are to protect fair competition, achieve a 
competitive market structure, and protect all market participants including SMEs. The Law applies 
to all enterprises including SOEs. 
Table 3.20 Competition polic y: key characteristics 
Subject Exceptions 
Anti-competitive agreements  
The Law bans any explicit or implicit agreements 
that would restrict competition De Minimis  agreements are exempted from this ban, 
provided that they do not fix prices or share markets. 
The MITS has set a 10% threshold for market share 
below which agreements qualify as de minimis  
agreements. 
 Practices and arrangemen ts that fall under the 
definition of anti-competitive practices shall not be considered anti-competitive if they lead to positive results with a common benefit that cannot be achieved without this exemption, including the improvement of competitive ability of enterprise, or production or distribution  systems, or providing 
certain benefits to the consumer.  
Abuse of dominant position  
The Law prevents enterprises with a dominant 
position in the domestic market from abusing their 
dominance to limit competition. Dominant position is defined as the status in which 
the institution is able to control and influence the 
market. 
Abuse of dominant position  includes discrimination, 
tying, predatory pricing, etc. Below cost pricing is not prohibited in the cases where 
it concerns perishable goods, liquidation of 
businesses, or sales to restock a business. WT/TPR/S/325 • Jordan 
 
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  Subject Exceptions 
Mergers and acquisitions are subject to 
monitoring  
The merger notification threshold is set at 40% of 
the market share.  
Unfair practices  
Producers, importers, wholesalers, and service 
providers are prohibited from setting a minimum 
resale price for a produc t or service, whether 
directly or indirectly, and from subjecting another 
party to benefit "from pref erential and unjustified 
prices or conditions of sa le or purchase in such a 
manner as to impart upon  such party a benefit as 
regards competition".  
Source: OECD (2013), OECD Investment Policy Reviews: Jordan 2013. OECD Publishing. 
3.117.  Three competent authorities deal with competition matters: 
  the Competition Directorate, under the MITS, is in charge of implementing the Competition 
Law; 
  the Competition Affairs Committee, the adviso ry body of the Competition Directorate, 
provides opinions and advice on the general competition strategy and reviews matters 
related to the Competition Law; 
  the Judicial Council and the Ministry of Justice are responsible for reviewing cases of 
practices contravening competition, and for dealing with the  execution of specific 
provisions of the Law. 
3.118.  The Competition Directorate has special allocations accorded by the General Budget Law, 
but the authorities recognize that these allocations can barely cover its expenses. The authorities 
stated that the Directorate cooperates with several international supporters to cover its technical 
assistance expenses and costs to participate in international events. The authorities indicate that, in 2014, the Directorate dealt with 37 cases covering complaints, economic concentrations, studies 
and investigations. During the review period, a number of cases have been dealt with by the 
Directorate (Table 3.21). 
Table 3.21 Cases studied by the Competition Directorate, 2009-14 
Type of cases Number 
Complaints 107 
Economic concentration applications, economic concentration consultations, and monitoring 
economic concentration operations 30 
Exemptions applications 13 
Consultations 68 
Investigations and studies 106 
Source: Information provided by the authorities. 
3.3.3.2  Price controls 
3.119.  The Competition Law follows the principle of free determination of prices in accordance 
with market mechanisms and the principles of free competition, with the following exceptions: 
  prices of "essential commodities" subsidised by the Government: price controls may be 
applied pursuant to the Industry and Trade Law No. 188 of 1998 and other specific laws, 
on "essential commodities" which are determined  by the Council of Ministers (Table 3.22); 
  temporary government control of prices in the case of emergencies or natural disasters. WT/TPR/S/325 • Jordan 
 
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  3.120.  According to the authorities, the Cabinet, upon recommendations from the Minister of the 
MITS, may determine the prices for any of the basic materials. In 2013 and 2014, price ceilings for the following foodstuffs were applied: table eggs , qatayef, a number of vegetables, and chicken. 
Table 3.22 Goods subject to price controls, 2015 
HS Code Product description Status 
ex 1001 Wheat, seed of a kind used for 
sowing Price fixed pursuant to Resolution of the 
Prime Minister No. 63-11-1-20173, 28 November 2007 
ex 1003.00 Barley, seed of a kind used for 
sowing Price fixed pursuant to the resolution of the 
Prime Minister No. 63-11-1-20173, 
28 November 2007  
1001.10, ex 1001.90 Wheat Price fixed by MITS pursuant to Law No. 18 
of 1998 
1101.00 Flour Price fixed by MITS pursuant to Law No. 18 
of 1998 
ex 1905.90 Bread – Arabic, Tanouri, Taboun, 
Armenian, and Baladi Price fixed by MITS pursuant to Law No. 18 
of 1998 
ex 2302 Bran Price fixed by MITS pursuant to Law No. 18 
of 1998 
ex 2711.13 ex 2710.00 ex 2710.00 ex 2710.00 ex 2710.00 ex 2710.00 2710.004 2710.005 ex 2714.90 ex 2714.90 ex 2710.00 Liquid gas butane 
Leaded (gasoline)  Super (gasoline) Unleaded (gasoline) Jet fuel (airplane fuel) Kerosene Diesel Fuel oil Asphalt, w/o containers Asphalt, in containers Diesel for ships Prices are fixed on monthly basis (for a two-
year transition period) by the MITS in consultation with stakeholders. On 13 November 2012 the Cabinet approved the monthly price adjustment mechanism, allowing oil derivatives price to move according to inte rnational price except 
for liquid gas butane which was fixed until beginning 2015.  
ex 2201.90 Water Price fixed by the Ministry of Water and 
Irrigation. Sewage tariff was increased by 
15% on 7 May 2014 upon recommendation 
by the WAJ Board. 
2716.00 Electrical energy Price fixed pursuant to Electricity Law No. 
64 of 2002. Tariff was adjusted in 2012, 
2013, 2014, and 2015. 
ex 3002, ex 3003, and ex 
3004 Pharmaceuticals for human use Price fixed pursuant to  Drug and Pharmacy 
Law No. 80 of 2001 
ex 3002, ex 3003, and ex 
3004 Pharmaceuticals for veterinary 
use Price fixed pursuant to the Agriculture Law 
No. 13 of 2015 and the instructions No. 33 of 2003 
Source: Information provided by the authorities. 
3.121.  The Government has been providing subsid ies to maintain these price controls, and from 
2012, it began an action plan to reduce the impact of rising prices on low income households 
through targeted cash transfers (Table 3.23). 
Table 3.23 Subsides to maintain price controls on fuel and food, 2008-14 
(JD million) 
 2008 2009 2010  2011  2012  2013 2014 a 
Food subsidies 221.0 143.1 104.7 194.0 210.0 255.0 225.0 
Oil subsidies 197.9 42.9 88.1 584.2 673.0 0 0 
Cash transfers Number of households 862,000 778,619 708,934 
Number of individuals (million) 4.6 4.2 3.8 
Cash transfer (JD million) 107 193.9 176 
a Data for 2014 is up to early December. 
 Source: Information provided by the Ministry of Finance. 
3.122.  The authorities stated that providing price subsidies to food is a relatively complex issue. 
Bread remained subsidized while the prices of most other bakery products were liberalized. The WT/TPR/S/325 • Jordan 
 
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  MITS is responsible for importing wheat and barl ey, which account for almost all (99%) domestic 
consumption needs. The Ministry also purchases whea t and barley from local farmers, at cost price 
which is set according to the average world price.  The Government distributes wheat and barley to 
mills at cost price to produce various kinds of fl our. The flour is then sold at market price to 
bakeries. Flour suitable for making bread is sold to bakeries at controlled prices and the bread sold 
to consumers at JD 0.16 per kilogram. Thus, consumption of bread surges when international price for flour increases (Section 4.1.3.3). 
3.123.  There are price controls on electricity an d water. The tariffs/fees for a number of services 
are subject to price control, including certain telecommunications services, insurance services (for compulsory motor insurance), postal services, and public transport services. 
3.3.4  State-owned enterprises, privatization and state trading 
3.3.4.1  SOEs and privatization process 
3.124.  SOEs still play a significant role in the economy (Table 3.24). Examples of SOEs include 
the Arab Potash Company, the National Electric al Power Company (NEPCO), the National Food 
Security Company, and the Yarmouk Water Company. These companies have delegated 
government powers and operate in fields that ar e not yet open for private investment, such as 
managing the transmission and distribution of electrical power. 
3.125.  The Government supports these companies as necessary, and has been providing 
subsidies to cover their losses. For example, the Government has issued, and provided guarantees 
for corporate bonds for NEPCO since 2011 to ensure continuous power supply for the country.
35 
According to the 2013 Annual Report of the Central Bank of Jordan, net public debt increased by 
4.5 percentage points to reach JD 19,096.5 million in 2013, or 80% of GDP. This increase was 
mainly due to the Government's commitment to finance NEPCO to cover its losses and repay its loans. In addition, the Government also had to pay for the losses of the Water Authority (WAJ). 
Direct transfers from the Government to NEPCO and WAJ amounted to JD 1,424 million, or 6% of 
GDP in 2013.
36 
3.126.  SOEs are held accountable by their board of directors, typically chaired by the sector-
relevant Ministers and the Audit Bureau.37 According to the authorities, there is no preferential 
treatment provided to SOEs. 
3.127.  Jordan launched a privatization programme in the 1990s, following financial losses by the 
public sector. In 2000, the Privatization Law was issued, according to which, an Executive 
Privatization Committee (EPC), and a Privatization Council, were created. The privatization 
transactions between 1998 and 2008 generated US$2.3 billion in sales proceeds, which were mostly used to buy Paris Club debt in 2008 at a discount price.
38  
3.128.  The privatization process is largely complete and the few remaining government assets not 
privatized, including Jordan Silos and Supply, seems to have little interest to the private sector.39 
The number and size of future privatization projec ts is expected to diminish. In January 2013, a 
Privatization Evaluation Committee was established, with an aim to examine privatization activities 
since 1989. Major findings and conclusions of the Committee are available online.40 
                                               
35 U.S. Department of State: 2014 Investment Climate Statement, June. Viewed online at: 
http://www.state.gov/documents/organization/229087.pdf[16/10/14 ]. 
36 Central Bank of Jordan  (2014), Annual Report 2013, p.41. Viewed online at: 
http://www.cbj.gov.jo/pages.php?menu_id=12&local_type=0&local_id=0&local_details=0&[17/10/14 ]. 
37 U.S. Department of State: 2014 Investment Climate Statement, June. Viewed online at: 
http://www.state.gov/documents/organization/229087.pdf[16/10/14 ]. 
38 William P. Mako (2012),  Privatization: Lessons from Jordan , World Bank MENA Knowledge and 
Learning Quick Notes Series, July 2012 Number 68. Viewed at: http://www-wds.worldbank.org/external/ 
default/WDSContentServer/WDSP/IB/2012/10/04/000333038_20121004013033/Rendered/PDF/730030BRI0Q
uic0C0disclosed010010120.pdf . 
39 U.S. Department of State: 2014 Investment Climate Statement, June. Viewed online at: 
http://www.state.gov/documents/organization/229087.pdf[16/10/14 ]. 
40 See: http://www.pm.gov.jo/arabic/index.php ?page_type=pages&part=1&page_id=427  [July 2015]. WT/TPR/S/325 • Jordan 
 
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  3.129.  The Government favours public-private-par tnership (PPP) projects. On 13 December 2014, 
a Public-Private-Partnership Law entered into force. It repealed the Privatization Law, and established a legislative framework to promote PP P policy design and project implementation. The 
Law aims to encourage the private sector to participate in economic development, provide a 
legislative environment for both the public and priv ate sectors to develop, and to enable the public 
sector to manage and carry out projects fund ed by the private sector. Under this Law, a 
Partnership Council (to be chaired by the Prime Minister) will be established. 
Table 3.24 Selected large public undertaking s with significant public holdings at 
December 2014 
(JD million) 
Name/operation Total asset 
value Activity Operating  
revenue Operating 
profit State/public authority 
holding 
Arab Potash 
Company 1,013 Fertilizer 521 125 27% Ministry of Finance 
5% Social Security Corporation 20% Arab Mining Company (owned by, or on behalf of 15 Arab Governments) 
Jordan Telecom 
Group 360 Telecoms 441 62 28.88% Social Security 
Corporation 
National Electrical Power Company (NEPCO) No records Services No records No records .. 
National Food 
Security Company No records Commercial No records No records .. 
Yarmouk Water 
Company No records Services No records No records .. 
Water Authority 
(WAJ). 126.7 Services 120.2 10.7 100% Water Authority of 
Jordan 
Jordan Silos and 
Supply 47.4 Commercial 5.8 0.7 100% Jordanian 
Government 
Jordan Phosphate 
Mines Co. Ltd 
(JPMC) 1,112 Industrial 574.4 103.3 25.661% Ministry of 
Finance, 16.456% Social 
Security Corporation 
Jordan Petroleum 
Refinery Co. 1,765 Industrial 3,964.9 11.3 20.141% Social Security 
Corporation 
Jordan Industrial 
Estates Company 116.5 Industrial  9.8 n.a. 67% Jordanian 
Government 
Free Zones Company 180.5 Industrial 21.2 .. 100% Jordanian 
Government  
Royal Jordanian 84.3 Services 760 .. 35% Jordanian 
Government 
Electricity distribution company 10 Services 384.8 .. 100% Jordanian 
Government 
National Petroleum 
Company 15 Industrial 5.4 .. 100% Jordanian 
Government 
.. Not available. n.a. Not applicable.  Source: Information provided by the authorities. 
3.3.4.2  State trading 
3.130.  In 2003, Jordan notified the WTO of two st ate-trading enterprises with special or exclusive 
trading rights, which remain in practice: 
  Jordan Phosphate Mines Co. Ltd (JPMC) has exclusive rights to import, store and sell 
explosive materials used for mining and quarrying purposes. It also has exclusive mining rights over phosphates for four mines in Jord an. JPMC does not sell phosphate to private 
traders for export purposes; and  WT/TPR/S/325 • Jordan 
 
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    Jordan Petroleum Refinery Co. has exclusive rights to import oil and hydrocarbon products 
for local use.41 
3.131.  The Government classified barley and wheat (including wheat flour and bran) as essential 
commodities, the consumption of which is subsidized. For this reason, the MITS is the sole 
importer of these products. The MITS puts up tend ers for local companies that will be responsible 
for the transfer of wheat and barley from the co untry of origin, and private traders import under 
the direction of the Trade Directorate at the MITS. 
3.132.  In addition, exports of the following products are restricted to specific enterprises or 
authorities, including: 
  Raw hides and manufactured leather (Jordan Tanning Company);  
  Portland cement (Jordan Cement Factories Company); and 
   Mineral extracts, such as stone, sand, gypsum, and clay derivatives (Natural Resources   
Authority).42 
3.3.5  Intellectual property rights 
3.3.5.1  Overview 
3.133.  During the review period Jordan has ratifi ed several international conventions related to IP 
rights, signed (but not ratified) others, and has made some amendments to its IP legislation 
(Table 3.25). 
Table 3.25 IPR legislative framework, and inte rnational conventions ratified by Jordan 
Entry into force Conventions on IPR ratified by Jordan  
14 November 2008 Budapest Treaty on the International Recognition of the Deposit of Micro-organisms for the 
Purpose of Patent Procedure 
14 November 2008 Nice Agreement Concerning the International Classification of Goods and Services for the 
Purpose of the Registration of Marks 
14 November 2008 Vienna Agreement Establishing the International Classification of the Figurative Elements of 
Marks 
24 May 2004 WIPO Performances and Phonograms Treaty 
27 April 2004 WIPO Copyright Treaty 
28 July 1999 Berne Convention for the Protection of Literacy and Artistic Works 
17 July 1972 Paris Convention for the Protection of Industrial Property 
12 July 1972 Convention Establishing the World Intellectual Property Organization 
24 Oct 2004 International Convention for the Protection of New Varieties of Plants (UPOV Convention) 
 
Date of signature Conventions signed but not yet ratified 
26 June 2012 
(accession only) Beijing Treaty on Audiovisual Performances (not in force) 
28 June 2013 (signature only)  Marrakesh VIP Treaty (not in force) 
Date of adoption Not WIPO ministered treaties 
Signature: 29 
October 2010 
Ratification: 10 
January 2012 
 Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of 
Benefits Arising from their Utilization to the Convention on Biological Diversity 
 IPR related legislation 
Patent - Patents Law No. 32 of 1999 and its amendments by Temporary Law No. 71 of 2001 and 
Law No. 28 of 2007; - Regulation of Patents of Invention No. 97 of 2001 issued pursuant to Article 42 of the Patent Law No. 32 of 1999 
                                               
41 WTO document G/STR/N/9/JOR, 28 July 2003. 
42 Jordan Enterprise Development Corporat ion online information. Viewed at: 
http://www.jedco.gov.jo/atp/index.php?option=c om_content&view=article&id=4&Itemid=16&lang=en  
[January 2015]. WT/TPR/S/325 • Jordan 
 
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  Trademarks - Trademark Law No. 33 of 1952 and its amendments by Law No. 34 of 1999, Law No. 29 of 
2007 and Law No. 15 of 2008 which related to the definition of well-known trademarks, 
licensing and fine increase for trademarks violation; 
- Trademark Rules No. 1 of 1952 and its amendments by Regulations No. 37 of 2000, No. 
128 of 2009 and No. 22 of 2010 
Trade names - Trade Names Law No. 9 of 2006; 
- Regulations on Trade Names No. 116 of 2004 and its amendments by Regulations No. 65 of 2007; - Law No. 19 of 1953 on Marks of Goods and its amendments 
Geographical 
indications - Law on Geographical Indications No. 8 of 2000 
Industrial designs and models - Law on Industrial Designs and Models No. 14 of 2000; 
- Regulation No. 52 of 2002 on Industrial Designs and Models issued pursuant to Article 18 of the Industrial Designs and Models Law 
Copyright - Law No. 23 of 2014 Amending Copyright Protection Law; 
- Copyright Protection Law No. 22 of 1992 and its amendments by Laws No. 88 of 2003 and 
No. 8 of 2005; 
- Deposit of Compilations By-Law No. 4 of 1994; 
- Regulation No. 36 of 2002 on Traditional and Popular Crafts and Industries and their 
Trading; 
- Deposit of Compilations By-Law No. 4 of 1994 
Plant varieties - Law No. 24 of 2000 on Protecting New Varieties of Plants; 
- Regulation No. 76 of 2002 on Regi stration of New Plant Varieties 
Integrated circuits - Law No. 10 of 2000 for the Protection of Layout-Designs of Integrated Circuits; 
- Regulation No. 93 of 2002 on the Protection of Layout-Designs of Integrated Circuits 
Trade secrets - Law No. 15 of 2000 on Trade Secrets and Unfair Competition 
Enforcement - Regulations No. 7 of 2000 on Border Measures  for the Protection of Intellectual Property 
Rights 
 
 Main institutions 
MITS: 
Industrial Property Protection Directorate Supervising all matters related to the registration of trademarks, patents, industrial designs 
and models, and integrated circuits. 
Ministry of Culture:  
National Library Administrating copyrighted works, responsible for the enforcements of copyrights. 
Ministry of Agriculture: JFDA Supervising the registration of plant varieties 
JSMO Ex-officio authority to investigate matters related to IPR infringements, to impound 
counterfeit merchandise, and to file cases with the prosecutor. 
Customs Enforcement of IPR at the border 
Police: IPRs 
Protection Sector Enforcement of IPR within the country 
Source: WIPO online information. Viewed at: http://www.wipo.int  [05/11/14]. OECD (2013), OECD 
Investment Policy Reviews: Jordan 2013 , OECD Publishing. WTO (2009), TPR Jordan, and 
information provided by the authorities. 
3.134.  Jordan also signed a number of FTAs which include provisions related to IPR protection, 
such as the RTAs with Canada, EU, EFTA, the United  States, as well as bilateral agreements with 
Algeria and Lebanon. 
3.135.  Parallel imports of patented goods are not allowed, although the patent proprietor must 
notify the Customs Department of Jordan accordingl y. Parallel imports of registered design/model, 
and of layout-designs are also prohibited: the ow ner/licensee of the registered design/model has 
the right to prevent third parties from maki ng, importing or selling products bearing a 
design/model that is a copy or substantially a copy, and the proprietor of the layout-design has the right to prevent third parties from reproducing, im porting, selling or distributing products of the 
protected layout-design. According to the Copyright Law, copyright owners (authors, performers, 
producers of audio recordings) have exclusive rights  to exploit their work in whatever manner they 
choose. Others must not be entitled to exercise any of the rights including the importation of the 
copyright protected goods. Thus parallel imports of  goods protected by copyrights are not allowed. 
Parallel imports of goods that are protected by other IP rights such as trademarks are not allowed 
as well. 
3.136.  Compulsory licences of patents may be issued under specific circumstances. The 
authorities state that, till now no application for compulsory licences has been submitted. WT/TPR/S/325 • Jordan 
 
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  3.3.5.2  Patents 
3.137.  Patents may be granted solely for inventions that constitute a novel inventive step and are 
capable of industrial application. The Registrar of  Patents, at the Industrial Property Protection 
Directorate within the MITS, examines the patentability of applications. Patents are valid for 
20 years from the date of filing the application. Appeals against decisions of the Registrar may be 
made by petition to the Higher Court of Justice, administrative court (first instance), and supreme administrative court. Approved applications are published in the Official Gazette  and are subject to 
public inspection. During the review period, 402 pa tents were granted, of which 338 were filed by 
foreigners (Table 3.26). 
Table 3.26 Patent applications  and patents granted, 2009-14 
 Applications Patents granted 
Year National International National International Total patents 
granted 
2009 60 446 11 40 51 
2010 43 431 22 64 86 
2011 41 362 7 36 43 
2012 53 344 4 70 74 
2013 32 360 9 37 46 
2014 39 341 11 91 102 
Total 268 2,284 64 338 402 
Source: Information provided by the authorities. 
3.138.  Jordan submitted its instrument of a cceptance of the Protocol amending the TRIPs 
Agreement in August 2008.43 In 2013 Jordan notified the adoption of implementing legislation 
which incorporated the Paragraph 6 System into domestic law: Articles 22 and 23 of the Amended 
Patent Law No. 28 of 2007 provide the legal basis fo r Jordan to act as an exporting Member under 
the System.44 
3.3.5.3  Copyright 3.139.  Copyright protection is accorded to original works of art, science, and literature, including 
works expressed in writing, sound, drawing, ph otography and motion, 3-D works, and computer 
software. Copyrighted material is protected for th e life of the author plus 50 years. Works of 
applied art are protected for 25 years, while protec tion for photographic works has been extended 
to 50 years. Jordanian citizens may obtain a non-exclusive licence from the Minister of Culture to 
translate foreign works into Arabic after three years of first publication, subject to fair compensation of the author. 
3.140.  The Copyright Law was most recently amended in 2014. The amendments were intended 
to create a favourable environment for investment in the information and technology sector, particularly software. It has been reported that stronger protection of software has facilitated investments from leading multinational IT firms, such as Microsoft and Intel, into Jordan's IT 
industry.
45 
3.141.  The National Library in the Ministry of Cu lture is responsible for copyright protection. By 
the end of July 2014, the Copyright Office in the National Library initiated 5,068 legal cases of 
copyright infringement, nearly 90% of which were through its ex-officio enforcement authority 
under the Copyright Law. In 2014, 270 cases were initiated (Table 3.27). 
                                               
