RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/206 
6 October 2008  
 
(08-4682) 
Trade Policy Review Body Original:   English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
JORDAN 
 
  
 
Pursuant to the Agreement Establishi ng the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), the policy statement by Jordan is attached. 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Jordan. Jordan WT/TPR/G/206 
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CONTENTS 
 
  Page 
I. INTRODUCTION  4 
II. ECONOMIC ENVIRONMENT 5  
 (1) E CONOMIC GROWTH  5 
 (2) E CONOMIC CHALLENGES  6 
 (3) M ACROECONOMIC AND STRUCTURAL POLICY REFORMS  6 
III. SECTOR PERFORMANCE AND POLICY 7 
 (1) A GRICULTURE  7 
 (2) M INING   8 
 (3) M ANUFACTURING  8 
 (4) S ERVICES  9 
IV. TRADE POLICY  10 
 (1) WTO  AND DOHA DEVELOPMENT AGENDA (DDA) 10 
 (2) R ECENT TRADE POLICY REFORMS  11 
 (3) R EGIONAL AND BILATERAL TRADE AGREEMENTS  12 
 (4) F UTURE DIRECTION OF TRADE POLICY  12 
V. JORDAN'S TECHNICAL ASSISTANCE AND CAPACITY BUILDING NEEDS 13 
 
 
 WT/TPR/G/206 Trade Policy Review 
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 I. INTRODUCTION 
1. Over 15 years of structural reforms, including pr ivatisation of state enterprises, liberalization 
of the trade and investment regime, and the in troduction of modern re gulations and institutions , have 
transformed the resource-scarce Kingdom of Jordan  into one of the most open economies in the 
region. In major international rankings such as the Heritage Foundation’s Index of Economic 
Freedom and the World Economic Forum Globa l Competitiveness and Business Competitiveness 
Report, Jordan ranks among the top group of countri es in the region. These reforms have promoted an 
expansion of trade and investment, the growth of a strong services sector, together with the increasing contribution of Jordanian workers’ remittanc es, has fuelled the importance of openness and 
international trade in goods and services to Jordanian economy.  
2. Since the 1990s, Jordan has taken significant st eps to reform its economy, and accordingly 
embarked on a comprehensive political, social and ec onomic reform agenda with the aim of building 
a modern state, based on economic vitality with substantial potential for growth and prosperity, 
political inclusion and social stability. Improvement  in the business environment, both on the public 
and private sector level, has been on Jordan's top pr iority to unlock the growth potential and transform 
the country from an economy driven by primary goods into an investment-driven and knowledge-
based economy. Trade liberalization, privatization of the state-owned enterprises, structural and 
institutional reforms, as well as a sound monetary and exchange rate policy have contributed to 
creating a stimulating economic climate which allowe d for high growth rates of both nominal and per 
capita GDP, despite the effects of major external shocks, including ongoing instability in the region. 
3. The reform agenda was implemen ted through plans and targeted results, including the Social 
and Economic Transformation Program (2002-04) a nd the Social and Economic Development Plan 
(2004-06). Further reforms are being pursued through the National  Agenda, which was developed in 
2006 by a national committee comprised of represen tatives from the government, parliament, civil 
society, the private sector, media, and political par ties, and thus reflecting a national consensus on the 
aspiration and ambitious of Jordanians. The main objective of the National Agenda is to achieve 
sustainable development through a transformati on program that puts Jordan on a higher economic 
growth trajectory to achieve an improvement in  standards of living and the guarantee of social 
welfare. It sets ambitious targets to be reali zed over the coming decade, among which are: achieving 
valuable growth in GDP, the creation of income -generating opportunities,  reducing public debt, 
increasing national savings, and reducing the unemployment rate. 
4. Under the National Agenda, Jordan's socio economic development w ill be under taken over 
three consecutive phases, each with a distinct focus. The first phase (2007-2012) focuses on creating 
employment opportunities by promoting export-orie nted, labour-intensive industries, education, 
infrastructure and legislation regulating political life. The second phase (2013-17) focuses on gradually upgrading and strengthening the industr ial base, and preparing the ground for the 
development of high value-added sectors in th e knowledge economy. The third phase (2018 onward) 
will focus on evolving selected economic sectors in the knowledge economy. 