43 WTO document, WT/Let/630, 12 August 2008.  
44 WTO documents, IP/N/1/JOR/2 (26 April 2013), and IP/N/1/JOR/P/2 (26 April 2013). WTO online 
information. Viewed at: http://www.wto.org/english/tratop_e/trips_e/par6laws_e.htm  [28/01/15]. 
45 OECD (2013), OECD Investment Policy Reviews: Jordan 2013 , OECD Publishing. WT/TPR/S/325 • Jordan 
 
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  Table 3.27 Cases initiated by the Copyright Office, 2009-14 
Year Number of cases initiated 
2009 586 
2010 581 
2011 355 
2012 467 
2013 462 
2014 270 
Source: Information provided by the National Library. 
3.142.  According to the World Economic Forum Report, Jordan ranked 50th out of 144 countries in 
the fight against software piracy, and 39th in IPR protection.46 The Business Software Alliance 
(BSA) Global Software Survey 2014 showed that the percentage of using unlicensed software in 
Jordan was 57% in 2013, down 1 percentage point from 2011.47 According to the authorities, this 
ratio was 87% in 1994. The authorities also launc hed a campaign to promote the awareness of 
copyright protection, by informing shops and CD /DVD/software outlets of the Copyright Law and 
criminal penalties on violation of the Law. 
3.3.5.4  Trademarks 3.143.  Trademarks are registered for ten years and may be renewed indefinitely for ten-year 
periods. Trademarks may be cancelled if they are not used for a continuous period of three years. 
The trademark owner may licence one or more pers ons to use the mark for all or some of the 
goods under a notarised contract; filling to the registrar is not compulsory. During the review 
period, foreign participation in trademark application and registration has been increasing 
(Table 3.28). 
3.144.  The Trademark Law was most recently amended in 2008. One of the main provisions 
introduced by the amendments is the recognitio n of the concept of "well-known" marks and the 
prevention from registering a trademark simila r to a well-known mark, even though the well-
known mark is neither registered nor used in Jordan. 
Table 3.28 Trademark applications, re gistrations, and rejections, 2009-13 
 2009  2010  2011  2012 2013  
Trademark      
  Application 7,734 5,976 6,813 6,748 6,510 
    Domestic 51.6% 31.9% 33.7% 33.8% 32.5% 
    Foreign 48.4% 67.9% 66.2% 66% 67.5% 
  Registration 5,472 5,715 5,233 4,160 5,379 
    Domestic 41.4% 24.1% 22.2% 26.1% 24.1% 
    Foreign 58.6% 75.9% 77.8% 73.9% 75.9% 
  Rejection 1,503 1,087 1,188 826 1,160 
Source: Information provided by the authorities. 
3.3.5.5  Enforcement of intellectual property rights48 
3.145.  Jordan Customs has the right to suspend the release of goods which it suspects may 
constitute an infringement of intellectual property rights at the border. The right holder can file a 
criminal or civil case before the competent court during eight days after being notified of the 
customs decision to suspend the release of the goods. In 2014, there were 253 IPR infringement cases, of which 28 were filed to court.  
                                               
46 WEF (2014), The Global Information Technology Report 2013,  p.206. Viewed at: 
http://www3.weforum.org/docs/WEF_GITR_Report_2013.pdf  [14/11/14]. 
47 Business Software Alliance (BSA), Global Software Survey 2014 (the Compliance Gap. V iewed at: 
http://globalstudy.bsa.org/2013/downloads/studies/2013GlobalSurvey_Study_en.pdf  [14/11/14]. 
48 Details of IPR enforcement measures, see: WTO document, IP/N/6/JOR/1, 18 October 2000. WT/TPR/S/325 • Jordan 
 
- 67 - 
 
  3.146.  The IPR Department in Jordan Police was established within the Crime Investigation 
Department (CID) to protect intellectual property  in books, trademarks, and everything within 
moral and material production of ideas and creativity, and those relate to individuals and institutions locally and internationally. 
3.147.  JSMO has the authority to inspect shops and prevent the sale of goods which they suspect 
to be nonconforming to Jordanian technical regulations or counterfeit. JSMO has the right to destroy the counterfeit goods if proven so by the trademark owner, and to destroy the 
nonconforming goods if proven so by conformity a ssessment results. The violator is to be sent to 
the competent court. The owner of the trademark or  his legal representative can then file a civil 
case to the competent court. 
3.148.  The National Library may investigate violations of the Copyright Law and refer these 
violations to the General Prosecutor, who studies the case and refers it to the First Instance Court 
if there is an infringement. The Court issues the suitable penalty: either fine or imprisonment or both. 
3.149.  Enforcement problems remain in Jordan, particularly with regard to software and video 
piracy. The authorities consider that the enforc ement problems arise mainly due to lack of 
resources and they have been making efforts to improve IPR enforcement. For example, the 
National Library organizes workshops and training courses for both copyright officers and other 
competent authorities such as the Judiciary and the Police. It launched an awareness campaign 
named “Shayfeenak” (“We can see you”), addresse d to shops and CD, DVD and software outlets, 
informing them through SMS text messages about the Copyright Law and criminal penalties on 
violation of the Law. It also established a Copyright Law Enforcement Committee, which consists of 
different government agencies such as the Ministry of Telecommunications and Information Technology, the Judicial Council, the Public Security Department – IP Section, the Audiovisual 
Commission, the Customs, the Telecommunications Regulatory Commission, the Greater Amman 
Municipality, and the Department of the National Library. 
 WT/TPR/S/325 • Jordan 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture 4.1.1  Overview 4.1.  In 2013, Jordan's agricultural sector accounted for US$1,007 million or 3% of GDP. Despite 
Jordan's relatively small agricultural sector, both land usage and the annual production increased 
steadily between 2007 and 2013. In 2013, only 2%  of national employment came from the 
agricultural sector, of which two-thirds were non-Jordanian. Nevertheless, about 15% of the 
population depend on agriculture. Agricultural development faces several challenges, particularly 
the dry climate with limited access to water supplies. 
4.2.  Over 60% of the value of agricultural produc tion is grown in the Jordan Valley, which, being 
below sea level and having a warm and temperate climate, can produce fruits and vegetables 
throughout the year. Agricultural production also takes place in the highlands of the country, 
where cereals and field crops are mainly cultivated . There is minimal production in the semi-arid 
eastern regions as Jordan has limited water resources and much of the soil is relatively infertile.  
In 2014, out of a total land area of nearly 90,000 km
2 only 9% was suitable for agriculture.  As a 
result of shrinking irrigation supplies (linked to the crisis in neighbouring Syria), land for vegetable cultivation decreased from 49,000 ha in 2010 to 36,000 ha in 2012, although arable land overall 
increased slightly between 2008 and 2012.
1 
4.3.  As noted in the last Review, farm holdin gs are small and fragmented with about 90% of 
farmers owning less than 5 ha. Although it has b een reported that a large number of such farms 
have experienced decreasing productivity linked to  the Syrian crisis, both production and exports 
have continued to increase.2 
4.4.  According to FAO data, the total value of ag ricultural production in U.S. dollar terms more 
than tripled from 2000 to 2012. Livestock and livestock products remain the most important 
products although the value of production of oliv es and tomatoes increased significantly over this 
period (Table 4.1 and Table 4.2). The increase in the value of production is due, in some cases, to higher prices but in other cases, particularly tomatoes, to a combination of greater area and higher 
yields. However, yields of cereals remain low and variable. 
Table 4.1 Value of production of livestock products and crops, 2000-12 
(US$ million) 
 Livestock 
total Chicken 
meat, 
indigenous Eggs, hen, 
in shell Milk, whole 
fresh cow Cattle 
meat, 
indigenous Milk, whole 
fresh sheep Other 
livestock 
products 
2000 301 183 42  50 4 14 9  
2001 299 184 31 50 16 11 8 
2002 277 152 40  54 12 11 8  
2003 328 179 41 52 15 26 16 
2004 367 196 45  69 13 31 11  
2005 371 197 44 70 14 34 12 
2006 401 205 42  73 19 47 17  
2007 541 274 56 111 42 41 16 
2008 794 380 85  181 62 59 27  
2009 678 350 66 141 39 56 25 
2010 741 450 83  107 37 46 18  
2011 845 470 106 133 68 55 12 
2012 946 541 76  155 92 66 16  
                                               
1 FAO Regional Office for the Near East and North Africa, January 2014, page 6: 
http://www.fao.org/fileadmin/user_upload/rne/docs/Jordan-Plan.pdf  and World Bank 
http://data.worldbank.org/indicator/AG.LND.AGRI.ZS . 
2 FAO Regional Office for the Near East and North Africa, January 2014: 
http://www.fao.org/fileadmin/user_upload/rne/docs/Jordan-Plan.pdf  and UN Comtrade (AG WTO def.). WT/TPR/S/325 • Jordan 
 
- 69 - 
 
   Livestock 
total Chicken 
meat, 
indigenous Eggs, hen, 
in shell Milk, whole 
fresh cow Cattle 
meat, 
indigenous Milk, whole 
fresh sheep Other 
livestock 
products 
 Crops 
total Cereals, 
total Fruit and 
vegetables Of which 
    Tomatoes Olives Potatoes Cucumbers 
and 
gherkins 
2000 257 8 248 22 69 21 17 
2001 214 9 206 31 29 15 11 
2002 342 20 314 42 64 17 20 
2003 310 14 295 45 61 24 18 
2004 381 11 369 43 83 30 19 
2005 378 21 355 47 64 26 35 
2006 465 13 451 70 104 26 36 
2007 539 12 521 97 124 32 45 
2008 581 16 561 114 93 42 41 
2009 601 16 578 82 149 38 33 
2010 749 23 723 165 143 56 56 
2011 762 23 737 134 100 76 69 
2012 720 27 690 141 120 33 49 
Source: FAOStat online database. Viewed at: http://faostat.fao.org/  [May 2015]. 
Table 4.2 Production volumes 2000-13 
(Tonnes) 
 Wheat Barley Olives Tomatoes  Potatoes  Cattle 
meat, 
indigenous Chicken 
meat, 
indigenous Milk, 
whole 
fresh cow Eggs, 
hen, in 
shell 
2000 25,433  12,070  134,285  354,292  97,075  1,038  118,089  161,812  45,833  
2001 19,293  17,329  65,701  310,195  101,344  4,275  116,820  162,765  45,440  
2002 43,771  56,772  180,900  359,832  105,334  3,264  109,407  176,913  44,696  
2003 42,526  25,821  117,958  415,871  122,396  3,519  123,999  169,800  43,601  
2004 13,166  20,980  160,738  449,487  165,332  3,444  126,246  200,530  46,753  
2005 34,363  31,793  113,070  449,490  172,077  3,590  132,162  196,680  40,614  
2006 22,928  18,430  146,829  545,566  160,028  4,284  115,790  205,148  44,680  
2007 20,997  13,260  125,029  610,246  97,400  7,935  133,782  256,380  38,764  
2008 7,835  10,328  94,068  600,336  139,787  11,977  141,415  313,960  50,602  
2009 12,484  17,062  140,719  654,306  118,705  8,395  154,838  244,600  45,900  
2010 22,125  10,659  171,672  737,261  174,931  6,817  188,444  214,950  69,274  
2011 19,801  29,285  131,847  777,820  216,483  10,482  191,944  238,569  69,348  
2012 19,205  32,050  155,640  738,227  141,573  12,291  191,724  240,685  43,274  
2013 29,517  40,915  128,186  869,138  103,224  12,503  197,464  236,773 41,851  
Source: FAOStat online database. Viewed at: http://faostat.fao.org/  [May 2015]. 
4.1.2  Trade 
4.5.  In current U.S. dollar terms, agricultur al exports have increased by 56% since 2008 while 
imports have increased more rapidly, driven by th e increase in population and, since 2011, by the 
influx of refugees. As a result, the trade deficit in agricultural products has widened (Table 4.3 and 
Table 4.5). 
4.6.  In 2013, the main destination for agricultural exports included Iraq, Syria, United Arab 
Emirates, Lebanon, Turkey and, to a lesser degr ee, a number of European countries. In 2011, the 
crisis in Syria negatively affected exports to Syria, (previously a major importer of Jordanian 
agricultural goods), and blocked Jordan's main northern overland trade route for exports to Turkey 
and Europe. Agricultural trade routes have shifted from the Ramtha border crossing into Syria to Haifa in Israel, thereby allowing access to Jordan's northern markets. However, alternatives to WT/TPR/S/325 • Jordan 
 
- 70 - 
 
  exporting through Syria are more expensive and more time-consuming affecting the cost of 
exports and, for some products, their quality.3 
4.7.  Tomatoes are the largest field crop grown in Jordan and the main agricultural export, 
representing nearly one quarter of exports of al l agricultural products (WTO definition). The 
industry has undergone several developments in production through investments, resulting, for 
example, in the use of greenhouses in the Mafraq governorate.4 In 2013, the country was the 
ninth largest exporter of tomatoes worldwide (Table 4.3). The Kingdom of Saudi Arabia became 
the second largest importer of Jordanian tomatoes in 2013 (after an import ban was lifted in 2012) 
and was the second largest market for a number of other Jordanian agricultural products including 
live sheep and goats, apricots, and citrus fruits (Table 4.4).5 
Table 4.3 Exports of agricultural produc ts, 2009-14 and share of total agricultural 
exports in 2014 
(US$ million) 
HS2002 - products 2009  2010  2011  2012  2013 2014 Share in 
2014 
Total agricultural exports (WTO 
definition) 1,036 1,116 1,259 1,374 1,548 1,653  
0702 - Tomatoes, fresh or chilled 169 232 225 250 316 399 24% 
0104 - Live sheep and goats 25 32 116 137 218 206 12% 
0709 - Other vegetables, fresh or 
chilled 97 83 92 94 79 87 5% 
2106 -  Food preparations n.e.s. 49 81 70 58 75 85 5% 
0809 - Apricots, cherries, peaches, 
plums and sloes, fresh or chilled 34 52 81 106 110 74 4% 
0707 - Cucumbers and gherkins, 
fresh or chilled 70 87 121 83 36 55 3% 
1602 - Other prepared or preserved 
meat, meat offal or blood 28 32 46 59 64 53 3% 
2402 - Cigars, cheroots, cigarillos 
and cigarettes 30 35 27 31 34 47 3% 
2005 - Other vegetables prepared or 
preserved 17 16 24 30 32 39 2% 
1905 - Bread, pastry, cakes, biscuits 
and other bakers' wares 23 25 29 35 35 37 2% 
Source: UNSD Comtrade database. 
Table 4.4 Main export market s for Jordanian tomatoes, 2008-14 
(US$ million) 
 
World Syria Qatar The 
State of 
Kuwait Iraq The 
Kingdom 
of Saudi 
Arabia United Arab 
Emirates 
2008 193.5 33.8 15.4 17.7 51.6 0.0 40.7 
2009 169.0 32.8 12.2 14.0 52.1 0.0 33.3 
2010 232.4 35.8 22.2 23.4 58.7 0.0 57.6 
2011 224.8 55.9 17.3 20.1 37.8 0.6 51.3 
2012 250.2 51.3 24.6 28.8 34.2 16.6 60.1 
2013 316.3 30.2 31.3 43.1 48.5 61.2 68.9 
2014 399.0 35.4 41.2 59.5 57.6 68.4 88.4 
Source: UNSD Comtrade Database. 
4.8.  Jordan depends on imports to meet domestic  demand for most agricultural products and the 
deficit in agriculture trade continued to increase throughout the period under review (Table 4.5). 
                                               
3 FAO Regional Office for the Near East and North Africa January 2014: 
http://www.fao.org/fileadmin/user_upload/rne/docs/Jordan-Plan.pdf  and Oxford business group, Jordan 2013: 
page 191. 
4 ILO Report August 2014 page 4: http://www.ilo.org/wcmsp5/groups/public/---arabstates/---ro-
beirut/documents/genericdocument/wcms_319818.pdf . 
5 UN Comtrade and press release Jordan Times, 11 March 2012: Tomato exports to Saudi Arabia 
resume : http://jordantimes.com/Tomato+exports+to+Saudi+Arabia+resume-45986 . WT/TPR/S/325 • Jordan 
 
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  In 2014, agricultural imports accounted for nearly 18% of total imports. The main imports are 
cereals, particularly barley, wheat, and maiz e primarily from Argentina, the Ukraine, and 
Romania.6 
Table 4.5 Imports of agri cultural products, 2009-14 
(US$ million) 
HS2002 – Products 2009  2010  2011  2012  2013 2014 Share in 
2014  
Total Agricultural imports (WTO definition) 2,362 2,447 2,926 3,547 3,658 4,013  
1001 - Wheat and meslin 109 111 150 292 216 281 7% 
1003 - Barley 90 42 56 238 228 256 6% 
1005 - Maize (corn) 154 157 197 214 189 187 5% 
1006 - Rice 173 118 149 153 127 187 5% 
2304 - Oil-cake and other solid residues 107 125 142 178 118 186 5% 
1701 - Cane or beet sugar and pure 
sucrose, in solid form. 115 200 212 226 186 183 5% 
2106 - Food preparations n.e.s. 105 126 132 140 149 163 4% 
0204 - Meat of sheep or goats 73 93 105 161 131 151 4% 
0402 - Milk and cream, concentrated or 
containing added sugar 84 69 89 109 98 132 3% 
0207 - Meat and edible offal, of poultry 59 70 93 100 148 127 3% 
Source: UNSD Comtrade database. 
4.9.  Wheat consumption includes that used for animal feed, but is generally imported for human 
consumption. Romania, Ukraine, and the Russian  Federation were the main suppliers in 2014. 
4.10.  In 2014, barley was the second most imported agricultural product, accounting for 6% of 
the value of total agricultural imports. Barley is mainly used as animal feed for sheep and, to a lesser degree, cattle and poultry. The Ministry of Industry, Trade and Supplies  is the main 
importer. Romania, Ukraine, and India were the main sources.
7 Maize is the third main import, and 
mainly used for animal feed. Imports have increase d during the review period, contributing to the 
growth in production of animals and animal products and exports of livestock.8 In 2010, the United 
States was the largest source of maize, with im ports of US$54.3 million (over one-third of maize 
imports) but since then imports from the United States have declined: in 2013, imports from the 
United States were US$0.5 million but recove red to US$15 million in 2014 when Argentina 
supplied over half the total of US$187 million. 
4.1.3  Agriculture policies 
4.11.  The Ministry of Agriculture is responsibl e for developing and implementing agricultural 
policies and preparing legislation. Under the Ministry, the National Center for Agricultural Research 
and Extension (NCARE) provides research, training, and extension services to farmers and the 
Agricultural Credit Corporation (ACC) provides cred it to farmers and village cooperative societies. 
In 2011, the total amount lent by the ACC had reached JD 28.6 million. 
4.12.  Other ministries are also responsible for po licies affecting agriculture, including the Ministry 
of Water and Irrigation, which is responsible for national water policies. Under the Minister for 
Water and Irrigation the Jordan Valley Authority is responsible for the operation and maintenance of irrigation systems and land allocation in the Jordan Valley, and the Water Authority of Jordan is 
responsible for water and sanitation services including planning, construction, operation, and 
maintenance. 
                                               
6 UN Comtrade. 
7 Gain Report, September 2009: Jordan, Grain and Feed Annual 2009  
http://gain.fas.usda.gov/Recent%20GAIN%20Publica tions/Grain%20and%20Feed%20Annual_Amman_Jordan
_3-25-2014.pdf.  
8 Gain Report, March 2014: Jordan, Grain and Feed Annual 2014  
http://gain.fas.usda.gov/Recent%20GAIN%20Publica tions/Grain%20and%20Feed%20Annual_Amman_Jordan
_3-25-2014.pdf . WT/TPR/S/325 • Jordan 
 
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  4.13.  The principal legislation on agriculture is the Agriculture Law of 2015, which is similar to and 
replaced the Interim Agriculture Law No. 44/2002. The main changes in the new Law refer to increased penalties for improper use of inputs. The Law sets out the basic objectives for the sector: to increase self-sufficiency and improve diversification while meeting international, regional 
and domestic requirements and conserving the environment and natural resources. In addition, 
there are several laws relating to water and irrigation which affect agriculture. 
4.14.  The 2002-10 National Strategy for Agricultural Development set out a number of economic 
objectives aimed at increasing agricultural investment, production, and contribution to GDP, as 
well as improving the trade balance, and the link between domestic supply and demand. The Strategy highlights concerns relating to:  
 land tenure, declining agricultural resources and irrigation, and environmental factors 
affecting production;  
 agricultural production vis-à-vis  low competiveness due to small-scale farms, low 
productivity in livestock, and poor implementation of new production technologies;  
 marketing of agricultural products, particularly unstable prices, weak links in the 
marketplace, and poor quality controls; 
 agricultural policies and administration, including: the lack of development planning; 
administrative structures; and poor coordination between government agencies and 
private sector participation.
9 
4.15.  In addition, the Agriculture Document 2009 in cluded a set of actions and projects required 
for the development of agriculture and a legislat ive programme of laws to support agriculture, 
expand the use of available resources, and increa se domestic production of grains and forage 
crops. The Document identifies the challenges facing agriculture and includes a wide range of programmes to address these, mainly focused on improving infrastructure, research and 
development, extension services, animal and plant health, and credit facilities for farmers. The 
Document also includes several programmes to increase exports through higher quality, improved transport infrastructure, and better regulation of production. 
4.16.  Jordan's National Strategy for Agricultural Development for 2014-20 aims to continue 
agricultural development, improve food security , and reduce the deficit in agricultural trade.
10 As 
at June 2015, the Strategy was in draft form before the Cabinet. 
4.17.  While the Agricultural Document includes programmes related to water use, the main policy 
initiative for water is Jordan's Water Strate gy 2008-2022. The Strategy noted that water for 
irrigation takes 71% of water demand and contributed towards the depletion of groundwater aquifers. The Strategy sets out a number of goals including: better pricing and allocation to 
farmers; switching cultivation to less water-intensive crops; better enforcement of existing laws 
relating to extraction of groundwa ter; and better use of technology.
11 
4.18.  It has been reported that water prices for industrial users are greater than for agricultural 
users and are not high enough to cover the cost  of supply and the estimated government-provided 
benefit was around JD 38 million in 2009.12 According to the authorities, differential pricing of 
water is based on the size of the farm and the amount of water used. To restrict unregulated use of water, Law No. 22/2014 introduced higher pena lties and the risk of criminal prosecution for 
illegal wells. 
                                               
9 FAO Regional Office for the Near East and North Africa January 2014, pp. 3-4: 
http://www.fao.org/fileadmin/user_upload/rne/docs/Jordan-Plan.pdf . 
10 Martínez J.C. (2014), Wheat subsidies in Jordan may be too little too late,  Al-Monitor, 22 July, 
http://www.al-monitor.com/pulse/originals/2014/07 /jordan-agriculture-wheat-production-harvest-
farmers.html . 
11 Ministry of Water and Irrigation (2009), Water for Life – Jordan's Water Strategy 2008-2022, 
February. 
12 Sommaripa L. (2011), Jordan fiscal Reform Project II – Water Public expenditure Perspectives 
Working Paper, USAID, October. WT/TPR/S/325 • Jordan 
 
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  4.1.3.1  Trade 
4.19.  Tariffs on agricultural products decreased between 2008 and 2015 to 16.8% covering 946 
tariffs lines. Beverages, spirits and tobacco have the highest applied tariffs of 65.2% on average covering 76 tariffs lines. Fruit and vegetables foll owed with an applied average tariff rate of 18.2% 
covering 270 lines (Table 3.4).  
4.20.  Under different trade agreements, imports of agricultural products from the EU, EFTA 
states, GAFTA, Israel, Singapore, Turkey, and the Un ited States are subject to reduced tariff rates: 
depending on the country the average applied tariffs vary from 3.4% to 16.3% (Chart 3.2). 
4.21.  Import licences are required for a number of agricultural goods and foodstuffs. The Food 
and Drug Administration is responsible for licences for animals and animal products and processed agricultural products, and the Ministry of Agriculture is responsible for basic plant products and 
fresh products. The conditions necessary for granting a licence depend on the type of product and 
the country of origin and, according to the author ities, are applied for sanitary and phytosanitary 
reasons. 
4.1.3.2  Price-related measures 
4.22.  Some goods, particularly food from cereals, are subject to price controls and are subsidized 
by the Government. There are several direct and indirect consumer subsidy programmes for 
cereals. As stated above, the MITS is the main im porter of wheat and barley which it then sells to 
the millers. Flour for making bread is then sold to bakeries at subsidised prices (Section 3.4.3.2) and bread prices are fixed at JD 0.16 per kg. An active strategic wheat reserve is in place and, in the aftermath of rising international prices in 2007/2008, the Government increased the reserves 
from three to ten months consumption.
13 
4.23.  The Government also applies several measures to support domestic producers of wheat. The 
Government-fixed price for domestically-produced wheat changes from one year to another: 
ranging from JD 191 per tonne in 2005 to JD 450 in 2012. The Government also supports barley 
production. At the end of the last Review period, it was reported that new policies were to be introduced that reduced subsidies and applied a new method for subsidizing farmers. However, 
from the notifications to the WTO, Jordan has continued to use administered prices for barley 
which, like those for wheat, have varied from one year to the next, ranging from JD 122 per tonne in 2005 to JD 370 in 2012. According to the authorit ies, the administered prices are decided based 
on international prices and shipping costs plus a margin to ensure domestic production is viable.  
4.24.  Sheep and goat owners receive subsidized feed barley according to the number of tagged 
animals they possess. Other livestock subsectors are excluded from the programme.
14 The animal 
tagging programme started in 2008 with the obje ctive of improving productivity and exports 
through better animal health. 
4.1.3.3  WTO notifications 4.25.  The most recent notification by Jordan to the WTO Committee on Agriculture was for 2011 
and 2012. Along with earlier notifications, most of the support was in the Green Box, with 
domestic food aid representing 80% of the Green  Box total of JD 192 million in 2012 and 63% of 
total support.
15 Support for livestock, in the form of su bsidies for feedstuffs was the next biggest 
item in the notification (Charts 4.1, 4.2, and 4.3). 
4.26.  Support to agriculture varies considerably from one year to the next: the value of producer 
price support for wheat and barley depend on both  production and the applied administered price, 
while other forms of support depend on budget allocations. The interest rate subsidy for loans for 
land and livestock improvements and marketing facilities peaked in 2007 at JD 111 million but 
then declined and was valued in 2012 at JD 1 million. 
                                               
13 FAO, 10 October 2014: Cereal import requirem ents to remain high  
http://www.fao.org/giews/count rybrief/country.jsp?code=JOR . 
14 FAO Global Information and Early Warning System online information. Viewed at: 
http://www.fao.org/giews/count rybrief/country.jsp?code=JOR  [June 2015]. 
15 WTO document G/AG/N/JOR/17, 10 March 2015. WT/TPR/S/325 • Jordan 
 
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  Chart 4.1 Support for agriculture 2005- 12 (without inflation adjustment) 
(JD million) 
050100150200250
2005 2006 2007 2008 2009 2010 2011 2012de minimis Current Total AMS Article 6.2 Green Box
 
Source: WTO notifications. 
Chart 4.2 Green Box Support 2005-12 
(JD million) 
050100150200250
2005 2006 2007 2008 2009 2010 2011 2012Marketing and promotion
Research (include Extension and advisory services)
Pest and disease control
Infrastructure services
Inspection services
Domestic food aid
 
Source: WTO notifications. WT/TPR/S/325 • Jordan 
 
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  Chart 4.3 Amber Box Support 2005-12 (witho ut inflation adjustment and including 
de minimis) 
(JD million) 
01020304050607080
2005 2006 2007 2008 2009 2010 2011 2012 Credit
 Water
 Livestock
 Barley
 Wheat
 
Source: WTO notifications. 
4.2  Mining and Energy 
4.27.  Jordan is a net importer of energy.  In 2014, imports of petroleum, petroleum products and 
related materials, and gas represented about 27 % of total imports. Domestic production of 
primary energy accounted for only 3% of Jordan's primary energy needs. The main source of 
imports of oil and gas were the Kingdom of Saudi Arabia (54.4%), India (13.1%), and the 
United Arab Emirates (7.7%).16 Crude oil and oil products are the dominant source of primary 
energy followed by natural gas (Table 4.6). Saudi Arabia was the sole exporter of crude oil to 
Jordan in 2014.17 
Table 4.6 Primary energy consumption by source 2009-14 
(thousand toe (tonnes of equivalent oil)) 
Type of energy source 2009 2010  2011  2012  2013  2014 Share in 
2014 (%) 
Crude oil and oil products 4,454 4,774 6,141 6,992 6,689 7,672 89 
Coal .. .. .. 226 204 316 4 
Pet coke .. .. .. .. 116 89 1 
Natural gas 3,086 2,289 873 659 907 299 3 
Renewable energy 137 141 130 140 145 152 2 
Imported electricity 98 168 313 188 96 109 1 
Total energy consumed 7,739 7,357 7,457 8,205 8,157 8,637 100 
.. Not available. 
Source: Ministry of Energy and Mi neral Resources, Annual Report 2013;  and information provided by the 
authorities. 
4.28.  With a view to reducing dependence on imported energy and enhancing domestic energy 
production, Jordan is focussing on shale oil, natu ral gas, renewable energy, and nuclear energy. It 
is envisaged that by 2020, crude oil and other oi l products will constitute 55%, energy from 
                                               
16 UNSD Comtrade database. Viewed at: http://comtrade.un.org/data/  [July 2015]. 
17 Ministry of Energy and Mineral Resources (2013), National Strategy Plan Dealing with NEPCO’s Loses , 
p. 1, and Ministry of Energy and Mineral Resources (2014), Annual Report 2013 . WT/TPR/S/325 • Jordan 
 
- 76 - 
 
  renewable sources 10%, natural gas 21%, nuclear energy 6%, and shale gas 14% of the energy 
mix.18 
4.29.  During the period under review, the demand  for energy increased from 7.7 million tonnes of 
oil equivalent (toe) in 2009 to 8.2 million toe in 2013. The transport sector was the largest 
consumer (51%) followed by households (21%) and industry (17%). 
4.2.1  Electricity 4.30.  During the review period, electricity production grew from 14,272 GWh in 2009 to 
17,961 GWh in 2014, while over the same period electricity consumption went from 11,956 GWh 
to 14,564 GWh.
19 In 2014, Jordan imported 435 GWh of electricity and exported 63.8 GWh. In 
2014, the reserve margin was 709 MW (around 24%), while transmission losses were 1.8%. Households are the largest consumers of electricity (36%), followed by the industrial sector 
(25%), commercial sector (15%) and water pumping (10%).
20 
4.31.  Natural gas was responsible for 80% of electricity generation. There are six electricity 
generation companies in Jordan, with a combined capacity of nearly 3,980 MW: 
 Samra Electric Power Company, which is fully state-owned, has a generation capacity of 
1,031 MW; 
 The AES-Jordan PSC (Amman East Power Project) has a generation capacity of 370 MW 
and is owned by Japanese and American stakeholders;  
 The Qatraneh Electric Power Company has a generation capacity of approximately 373 MW 
and is owned by Korean and Saudi stakeholders,  
 The Central Electricity Generation Company (CEGCO) is 40% state-owned and is the 
largest generation company in Jordan, with a generation capacity of 1,392 MW21; 
  Amman Asia Electric Power Company has a generation capacity of 573 MW and is owned 
by a Japanese and Korean consortium; and 
  AES Levant holding B.V has generation capacity of 241 MW and is owned by Japanese and 
American stakeholders. 
4.32.  Government regulations stipulate that the Government should maintain ownership of 
transmission and power control, as well as purchase, sale, and power exchange with external 
partners.22 The National Petroleum Company's production of gas is sold to CEGCO at a set 
government tariff.23 
4.33.  Additionally, the Jordan Bio-Gas Company Ltd also generates electricity by converting 
organic waste into methane gas. The entity is a joint-stock company owned by the Central 
Electricity Generation Company (CEGCO) and Greater Amman Municipality. 
                                               
18 Natural Gas Europe (2013), Jordan's efforts towa rds energy security , 8 May (viewed at: 
http://www.naturalgaseurope.com/jordan-ene rgy-security-interview-dr-khaled-toukan ) and Oxford Business 
Group (2014), The report Jordan 2014 , p. 77. 
19 Ministry of Energy and Mineral Resources (2014), Annual Report, 2013 , pp 32-33. 
20 Information provided by the authorities; Ministry of Energy and Mineral Resources (2013), Annual 
Report 2013,  and NEPCO (2014), Annual Report 2013.  
21 Ministry of Energy and Mineral Resources (2014), Annual Report 2013 , and CEGCO (2014), Annual 
Report 2013.  
22 NEPCO online information. Viewed at: http://www.nepco.com.jo/en/company_brief_en.aspx  [March 
2015]. 
23 Ministry of Energy and Mineral Resources (2014), Annual Report 2013 , Oxford Business Group, The 
report Jordan, 2014 , p. 79, company annual reports, and the Nati onal Petroleum Company online information, 
viewed at: http://www.nepco.com.jo/en/Default_en.aspx  [March 2015]. WT/TPR/S/325 • Jordan 
 
- 77 - 
 
  4.34.  The transmission network is owned and oper ated by the fully state-owned National Electric 
Power Company (NEPCO).24 NEPCO operates under Decree No. 10 of 1996, as amended by 
Decreee No. 13 of 1999, and is responsible for: buying, transmitting, and selling electricity to distribution companies and large consumers; procuring natural gas for power stations; maintaining 
a safe and economic operation of the power system; importing and exporting electricity power; 
and awarding contracts for new generation.
25 
4.35.  During the period under review, NEPCO faced major losses, mainly due to increased 
purchasing costs after the replacement of natural gas from Egypt. On the other hand, the selling 
price has remained unaltered and the company bears the loss (i.e. the difference between the electricity purchasing price and the selling price to consumers). Net government transfers to NEPCO in 2014 were JD 1.6 billion. In 2014 NEPCO purchased electricity at an average cost of 
US$0.20/KWh, while the average price charged to consumers was US$0.15/KWh, reflecting an 
implicit subsidy of US$0.6/KWh.
26 NEPCO's accumulated losses, which are government-
guaranteed, reached JD 4.6 billion at the end of  2014. In response, the Government published a 
strategy paper in 2013 aiming to recover such losses by the end of 2017. 
4.36.  Under the Strategy, the Government aims to access cheaper sources of energy including 
renewables and shale gas. Furthermore, the Strategy also seeks to reduce line losses and limit 
demand through increasing electricity tariffs and el iminating preferential rates offered to security 
agencies, charitable organizations, employees of the electricity company, and free electricity for street lighting. Additionally, the Government has also started to adjust electricity tariffs (Table 4.7). The adjustment process started in 2013 and is expected to be finalised in 2017.
27 
4.37.  The Government’s electricity tariffs adjustment includes: 
 Separating the household sector brackets from the ordinary sector brackets; 
 Combining the bank sector brackets into a single bracket with scheduled increases until 
2017; 
 Implementing a two bracket system for small industries; and 
 Increasing electricity tariffs for various sectors gradually at a rate from 0 to 15%, including 
the ordinary sector,  between 2013 and 2017. 
4.38.  Under the Strategy, the Government envisages an annual increase in NEPCO’s revenue of 
6%. However, households consuming less than 600 kWh per month and entities in the agricultural 
sector, as well as small industries consuming less than 10,000 kWh per month, were exempt from 
electricity price increases in 2013. 
Table 4.7 Electricity tariffs 
Consumer including distribution 
companies and specific sectors Unit Tariff 
February 
2015 Scheduled 
tariffs 
2017 
JEPCO (bulk supply tariff) Peak Load (JD/kW/ month) 
Day Energy (Fils/kWh)  
Night Energy (Fils/kWh)   2.98 
76.26 
66.21 n.a.
 
EDCO (bulk supply tariff) Peak Load (JD/kW/ month)  
Day Energy (Fils/kWh)  
Night Energy (Fils/kWh) 
 2.98 
68.90 
58.85 n.a. 
                                               
24 Ministry of Energy and Mineral Resources (2014), Annual Report 2013 ; Oxford Business Group 
(2014), The Report Jordan, 2014 , p. 79. 
25 IAEA (2013) online information. Viewed at: http://www-
pub.iaea.org/MTCD/Publications/PDF/CNPP2013_CD/countryprofiles/Jordan/Jordan.htm  [March 2015]. 
26 Toukan K (2013), Jordan's efforts towards energy security , (in an interview with Ayat K) Natural Gas 
Europe, 8 May. Viewed at: http://www.naturalgaseurope.com/jordan -energy-security-interview-dr-khaled-
toukan  [March 2015]. 
27 Ministry of Energy and Mineral Resources (2013), National Strategy Plan Dealing with NEPCO’s Loses.  
Viewed at: http://www.memr.gov.jo/LinkClick.aspx?fileticket=PHxs463H8U0%3D&tabid=255  [March 2015]. WT/TPR/S/325 • Jordan 
 
- 78 - 
 
  Consumer including distribution 
companies and specific sectors Unit Tariff 
February 
2015 Scheduled 
tariffs 
2017 
IDECO (bulk supply tariff) Peak Load (JD/kW/ month)  
Day Energy (Fils/kWh)  
Night Energy (Fils/kWh)  2.98 
62.71 52.66 n.a.
 
Mining & Quarrying industry (bulk supply 
tariff) Peak Load (JD/kW/ month)  
Day Energy (Fils/kWh)  
Night Energy (Fils/kWh) 
 2.98 
264 
197 2.98 
316 
235 
Other large industries (bulk supply tariff) Peak Load (JD/kW/ month)  
Day Energy (Fils/kWh)  
Night Energy (Fils/kWh)  2.98 
133 
109 2.98
 
189 
153 
Households (retail rate) First Block: from 1-160 kWh/month  
Second Block: from 161-300 kWh/month 
Third Block: from 301-500 kWh/month 
Fourth Block: from 501-600 kWh/month 
Fifth Block from 601-750 kWh/month  
Sixth Block: from 751-1000 kWh/month 
Seventh Block: more than 1,000 kWh/month 
 33 
72 
86 
114 
158 
188 
265 33 
72 
86 
114 
188 
224 
296 
Domestic (retail rate) First Block: from 1-160 kWh/month  
Second Block: from 161-300 kWh/month Third Block: from 301-500 kWh/month 
Fourth Block: from 501-600 kWh/month 
Fifth Block: from 601-750 kWh/month Sixth Block : from 751-1,000 kWh/month Seventh Block : more than 1,000 kWh/month 
 42 
92 
109 
145 
169 190 266 53
 
116 
139 
184 
202 214 300 
TV & Broadcasting Stations (flat tariff/retail 
rate) Fils/kWh  173 245 
Commercial sector (retail rate)  First Block: from 1-2,000 kWh/month  
Second Block: more than 2,000 kWh/month 129 
181 183 
255 
Banking sector (flat tariff/retail rate) Fils/kWh  285 322 
Telecommunication sector (retail rate) First Block: from 1-2,000 kWh/month  
Second Block: more than 2000 kWh/month 
 257 
300 290 
338 
Small industries (retail rate) First Block: from 1-10,000 kWh/month  
Second Block: more than 10,000 kWh/month 
 71 
81 100 
115 
Medium industries (retail rate)  Peak Load (JD/kW/ month)  
Day Energy (Fils/kWh)  
Night Energy (Fils/kWh)  3.79 
89 
75 3.79
 
127 
107 
Agriculture (flat tariff/retail rate) Fils/kWh  60 60 
Agriculture (non-flat rate/retail rate) Peak Load (JD/kW/ month)  
Day Energy (Fils/kWh)  Night Energy (Fils/kWh)  3.79 
59 49 3.79
 
59 
49 
Water pumping (flat tariff/retail rate) Fils/kWh  94 133 
Hotels (flat tariff/retail rate) Fils/kWh  91 n.a  
Hotels (non-flat rate/retail rate) Peak Load (JD/kW/ month)  
Day Energy (Fils/kWh)  
Night Energy (Fils/kWh) 
 3.79 
89 
75 3.79 
233 
205 
Street lighting (flat tariff/retail rate) Fils/kWh  114 161  
Army forces (flat tariff/retail rate) Fils/kWh  146 207 
Port sector (flat tariff/retail rate) Fils/kWh  159 225  
n.a. Not applicable. 
Source: NEPCO, Annual Report 2013, 35 and National St rategy for Dealing with NEPCO’s Losses, pp. 4-6. 
4.39.  NEPCO sells the purchased electricity to  the distribution companies. There are three 
electricity distribution companies each responsible for a particular geographic region: WT/TPR/S/325 • Jordan 
 
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   Jordan Electricity Power Company (JEPCO) is responsible for the distribution of electricity 
to Amman, Zarqa, Ma'daba and Balqa (excluding the Central Jordan Valley) governorates. The company's 50-year concession rights ended on 22 November 2012. JEPCO was granted a 20-year licence  in May 2014.  
 In 2008 the Irbid District Electricity Company LTD (IDECO) was granted a 25-year licence 
to distribute electricity in Irbid, Mafraq, Jerash and Ajloun (excluding the Southern Jordan Valley and Eastern areas) governorates; and  
 The Electricity Distribution Company (EDCO) has concessions rights to distribute electricity 
in the Southern and Eastern parts not covered by the other distribution companies as well as parts of the Jordan Valley. The company was granted a 25-year distribution licence in 2008. 
4.40.  The electricity distribution sector un derwent a privatization process in 2007 and the 
Kingdom Electricity for Energy Investments Company (KEC) acquired the fully state-owned EDCO and the 55.4% Government holding in IDECO. In  2009, KEC transferred its 55.4% ownership of 
IDECO to EDCO.
28 
4.41.  The principal legislation on the electricity sector is the General Electricity Law of 2002. The 
Law aims to develop the sector in accordance with public interest; encourage local and foreign 
investment; and strengthen the development of the Energy and Mineral Regulatory Commission. 
The Law is administered by the Ministry of Energy and Mineral Resources (MEMR), which is the body responsible for the energy sector includ ing: administration; organization; planning; 
implementation of laws and policies; and developm ent of the sector. Under the provisions of the 
Law, MEMR is responsible for general policies pertaining to the sector; promoting the use of 
renewable energy; promoting a more competitive electricity market; and cooperating with other countries with regards to electricity transmission. Additionally the Law allows private sector 
independent power producers (IPPs) to obtain a licence to generate electricity based on thermal 
power stations and on renewable energy.  Under the provisions of the General Electricity Law, the 
Electricity Regulatory Commission which became Energy and Minerals Regulatory Commission 
(EMRC) in 2014, has the sole power to issue licences for all operators in generation, transmission 
and distribution subsectors.  
4.42.  The EMRC is an independent commission responsible for regulating the electricity sector. 
Pursuant to the Ministry's request to approve a more competitive electricity market model, the 
EMRC has assumed responsibility for monitoring and reporting on progression from the single-
buyer model to a competitive model. The Commission is responsible for setting electricity tariffs, issuing licences for entities engaged in generati on, transmission, supply, distribution, and system 
operations, as well as monitoring the sector's compliance with legislation. The licence for both 
generation and distribution services contains a chapter on “Tariff Methodology”, which details the 
steps that are to be followed  to determine the revenue requirements, regulatory asset base, rate 
of return, core and non-core activities and tariff equations. Article 18 of the General Electricity Law 
stipulates the procedure and conditions for settling disputes. 
4.43.  Under the provisions of the Electricit y Companies Licensing By Law No. 76 of 2001, the 
establishment or operation of any electricity generation plant (excessing 5 MW), and transmission 
and distribution networks requires a licence grante d by the EMRC. Applications for licences need to 
have documentation of company registration; the company's financial statement; description of company services and location; and any other information deemed necessary for granting a 
licence. The application process takes around 6 weeks and the Board of the Commission issues the 
final decision. When licences are granted, the company needs, inter alia : to provide the agreed 
service(s) to the whole geographical area that has been assigned to the company; to follow the 
agreed technical standards; to provide financial guarantees for fees when licences are cancelled; 
as well as not merging with or purchasing companies within the same business area or selling its own shares and assets without the approval of EMRC.
29  
                                               
28 Ministry of Energy and Mineral Resources (2014), Annual Report 2013 , Oxford Business Group, The 
Report Jordan, 2014 , p. 81, and KEC online information (viewed at: http://www.kec.jo  [March 2015]). 
29 Electricity Companies Licensing By Law No. 76 of the Year 2001. WT/TPR/S/325 • Jordan 
 
- 80 - 
 
  4.44.  Jordan is part of the Electricity Interconnection Project, which aims to connect the electricity 
networks of some other states in the region. In January 2015 the contract on electricity exchange between Jordan and Egypt was renewed. The netw ork to Egypt has an exchange capacity of 
500 MW. In 2014, Jordan exported around 22.8 GWh of electricity to Egypt.
30 
4.2.2  Petroleum refining and distribution sector 
4.45.  The Jordan Petroleum Refinery Co. Ltd. (JPRC) is a government-owned public shareholding 
company and the sole petroleum refinery company in Jordan. The company was granted exclusive 
rights in 1958 for imports of crude oil, refining, storage, transportation, and wholesale of 
petroleum as well as maintaining petrol stations among other activities. In 2008 the concession for such rights expired and, since then, the compan y has concluded short-term service agreements 
with MEMR, which were extended several times and expired in 2012. The company has an annual 
refining capacity of 36.5 million tonnes of crude oil. The refinery is not involved in export activities 
and is exempt from customs duties and fees on goods imported for use in the company's 
operations. As of May 2013, three oil marketing comp anies have been given licenses to import and 
sell petroleum products in Jordan. 
4.46.  In 2011, the Government resumed its petroleum downstream restructuring programme 
under the 2007-2020 Master Strategy of the Ener gy Sector. The programme intends to unbundle 
the refinery, storage, LPG activities and distribution sectors as well as liberalize parts of the sector.  
4.47.  Under the Strategy, each oil marketing company will have about 25% market share of 
Jordan's wholesale distribution of diesel, kerose ne, and petrol and will be permitted to sign 
contracts for the supply of diesel, kerosene, and jet fuel. The companies' main responsibilities 
would be to import and distribute petroleum products to petrol stations and airports among others. 
In 2011, investors were invited to submit an expression of interest in acquiring an operating licence for such a company. Licences will be issued for purchasing, selling, importing, and trading 
petroleum products in Jordan for a 10 year period. From 2013 three local and international 
companies obtained licences to distribute oil products in Jordan.
31 The licences are valid for 
10 years, with three years exclusivity. After the expiration of the exclusivity period, the 
Government may grant licences to other oil marketing companies. Furthermore, until the end of 
the Refinery Offtake Obligation Period (6) years, the licensees are required to purchase refined products from JPRC. 
4.48.  The downstream sector includes 473 petrol stations, 1,096 petrol agencies and 6 central 
petrol distribution companies. In 2013, 114 new locations for petrol stations were approved as well 
as 26 licences to construct fuel stations, 10 permits to modify existing petrol stations and 14 operating licences for new petrol distribution stations were also issued.
32 
4.49.  In 2013, Jordan's oil subsides were abandoned. However, in 2013, fuel subsidies to low- 
and medium-income families were granted to 778,619 households amounting to JD 193.3 million (Table 3.23). The subsidy amounts to a maximum JD 420 a year per household and is limited to 
families with an annual income less than JD 10,000.
33 
4.2.3  Alternative energy sources 4.50.  The Renewable Energy and Efficiency Law of  2012 followed by a set of by-laws, which were 
modified in 2014, established the renewable energy strategy for Jordan. Feed-in tariffs were also 
announced in 2012, setting a buy-back rate of 135 fils per KWh from solar power and 80 KWh 
                                               