5. In parallel with the National Agenda, Jordan Vision (JV) 2020, a private sector led initiative, 
was launched as a national strategy for growth w ith the aim of uplifting the country's current 
economic status to a level where it can sustain growth across dynamic business clusters. In partnership with the government, 27 business asso ciations have formed the JV2020 coalition to 
advocate for necessary reforms and develop stra tegies that can enhance Jordan's economic 
performance over the next 15 years.  Jordan WT/TPR/G/206 
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 6. The National Agenda and Vision2020 reform progr ams broadly recognize the pivotal role of 
trade in Jordan’s socioeconomi c development, both as a conduit for expanding market access thereby 
exploiting comparative advantage, but also as a medium of stimulating competition and scale 
economies, as well as strengthening supply chains , all of which are critical to enhancing the 
competitiveness of Jordanian enterprises and crea ting sustainable employment opportunities for 
Jordanian workers. Integration with the internationa l trading system is therefore an important element 
of Jordan’s overall economic growth strategy. The Government of Jordan recognizes and supports the 
importance of maintaining and strengthening the central role of the WTO in coordinating trade 
policies of its Members.  
II. ECONOMIC ENVIRONMENT 
(1) ECONOMIC GROWTH  
7. The Jordanian economy continued its positive pe rformance in 2007 despite the surge in the 
prices of oil and food items in the international mark ets as well as the conditions of uncertainty in the 
region and the decline in the size of foreign assistan ce. This was manifested by the growth of the GDP 
at 6.0%, at constant market prices; the improvement in the competitiveness of the national economy; 
the reduction of the public debt to GDP ratio; the maintenance of a solid monetary policy and high 
foreign currency reserves at the Central Bank of  Jordan, standing at US$6.9 billion; and the 
maintenance of the inflation rate within comfortable levels, in the range of 5.4%. 
8. The economic growth which exceeded the rate of  population growth of 2.2%, has contributed 
to improving the standards of living of citizen s through increasing the per capita GDP which was 
more than 9% over the past two years. Moreover,  the economic growth has also contributed in 
reducing the unemployment rate from 14.0% in 2006 to 13.1% in 2007.  
9. The solid economic performance was mainly driven  by an increase in aggregate spending on 
consumer goods and services; an increase in total exports; as well as the continuing Foreign Direct 
Investment (FDI) inflows to the Kingdom, all resu lting from an attractive investment environment, 
political security and stability, in addition to th e continued implementation of structural and 
legislative reforms and the adoption of sound macroec onomic policies. The continuing high inflow of 
FDI is a strong sign of the location attractiveness of  Jordan, not only due to the sound macroeconomic 
fundamentals and political stability, but for other core elements of good governance, such as the 
protection of private property and the genera l safety from crime, the favourable regulatory 
environment, the efficiency of authorities and the lo w level of corruption, the quality of transport and 
information and telecommunication infrastructure, and a well-developed financial market, all of 
which have contributed to making Jordan a prime des tination for FDI in the region. Besides its role in 
achieving economic growth, FDI acts as a major contri butor to Jordan's balance of payments, leading 
the capital and financial account to record surplus over the past few years. Furthermore, Jordan’s 
balance of payment relies strongly on its con tinuing high inflow of worker remittances. Net 
remittances amounted to a surplus in 2007 was 16.3% of  GDP.  It is, thus, a return on investment in 
education. In services, the strongly rising net paymen ts for transportation, reflecting growing trade, 
had led the net services account into deficit. Howe ver, tourism receipts had grown significantly to 
offset this deficit which near US$50 million in 200 7. The income account, however, has been strongly 
positive in recent years, due to growing net income from employee compensation and investment, reaching US$807 million. 
10. As for external trade developments, total merchandise exports grew by 9.5% in 2007, 
exceeding the rate of growth in world exports. This w as the direct result of the growth in the value of WT/TPR/G/206 Trade Policy Review 
Page 6 
 
 
 direct exports and re-exports by 8.5 percent and 13. 3 percent, respectively. Overall, external trade 
(exports plus imports) was up by 14.9 % in 2007, co mpared with an increase of 11.0% in 2006. This 
has further boosted trade shares of GDP, reinforcing Jo rdan's integration with the rest of the world. 