30 Ghazai M (2015), Jordan exported 380 gigawatt hours of electricity to Egypt in 2014 , Jordan Times 
13 January. Viewed at: http://jordantimes.com/jordan-exported-380-gigawatt-hours-of-electricity-to-egypt-in-
2014 [March 2015]. 
31 MEMR (2014) annual report and go vernment document. Viewed at: 
http://www.memr.gov.jo /Default.aspx?alias=www. memr.gov.jo/english  [July 2015]. 
32 Ministry of Energy and Mineral Resources, Annual Report 2013 and Oxford Business Group, The 
Report Jordan, 2014: 79. 
33 Petra, November and December 2012: 
http://www.petra.gov.jo/Public_News/Nws_NewsDetails.aspx?Site_Id=1&lang=2&NewsID=91080&CatID=13&
Type=Home&GType=1 ; 
http://www.petra.gov.jo/Public_News/Nws_NewsDetails.aspx?Site_Id=1&lang=2&NewsID=93892&CatID=13&
Type=Home&GType=1  and Government  of Jordan. WT/TPR/S/325 • Jordan 
 
- 81 - 
 
  from wind energy. In 2014 an additional by-law  exempted renewable energy and energy efficient 
systems from sales tax and customs duties.34 
4.51.  The Renewable Energy and Efficiency La w allowed companies to submit proposals for 
projects within this area. Of over 60 proposals submitted, 12 Power Purchase Agreements were 
signed by March 2014 of which seven projects are underway. One of these was the 117 MW 
capacity wind project planned to be built in 2015. In addition, 12 Solar Investment agreements 
were signed in 2013, aiming to generate electricity exceeding 200 MW in 2015. 
4.2.4  Minerals, oil and natural gas 
4.2.4.1  Mineral extraction and manufacturing 4.52.  The mineral extraction sector is dominate d by phosphate and potash mining. Other minerals 
mined include: salt; calcium carbonate; treated zeolite and silica; and travertine. The sector 
(including oil and gas) accounts for over a quarter of Jordan's exports (Table 4.8). Major export 
markets are India, Indonesia and China. 
Table 4.8 Exports of selected mineral prod ucts including metals and petroleum, 2008-14 
and share of the sector's total exports in 2014 
(US$ million) 
Exports 
HS 4-digit – Products 2008 2009 2010 2011 2012 2013 2014 Share in 
2014 (%) 
3104 - Mineral or chemical fertilizers, potassic 776  456 692 846 673 605 602 27.6  
2510 - Natural calcium phosphates, natural 
aluminium calcium phosphates and phosphatic 
chalk 520 372 372 630 601 377 470 21.5 
3102 -  Mineral or chemical fertilizers, nitrogenous  458 206 316 320 287 221 297 13.6  
7113 - Articles of jewellery and parts thereof, of 
precious metal or of metal clad with precious 
metal. 122 113 120 113 107 108 137 6.3 
7612 - Aluminium casks, drums, cans, boxes and 
similar containers 127 140 122 100 68 84 99 4.5  
3103 - Mineral or chemical fertilizers, phosphatic 12 29 35 43 29 43 86 3.9 
6802 -  Worked monumental or building stone 
(except slate) and articles 16 21 25 22 21 21 50 2.3  
3105 - Mineral or chemical fertilizers containing 
two or three of the fertilizing elements nitrogen, 
phosphorus and potassium 78 97 15 7 15 40 39 1.8 
2523 -  Portland cement, aluminous cement, slag 
cement, supersulphate cement and similar 
hydraulic cements 35 12 12 20 29 27 18 0.8  
Total exports of secto r 2,647  2,016  2,389  2,862  2,383  1,972 2,181 100.0  
Total % of total exports 34.0  31.7 34.0 35.9 30.2 24.9 26.0 -  
Source: UNSD Comtrade database. 
4.53.  The Jordan Phosphate Mines Company Ltd. (JPMC) was granted exclusive mining rights in 
1968 to exploit phosphate deposits in Jordan. JPMC shareholders are: Jordan Investment 
Corporation (42.2%); Social Security Corporation (28.4%); the Government of Kuwait (16.3%), 
Housing Bank (2.5%); Arab Petroleum Investme nt Corporation (1.3%); Arab Mining Company 
(1.3%); the Islamic Development Bank – Jeddah (0 .5%); and others (7.5%). JPMC is registered 
on the Amman Financial market and its shares are traded publicly to local and foreign investors subject to the laws and regulations of Amman Fina ncial Market. JPMC has been notified to the WTO 
                                               
34 Jordan Times, 4 December 2012: Regulatory Commission sets electricity ‘buy-back’ rates 
http://jordantimes.com/regulatory-comm ission-sets-electricity-buy-back-rates , Oxford Business Group, The 
report Jordan, 2014: 81 and Ministry of Energy and Mineral Resources: 
http://www.memr.gov.jo/Default.aspx?tabid=291 . WT/TPR/S/325 • Jordan 
 
- 82 - 
 
  as a state trading enterprise as it has the exclusive right to mine and export phosphate and 
fertilizers.35 
4.54.  The Arab Potash Company (APC) has exclus ive rights until 2058 to exploit, manufacture and 
market mineral resources from the Dead Sea. The current ownership structure comprises of: the 
Potash Corporation of Saskatchewan (28%); Jordan  Ministry of Finance (27%); and Arab Mining 
Co. (20%) (Table 4.9). Other shareholders have a less than 5% stake.36 
4.55.  Jordan's investment and fiscal mining re gime has not changed during the review period. 
Jordan permits foreigners to invest in the mining sector, under special agreements concluded with 
Natural Resource Authority (NRA), by way of ce rtain permits, prospecting licences, and mining 
rights. Mining rights are granted for up to 30 years and income taxes are set at 15%. Foreign ownership and investment is permitted in th e mining sector, however mines must have a 
Jordanian manager.37 
4.56.  The Natural Resource Authority (NRA), established in 1968, is an autonomous government 
agency under the Ministry of Energy and Minera l Resources. The agency is responsible for the 
regulatory framework and development of minera l resources under the 1968 Mining Law No. 12. 
The government body also issues licenses for the exploitation of mineral resources in the 
Kingdom.38 However, as of 2014, the Energy and Minerals Regulatory Commission (EMRC) is the 
entity that is considered to be the legal successor of the Natural Resources Authority (NRA) and has the regulatory power of NRA according to law No. 17 of 2014. 
4.57.  The NRA carried out a number of prospect ing projects during the review period. In 2013 
these included technical specifications and conditions of drilling a number of wells for dolomite, phosphate, pure limestone.
39 Additionally, in 2012, JMPC completed a phosphate rock terminal in 
Aqaba which became operational in December of that year. 
4.58.  Rights are exclusively given to single entities in a number of industries within the sector, 
such as bromine, phosphate rock, potash, potassium nitrate, salt, potassium sulphate, and 
sulphuric acid. These industries account for around 7% of total exports. 
4.59.  The sector is comprised of both private and state-owned companies. The National Petroleum 
Co. and Jordan Petroleum Refinery Co. Ltd. are fully state-owned. The Arab Potash Co. (APC), Jordan Abyad Fertilizers and Chemicals Co. P.S.C. (JAFCCO), Jordan Indian Fertilizer Co. (JIFCO), 
Jordan Lafarge Cement Factories Co. P.S.C. (JCFC), Jordan Phosphate Mines Co. Ltd. (JPMC), and 
Nippon Jordan Fertilizer Co. have shared ownership among private and government entities. The remaining companies were privately owned as at 2012 (Table 4.9)  
4.60.  Additionally, pure limestone  is currently mined, produced and exploited by five different 
companies and is open for investment. 
                                               
35 WTO document G/STR/N/9/JOR, 28 July 2003. 
36 The Arab Potash Company:  Annual Report 2014, p. 38: 
http://www.arabpotash.com/EchoBus V3.0/SystemAsset s/PDFAR/2014_annua l_english.pdf and Ministry of 
Industry and Trade, October 2012. Mining sector in Jo rdan; Current situation and investment opportunities 
http://ec.europa.eu/enterprise/policies/raw-
materials/files/docs/eurome d_presentations/ramadna_mining_sector_jourdan_en.pdf . 
37 WTO document WT/TPR/S/206/Rev.1, 27 January 2009 and Natural Resource Authority: 
http://www.nra.gov.jo/index.php?option =com_content&task=view&id=48&Itemid=56 . 
38 The Ministry of Energy and Mineral Resources, An nual Report, 2013 and Natural Resource Authority: 
http://www.nra.gov.jo/ . 
39 The Ministry of Energy and Mineral Resources, An nual Report, 2013 and Natural Resource Authority: 
http://www.nra.gov.jo/ . WT/TPR/S/325 • Jordan 
 
- 83 - 
 
  Table 4.9 Overview of the mineral industry: selected commodities in '000 metric tonnes 
unless otherwise specified 
Commodity Major operating 
companies  Ownership Location of 
main facilities Annual 
production 
capacity 
Bromine Jordan Bromine 
Co. (JBC)  
 Arab Potash Co. (APC), 50%, and Albemarle Corp., 
50% Ghur Al Safi  100 
Cement Al Rajhi Cement 
Jordan Al Rajhi cement Holding LTD. Mafraq 2,000 
 Arab Company for 
White Cement 
Industry  Syrian Jordanian Company for Industry 50% 
Ministry of Finance 15% 
Social Security Corp. 10% 
General Organization for Cement (Syria) 25% Amman 130 
 Qatrana Cement 
Co. Arabian Cement Co., 100% Al Qatraneh 1,800 
 Jordan Lafarge 
Cement Factories Co. P.S.C. (JCFC)  Lafarge S.A., 50.28%; Social Security Corp., 21.86%; 
others, 27.87% Fuheis and Ar-
Rashadiya  4,800 
 Modern Cement 
and Mining Co.  
 Manaseer Group for Industries and Commercial 
Investments of Jordan, 100% Fuheis and Ar-
Rashadiya 1,200 
 Northern Cement 
Co.  Mill at 
Muwaqar  
 1,000 
Natural gas National 
Petroleum Co.  Government, 100% Risha 130 million 
m3 
Petroleum 
crude National 
Petroleum Co.  Government, 100% Hamza 16 
thousand 
bbl 
Petroleum 
Refined Jordan Petroleum 
Refinery Co. Ltd.  20.14% Social Security Corporation   Zarqa  36.5 
thousand 
bbl 
Phosphate rock Jordan Phosphate 
Mines Co. Ltd. (JPMC) 25.66% Ministry of Finance
 
16.466% Social Security Corporation Al Abiad, Al 
Hassa, Eshidiya, and Russeifa mines 
 5,399 
Phosphate 
fertilizers Jordan Phosphate 
Mines Co. Ltd. 
(JPMC) 25.66% Ministry of Finance  
16.46% Social Security Corporation Aqaba 650 
 Jordan Abyad 
Fertilizers and 
Chemicals Co. P.S.C. (JAFCCO)  Venture Capital Bank, 57.2%; Al-Fares Investments, 
17.8%; Jordan Phosphate Mines Co. Ltd. (JMPC), 
15%; and Arab Mining Co., 10%)  
 Aqaba 80 
 Nippon Jordan 
Fertilizer Co. Asahi Industries Company Ltd. 10%; Mitsubishi Corp., 
10%; Mitsubishi Chemicals Corp., 10%;Zen-Noh, 
30%; Arab Potash Co. (APC), 20%; and Jordan 
Phosphate Mines Co. Ltd. (JPMC), 20% 
 Eshidiya 300 
Phosphoric 
acid Jordan Phosphate 
Mines Co. Ltd. (JPMC) 25.661% Ministry of Finance 
16.456% Social Security Corporation Aqaba 350 
 Jordan India 
Fertilizer Co. 
(JIFCO) 
 Indian Farmers Fertilizers Cooperative of India 
(IFFCO), 52%, and Jordan Phosphate Mines Co. Ltd. 
(JPMC), 48% Eshidiya 475 
 Indo-Jordan 
Chemicals Co. Ltd. Jordan Phosphate Mines Co. Ltd. (JPMC), 87% D101 
and Arab Investment Co., 13%) Eshidiya 250 
Potash Arab Potash Co. 
(APC)  The Potash Corporation  of Saskatchewan, (28%); 
Jordan Ministry of Finance, (27%); and Arab Mining 
Co., (20%); Social Security fund (5%); Islamic 
Development Bank (5%); Iraqi Government (5%); 
Libyan Company for Foreign Investment (4%); Kuwait 
Investment Authority (4%); Other (2%) 
 Ghur Al Safi 1,744 
Potassium 
nitrate Arab Fertilizers 
and Chemicals 
Industries Ltd 
 Arab Potash Co. (APC), 100% Aqaba 150 WT/TPR/S/325 • Jordan 
 
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  Commodity Major operating 
companies  Ownership Location of 
main facilities Annual 
production 
capacity 
Potassium 
sulphate Jordan Abyad 
Fertilizers and 
Chemicals Co. 
P.S.C. (JAFCCO) 
 Venture Capital Bank, 57.2%; Al-Fares Investments,  
17.8%; Jordan Phosphate Mines Co. Ltd. (JMPC); 
15%, Arab Mining Co., 10%  Aqaba 80 
Salt Arab Potash Co. 
(APC)  The Potash Corporation of Saskatchewan, (28%); 
Jordan Ministry of Finance, (27%); and Arab Mining Co., (20%); Social Security fund (5%); Islamic Development Bank (5%); Iraqi Government (5%); 
Libyan Company for Foreign Investment (4%); Kuwait 
Investment Authority (4%); Other (2%)  Ghur Al Safi 32 
Sulphuric 
acid Jordan Abyad 
Fertilizers and 
Chemicals Co. 
P.S.C. (JAFCCO)  Venture Capital Bank, 57.2%; Al-Fares Investments, 
17.8%; Jordan Phosphate Mines Co. Ltd. (JMPC); 
15%; Arab Mining Co., 10% Aqaba 878 
Source: USGS: Mineral yearbook 2012, Jordan; WTO document G/STR/N/9/JOR, 28 July 2003; and the Arab 
Potash Company: Annual Report 2014, p. 38. 
4.2.5  Oil and natural gas 
4.61.  The Ministry of Energy & Mineral Resource s oversees the development of the oil and natural 
gas industry as well as granting concessions fo r exploration and exploitation of hydrocarbons.40 
Concessions are granted for 5-8 years and are subj ect to extension during the development phase 
of 25 years. The state-owned National Petroleum Company has exclusive rights, until 2046, in the 
natural gas and crude oil industry (Table 4.9). The company had a production capacity in natural 
gas of 131 million m3 and in crude oil of 16,000 bbl, in 2014.  
4.62.  Several projects have been underway during the review period to counter the high 
dependency on natural gas and oil. In continuati on of the 2007 Energy Mast er Plan, an agreement 
was signed with Shell to supply LNG to the Aqaba LNG terminal which is currently under construction. Supply of LNG to the terminal was expected to commence at the beginning of 2015.  
4.63.  Government authorities also expect to produce shale oil in 2018. Additionally, the Saudi 
Arab Co. and the Royal Dutch Shell Plc. are expe cted to start producing shale oil in 2019 and 2022 
respectively. Jordan possesses large reserves of shale oil, estimated at 70 billion tonnes, which could deliver around 7 billion tonnes of oil. 
4.3  Services 
4.3.1  Financial services 4.64.  Jordan made substantial GATS commitments in key areas of financial services concerning 
investment banking, insurance services and banking. There are no restrictions on full foreign 
ownership of insurance companies and banks incorporated in Jordan as well as those establishing subsidiaries and branches. No financial services were excluded from the commitments.  
4.65.  Jordan's financial system comprises, inter alia : licensed banks; insurance companies; 
exchange companies; microfinance companies; an d specialized credit institutions. In 2013, total 
assets in the financial system were the equivalent of about 189% of GDP, of which licensed banks accounted for 93.9%.
41 
4.3.1.1  Banking sector 
4.66.  In 2013, there were 26 licensed banks operating in Jordan, consisting of 10 foreign and 16 
Jordanian banks. The equity share owned by fo reign banks was around 50% of licensed banks' 
total capital at the end of 2013. There are four Islamic banks in the country; three Jordanian and 
                                               
40 NRA online information. Viewed at: 
http://www.nra.gov.jo/index.php?option =com_content&task=view&id=17&Itemid=78 . 
41 CBJ, Financial Stability Report, 2013 and CBJ, Annual Report, 2013. WT/TPR/S/325 • Jordan 
 
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  one foreign. The sector also consists of 142 licensed money changers with 96 branches.42 
According to IMF data for 2013, the banks are privately owned, well-developed, profitable, and efficient.
43 The capital adequacy ratio limit is set at 12% by the Central Bank of Jordan (CBJ) 
while, in the period 2007-13, the range of capi tal adequacy ratios among the banks was 18-20% 
and, in 2013, 12 banks exceeded a 20% ratio, 11 banks ranged between 14% and 20%, and three 
banks were around minimum level. The CBJ stated that competitiveness has improved due to three new banks being granted licenses in 2009 as well as improvements to bank products and 
services.
44 
4.67.  In 2013, licensed banks' assets were the equivalent of about 178% of GDP, whilst the five 
largest banks accounted for around 55% of the sector's total assets. Assets have increased during the review period, whilst the ratio to GDP has decreased as has the market share of the five 
largest banks (Table 4.10).
45 
Table 4.10 Jordan's financial system structure, 2008-14 
 2008  2009  2010  2011  2012 2013 2014  
Number of institutions  
Banks 23 23 25 26 26 26 25 
  Foreign-owned banks  8  8 9 10 10 10 9  
  Jordanian banks 15 15 16 16 16 16 16 
  Islamic banks 2  2 3 4 4 4 4  
    Foreign-owned Islamic 
    banks 0 0 0 1 1 1 1 
    Jordanian Islamic banks 2  2 3 3 3 3 3  
Insurance companies 27 27 27 27 27 27 25 
  Life insurance 1  1 1 1 1 1 1  
  General insurance 8 8 8 8 8 8 8 
  Life and general insurance  16 16 16 16 16 15 15  
  Takaful providers 3 3 3 3 3 3 2 
Assets (JD million) 
Licensed banks assets 29,793  31,958  34,973  37,687  39,275 42,795 44,417  
  Foreign-owned banks 3,252  3,644  3,863  4,077  4,432 5,102 4,001  
  Jordanian banks 2,0312  21,285  22,926  24,797  24,914 27,234 34,027  
  Islamic Banks 2,967  3,433  4,235  4,764  5,322 5,971 6,390  
    Foreign-owned Islamic banks 0 0 0 138 327 471 438 
    Jordanian Islamic banks 2,967  3,433  4,235  4,626  4,995 5,500 5,952  
Insurance company assets 678.0  695.5  718.7  722.5  764.0 798.0 842.2  
  Life insurance 82.5  86.2 81.2 71.6  70.9 70.5 71.9  
  General insurance 115.1  130.6  150.8  149.5  165.2 177.7 187.9  
  Life and general insurance  420.7  421.0  426.4  443.9  467.0 481.9 507.8  
  Takaful providers 59.7 57.7 59.0 57.5 60.9 67.9 74.6 
Miscellaneous  
5 largest banks (% of total assets) 58.9%  58.2%  57.9%  58% 55.3% 55% 54% 
3 largest insurance companies (% 
of gross premiums) 23 21 21 21 21 22 ..  
NPL ratio (% of total assets)  4.2 6.7 8.2 8.5 7.7 7 5.5  
.. Not available. 
Source: The Central Bank of Jo rdan, Annual Report 2013, and Jordan Insurance Federation. 
4.68.  Credit extended by licensed banks has increased by nearly 50% since 2008 and totalled 
over JD 19 billion in 2014. By economic activity, the construction sector accounts for the largest percentage of credit facilities, followed by "oth er" representing credit extended to individuals 
(Table 4.13). During the review period, the ratio of non-performing loans to total loans increased 
from 4.2% in 2008 to 6.8% in 2013. However, the non-performing loans ratio reached its peak in 
                                               
42 Central Bank Annual Report, 2013 and CB J, Financial Stab ility Repo rt 2013. 
43 IMF Country Report No. 14/152, 2014. 
44 CBJ, Financial Stability Report, 2013. 
45 Central Bank, Annual Report, 2013 and CB J, Financial Stability Report, 2013. WT/TPR/S/325 • Jordan 
 
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  2011 at 8.6% and has since dropped.46 The trading sector was responsible for nearly 33% of the 
NPLs.  
Table 4.11 Credit facilities by economic activity, 2008-14 
(JD million) 
Economic activity 2008 2009 2010 2011 2012 2013 2014 
Agriculture 210 231.2  211.8  229.2  254.9 235.7 243.4  
Mining 48.3 60.2 55.4 79.5 73 164.1 196.1  
Industry 1,597.6 1,631.2  1929 2,297.2  2,515.7 2,649.6 2,531.2  
General trade 2,897.5 3,195.4  3,594  3,779  3,754.9 3,937.3 3,683.8  
Construction 2,293.1 2,582.5  3,167.7  3,463.6  3,682.6 4,086.4 4,552.8  
Transportation services 370.5 453.1  484.1  531.6  554.5 536.7 292.7  
Tourism, hotels and restaurants 366.6 427.9  457.3  493.7  505.6 503.5 571.5  
Public services and utilities 870.3 909.5  1,050  1,135.3  2172 2,172.6 2,170  
Financial services 437.7 434.1  408.3  430.5  486.1 508.8 539.5  
Other 3,952.7 3,392.1  3,093.8  3,411.6  3,830.5 4,145.1 4,493.5  
- of which buying shares 483.3 487  435 413.7  322.5 260 210.1  
Total 13,044.3 13,317.2 14,451.4 15,851.2 17,829.8 18,939.8 19,274.5 
Source: Jordan Central Bank. 
4.69.  Several regulatory changes have been implemented over the past few years, or are in 
preparation, affecting the banking sector, including: 
 In 2011, the CBJ enforced a cap on loans for constructing or buying homes. Such loans 
must not exceed 20% of the total sum of the customer's deposits47; 
 In 2012 the CBJ approved a law to permit government and private companies to issue 
Islamic bonds (sukuk) domestically and abroad48; 
 Through the implementation of Basel II, a cap on the loan-to-value (LTV) ratio was 
enforced in 2008, regulating loans exceeding a LTV ratio of 80%. As of mid-2014, banks in 
Jordan comply with Basel II, whilst implementation of Basel III is underway.49 In this 
regard the CBJ has constituted a committee, which is responsible for drafting the Basel III regulation. It is expected that the first version of the Basel III regulations would be 
completed by the end of 2015; and 
 Another committee is working on developing a platform for conducting a quantitative 
impact study (QIS) for implementing the Liquidity Coverage Ratio for Jordan. The LCR 
regulation was expected to be ready at the end of August 2015. 
4.70.  The Jordan Deposits Insurance Corporation (JDIC) was created in 2011, as a public entity 
established to protect customer deposits of up to JD 50,000 for all licensed banks operating in the 
country. Membership of the Corporation is compulsory for all Jordanian banks and foreign 
branches operating in the country. Jordanian ba nks operating abroad are exempt from such 
requirements as well as licensed Islamic Banks operating in Jordan. The JDIC's capital is jointly paid through a government contribution of JD 1 million and JD 100,000 per member.
50 
4.71.  Under the Central Bank of Jordan Law, the CBJ is an autonomous corporate body mandated 
to regulate, monitor and supervise the banking sector. It is also responsible for approving and revoking licences of Jordanian banks and foreig n banks and the opening of their branches. In 
2013, the CBJ formed a committee to review and recommend necessary amendments of the Law, 
                                               
46 CBJ, Financial Stability Report, 2013 and IMF Country Report No. 14/152, 2014. 
47 CBJ, Financial Stability Report, 2013. 
48 EBRD and UNCITRAL: http://www.ppi-ebrd-uncit ral.com/index.php/jordan . 
49 CBJ Annual Report, 2013. 
50 CBJ, Annual Report, 2013 and the JDIC website: 
http://www.dic.gov.jo/index.php?option =com_content&task=view&id=6&Itemid=10 . WT/TPR/S/325 • Jordan 
 
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  aiming to enhance the CBJ's independence. The Committee was expected to make its final 
conclusions by the end of 2014.51 The Committee's conclusions are currently under review. 
4.72.  The main legislation governing the banking sector in Jordan is Banking Law No. 28 of 2000  
and its amendments. To obtain a licence to operate in Jordan, a bank must be a public 
shareholding company, whilst subsidiaries, offshore companies, and branches of foreign banks are 
exempt. Branches of foreign banks must obtain pr ior approval from the regulator in their home 
country and the CBJ before applying for a license. The CBJ's decision on granting licenses takes 
into account whether reciprocal treatment is granted by the bank's home country. Upon 
commencing its activities in the Kingdom through one or more branches, a foreign bank is required to appoint a resident regional manager at its branch or branches in the Kingdom. Such an appointment shall be based on an official docu ment providing that the manager must be fully 
responsible for the activities, assets and manage m e n t  o f  t h e  b r a n c h  b e f o r e  t h e  C B J  a n d  o t h e r  
official agencies. 
4.73.  In 2010, the CBJ raised the minimum capital requirement for Jordanian banks to 
JD 100 million and branches of foreign banks to JD 50 million.
52 The CBJ issues its decision on 
licensing within a month of the application date in the form of a preliminary approval or final 
rejection. If approved, banks are required to  implement the stipulated requirements and 
provisions, including full payment of the minimum capital requirement. Within three months of the 
applicant confirming the fulfilment of such obligations, the CBJ will issue final licensing. The CBJ charges are: 
 a one-time, non-refundable licence application fee of JD 1,000; 
 a one-time license fee of JD 1 million; and 
 an annual fee of JD2,000 for each licensed bran ch or office in the Kingdom plus a fee of 
0.005% of the licensed bank's total assets be longing to the branches operating in the 
Kingdom (subject to a minimum of JD 10,000).
53 
4.74.  Licensed banks are not, without pr ior approval from the CBJ, permitted, inter alia : to 
terminate their activities; to open new branches or  offices in Jordan or abroad; to own shares in 
another bank or certain companies specified in the Banking Law; or to employ foreigners. The CBJ 
is responsible for regulating the number of fore ign employees and their ratio to total employed 
persons in the sector. In addition, licensed banks are prohibited from engaging in non-financial activities. 
4.75.  Additionally, with a view to keeping the banking sector competitive and efficient, the CBJ 
may grant incentives, such as the provision of soft loans, to encourage mergers. 
4.76.  In 2007, the CBJ issued a regulation to combat money laundering and the financing of 
terrorism, with new instructions published in 2010.
54 Additionally, the CBJ has started to amend 
the anti-money laundering and terrorist financing instructions issued to the banking sector in line with the amendments made to the recommendations of the Financial Action Task Force (FATF). 
The regulation and the instructions are applicable to all banks and their subsidiaries operating in 
Jordan as well as to branches of Jordanian banks located abroad. Under the instructions, banks are required to implement internal system procedures to classify all its customers and apply controls 
according to the degree of risk. In addition, bank s are required to store records and documents of 
domestic or international financial transactions for a minimum of 5 years.  
4.3.1.2  Insurance sector 4.77.  Jordan's GATS commitments cover all insu rance services. No notifications were submitted 
during the review period. Commercial presence is required for cross-border provisions of life and 
non-life insurance services, while consumption abroad is unbound. For reinsurance services, no limitations on market access and national treatm ent are in place for modes 1 and 2, while access 
                                               
51 CBJ, Financial Stability Report, 2013. 
52 Oxford Business Group, the Report Jordan 2014, p. 44. 
53 Banking Law No. 28 of 2000. 
54 Anti-Money Laundering and Counter Terrorist Financing Instructions No. (51/2010). WT/TPR/S/325 • Jordan 
 
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  under mode 3 is restricted to public shareholding  companies established in Jordan and branches of 
foreign reinsurance companies. Certain auxiliary services have also been scheduled. For agency services, modes 1 and 2 are unbound, while the supply through commercial presence is limited to Jordanian natural persons, Jordanian general part nerships with majority Jordanians ownership, 
and limited liability companies with Jordanian majority in boards of directors. There are no 
limitations on market access and national treatment with respect to modes 1, 2 and 3 for insurance consultancy services and actuarial services. Foreign equity limitations for insurance 
services under mode 3 have been phased out. 
4.78.  The insurance sector in Jordan accounted for 2.1% of GDP, while insurance penetration 
(total premiums as % of GDP) was 2.1% in 2014.  Gross premiums reached over JD 500 million, 
and total assets were approximately JD 800 milli on. The three largest insurance companies in 
Jordan had a combined market share of over 22%.
55 
4.79.  The insurance sector is divided into life insurance and general insurance. There are nine 
general insurance companies, one foreign life insurance company, and fifteen companies providing 
both general and life insurance. In addition there are two Islamic insurers (Takaful providers) in 
Jordan. In 2011, the Insurance Commission issued a regulatory framework for Takaful providers.56 
Takaful providers accounted for 9% of total pr emiums and had a total market share of 8.56% 
based on underwritten premiums.57 
4.80.  Of the insurance premiums collected, motor insurance continues to account for the largest 
share (42%), followed by medical (25.3%) and fire insurance (13.1%) (Table 4.12). 
Table 4.12 Insurance premiums collected, 2009-12 
(JD million) 
 2009  2010  2011  2012 Share in 
2012 (%) 
Maritime 20.3 21.2 23.8 24.9 5.3 
Fire 53.5 56.3 57.4 61.2 13.1 
Motor 150.0 176.7 183.8 195.9 42 
Accidents (includes insurance on 
credit, liability, aviation and other 
general classes) 24.3 22.4 25.0 22.4 4.8 
Life 34.9 38.0 40.8 44.4 9.5 
Medical 82.1 94.0 105.9 117.7 25.3 
Total 365.1  408.6  436.7  466.5 100 
Source: Central Bank of Jordan Annual Report, 2013. 
4.81.  The Insurance Regulatory Act of 1999 and it s amendments are the main laws governing the 
insurance sector. Under the provisions of the Act, the Insurance Commission (IC) was established as an autonomous body responsible for administer ing the Act and serving as the regulator. Under 
Article 2 of the Act for Restructuring Governmental Institutions No. 17 of 2014, the Insurance 
Commission and its rights and all the belongings thereof are to be vested in the Ministry of 
Industry, Trade and Supplies and the Minist ry is now the regulator for the sector. 
4.82.  The IC is financially independent through annual levies on insurance companies of 0.75% of 
gross written premiums; various application and granting fees for licensing; registration fees for 
branches of companies, agents and brokers; as well as fines and certain aid contributions. The 
MITS is now responsible for these functions, in ad dition, the MITS' responsibilities also include: 
issuing and revoking licences, drafting legislation for the insurance sector, and issuing instructions 
under the Act. 
                                               
55 CBJ, Financial Stability Report 2013 and Jordan  Insurance Federation, Annual Report Insurance 
Business, 2013: http://en.joif.org/LinkClick.aspx?fileticket=Kzw84C54QMg%3d&tabid=60&mid=404 . 
56 CBJ, Financial Stability Report 2013, CBJ Annua l Report 2013, Jordan Insurance Federation and 
Oxford Business Group, The Report Jordan 2014, p. 71. 
57 Jordan Insurance Federation and Oxford Busine ss Group, The Report Jordan 2014, pp. 71-72 and 
Jordan Insurance Federation, Annua l Report Insurance Business, 2013: 
http://en.joif.org/LinkClick.aspx?fileticket=Kzw84C54QMg%3d&tabid=60&mid=404 . WT/TPR/S/325 • Jordan 
 
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  4.83.  The Instructions No. 1 of 2003 govern th e licensing procedure for public shareholding 
companies and branches of foreign insurance companies.58 Under the Instructions, companies 
must obtain prior approval from MITS before re gistering a new insurance company. Furthermore, 
all auxiliaries, including consultants and authorized underwriters, must also be licenced. 
4.84.  To qualify for a licence, an applicant must  be a public shareholding company established in 
Jordan, a branch of a foreign company, or a subsidiary of a foreign insurance company or an offshore company. There are no limitations on foreign equity. The licensing procedures are the 
same for Jordanian and foreign insurance companies including documenting the authorized capital 
and the amount earmarked for underwriting. However, foreign companies must obtain prior approval from the MITS  and the authorities in the  company's home country. Additionally, a branch 
of a foreign insurance company must appoint an Authorized Manager to transact the insurance 
business of the branch. Licences are granted or rejected within five months. Minimum capital 
requirements are JD 25 million for life or general insurance providers, and JD 100 million for reinsurance companies.
59 
4.85.  Additionally, companies are required to submit the technical framework for their insurance 
policies and premium rates which must be  approved by the MITS. Premium rates for motor 
insurance are compulsory and, under the Motor In surance Regulation, rates are determined by the 
Government.60 Companies must receive prior approval from MITS before proceeding with any 
merger or voluntary liquidation. 
4.86.  Under the provisions of the Insurance Regu latory Act of 1999, companies cannot be granted 
a licence to provide both life and general insurance services. However, companies are permitted to 
conduct both insurance services if they had been  licensed prior to the enforcement of the Act. 
According to the Act, employees of and insurance company must be Jordanian nationals with a few 
exceptions. Additionally, it is not permitted to insure liabilities as well as moveable or immovable 
properties in Jordan with an insurance company outside Jordan. Entities in Jordan (except Royal 
Jordanian Airlines) are not permitted to purchase medical or life insurance for employees outside Jordan, although an individual may do so.
61 Airlines are also permitted to insure aircraft outside of 
Jordan. 
4.3.1.3  Capital market 4.87.  Under Jordan's GATS commitments, securities trading may be supplied by banks and 
financial service companies constituted in Jordan (public shareholding companies as well as limited 
liability companies or limited partnerships in shares companies). The same is permitted for 
underwriting securities and asset management services, as well as licensed banks through affiliate companies or separate accounts. 
4.88.  The Securities Law No. 23 of 1997 and the New Securities Law of 2002 govern Jordan's 
capital market. Under the 1997 Law, the Amman Stock Exchange (ASE), the Securities Depository Centre (SDC) and the Jordan Securities Commission (JSC) were created. The SDC is responsible 
for register, deposit, transfer of ownership, and cl earing and settlement of deposited securities as 
well as clearing and settlement of security transactions. The JSC is a financially and administratively independent legal entity responsible for regulating the national capital market and protecting investors.
62 
4.89.  The JSC's responsibilities include monitori ng; auditing of financial services companies and 
financial professionals; registering and regulating mutual funds; authorizing accounting, auditing and performance evaluations; as well as regulating issued and traded securities. In addition, the 
JSC is responsible for the supervision and oversi ght of the ASE, the SDC, public shareholding 
                                               
58 Instructions No. 1 of 2003 for Granting and Renewi ng the License to Transact Insurance Business. 
59 MENA Insurance Club and AIG, Middle East In surance Review: MENA Insurance Markets: 22 
http://www.meinsurancereview.com/portals/1057/pdf/mena_ins_mkts-mini_guide2013.pdf . 
60 The Minister of the MITS is responsible for setting  rates through the issuance of Regulation No. (37) 
of the year 2005 and its amendments sets out the lega l framework for the Minimum Capital of Insurance and 
Reinsurance Company. 
61 WT/TPR/S/206. 
62 JSC and SDC website. WT/TPR/S/325 • Jordan 
 
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  companies' exporting securities, licensed financial service companies, registered natural persons 
performing financial service activities, mutual funds, and investment companies.63 
4.90.  Furthermore, the JSC is responsible for issuing licences to entities providing certain financial 
services, including financial brokerage, investment  trusteeship, investment management, financial 
advisory, custodianship, issuance, and margin financing. The Securities Law No. 76 of 2002 and 
the Instructions on Financial Services Licensing and Registration of 2005 define the requirements 
for granting such licences. Financial services companies are able to obtain a single licence for 
several services. As of April 2015, 83 companies and 614 natural persons were licensed to perform 
financial services. 
4.91.  Banks, shareholding companies, limited liability companies, and private shareholding 
companies whose main objectives are to provide financial services and custodial activities, are 
eligible to apply for licenses. Brokerage activities conducted by banks must be done through a 
subsidiary, affiliate, or their fully-owned companies. Companies can only provide financial services through natural persons registered by the JSC (Instructions of Financial Services Licensing and 
Registration, Article 3). 
4.92.  Licences are issued annually and are rene wable. In 2014, three licenses were granted for 
new companies and four licenses were granted for existing financial services companies. In 
addition, 31 licences were granted to 44 natural persons, of which 11 licences were for the 
registration of financial brokers. There is no prohibition for granting licenses to foreigners.
64 
Minimum capital requirements for licence applicants range from JD 10,000 to JD 5 million, depending on the activity. 
4.93.  During the period under review, the JSC issu ed instructions to upgrade the capital market to 
international markets standards. These included: segregations of accounts instructions; buying on margin and rules for natural persons involved in providing financial services. In addition, the 
electronic systems are to be improved. This would entail: 
 solvency electronic systems that would allow JSC to revise the financial position of the 
brokerage firms; 
 centralized clients risk system that would help financial brokerage firms in making 
decisions on financing their clients; and 
 licensing system that would enable broker age firms to submit their data to JSC 
electronically. 
4.94.   The authorities stated that the licensing instructions were currently being reviewed. 
4.95.  The Amman Stock Exchange was establishe d as a public, non-profit organization with 
financial and legal independence in 1999. The ASE's membership is comprised of 62 brokerage 
firms. There are 236 listed companies on the Amman Stock Exchange (Table 4.13).
65 
4.96.  The Directives for Listing Securities on Amman Stock Exchange, 2012 sets out the listing 
requirements for companies. Companies which have obtained operation rights by the Ministry of 
Industry, Trade and Supplies for at least a year are permitted to register shares on the Second 
Market, subject to certain conditions. To be listed on the First Market of the ASE, companies must have a pre-tax profit of not less than 5% of its pa id in capital for two out of three years prior to 
being listed. Additionally, if paid-in capital is less than JD 50 million, the ratio between Free Float 
and subscribed shares must not be less than 10% at the end of the financial year. Companies are 
exempt if their paid-in capital is equal to, or exc eeds this amount. At the end of the financial year 
there must be at least 100 shareholders and the company's paid-in capital must be at least 
JD 5 million. 
                                               
63 JSC's website and Annual Report, 2013. 
64 Information provided by the authorities. 
65 ASE website. WT/TPR/S/325 • Jordan 
 
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  4.97.  Foreign securities, excluding investment fund s, may be listed on the Exchange if they have 
been listed on a foreign stock exchange for a mini mum of two years. Net foreign investment at the 
ASE reached nearly JD 150 million in 2013, whilst being negative in 2014 (Table 4.13). 
Table 4.13 Selected indicators of the Amman Stock Exchange, 2008-14 
 2008 2009  2010  2011  2012 2013 2014  
Number of listed companies 262 272 277 247 243 240 236 
Market capitalization (JD 
million) 25,406.30 22,526.90 21858.2 19272.7 19,141,5 18233.49 18082.62 
Market capitalization/GDP 
(%) 216.7 149.6 122.7 102.7 93.5 83.0 75.8 
Value traded (JD million) 20,318.00 9,665.30 6,690 2,850.2 1,978.80 3,027.26 2,263.40 
Value of traded bonds 
(JD million) 0.6 2.5 0.14 0.6 0 2.04 0.02 
Foreign ownership of 
market capitalization (%) 49.2 48.9 49.6 51.3 51.7 49.89 48.8 
Net foreign investment 
(JD million) 309.8 -3.8 -14.6 78.6 37.6 146.86 -22.2 
Source: Amman Stock Ex change st atistics. 
4.3.2  Telecommunications 
4.98.  In 2013, the telecommunications sector accounted for approximately 4.7% of GDP and 
employed around 0.24% of the labour force.66 Since 2009, new investment in the sector has 
decreased by more than 20% and amounted to JD 138 million in 2013. During the period under 
review mobile phone penetration continued to increase while fixed phone penetration declined (Table 4.14). 
4.99.  Jordan made substantial commitments for telecommunications services under the GATS, in 
basic and value-added services. Basic telecommunication services included voice telephony, packet-switched data transmission (internet), circuit-switched data transmission, and private 
leased circuit services. Reforms have been focused on liberalizing the sector in accordance to 
Jordan's WTO commitments. There are no remaining limitations regarding market access or national treatment in any of the scheduled tele communications services, apart from mode 4 which 
is subject to a generally applicable horizontal entry.
67 Jordan also undertook obligations as set out 
in the WTO Reference Paper on Telecommunications Services. 
4.100.  The 1995 Telecommunications Law No. 13, amended by the Amending Law of the 
Telecommunications Law in 2011, is the main legislation governing the sector. The Law sets out 
the tasks of the Ministry of Information and Co mmunications Technology (MICT) and established 
the Telecommunications Regulatory Commission (TRC). The MICT is responsible for formulating policy, while TRC is responsible for the regulatory function, which includes, inter alia : issuing 
licences; monitoring and approving interconnection agreements; regulating competition 
safeguards; and settling disputes. Under the new legislation, wholesale rates are based on a market review, which emphasizes top-down LRIC (long run incremental cost) pricing. Licensed 
operators are free to negotiate interconnection agreements amongst themselves. However, all 
agreements need TRC approval before being implemented. 
4.101.  Under the Telecommunications Law, dispute settlement is handled by one Commissioner of 
the TRC, who is responsible for concluding settlements, drawing  up guidelines for negotiations 
between disputing parties, and resolving disputes. The Commissioner's decision can be appealed 
internally before the Board of Commissioners within 30 days. 
 
                                               
66 World Bank database and International Telecommunications Union database. 
67 Jordan's horizontal section schedule of commit ments specifies certain access opportunities for 
business visitors, intra-corporate transferee s, executives, managers, and specialists.  WT/TPR/S/325 • Jordan 
 
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  Table 4.14 Telecommunications indicators, 2008-14 
 2008 2009 2010 2011 2012 2013 2014 
Number of subscriptions ('000)         
Fixed phone 519 501 485 424 401 379 375 
Mobile phone 5,314 6,014 6,620 7,483 8,984 10,314 11,092 
Internet (subscribers) 229 245 346 617 933 1,503 1,780 
Internet (users) 1,500 1,742 2,324 3,137 4,260 5,300 5,650 
Penetration rate per 100 inhabitants (%)        
Fixed phone 8.9 8.4 8.0 6.8 6.3 5.2 5.0 
Mobile phone 91 101 108 120 140 142 147 
Internet (subscribers) 4 4.1 6.0 10.0 17.0 21.0 24.0 
Internet (users) 26 29 38 50.5 67.0 73.0 75.0 
Volume of investment (JD million)        
Fixed phone 23 24 15 14 18 8 .. 
Mobile phone 65 120 124 101 122 127 .. 
Internet 22 31 80 26 4 3 .. 
Other telecommunication services 5 0.5 0.8 1 - - .. 
Total 115 175.5 219.8 142 144 138 .. 
Number of employees        
Fixed phone 2,212 2,060 1,958 1,964 1,900 1,741 .. 
Mobile phone 2,079 2,296 1,886 1,796 2,143 2,151 .. 
Internet 644 1,080 830 779 533 300 .. 
Other telecommunication services 345 320 65 61 20 20 .. 
Total 5,280 5,756 4,739 4,600 4,596 4,212 .. 
Distribution of households (%) by        
Fixed phone .. 26.0 21.6 18.5 14.1 13.9 .. 
Mobile phone .. 96.5 97.6 98.1 98.2 98.5 .. 
Internet .. 18.4 21.7 35.4 47.3 56.8 .. 
- Less than JD 0.05 million. 
 .. Not available.  Source: Telecommunications Regulatory Commission and Jordan Statistical Yearbook 2013 and information 
provided by the authorities.  
4.102.  In 2006, the TRC issued a regulation on competition safeguards.68 The regulation 
establishes procedures and criteria for determinin g anti-competitive practices. Such procedures 
aim to define terminology related to competition in the telecommunication sector, including market, market share, dominance, and abuse of dominant position.
69 The regulation aims to 
provide a common framework for competition-related proceedings in the sector, including 
complaints, dispute settlement, and dominant licensees' obligations under the Telecommunications 
Law. 
4.103.  The TRC's regulatory responsibilities include creating effective competition in the sector. 
This includes adopting legislation to achieve effective competition; implementing regulations for 
markets lacking effective competition, such as the fixed-phone subsector; adopting licensing instructions to simplify procedures; and handling complaints regarding anti-competition practices 
in coordination with the Competition Directorate under the MITS.
70 Furthermore, there is a 
memorandum of understanding between MITS and TRC regarding competition cases in the sector. Additionally, TRC is also initiating a process of amending the competition safeguards instructions. 
4.104.  With a view to further increasing competition in the telecommunications sector, the 
authorities adopted a Policy Statement in 2007. Under this policy the number of 
                                               
68 Telecoms Regulatory Comm ission (2007), Annual Report  2006, Amman. Viewed at: 
http://www.trc.gov.jo/index.php?option=com _content&task=view&id=44&Itemid=328&larig =english. 
69 The following services are defined as a market : fixed public telecomm unications network and 
services; mobile public telecommunications network and services; leased lines, and interconnection. A dominant market position: measured in terms of reve nue, of 50% or more is deemed to hold. Abuse of 
dominant market positions includes: pr edatory pricing, anti-competitive cr oss-subsidization, anti-competitive 
price discrimination, margin squeeze, anti-competiti ve long-term contracts, anti-competitive bundling, 
exclusionary practices, and exclusive dealing. 
70 TRC Annual Report 2013, 66-67. WT/TPR/S/325 • Jordan 
 