(2) ECONOMIC CHALLENGES  
11. Despite these positive economic developments, r ecent external developments have instilled 
pressure on the Jordanian economy. The liberaliza tion of the trade regime, combined with the 
increasing costs of non-dollar priced goods, resulted in growing imports, including the "import" of inflation, and widening the fiscal and external deficits. 
12. Consumer prices rose modestly since 2003, picki ng up slightly to 5.4% in 2007. In the first 
quarter of 2008, the monthly consumer price data ha s jumped to 11.9%. This is mainly due to the one-
off effect of the fuel price rise after fully abolishi ng fuel subsidies, implemented in early February 
2008. A second effect may be more persistent in the medium term, rising import prices for food and 
for goods. To contain inflationary pressures, the Government has recently targeted policy measures 
such as raising the salaries of public employees as well as certain social benefits in order to soften the 
purchasing power shock to consumers from the sudden jump in fuel prices. Moreover, withstanding 
the temptation and political pressure to introduce pr ice controls on basic foodstuff, the government 
instead lifted import duties and sales taxes on some basic food products, thus alleviating to some 
extent the pressure from rising import prices. 
13. In recent years, net inflows from grants, forei gn aid and other public transfers were a major 
supporter to Jordan’s balance of payments, amoun ting to 14 and 12% of GDP for the years 2003 and 
2004. Since then, however, public transfers have signi ficantly decreased to just 2.4% of GDP in 2007. 
This demonstrates that grants and foreign aid, wh ile still important contributions to some sectors of 
public expenditure, have become le ss important as a factor of macroeconomic support for Jordan’s 
economy and balance of payments. These challe nges resulted in additional burden on the budget 
which demonstrated a deficit of 5.5% of GDP in 2008. 
14. Although the Jordanian economy has been going through a rapid and noticeable development 
over the past five years, unemployment and poverty ha ve been of the most significant problems facing 
the Jordanian economy. Official statistics indicate th at the unemployment rate has averaged 14.0% for 
the past three years. Reasons for this include the limited amount of natural resources, high population growth (including the huge influx of people from neighbouring countries), the dominance of low labour-intensive sectors (services) among the grow ing sectors in the economy, and the unstable 
economic and political situation in the region.  
(3) M
ACROECONOMIC AND STRUCTURAL POLICY REFORMS  
15. Jordan has fared well with pegging the exchange ra te of the JD to the USD. This has anchored 
monetary policy and has provided the economy with a welcome element of stability, adding, together 
with full convertibility, to the attractiveness of the Jordanian economy as a destination of inward 
investment and to the dynamic development of its financial sector. 
16. Despite these major challenges for the economy, the government has kept its course of fiscal 
prudence, containing the budget de ficit at 5.4% of GDP. The recent debt buyback agreement with 
Paris Club members, which was executed in March 2008, will substantially reduce the debt service 
burden of the budget. Jordan WT/TPR/G/206 
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 17. Among its efforts towards combating poverty a nd reducing unemployment to minimize their 
negative impacts on the national economy, the Govern ment of Jordan implemented several policies 
and programs aiming at dealing with these promlems , focusing on developing the capacities of  the 
civil society organizations, which include indivi duals, cooperatives and private sector through the 
supporting of a Social Safety Net and the Social  and Economic Productivity Enhancement Program. It 
is worth mentioning that the gorvernment adopt ed a new program for Employment and Combating 
Poverty aimed at implementing a package of short and medium term measures  and activities to reduce 
incidence of poverty in the country, providing a social protection umbrella for the poor who are unable to work, and increase the ratio and level of  Jordanian participation in the labor market. 
18. Building on these efforts, Jordan has adopted a st rategy that focuses on investing in its people, 
by fostering excellence, creativity, innovation,  competitiveness, productivity, global standards and 
entrepreneurial spirit. Jordan boasts impressive human development indicators given its meagre 
resource-base; the human development index (HDI) for Jordan is 0.773, which gives the country a 
rank of 86
th out of 177 countries, with a literacy  rate that reached 91.1% in 2007.  
19. Acknowledging the global shift from a resource- based into a knowledge-based economy, and 
the pressing need to incorporate enhanced levels of  student learning capabilities, analytical skills, and 
computer literacy at every stage of the educa tion process, the Government has embarked on an 
ambitious program to maximize the efficiency of the educational system, which has emerged as a Jordans comparative advantage among its regional peers.  