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  telecommunication licences was increased and new frequency bands were made available for 
general licensing. Additionally, a new licensing regime was adopted. In 2012, the Government published a Policy Statement to further secure full competition in the sector and to address regulatory issues in connection with new technologies entering the market. Since then the sector 
has been liberalized and is open to competition: the Commission no longer regulates prices on 
telecommunication services, which are now determined by the market.
71 
4.105.  In 2004 the Government adopted the Ge neral Policy for Universal Services in the 
Telecommunications Sector followed by the 2006 TRC Board Decision No. (1-10/2006) outlining 
the general procedure for Universal Service Costs. The TRC regulatory framework for universal services, issued in 2006, stipulates universal servic es obligations, selected from licensed service 
operators and contributions to the Universal Service Fund. The Fund is financially independent, 
receiving contributions from licensed companies whose operating revenue is more than 1% of total 
revenues. The TRC determines the compensation amount depending on the ratio of company revenue versus total revenues. Universal services include access to the internet and phone to all 
persons, with special consideration for the disabled, in all geographical areas, and at an affordable 
cost. The Fund is still to be established and to da te no compensation has been granted in lieu of 
universal service provision. 
4.106.  There are two licensing systems applied to the telecommunications sector in Jordan:  
 The individual licence fee of JD 100,000 that must  be obtained by all public telecom network 
operators or by operators providing telecom services using scarce resources; and  
 The class licence fee of JD 30,000 that must be obtained by all public telecom service 
providers not using scarce resources. 
4.107.  The licensing systems do not have any limi tation on the number of licenses granted or the 
type and range of non-public mobile wireless services. Approvals of licences take into 
consideration normal network safeguards, secu rity, use of scarce resources and technical 
limitations. The applicant for a license must be a registered Jordanian company with no limits on 
foreign ownership. 
4.108.  Jordan's telecommunication's sector consisted of 73 companies licenced for public 
telecommunication services, of which, 23 are individual licences and 50 class licences.
72 
4.109.  Jordan Telecom Group (JTG), which was prev iously state-owned, had the exclusive right to 
provide fixed phone services until 2005. As of 2013 the company continued to be the dominant 
provider controlling 98% of the market. JTG is majority owned by Orange, with the Government 
owning 28.88%.73 Batelco Company (Bahrain) is also licensed to provide fixed line services. 
4.110.  There are four mobile phone operators in Jordan, all of which are foreign owned: Zain was 
the largest mobile phone provider accounting for nearly 39% of the market; followed by Jordan 
Telecom Group (Orange), which controls over 31% of the market; Umniah Mobile Company 
(Batelco), which is responsible for around 29%; and Frendi, which had about 1% market share. As 
of 2012 all prepaid mobile lines are registered  on the operator's system and forthcoming 
subscriptions are recorded within a week afte r activation, in accordance with government 
regulations.74 Pre-paid subscriptions accounted for the largest part of the market, whilst post-paid 
subscriptions are increasing. Bundled telecommunication services are offered in Jordan by 
Orange.75 
                                               
71 Statement of Government Policy 2012 on communication, information technologies and postal 
services and World Bank report 2014: broadband networks in the Mi ddle East and North Africa , page 12 and 
TRC website. 
72 Telecommunications Regulatory Commission. 
73 Jordan Telecom Group, Annual Report, 2013 and Ox ford Business Group, the Report, Jordan 2014, 
page 149. 
74 TRC Annual Report 2012 and TRC website. 
75 Telecommunications Regulatory Commission webs ite, Oxford Business Group, the Report, Jordan 
2014, page 149 and Orange Jordan https://www.orange.jo/site s/sme/English/Pa ges/One-comprehensive-offer-
For-small-business-and -Professionals.aspx . WT/TPR/S/325 • Jordan 
 
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  4.111.  In 2012, the Commission opened a bidding process for frequency bands of 1800MHz, 
2100MHZ, 2300MHz and 2600MHz. As a result three individual licences were granted for the 3G 
mobile network to Orange (JTG), Zain and Unamiah and in 2014, furthermore, Zain was also granted a 4G license. Whilst Zain is the only licensed 4G company operating in Jordan, Orange 
Mobile also acquired a 4G licence in January 2015 and is expected to start operations in the 
second half of the year.
76  
4.3.3  Transport 
4.112.  The authorities consider the transport sect or to be of great importance to the economic 
development and trade in Jordan.77 The sector accounts for approximately 12% of GDP and 
employs 10% of the total work force. The minist ry primarily responsible for the sector is the 
Ministry of Transport.  
4.113.  In 2012, the Ministry of Transport launc hed a medium-term national strategy, which seeks 
to modernize and upgrade the sector.78 In tandem, the Ministry initiated the Long-Term National 
Transport Strategy Project, which aims to integrate all transport subsectors, i.e. land, maritime, 
air, and rail through a long term transport strategy running until 2030. A long-term strategy was 
drafted in 2014 and focuses on five policy pillars:  completing the existing networks and optimising 
the usage of these transport facilities; promoting private participation; heightening environmental 
protection; focussing on the regional transport dimension; and focussing on the participation of 
citizens. The second phase, which is expected to be completed in 2016, will provide a new model for the passenger and goods transportation sector.
79 
4.114.  Jordan currently maintains 46 open skies air services agreements. 
4.3.3.1  Air transport 
4.115.  Jordan has made specific commitments under GATS on two of the three air transport-
related services covered by the relevant Annex (m aintenance and repair of aircraft, and computer 
reservation systems). Jordan has concluded 112 air service agreements, all of which are in force. 
The majority of bilateral air services agreements cover the third and fourth freedoms; some also cover the fifth freedom. Cabotage is not permitted for foreign airlines. 
4.116.  The Civil Aviation Regulatory Commission (CARC) is responsible for the implementation of 
government air transport policy, which operates within the legal framework of the Civil Aviation Law No. 41 of 2007. The Commission's stated objectives include removing all unnecessary restrictions in Jordan’s international aviation market with respect to licensing and other regulatory 
processes. Anti-competitive practices are addre ssed through the Competition Law, although the 
CARC may use its regulatory powers in circumstance s where an effective or actual monopoly exists 
in any regulated aviation subsector. 
4.117.  A four-year route exclusivity city-pair ri ghts agreement between the Government and the 
Royal Jordanian Airlines entered into force in 2002 and was extended in 2006 for an additional four years. In 2012, two companies were licensed to operate scheduled services in Jordan: Royal 
Falcons (a sister company to Jordan International Air Cargo owned by  the Royal Jordanian Air 
Force), and Royal Wings (a subsidiary of Royal Jordanian Airlines),
80 More recently, Jordan Aviation 
and Petra Airlines (Air Arabia Jordan) have also been licensed to provide scheduled services. Non-exclusive routes are allocated through a decision  by the Route Licensing Panel appointed by the 
Commissioner Council of CARC. Charges and fees ar e collected by the CARC on the basis of any 
action or service it has provided in accordance  with Fees and Charges By-law No. 45 of 2007, and 
                                               
76 The Telecommunications Regulatory Commission, an nual report 2012 and Oxford Business Group, the 
Report, Jordan 2014, page 152. 
77 Ministry of Transport, Annual Report 2013, page 22. 
78 CSR Watch Jordan: Corporate responsibility in the transport sector, 2014: 
http://www.csrwatchjordan.com/uploads/1/5/6/2/15623468/ corporate_responsibility_in_the_transport_sector
_2014.pdf . 
79 Ministry of Transport, Annual Report, 2013 and TRT Trasporti e Territorio: 
http://www.trt.it/english/news-eng.ph . 
80 The Economic Research Forum: http://www.erf.org.eg/CMS/uploads/pdf/727.pdf , 
http://www.royalwings.com.jo/About-RW/history  and 
http://www.arabaviation.com/countr ybriefs/jordan/royalfalcon.aspx . WT/TPR/S/325 • Jordan 
 
- 95 - 
 
  its amendments. Such actions and services include issuing licences, permits, certificates as well as 
the usage of Jordanian Civil Airports and air navigation facilities. Aircraft landing charges are based on the aircraft's maximum take-off weight and are charged in three brackets per tonnage (Table 4.15). Charter flights and helicopters are charged 50% less. Other charges include air 
bridge charges, parking charges, inside and ou tside hanger charges and air navigation service 
charges. 
Table 4.15 Charges for the use of civil airports (2015) 
 Queen Alia 
International Airport Other Airports  
Charge type according to the aircraft's maximum take-off 
weight JD Fils JD Fils 
Landing charges per tonne or thereof     
Minimum charge 30 000 30 000 
First 25 tonne 1 949 1 500 
Following 75 tonne 2 924 2 250 
Exceeding 100 tonne 3 314 2 550 
Parking charges outside hanger s per tonne or part thereof 
(first 2-72 hours)upon airline request and airport operator 
approval     
Minimum charge 15 000 15 000 
First 25 tonne 0 195 0 150 
Following 75 tonne 0 143 0 105 
Exceeding 100 tonne 0 078 0 060 
Parking charges outside hangers per 24 hours or part thereof 
(exceeding 72 hours)     
5700 kg or less  32 491 25 000 
5701 kg and more  64 981 50 000 
Parking charges inside the hangers per 24 hours or part 
thereof for each ton or part thereof      
Minimum charge 30 000 30 000 
First 25 tonne 3 314 2 550 
Following 75 tonne 1 949 1 500 
Exceeding 100 tonne 0 975 0 750 
Air bridge (Jet Ways) charges for every 2 hours or part thereof      
less than 90 tonne  51 985 40 000 
90 tonne or more 77 978 60 000 
Source: Civil Aviation Regulatory  Commission and Regulation No. 45 of 2007 and its amendments. 
4.118.  All aircrafts overflying or landing in one of  Jordan's civil airports are required to have a 
flight permit. The procedure varies depending on ca rgo, landing purpose, and if the aircraft is a 
commercial or non-commercial flight. For a landing or overflying permit issued to a foreign company with flights of special purpose (air taxi) and privately owned planes, a Supervisor Local 
Agent must handle the application process. Such agents must be licensed by CARC, and, as at 
end-July 2015, there were ten Supervisor Local Agency companies listed. 
4.119.  Foreign ownership is limited to a maximum of 49% in scheduled and non-scheduled 
passenger, freight, and mail air transport services as well as aircraft rental services with an 
operator. Furthermore, air transport and auxiliary services, freight forwarding services, packing and crating services, and freight inspection services are limited to Jordanian nationals or legal 
entities. 
4.120.  Privatization of Royal Jordanian Airlines started in 2006. As of end-2010, the Government 
held a 26% stake with an additional 10% stake held through the state-owned Social Security WT/TPR/S/325 • Jordan 
 
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  Corporation. Mint Trading Middle East holds a 19% share. No other entities have a stake larger 
than 5%.81 
4.121.  There are three major airports in Jordan; two in Amman and one in Aqaba. Jordan's main 
airport is the Queen Alia International Airport handling the majority of all passengers - 
approximately 7 million in 2014; and landings (73,125 in 2014) (Table 4.18). 
Table 4.16 Air traffic by aircraft, and number of passengers in '000, 2011-14 
Airport 2011 2012 2013 2014 
Aircraft Passengers Aircraft  Passengers  Aircraft  Passengers Aircraft Passengers  
Queen Alia 
International Airport  
    
Arrivals 31,714 2,106 33,602  2,459  34,071  2,638 36,578 3,490  
Departures 31,712 2,062 33,588  2,393  34,077  2,515 36,547 3,599  
Amman Civil 
Airport      
Arrivals 4,725 147 4,356  134 4,255  100 3,147 21 
Departures 4,698 134 4,325  143 4,225  106 3,129 21 
King Hussain 
International Airport   
    
Arrivals 2,286 154 3,002  62 2,460  56 2,150 78  
Departures 2,276 76 3,017  67 2,465  54 2,152 85  
Source: Jordan Statistical Yearbook, 2014. 
4.122.  Since 2007, Queen Alia International Airport has been operated by Airport International 
Group (AIG), under a 25-year build-operate-transfer (BOT) contract with the Government of 
Jordan. AIG is responsible for the rehabilitation as well as expansion of the airport. The first stage of the terminal expansion project was completed in  2013. The second phase of the project is under 
way, to increase the passenger capacity to 12 million.
82 The number of passengers increased 
significantly in 2014 as well as aircraft movements.83 
4.123.  In 2008, the Jordan Airports Company was established. The company is wholly state-
owned.84 The company is responsible for the Jordanian airport's investments as well as 
undertaking full operational and managerial responsibility for Amman Civil Airport in 2009. 
Established in 2007, the Aqaba Airports Company (AAC) is the sole operator of King Hussein International Airport in Aqaba pursuant to airport certification by CARC. 
4.3.3.2  Road transport 
4.124.  Jordan has made no specific commitments on road transport services under GATS. As of 
2010 Jordan held 36 bilateral road transport agreements, 3 multilateral agreements regarding regulation and harmonization of road freight transport between countries, and 9 international 
conventions and agreements. Foreign investment in road transport services are subject to a 50% 
foreign equity ceiling with the exception of road passenger and freight transport services in which 
foreign investment is prohibited. 
                                               
81 Government of Jordan: 
http://www.jordan.gov.jo/wps/portal/!ut/p/b0/04_S jzQ0NDE0tDQ1tzDUj9CPykssy0xPLMnMz0vMAfGjzOLDLL0t
wrzdDQ0sPNwtDDy9DIzMfM2djA1MjfWDU_P0c6McFQHrexPN/  and Oxford Business Group: 
http://www.oxfordbusinessgroup.com/overview/moving-forward-well-developed-road-and-air-networks-
compensate-weak-rail-system . 
82 Ministry of Transport, Annual Report 2013 and Petra, 26 January 2015: Expansion of Queen Alia 
International Airport enters 2nd phase http://petra.gov.jo/Public_News/Nws_NewsDetails.aspx?Site_Id=1&lang=2&NewsID=180570 . 
83 Zawya, 2 February 2015: QAIA Welcomes Over 7 Million Passengers in 2014:  
https://www.zawya.com/story/QAIA_Welcomes_Over_7_Million_Passengers_in_2014-
ZAWYA20150202043842/ . 
84 JAC Linkedin: https://www.linkedin.co m/company/jordan-airports-company-jac-  WT/TPR/S/325 • Jordan 
 
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  4.125.  A draft transport law is currently before Parliament. As at July 2015, the Transport Law No. 
89 of 2003 and the Land Transport Regulatory Commission Law of 2011 are the main laws governing the sector. Under the provisions of these laws, the Ministry of Transport (MOT) is responsible for establishing the general land transport policy as well as proposing draft laws and 
regulations in coordination with Land Transport Regulatory Commission (LTRC). Together with the 
Public Transport Regulatory Commission (PTRC), the Ministry is also responsible for regulating the 
road transport subsector, implementing international conventions, as well as monitoring the 
sector. The LTRC is the main regulator for land transport services, responsible for implementing 
Jordan's land transport policy; monitoring the se ctor; and developing, planning, and promoting the 
land transport sector and investments. Addition ally the Commission is responsible for granting 
licences and permits.
 Under the provisions of the new regulatory framework: 
 The MOT is responsible for: 
o Developing and implementing policies that develop and sustain the transport 
sector;  
o Enhancing the role of the private sector, attracting investment, and increasing the 
productivity of the transport sector; and 
o Setting standards for safety, security  and environmental conservation; and 
 The LTRC's responsibilities include: 
o Implementing the general land transport policy; 
o Planning the land transport services network and its facilities and routes; 
o Developing the required plans for operating land transport facilities.  
4.126.  In 2012 and 2013, the LTRC amended se veral by-laws. The new legislation changed 
conditions for granting licences and the procedures for handling complaints. Additionally, in 2013, the Passengers' Public Transport Law was amended with respect to licencing and permits for taxi 
offices and cars operating under management as well as for rental car companies and offices. 
Moreover, amendments to the Goods Transport on Roads Law were also introduced in 2013. These 
amendments addressed licences and classification of  carriers and forwarders on roads, as well as 
carriers and forwarders on roads licensing branches and issuance of permits.  
4.127.  Amendments to the Goods Transport Law were published as the Regulations for licensing 
and classification of carriers and forwarders No. 4 for 2013. Changes to the licensing regime aim to 
make the system more flexible. The amendmen t permits licensing of companies which are 
comprised of a consortium of individual frei ght vehicle owners. In addition, the amendment 
provided a legal basis to regulate auxiliary services such as inland ports and logistical services as well as providing a legal basis for the compensation liability of the carrier.
85 In addition, 
amendments to the Goods Transport on Roads Law address collection of service allowances 
provided by the LTRC. 
4.128.  The Freight Transport on Roads Law No. (14) of 2012, amends the legislative framework 
for licensing and categorization of transporters  and shipment brokers. Alongside the Law, a 
number of by-laws clarify various categorisations of shipment brokers and transporters. Additionally the by-laws addressed leasing as we ll as licenses and permits of trucks. Under the 
provisions of the by-laws the LTRC is responsible for regulating work of individual truck owners; 
the heavy transport of cargo licensing and procedures  for such transport; as well as regulating the 
relationship between individual and company truck owners.
86 
4.129.  According to the latest available data, there were over 16,000 heavy duty vehicles 
operating in Jordan, of which nearly two-thirds were owned by individuals. There were 237 
licensed road freight transport companies, the ma jority of which were involved in container and 
crude oil transport companies.  Freight tariffs are market determined.   
4.130.  Since 2008 the country's road network has decreased from 7,816 km to 7,299 km in 2013. 
The country's highway network consists of 2,754 km of highway, 1,894 km of secondary roads, 
                                               
85 Ministry of Transport, Annual Report, 2013. 
86 LTRC, Annual Report, 2012. WT/TPR/S/325 • Jordan 
 
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  and 2,651 of rural roads.87 Since 2002,  the Ministry of Public Works and Housing has been in the 
process of extending the road networks across the country as part of a 25-year Plan. The Plan includes developing road networks within and between larger cities, for example Amman and Irbid.
88 
4.131.  The MOT initiated a 20-year National Highway Master Plan in 2009. Furthermore, a public 
transport connection between Amman and Zarqa is being implemented by the MOT and the highway between Amman and QAIA is in the process of being widened, becoming Jordan's first toll 
road.
89 
4.132.  International road transport is governed by bilateral agreements. In 2012, an investment 
agreement was concluded with the Kingdom of Saudi Arabia to upgrade highway connections between the two countries in 2013 and 2014.
90 In 2009, Jordan and Iraq signed an agreement for 
land transport of passengers and goods, which entered into force in 2013. In addition, Oman and 
Jordan signed an international road transport agreement in 2013.91 
4.133.  Foreign trucks collecting goods in Jordan are subject to a toll depending on their gross 
weight. In road transport auxiliary services, passenger and freight road transport are prohibited to 
foreign investors. Cabotage by fo reign companies is not allowed. 
4.134.  The LTRC has initiated a number of projec ts, including one to modernize public transport 
vehicles. Under the project 1,883 units were either  put out of service or upgraded between 2008 
and 2012. In 2011, 231 vehicles operating under LTRC 's authority were upgraded. In addition, the 
Commission is in the process of constructing ten bus terminals across ten governorates, which are expected to be completed in 2018. 
4.3.3.3  Rail transport 
4.135.  Under the supervision of the MOT, two st ate-owned companies are responsible for Jordan's 
rail operations. The Aqaba Railway Corporation, established under Act No. 22 of 1972, is 
responsible for operating the 292 km rail connectin g Aqaba port to the country's phosphate mines 
in the south, near Ma'an. In 2013, over two milli on tonnes of phosphate were transported from the 
Al-Hassa and Al-Shaiydiya mines by rail.
 The Jordan Hejaz Railway Corporation was established 
under Law No. 23 of 1952, and is responsible for investments and operation of the 217 km Hejaz 
railway. The railway runs across the country from the northern Syrian border to the southern border with the Kingdom of Saudi Arabia. The route transports both goods and passengers from Amman to Damascus.
92 
4.136.  In 2010, the Government introduced the Nati onal Rail Network Project. The project aims to 
develop a rail network linking Jordan to Saudi Arabia, Syria, Turkey, and certain European countries. Each country is responsible for developing the rail passing through its territory. 
Construction of the network is still underway with  the aim to build a 900 km long rail track with 
three main routes. One will go from the Syrian bord er to Aqaba. The second and third will go from 
Irbid through Mafraq and Zarqa and split into two routes; one to the Iraqi border and the other the 
Saudi border through Al-Azraq.
93 
4.137.  Some railway transport services are subject to foreign equity restrictions. In rail transport 
auxiliary services, foreign investment is not permitted in the area of passenger and freight transportation, pushing and towing services, supporting services for rail transport such as rail 
                                               
87 Oxford Business Review, The Report, Jordan 2014,  page 92 and Jordan Statistical Yearbook, 2013. 
88 Jordan Economic & Commerce Bureau: 
http://www.jordanecb.org/Public/English.aspx?Site_Id=1&Page_Id=570&menu_id=38 . 
89 Oxford Business Review, The Report, Jordan  2014, p. 95 and Oxford Business Group: 
http://www.oxfordbusinessgroup.com/overview/moving-forward-well-developed-road-and-air-networks-
compensate-weak-rail-system . 
90 Oxford Business Review, The Report, Jordan  2014, p. 95 and Oxford Business Group: 
http://www.oxfordbusinessgroup.com/overview/moving-forward-well-developed-road-and-air-networks-
compensate-weak-rail-system  and Ministry of Transport, 2013. 
91 MoT Annual Report 2013. 
92 Ministry of Transport, Annual Report, 2013. 
93 Ministry of Transport, Annual Report, 2013 and Oxford Business Review, The Report, Jordan 2014 
p. 96. WT/TPR/S/325 • Jordan 
 
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  passenger terminal services.94 After the establishment of the LTRC, two new railway laws (No. 34 
of 2012 and No. 79 of 2014) were issued, addressi ng licensing and fees for railway service 
providers. 
4.3.3.4  Maritime transport 
4.138.  At the time of its accession to the WTO, Jordan made specific commitments under the 
GATS on maritime transport services. As with all transport services, commercial presence in mode 3 in maritime transport services is subject to a 50% limitation on foreign equity. 
4.139.  The main law governing the sector is the Maritime Commercial Law of the Hashemite 
Kingdom of Jordan of 1972. The Law is administ ered by the Jordan Ma ritime Commi ssion (JMC).
95 
Under the provisions of the Law, the JMC has the mandate to regulate, supervise, and develop the 
maritime transport subsector, including all transportation modes, stationary and moving 
equipment, labour force, transport auxiliaries, an d associated services. Shipping agents (both port 
agents and representatives of shipping lines) must  be licensed by the JMC. Shipping agents must 
have a general manager of Jordanian nationality. 
4.140.  The JMC is also responsible for the registra tion of vessels flying the Jordanian flag. Under 
its GATS schedule, Jordan has also reserved the righ t to offer preferential service fees to Jordanian 
ships for pilotage, berthing, and docking. Registra tion as a Jordanian flag carrier involves no 
restrictions on the nationality of master, officers or crew, and the ownership of ships. Maritime 
transport and ancillary services are subject to a fo reign equity ceiling of 50%. The registration fee 
for ships under the Jordanian flag varies depending on the age of the vessel, the service it provides and the net registered tonnage. Other fees  include registration of changed ownership, the 
ship's name or marks as well as mortgage releases and 1% of loan on mortgage registration. In 
addition an annual navigation licence fee applies, this is dependent on the ship's net registered 
tonnage or in the case of smaller vessels, the service provided. 
4.141.  The authorities are in the process of  making amendments to the 1972 Maritime 
Commercial Law. The amendments seek to integrate Jordan's new maritime commitments and developments.  Amendments also include updating the le gal and organizational framework of the 
maritime sector.
96 The amendments are expected to be in force in 2016. 
4.142.  Additionally, under the ambit of the Minist ry of Transport, the JMC is implementing the 
National Transport Strategy 2012-2014 in areas of concern to the maritime sector. 
4.143.  Port activities have been separated from other maritime services. The Port comprises of a 
bulk terminal, a container terminal area and an industrial port area. 
4.144.  The Aqaba Port Corporation (APC) is a government body in charge of the maintenance, 
development and operation of the port as well as cargo handling. The APC is responsible for 
providing the following services: 
 vessels alignment;  
 water supply and waste disposal for vessels;  
 goods stevedoring and storing of goods;  
 handling of goods including counting, stocking, inspecting and weighing;  
 the weighing and covering of trucks;  
 leasing machinery, equipment, vehicles, prov iding workers and terminal facilities; and 
                                               
94 OECD, National treatment for foreign-controlled enterprises: Jordan pp, 57-58 (2013): 
http://www.oecd.org/investment/investment-policy/national-treatment-instrument-english.pdf . 
95 JMC was previously known as the Jordan Maritime Authority. On 30 April 2014 the JMA's name was 
changed to the Jordan Maritime Commission. 
96 The Ministry of Transport, Annual Report, 2013. WT/TPR/S/325 • Jordan 
 
- 100 - 
 
   various safety measures including firefighting, oil pollution monitoring etc. and other 
services related to vessels, goods, passengers and vehicles in the port. 
4.145.  The Aqaba Special Economic Zone Authority (ASEZA) is responsible for issuing a list of 
charges applied on a number of these services. 
4.146.  In addition, the Aqaba Development Corporation (ADC) is a jointly owned enterprise 
between government of Jordan and the ASEZA. ADC owns and has the managerial rights of Aqaba's airport, seaport and certain parcels of land  in Aqaba. The Corporation's main responsibility 
is to develop the Aqaba Special Economic Zone including Aqaba Port, managing business projects, 
building or expanding new infrastructure and implementing the ASEZA Master Plan.
97 
4.147.  The container terminal area consists of four container berths and is owned by the ADC. 
Since 2006, through a 25-year Joint Development Agreement, the Danish company A. P. Moller 
Maersk Group operating as AMP Terminals has been  granted managerial and operational rights of 
the Terminal. The company collects charges, fees, penalties etc. for various container terminal services, such as berthing, handling of containers, and inventory control. Wharfage charges vary 
depending on berthing time and the vessel's length-overall (LOA) category in seven charging 
brackets.
98 
4.148.  Several projects are underway to expand and construct new facilities of the current Aqaba 
port. These include a new port area to be located in the southern industrial area of the port, and a 
project to double the Aqaba Port Terminal's capa city. In 2013, the dock area was increased by 200 
meters.99 
4.3.4  Tourism 
4.149.  The tourism sector in Jordan accounts for about 14% of GDP, nearly a third of export 
receipts and employs 8% of the total workforce (Table 4.17). During the period 2008-14, receipts 
from tourism increased as did the number of empl oyed workforce and the number of hotels. Arab 
countries continue to be the largest source market for the tourism sector in Jordan, followed by 
Asia and Europe. However, in the period 2011-14, tourist arrivals have declined, from 8.9 million to 6.9 million (Table 4.18) probably as a result of instability in neighbouring countries.
100 The 
authorities stated that since 2011 the tourism sector in Jordan, just like all destinations in the 
region, has faced a myriad of obstacles and challenges that have adversely affected its growth. The sector has faced not only the global economic crisis and volatile oil prices, but also political regional disturbances caused a decrease in the nu mber of tourists coming to the Middle East. In 
Jordan's case the problems have been compounded by the crisis in Syria and Iraq, resulting in the 
country's land borders closing. Consequently, the first quarter of 2015 saw a 15% decline in tourism receipts and a 12% decline in tourism arrivals. 
4.150.  The largest employment area in the tour ist sector is tourism restaurants accounting for 
40.5% of total tourism-related employment in 2013, followed by hotels (38%) and travel agencies 
(9.9%). 
                                               
97 The Jordan Maritime Commission website; the Deve lopment Corporation websit e and Oxford Business 
Group, The report, Jordan 2013, page 144. 
98 Aqaba Terminal Company website. 
99 Oxford Business group: http://www.oxfordbusinessgroup.com/n ews/jordan-transport-holding-steady ; 
Construction week online, 28 September 2013: Site visit: Aqaba Container Terminal:  
http://www.constructionweekonline.com/article-24443-site-visit-aqaba-container-terminal/  and Oxford 
Business Group, The report, Jordan 2013, page 144. 
100 Malkawi K (2014), Number of tourists dropped by 14% in 2013 – official report, The Jordan Times, 
18 February (viewed at: http://jordantimes.com/num ber-of-tourists-dropped-by -14-in-2013----official-report ), 
and Oxford Business Group (2014), Planning a comeback for Jordan's tourism industry, 19 March (viewed at: 
http://www.oxfordbusinessgroup.com/news/planning -comeback-jordan%E2%80%99s-tourism-industry ) 
[February 2015]. WT/TPR/S/325 • Jordan 
 
- 101 - 
 
  Table 4.17 Tourism sector overview, 2008-14 
 2008  2009  2010  2011  2012 2013 2014  
Receipts (JD million) 2,089 2,067 2,423 2,431 2,884 2,923 3,107 
Employees 37,966 40,092 41,900 41,879 43,942 48,151 48,665 
Hotels (number) 481 482 487 491 497 519 536 
Travel agencies (number) 585 651 727 799 798 806 856 
Tourist transportation companies 
(number) 7 7 8 8 8 8 8 
Source: Jordan Statistical Yearbook 2013 and 2012, Ministry of Tourism and National Tourism Strategy 
2011-2015. 
Table 4.18 Arrivals by na tionality, group, and means of transport, 2011-14 
Arrivals Year Arab 
Countries Europe Asia Americas Other Total 
Land 2011 5,378,114 148,350  489,944  79,654  19,063 6,115,125  
 2012 4,615,702 135,468  341,249  81,535  23,225 5,197,179  
 2013 3,440,238 112,937  307,780  77,166  18,478 3,956,599  
 2014 3,277,404 279,824  118,728  76,151  9,980 3,762,087  
Sea 2011 276,013 71,954  2,753  8,487  4,508 363,715  
 2012 280,035 69,969  2,984  6,709  3,727 363,424  
 2013 201,834 68,742  3,210  4,577  3,020 281,383  
 2014 219,094 39,432  5,740  4,382  141 268,789  
Air 2011 1,664,772 334,316  202,616  158,186  47,680 2,407,570  
 2012 1,907,763 327,491  230,893  161,994  45,063 2,673,204  
 2013 2,044,648 316,201  236,876  161,038  35,558 2,794,321  
 2014 2,207,852 336,385  202,123  150,087  13,370 2,909,817  
Total 2011 7,318,899 554,620  695,313  246,327  71,251 8,886,410  
 2012 6,803,500 532,928  575,126  250,238  72,015 8,233,807  
 2013 5,686,720 497,880  547,866  242,781  57,056 7,032,303  
 2014 5,704,350 655,641  326,591  230,620  23,491 6,940,693  
Source: Jordan Statistical Yearbook 2013, 2012 and 2011; and information provided by the authorities. 
4.151.  During the period under review, there were no legislative changes concerning the tourism 
sector which continues to be governed by the Tourism Law No. 20 of 1988, as amended, and a number of regulations. The Ministry of Tourism and Antiquities (MOTA) administers the Law and is 
also the regulatory authority to license and cla ssify tourist establishments. The National Tourism 
Council formulates the general tourism policy. The Tourism Committee in the MOTA is responsible for establishing classification standards for hotels and restaurants, advising the minister on the 
licensing and classification of tourism occupati ons as well as looking into the occupational 
violations. In addition, the Tourism Committee of the Parliament is responsible for
 inter alia  
studying tourism related laws and suggestions, ways of developing and protecting the tourism and antiquities sector, laws and methods related to tourism marketing and increasing the tourism 
sector's contribution to GDP. Jordan has bilateral tourism agreements with 37 countries.  
4.152.  The Jordan Tourism Board is an independent body funded by the private sector and the 
State which is responsible for marketing and promotion. Jordan's Investment Commission 
promotes and seeks to attract foreign investment through identifying investment opportunities in 
the sector.
101 
4.153.  Jordan Tourism and Travel Agents Society (JSTA) is the sole representative in Jordan of 
professional travel agents and cooperates with government and non-government bodies in the 
preparation and elaboration of rules and regulati ons governing travel agency relations and other 
parties involved in tourism. Additionally, the JSTA provides its members training and consultation services free of charge at the JSTA Training Centre. 
4.154.  In order to operate, a hotel needs to be  licensed by the MOTA and the license must be 
renewed annually. License fees vary from JD 160 for a one-star hotel to JD 500 for a five-star hotel. Prior approval by the Minister is required for a hotel project (granted for two years). Travel 
                                               
101 Oxford Business Group, The Report, Jordan 2014, p. 133 and Jordan Tourism Board website. WT/TPR/S/325 • Jordan 
 
- 102 - 
 
  agencies require a non-objection letter from the Jordan Tourism and Travel Agents Society, and a 
bank guarantee of JD 15,000 (JD 25, 000 for travel agencies operating abroad). The annual license 
fee for a travel agency is JD 160. Tourist guides need to be members of the Jordan Tourist Guides 
Society and approval for membership is granted by the Tourism Committee in the MOTA. Annual 
license fees for tourist guides range from JD 32 to JD 64. To be able to operate as special tourism 
transportation companies, registration as a company with a minimum capital of JD 10 million (considered excessive in Jordan's Tourism Strategy) is needed, annual license fees for such 
companies range from JD 300 to JD 1,000. 
4.155.  Investments in the tourism industry are eligible for incentives under the Investment 
Promotion Law; furthermore, investment projects at Aqaba are also eligible for the Aqaba Special Economic Zone incentive scheme (Section 3.2.6). 
4.156.  Under Jordan's GATS commitments, the country has scheduled full commitments for 
modes 1 to 3, for hotel and lodging services as well as for catering services. Tourist guide services have been bound without limitations in modes 1 to 3, except for national treatment in mode 1. 
4.157.  Overseas travel agents and tour operators are not permitted except when operated 
through local agents. Through the Non-Jordanian Investment Regulation No. 54 of 2000, foreign investors are prohibited from having more than 50% ownership of travel agencies; tour operator 
services (tourist and travel bureaus) as well as certain tourist transportation services.
102 
4.158.  During the period under review, the Gove rnment issued the National Tourism Strategy 
2011-2015, which serves as the strategic framew ork for the sector. The primary goal under the 
Strategy is to increase tourism receipts to JD 4.2 billion in 2015 (US$5.9 billion). The Strategy 
comprises four pillars (Box 4.1): Marketing & Promotion; Product Development; Labor Market 
Development; and Enabling Environment. Implemen tation of the strategy is estimated to cost 
US$215.5 million.103 
4.159.  Due to the crisis in the sector, the author ities have allowed for an extended grace period 
for the repayment of debt and also instituted a moratorium on making staff in the sector redundant. 
                                               
102 Ministry of Tourism Statistics, Jordan Statisti cal Yearbook 2013, and Oxford Business Group, The 
Report, Jordan 2014, p.137-138. 
103 Oxford Business Group, The Report, Jordan 2014, p. 133; Ministry of Tourism website and Jordan's 
National Strategy 2010-2015. WT/TPR/S/325 • Jordan 
 
- 103 - 
 
  Box 4.1 National Strategy 2004-10 and goal s set for the National Strategy 2011-15 
Marketing & Promotion  
 
Accomplishments of the National Tourism Strategy 
2004-2010 
 Visitor numbers grew by 48% to 8.2 million in 
2010 
 Receipts increased, in the period, by 257% 
 Receipts from domestic tourists grew since 
2007 by 34% 
 
Goals of the National Tourism Strategy 2010-2015  
 Total arrivals to 9.4 million 
 Receipts to JD 4.2 billion 
 Increased domestic tourism with 30% by 2015 Product Development 
 
Accomplishments of the National Tourism Strategy 
2004-2010 
 The number of hotel rooms increase by 22% 
 An increase of 24 new hotels  
 Number of tour guides increased by close to 
60% 
 The number of tourist restaurants nearly 
doubled 
 
Goals of the National Tourism Strategy 2010-2015 
 A 20% increase in air capacity into Jordan 
 Completing 20 demand-driven infrastructure 
tourism projects 
 Approval and national classification of all hotels  
 Approval and national classification of 80% of 
all restaurants 
Labor Market Development 
 
Accomplishments of the National Tourism Strategy 
2004-2010 
 Employment increased by almost 85% 
 Female workforce increased by 10% 
 
Goals of the National Tourism Strategy 2010-2015 
 Create 25,000 new jobs in the tourism sector 
 Increase the female workforce by 15% 
 Enabling Environment 
 
Accomplishments of the National Tourism Strategy 
2004-2010 
 Petra Development & Tourism Region Authority 
was established 
 Development and investment zones 
established in Dead Sea and Ajloun 
 Relaxed visa requirements for some 
nationalities  
 
Goals of the National Tourism Strategy 2010-2015 
 Passing a new tourism law 
Amending the professions bylaws 
Source: Jordan's National Strategy, 2010-2015. WT/TPR/S/325 • Jordan 
 
- 104 - 
 
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- 107 - 
 
  5  APPENDIX TABLES 
Table A1.1 Merchandise exports by prod uct group, including re-exports, 2008-14 
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 7,782  6,366  7,023  7,964  7,877 7,920 8,385  
 (%) 
Total primary products 22.4 24.5 24.3 26.6 28.3 27.0 27.4 
   Agriculture 13.8 16.6 16.2 16.2 18.4 19.9 19.9 
      Food 13.5 16.2 15.8 15.8 17.4 19.4 19.6 
         0544 Tomatoes, fresh or chilled 2.5 2.7 3.3 2.8 3.2 4.0 4.8 
         0012 Sheep and goats, live 0.0 0.4 0.4 1.5 1.7 2.8 2.5 
         0545 Other fresh or chilled vegetables 2.4 3.1 2.9 3.1 2.7 1.9 2.2 
         0579 Fruit, fresh, drie d, n.e.s. 0.6 0.9 1.1 1.3 1.8 1.7 1.4 
         0989 Food preparations, n.e.s. 0.9 1.1 1.4 1.0 0.9 1.1 1.2 
      Agricultural raw material 0.3 0.4 0.4 0.4 1.0 0.5 0.4 
   Mining 8.7 7.9 8.2 10.4 9.9 7.1 7.5 
      Ores and other minerals 7.8 6.8 6.6 9.7 9.1 6.2 6.7 
         2723 Natural calcium phosphates 6.7 5.8 5.3 7.9 7.6 4.8 5.6 
      Non-ferrous metals 0.6 0.5 0.6 0.5 0.5 0.6 0.6 
      Fuels 0.2 0.5 0.9 0.2 0.3 0.3 0.2 
Manufactures 76.1 71.7 72.7 70.0 69.7 72.6 72.3 
   Iron and steel 1.8 1.9 2.0 2.3 1.4 1.9 1.3 
   Chemicals 33.9 28.6 33.8 32.2 32.0 32.9 31.8 
         5429 Medicaments, n.e.s. 6.5 7.7 8.5 6.4 7.2 8.6 7.4 
         5623 Mineral/chemical fertilizers (excl. 
crude natural potassium salts) 10.0 7.2 9.8 10.6 8.5 7.6 7.2 
         5621 Mineral or chemical fertilizers, 
nitrogenous 5.9 3.2 4.5 4.0 3.6 2.8 3.5 
         5223 Inorganic acid and oxides 3.3 1.5 1.7 1.6 1.8 1.6 1.5 
         5542 Surface-active agents (excl. soap) 0.2 0.5 0.6 0.6 0.9 1.6 1.5 
         5235 Nitrites; nitrates 1.0 0.5 1.0 1.3 1.3 1.1 1.3 
         5622 Mineral or chemical fertilizers, 
phosphatic 1.0 1.5 0.2 0.1 0.2 0.5 1.0 
   Other semi-manufactures 6.2 7.5 7.4 6.4 6.3 6.3 6.4 
         6924 Reservoirs, tanks, vats of iron, steel 
or aluminium, <= 300 litres 1.8 2.3 1.8 1.3 1.0 1.2 1.3 
   Machinery and transport equipment 15.3 14.0 10.5 10.0 9.3 9.8 10.0 
      Power generating machines 1.0 1.0 0.3 0.1 0.1 0.1 0.3 
      Other non-electrical machinery 2.7 3.4 2.5 2.3 2.5 2.2 2.4 
         Agricultural machinery and tractors 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
      Office machines & telecommunication 
equipment 3.7 1.5 1.1 1.3 1.6 1.3 1.8 
      Other electrical machines 3.0 3.4 3.4 3.4 2.9 2.9 3.0 
         7731 Insulated wire, cable etc.; optical 
fibre cables 1.9 2.3 2.4 2.5 2.1 2.3 2.4 
      Automotive products 3.3 3.4 1.7 1.7 1.3 1.7 1.1 
      Other transport equipment 1.6 1.2 1.4 1.3 0.9 1.4 1.5 
         7929 Parts, n.e.s., (excl. tyres, engines, 
electrical parts) of 792 1.1 0.7 0.8 0.4 0.6 0.8 1.2 
   Textiles 0.8 0.9 1.0 0.9 1.2 1.4 1.1 
   Clothing 13.4 13.4 12.7 12.6 13.3 14.5 15.4 
         8459 Other garments knitted or crocheted 6.3 6.9 7.7 9.3 10.4 11.4 12.2 
         8454 T-shirts, singlets and other vests, 
knitted or crocheted 1.6 1.9 1.6 1.3 0.6 1.5 1.7 
   Other consumer goods 4.7 5.5 5.4 5.5 6.1 5.8 6.2 
         8973 Jewellery of gold, silver or platinum 
metals (except watches) 1.6 1.8 1.7 1.4 1.4 1.4 1.6 
         8931 Plastics containers, stoppers, lids, 
etc. 0.6 0.7 0.8 0.9 1.2 1.3 1.3 
Other 1.4 3.8 3.0 3.4 2.1 0.5 0.3 
   Gold 1.1 3.7 2.9 3.3 1.8 0.2 0.0 
Source: UNSD Comtrade database, SITC Rev.3. WT/TPR/S/325 • Jordan 
 
- 108 - 
 
  Table A1.2 Merchandise imports by product group, 2008-14 
(US$ million and %) 
  2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 16,872  14,075  15,262  18,301  20,691 21,549 22,740  
 (%) 
Total primary products 42.7 38.5 42.0 48.9 52.9 46.1 48.1 
 Agriculture 18.0 18.3 17.6 17.4 18.5 18.2 18.9 
  Food 16.6 17.0 16.2 16.1 17.4 17.1 17.8 
   0411 Durum wheat, unmilled 2.3 0.8 0.7 0.8 1.4 1.0 1.2 
   0430 Barley, unmilled 1.4 0.6 0.3 0.3 1.1 1.1 1.1 
   0989 Food preparations, n.e.s. 0.7 0.9 1.0 0.9 0.9 1.0 1.0 
   0423 Rice, milled, semi-milled 0.7 1.2 0.8 0.8 0.7 0.6 0.8 
   0449 Other maize, unmilled 0.9 1.1 1.0 1.1 1.0 0.9 0.8 
   0813 Oil-cake, oilseed residues 0.7 0.8 0.8 0.8 0.9 0.6 0.8 
   0612 Other beet, cane and chemically 
pure sucrose, solid form 0.8 0.8 1.3 1.1 1.1 0.9 0.8 
  Agricultural raw material 1.4 1.3 1.3 1.3 1.2 1.1 1.2 
 Mining 24.6 20.2 24.4 31.5 34.4 27.9 29.2 
  Ores and other minerals 0.2 0.2 0.2 0.4 0.3 0.2 0.2 
  Non-ferrous metals 2.6 2.2 2.1 2.3 1.7 2.0 1.7 
  Fuels 21.8 17.7 22.1 28.9 32.4 25.7 27.2 
   3330 Crude oils of petroleum and 
bituminous minerals 16.1 10.7 12.2 13.6 12.7 10.6 10.2 
   3431 Natural gas, liquefied 0.9 1.0 1.2 1.5 1.5 1.3 1.1 
Manufactures 55.2 59.5 56.3 49.5 45.3 49.9 47.8 
 Iron and steel 5.1 4.5 4.3 3.8 4.1 3.8 3.3 
 Chemicals 9.5 10.7 11.3 11.0 10.3 10.4 10.1 
   5429 Medicaments, n.e.s. 1.9 2.3 2.3 2.1 1.7 1.8 1.8 
   5711 Polyethylene 0.8 0.8 0.9 0.9 1.0 1.0 1.1 
 Other semi-manufactures 6.5 7.0 7.1 6.1 5.5 6.8 5.8 
 Machinery and transport equipment 23.6 26.2 23.0 18.5 16.1 18.2 18.4 
  Power generating machines 0.5 0.7 1.8 0.3 0.3 1.7 0.9 
  Other non-electrical machinery 6.3 5.8 5.1 4.8 3.8 4.2 3.9 
   Agricultural machinery and tractors 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
  Office machines & telecommunication 
equipment 6.4 4.6 4.3 4.1 3.7 3.4 3.2 
   7643 Radio or television transmission 
apparatus 3.5 1.7 1.6 1.5 1.1 1.2 1.2 
  Other electrical machines 2.6 3.2 2.5 2.0 1.8 2.0 1.8 
  Automotive products 7.0 9.8 7.7 5.5 5.1 5.9 6.7 
   7812 Motor vehicles for the transport 
of persons, n.e.s. 4.4 6.0 5.1 3.4 3.1 3.4 4.3 
   7821 Goods vehicles 0.7 1.3 0.9 0.6 0.7 1.1 1.1 
  Other transport equipment 1.0 2.1 1.6 1.8 1.4 1.0 1.8 
   7929 Parts, n.e.s., (excl. tyres, 
engines, electrical parts) of 792 0.7 1.5 0.8 0.7 0.7 0.5 0.9 
 Textiles 3.9 3.7 3.6 3.5 3.3 3.8 3.7 
   6552 Other knitted/crocheted fabrics, 
not impregnated/coated, etc. 1.4 1.2 1.5 1.5 1.4 1.2 1.5 
 Clothing 1.9 2.1 1.9 1.7 1.6 1.9 1.7 
   8459 Other garments knitted or 
crocheted 0.3 0.4 0.4 0.5 0.6 0.9 0.9 
 Other consumer goods 4.6 5.3 5.2 4.8 4.4 5.0 4.8 
   8973 Jewellery of gold, silver or 
platinum metals (except watches) 0.7 1.0 1.0 0.9 0.8 1.0 0.8 
Other 2.2 2.0 1.7 1.6 1.7 4.0 4.0 
Source: UNSD Comtrade database, SITC Rev.3. WT/TPR/S/325 • Jordan 
 
- 109 - 
 
  Table A1.3 Merchandise exports by dest ination, including re-exports, 2008-14 
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 7,782  6,366  7,.23 7,964  7,877 7,920 8,385  
 (%) 
  America 13.9 14.1 13.7 13.7 14.7 16.0 16.7 
    United States 13.5 13.7 13.2 13.1 14.3 15.2 15.8 
    Other America 0.4 0.4 0.5 0.6 0.4 0.8 0.9 
  Europe 5.1 5.0 6.3 6.6 6.4 5.0 6.3 
    EU(28) 4.0 2.7 3.4 4.3 4.3 3.4 4.1 
      Italy 0.8 0.9 1.0 0.9 0.7 0.7 0.7 
    EFTA 0.7 1.7 2.0 1.0 0.4 0.2 0.1 
    Other Europe 0.5 0.6 0.9 1.2 1.7 1.4 2.1 
      Turkey 0.4 0.6 0.9 1.2 1.7 1.3 2.0 
  Commonwealth of Independent States (CIS) 0.4 0.5 0.5 0.6 0.5 0.3 0.3 
  Africa 6.9 7.1 8.6 7.1 6.1 6.3 5.9 
      Egypt 2.0 1.8 2.0 1.6 1.7 1.6 1.6 
      Algeria 1.7 1.6 1.8 1.6 1.7 1.8 1.5 
      Ethiopia 0.1 0.5 1.5 1.3 0.4 0.6 0.8 
  Middle East 40.7 47.1 43.7 42.4 43.4 46.1 45.4 
      Iraq 16.5 20.0 16.0 15.2 15.5 17.5 15.3 
      Saudi Arabia, Kingdom of 7.0 9.1 9.4 8.5 9.8 12.2 12.4 
      United Arab Emirates 4.7 4.0 4.2 3.7 4.0 4.0 4.0 
      Syrian Arab Republic 3.2 3.7 3.7 3.6 2.8 1.9 2.7 
      Kuwait, State of 1.3 1.2 1.3 1.8 1.3 1.8 2.1 
      Qatar 1.1 1.1 1.4 1.2 1.5 1.7 1.8 
      Lebanon 2.0 3.4 3.3 4.2 3.7 1.9 1.7 
      Israel 2.1 1.8 1.4 1.4 1.6 1.4 1.5 
      Palestine, State of 0.8 0.8 0.9 1.0 1.3 1.5 1.5 
      Oman 0.5 0.6 0.6 0.5 0.6 0.7 0.8 
      Bahrain 0.6 0.6 0.7 0.7 0.7 0.6 0.7 
      Yemen 0.7 0.7 0.7 0.4 0.5 0.7 0.7 
  Asia 24.6 17.5 18.6 20.9 18.2 14.0 14.7 
    China 1.4 0.8 1.6 2.6 2.4 1.3 2.2 
    Japan 2.0 2.0 0.8 0.6 0.6 0.5 0.4 
    Six East Asian Traders 2.3 1.3 2.2 2.9 2.0 2.3 1.9 
    Other Asia 18.8 13.4 14.0 14.9 13.2 9.8 10.2 
      India 16.5 10.8 11.1 10.9 9.0 6.1 7.8 
      Indonesia 1.8 2.2 2.1 2.8 3.6 2.9 1.4 
  Other 8.5 8.7 8.7 8.7 10.7 12.4 10.7 
      Free Zones 8.5 8.7 8.7 8.7 9.9 11.4 9.8 
Source: UNSD Comtrade database. WT/TPR/S/325 • Jordan 
 
- 110 - 
 
  Table A1.4 Merchandise imports by origins, 2008-14  
(US$ million and %) 
 2008  2009  2010  2011  2012 2013 2014  
Total (US$ million) 16,872  14,075  15,262  18,301  20,691 21,549 22,740 
 (%) 
  America 7.3 9.9 8.9 9.1 10.3 10.3 9.3 
    United States 4.6 6.9 5.6 5.9 6.7 6.3 5.8 
    Other America 2.7 2.9 3.3 3.3 3.6 4.0 3.5 
      Argentina 0.5 0.9 1.1 1.3 1.7 1.4 1.4 
      Brazil 1.3 1.3 1.2 1.1 1.2 1.6 1.2 
  Europe 25.2 25.6 24.6 24.6 23.0 27.7 25.9 
    EU(28) 20.9 21.7 20.0 20.6 17.5 21.8 19.7 
      Germany 6.0 6.3 6.1 4.3 3.9 3.8 3.9 
      Italy 3.2 3.4 3.5 5.3 4.7 4.8 3.1 
      France 2.2 3.3 2.3 2.0 1.7 1.8 2.0 
      Romania 0.4 0.5 0.5 1.0 0.8 1.3 1.6 
      United Kingdom 2.0 2.3 1.7 1.6 1.2 1.3 1.6 
      Spain 0.7 0.8 0.8 1.3 0.9 1.1 1.5 
      The Netherlands 1.1 1.1 1.0 1.0 0.8 0.9 1.2 
      Belgium 0.7 0.8 0.6 0.7 0.5 1.8 1.2 
    EFTA 1.7 0.9 0.9 0.9 0.8 2.4 2.4 
      Switzerland 1.1 0.8 0.9 0.9 0.7 2.4 2.4 
    Other Europe 2.6 2.9 3.7 3.0 4.7 3.6 3.8 
      Turkey 2.6 2.9 3.7 3.0 4.6 3.5 3.7 
  Commonwealth of Independent 
  States (CIS) 6.8 4.9 3.3 4.3 6.9 2.9 4.6 
      Russian Federation 2.4 2.5 1.6 3.3 2.8 1.4 2.9 
      Ukraine 4.1 2.3 1.6 1.0 2.4 1.4 1.7 
  Africa 5.3 7.1 5.6 4.9 4.6 4.1 3.0 
      Egypt 4.3 6.1 4.5 4.1 4.0 3.3 2.4 
  Middle East 29.8 26.1 30.5 33.4 31.5 26.6 27.7 
      Saudi Arabia, Kingdom of  21.6 17.3 19.8 22.8 23.5 18.7 19.6 
      United Arab Emirates 1.8 2.4 2.7 3.9 2.8 3.4 4.8 
  Asia 25.6 26.5 26.9 23.4 23.1 27.6 28.8 
    China 10.4 10.9 10.8 10.0 9.4 10.4 10.5 
    Japan 2.9 3.7 3.2 2.0 1.9 2.2 2.4 
    Six East Asian Traders 6.8 7.2 8.0 6.5 5.8 6.8 7.5 
      Korea, Rep. of 3.3 3.9 4.2 3.3 2.8 2.6 3.4 
      Chinese Taipei 1.1 1.2 1.2 1.4 1.3 1.7 1.6 
    Other Asia 5.5 4.5 4.9 5.0 6.1 8.2 8.3 
      India 3.0 2.1 2.5 2.7 3.4 5.1 5.5 
  Other 0.0 0.0 0.2 0.3 0.5 0.7 0.7 
Source: UNSD Comtrade database. WT/TPR/S/325 • Jordan 
 
- 111 - 
 
  Table A3.1 Major incentives schemes in Jordan, 2015 
 
Major investment incentives 
Investment 
Commission - Item 1: production inputs may be exempted  from custom tariff, and obtain refunds for 
GST; 
- item 2: fixed assets may be exempted fro m customs tariff, and subject to 0% GST; 
- item 3: GST refund for certain services; 
- item 4: the following activities are exempted from the customs duties and are subject to 
0% GST: agriculture and livestock; hospitals and comprehensive medical centres; hotels and 
tourist facilities; entertainment and tourist recreation cities; communication centres; 
scientific research centres and scientific labs; artistic and media production; conference and 
exhibition centres; transport and/or distributi on and/or extraction of water, gas and oil 
derivatives using pipelines; air transport, sea transport, and railways. 
Areas outside those zones are divided into two ca tegories:  Category (A) - municipalities in 
governorates of Maan, Tafila, Karak, Mafra q, Ajloun, and Jerash and any municipal 
boundaries the Cabinet agrees to be added to  this category upon recommendation of the 
Council; Category (B) - municipalities in governorates of Balqa and Madaba and any 
municipal boundaries the Cabinet agrees to be added to this category upon recommendation 
of the Council. 
Income tax reductions for 10 years for item 4 activities: if located in Category A – 50% 
reduction; if located in Category B – 30% reduct ion.  This does not apply to the income of 
banks, telecommunications companies having individual licenses, financial brokerage companies, and financial companies including the companies that practice exchange, 
financing and financial leasing business, an d consultation & financial and tax audit 
companies, transport companies (air transport, sea transport, railways, and road freight 
transport), insurance and reinsurance companies, basic mining and extraction industries, 
generation and distribution of elasticity, and tr ansport and/or distribution and/or extraction 
of water, gas, and oil deri vatives using th e pipelines. 
Industrial 
estates Full exemption from taxes and fees on fixed assets  of the project, fixe d assets necessary for 
expanding purposes and spare parts needed for the project; 
Investor’s choice of either owning or renting the property; 
Duty & quota free access to the U.S. markets (QIZ); 
No foreign equity restri ctions on investments; 
Tax incentives are: 
- Income tax 5% on income generated from activities within the development zone. 
- Sales tax 0% on goods and se rvices purchased or imported. 
- Custom duties 0% on all ma terials, instruments, machin es, and appliances used for 
establishing, construction and equipping and furnishing all kinds of projects in the 
development zone (Industrial Estate). 
- Social services tax 0% on all income accrued. 
- Dividends tax 0% on all income accrued. 
 
Free zones Exemption from income tax on the prof its that come from the following activities: 
- exportation of goods or services outside Jordan; - transit trade; 
- sale or waver of goods inside the free zones; 
- provision and supply of serv ices inside the free zones. 
Exemption from income tax on salaries and allowances of non-Jordanian employees working 
in the projects made in the free zone. 
Exemption from customs duties and all taxes and fees on the goods exported from the free 
zone to markets other than th e local market, and on the goods imported to it including 
materials, equipment, machines, supplies, and construction materials in connection with building, construction, preparation and furnishing of all types of projects  established by such 
establishments in the free zone including th e spare parts required for their permanent 
maintenance. The exception will not include the service fees. WT/TPR/S/325 • Jordan 
 
- 112 - 
 
   
Major investment incentives 
Aqaba Special 
Economic 
Zone  A flat 5% income tax on the net profit. 
Exemption from social services tax. 
Exemption from annual land and buil ding taxes on utilized property. 
Exemption from taxes on distri buted dividends and profits. 
Duty-free import of goods in commercial quantities. 
No foreign equity restri ctions on investments. 
 
Development 
zones A flat 5% income tax on the net profit. Not applicable to income of: banks, 
telecommunications companies having individual licenses, financial brokerage companies, and financial companies including the companies practicing exchange, financing and financial leasing business, and consultation & financial and tax audit companies, transport companies (air transport, sea transport, railways, and ro ad freight transport), insurance and reinsurance 
companies, basic mining and extraction industri es, generation and distri bution of elasticity, 
and transport and/or distribution and/or extrac tion of water, gas, an d oil derivatives suing 
the pipelines. 
0% GST or refund of GST for goods and servic es purchased or imported in the development 
areas. 
Exemption from customs duties on all materials, instruments, machines etc., to be used for 
the establishment, construction, and equipment of enterprises. 
Source: Information provided by the authorities. WT/TPR/S/325 • Jordan 
 
- 113 - 
 
  Table A4.1 Bilateral Air Services Agreements 
Country Signed/ 
initialled Designation Permitted 
weekly 
frequency Freedoms 
granted City restrictions Code-
share 
Afghanistan I. 1972 Multiple  7 weekly 3,4 Kabul Yes 
Algeria S. 1980 Multiple Open skies 3,4 Algeria Yes 
Armenia I. 2014 Multiple Open skies  3,4     
Australia I. 2012 Multiple 7 Direct flights to 
"Restricted 
Cities"+7 indirect  
Open to other 
points 3,4,5 Sydney, Melbourne, 
Avalon, Brisbane, 
Perth Yes 
Austria S. 2010 C Multiple Open skies 3,4,5 5th 7 Miami & Los 
Angeles Yes 
S.1976 B 7 
Azerbaijan I. 2011 Multiple Open skies 3,4 None Yes 
Bahrain S. 2000 Multiple Open skies 3,4,5 Bahrain Yes 
Bangladesh I.2010 Multiple 7 Pax+Charter+ 
Cargo unlimited 3,4 None Yes 
Belgium S. 2010 C Multiple Open skies 3,4 None  Yes 
S. 1960 B 
Bosnia S. 2006 Multiple Airlines 
Agreement  3,4 None Yes 
Brazil I. 2012 Multiple Open skies 3,4,5 None Yes 
Brunei I. 1994 Multiple Airlines 
Agreement  3,4 Bander Seri 
Begawan   
Bulgaria S. 2010 C Multiple Open skies 3,4 None  Yes 
I. 2010 B 
Burkina 
Faso I. 2014 Multiple Open skies 3,4     
Chad I.2014 Multiple Open skies 3,4     
Canada I. 2007 Multiple 2- direct/or 
4- with 
intermediate & 
beyond points 3,4,5 Toronto/Montreal Yes 
Chile S. 1977 Multiple Airlines 
Agreement  3,4,5 Santiago   
China I. 1992 Multiple 7 3,4,5 Beijing Shangahi 
Guangho Yes 
Colombia I.2014 Multiple 7 3,4     
Congo S. 2004 Multiple Airlines 
Agreement 3,4 To be specified   
Croatia S. 2010 C Multiple Open skies 3,4,5   Yes 
S.2009 B 
Curacao I.2013 Multiple Open skies 3,4,5   Yes 
Cuba I. 1998 Multiple Airlines 
Agreement 3,4     
Cyprus S. 2010 C Multiple Open Sky 3,4 None  Yes 
I. 2010 B Double 7 pax, 3 cargo 
5th freedom as 
annex 3 Larnaca, Paphos 
Rep. Czech S. 2010 C Multiple Open skies 3,4,5 None   
S. 1997 B Not stated 
Denmark S. 2010 C. Multiple Open skies 3,4 None   
S. 1961 B Not stated 
Dominican 
Republic I. 2009 Multiple Open skies 3,4 None Yes 
DPR of 
Korea I.2010 Multiple Open skies 3,4 None Yes 
Egypt S. 1986 Multiple 3200 seat 3,4 Cairo Yes 
Estonia S. 2010 C Multiple Open skies   None   WT/TPR/S/325 • Jordan 
 
- 114 - 
 
  Country Signed/ 
initialled Designation Permitted 
weekly 
frequency Freedoms 
granted City restrictions Code-
share 
Ethiopia I. 2009 Single Unlimited 
frequencies for 
cargo & charter 
- daily for pax. 
regular flights   Addis Ababa   
Finland S. 2010 C Multiple Open skies 3,4,5 None    
S. 1978 Not stated 
France S. 2010 C Multiple Open skies 3,4 None  Yes 
S. 1966 8 
Gambia I. 2014 Multiple Open skies 3,4     
Ghana I.2011 Multiple 7 Pax + 7 Cargo 3,4 None Yes 
Georgia I.2011 Multiple Open skies 3,4  None Yes 
Germany S. 2010 C Multiple Open skies 3,4 None Yes 
S. 1970 B 12 3 Points 
Greece S. 2010 C Multiple Open skies 3,4 None   
S. 1968 B Single 4 S/ 3 W Athens 
Hong Kong, 
China S. 2004 Multiple Open skies 3,4,5 Hong Kong Yes 
Hungary S. 2010 C Multiple Open skies 3,4 None    
Iceland I.2011 Multiple Open skies 3,4 None Yes 
India S. 1989 Multiple 14 per week, 
subject to the 
condition that not 
more than (7) 
services shall be 
operated to/from 
any one point of 
call in India 
 cargo - unlimited 
frequency 3,4 Calcutta, Delhi, 
Mumbai, Amritsar Yes 
Indonesia S. 1991 Multiple 4 in principal 3,4 Jakarta   
Iran S. 1998 Single 2+1 cargo 3,4 None    
Iraq S. 1953 Multiple Pax Cargo 
BGW  12      3 
BSR    4      2 
ISU     4       - 
EBL    13     2 
OSM    4      2 
NJF     5+2      -     3,4  
Bagdad 
Basra 
Sulaymaniyah 
Arbeel 
Mosel 
Najav   
Ireland S. 2010 C   Open skies 3,4,5 None    
I. 1998   Not stated   
Israel S.1996 Double Tel Aviv/  1500 
seats / 3 Cargo 
Haifa/ 3 flights  
150 seats 3,4 Tel Aviv, Haifa   
Italy S. 2010 C Multiple Open skies 3,4,5 None    
S. 1980 B 7- Rome, 7- 
Milano Rome, Milano + 1 
City 
Ivory Coast I. 2013 Multiple Open skies 3,4,5 Abidjan   
Japan S. 1994 Multiple Units of capacity 
basis 
3 units 3,4,5 Osaka   
Kazakhstan I. 2012 Single 7 Pax + 7 Cargo 
+Charter Open 3,4   Yes 
Kenya I. 2008 Multiple Open skies 3,4   Yes 
Korea, Rep. 
of I. 2012 Multiple 3 Pax 3 Cargo 3,4 Seoul Yes 
Kuwait, the 
State of S. 1977 (I. 
014) Multiple Open skies 3,4 Kuwait Yes 
Kyrgyzstan I. 2009 Multiple Open skies 3,4 None  Yes WT/TPR/S/325 • Jordan 
 
- 115 - 
 
  Country Signed/ 
initialled Designation Permitted 
weekly 
frequency Freedoms 
granted City restrictions Code-
share 
Latvia S. 2010 C Multiple Open skies 3,4 None  Yes 
I. 2009 B 
Lebanon S.2010 Multiple Open skies 3,4     
Libya I. 2012 Multiple 14 -Tripoli (LIB 
Airlines) 10- 
Tripoli (JOR 
Airlines),each 
Party: 7 Benghazi 
, 3-Masrata 
Cargo: open Sky 3,4 Tripoli , Benghazi & 
Misrata   
Lithuania S. 2010 C Multiple Open skies   None    
Luxembourg S. 2010 C Multiple Open skies 3,4,5 None  Yes 
S. 1962 B 7 Pax & Cargo, 2 
Cargo 5th    Luxembourg   
Malaysia I.2010 Multiple Open skies 3,4   Yes 
Malta C. 2010 Multiple Open skies 3,4,5 None    
I. 1999 
Mauritania S. 2000 Multiple Not stated 3,4 None    
Mexico I.2011 Multiple Open skies 3,4 None  Yes 
Moldova I. 1999 Multiple Airlines 
Agreement  3,4 None    
Morocco S. 2008 Multiple Open skies 3,4,5 (LCC 
excluded 
from 5th 
F.T.R) None Yes 
Nepal I. 1999 Multiple Airlines 
Agreement  3,4 None    
Netherlands S. 2010 C Multiple Open skies 3,4,5 None  Yes 
S. 1961 B 7- Pax & 7- Cargo       
Nigeria S. 1980 Single 19(JO) NI(15) 3,4 7 (Lagos) 4 (Abuja, 
Enugu & Kano)   
Norway S. 1961 Multiple Not stated 3,4 Oslo   
Oman S. 1974 Multiple Open skies 3,4,5 Muscat, Salalah Yes 
Pakistan I. 2007 Multiple 12 - 3 of which 
with 5th freedom  
cargo: open skies 
3,4,5 3,4,5 Karachi, Lahore Yes 
State of 
Palestine S. 1995 Multiple   3,4     
Paraguay I.2011 Multiple Open skies 3,4,5 None Yes 
Philippines S. 1996 Single 2 subject to 
commercial 
agreement 3,4,5 Manila Yes 
Poland S. 2010 C Multiple Open skies 3,4,5 None  Yes 
S. 1993 B Airlines 
Agreement Warsaw, Krakow   
Portugal S. 2010 C Multiple Open Skies 3,4,5 None Yes 
I. 1989 B Airlines 
Agreement   
Qatar S. 1974 Multiple 9- Pax 1-Cargo  3,4,5 Doha   
Serbia I. 2014 Multiple Open skies 3,4     
Romania S. 2010 C Multiple Open skies 3,4,5 None   
S. 1975 B Multiple Airline Agreement  Bucharest, 
Timisoara   
Russia S. 2009 Multiple 10 Pax - Cargo 
open skies 3,4,5 Moscow, 
St. Petersburg, 
Makhachkala Yes 
Rwanda I. 2013 Multiple Open skies 3,4,5 None Yes 
Kingdom of 
Saudi Arabia S. 1963 Multiple Open skies 3,4 Jeddah, Riyadh, 
Dammam, Medina Yes 
Senegal S. 1977 Single Not stated 3,4     WT/TPR/S/325 • Jordan 
 
- 116 - 
 
  Country Signed/ 
initialled Designation Permitted 
weekly 
frequency Freedoms 
granted City restrictions Code-
share 
Sierra Leone I. 2013 Multiple Open skies 3,4   Yes 
Singapore I. 2011 Multiple Open skies, co-
terminal 3,4,5 Singapore Yes 
Slovakia S. 2010 C Multiple Open skies 3,4,5 None    
I. 2010 B         
Slovenia S. 2010 
Com Multiple Open skies   None    
Somalia I.2013 Multiple Open skies 3,4 None Yes 
South Africa I. 2013 Multiple 7Pax  
7Cargo  3,4 None   
Spain S. 2010 C Multiple Open Skies 3,4 None  Yes 
S. 1977 Points   
Sri Lanka S. 1992 Multiple 7 - Cargo open 3,4 Colombo Yes 
Sudan S. 2008 Multiple Open sky 3,4 None   
Sweden S. 2010 C Multiple Open skies 3,4 None  Yes 
S. 1961 Not stated Stockholm, 
Gothenburg 
Switzerland S. 2003 Multiple Open skies 3,4 None Yes 
Seychelles I.2013 Multiple Open skies 3,4 none   
Syria S. 1976 Multiple Open skies 3,4 No restrictions   
Chinese 
Taipei S. 1975 Multiple 3 3,4,5 Taipei   
Tanzania I.2010 Multiple Open skies 3,4 None Yes 
Thailand S. 1975 Multiple Open skies 3,4,5 None  Yes 
Tunisia S. 1976 Multiple Open skies 3,4 None  Yes 
Turkey I.1973 Multiple 14 - 
Istanbul/Amman, 
Adana 7,Ist-AQB 
7 7 - 
Ankara/Amman    
Baku with 5th  3,4,5 Istanbul - Ankara Yes 
UAE S. 1998 Multiple Open skies 3,4,5 None Yes 
United 
Kingdom S. 2010 C Multiple Open skies 3,4,5 None  Yes 
I. 1995 10- London the 
rest open 
Uganda I.2013 Multiple open skies 3,4 None Yes 
Ukraine S. 2005 Multiple Open skies 
(Airline 
Agreement) 3,4,5 Kiev - Donetsk Yes 
Uruguay I. 2012 Multiple Open skies 3,4,5 None Yes 
United 
States S. 1996 Multiple Open skies  None Yes 
Uzbekistan S. 1996 Single Airlines 
Agreement 3,4 None   
Viet Nam S. 1994 Single 2 3,4 Hanoi   
Zimbabwe I.2014 Multiple Open skies 3,4     
Yemen S. 2003 Multiple Open skies 3,4 None Yes 
Source: Information provided by the authorities. 
__________