20. The Government continued, in 2007, the introduction of structural reforms through 
implementing and executing several privatization tr ansactions. Jordan commenced its privatization 
program in 1996 with the aim of rebalancing the role of the public sector in the economy. The 
program concentrated on national infrastructure and utilities, including transport, electricity, water 
and telecoms, and adopted a multi-track approach  through facilitating capital sales (e.g., IPO, 
divestiture, etc.), sales to strategic investors,  concession agreements, management contracts, and 
franchising and other methods including BOT and BOO.  
21. Jordan's privatization program has been one of  the most successful of such programs in the 
region and it has contributed to increasing the effi ciency and hence production levels of privatized 
firms, creating a competitive market where demand a nd supply can freely interplay, attracting foreign 
direct investments, allowing the private sector to participate in infrastructur e investments, deepening 
and developing the Jordanian financial market, a nd most importantly, limiting the role of the 
Government to that of the regulator rather than  that of the producer of goods and services.  
22. Moreover, the Government recently undertook several reform measures to improve public 
administration and governance in the country, including issuing a new Anti-Corruption Commission Law (2006); enacting the Diwan Al-Mathalem Law (2008)  that establishes the Bureau of Grievances 
in Jordan; and finally ratifying the Financial Capability Disclosure Law (2006). International 
comparisons on issues of public governance reveal th at Jordan ranks near the top of the list among the 
MENA countries in terms of overall governance effec tiveness as well as individual categories such as 
"government effectiveness", "regulatory quality", and the rule of law. 
III. SECTOR PERFORMANCE AND POLICIES 
(1) A
GRICULTURE  
23. Although the average contribution of the agricultu ral sector to GDP is only 4%, it is one of 
the most important economic sectors; it is the nucle us of income and development of the rural areas WT/TPR/G/206 Trade Policy Review 
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 where approximately one-fifth of the Jordanian population resides.  The Government has made 
significant efforts in the last years, on the one  hand, to raise the productivity of agricultural 
production, mostly by improving the after-tax prof itability of investments in the agricultural sector. 
On the other hand, it has cut its trade-distorting subsidies in line with its WTO obligations. 
Notwithstanding Jordan's international trade ob ligations, maintaining a healthy and productive 
agricultural sector is a core political aim not on ly for economic but also for social reasons.  
24. Due to its year-round warm climate, Jordan is able to export fresh fruit and vegetables year 
round, giving it a competitive advantage over other markets. A small but healthy market for live 
animals, fruits and vegetables, and olive oil, exists  mainly in the Gulf region and European markets. 
The sector has witnessed a significant improvement on the one-to-four ratio of agricultural exports to 
imports in 2003. Between 2003 a nd 2006, exports increased by 90%, whereas imports just 40%. This 
was an assured result of the sound policies to encour age agricultural and rural development in order to 
secure sustainability of this sector and cope with the challenges it is facing. Eliminating the sales tax 
on agricultural inputs was the latest decision taken in this regard. 
(2) MINING  
25. Jordan’s mining industry is a principal genera tor of national income. It accounts for over 5% 
of gross domestic product and 25% of export earni ngs. The mining sector in Jordan consists of 
minerals extraction industries (mainly phosphate a nd potash) and construction materials (stone and 
marble).  
26. Jordan is a major producer and exporter, in terms of world market share, of potash and 
phosphate which make up its main na tural resources. A minor share of both products, 12% of tonnes 
mined, is processed in the country into fertilizers, thus increasing the domestic value-added from these primary resources, earning more in export valu e than the 88% of potash and phosphates that are 
exported unprocessed.  
27. To further expand the potential of Jordan’s phos phate deposits, a feasibility study is currently 
under way exploring the economic options of extr acting uranium from phosphoric acid produced by 
fertilizer plants. Jordan also has vast reserves of oil shale which due to their comparably favourable 
geological properties could be tapped profitably at cu rrent or higher oil price levels in various ways 
that have been studied extensively for some ti me. Currently, technical and commercial feasibility 
studies are being undertaken to prepare the ground for major commercial i nvestments in the sector. 
(3) M
ANUFACTURING  
28. Currently, manufacturing (without construction) accounts for 18% of GDP. Developing the 
manufacturing sector by improving its competitiveness in an open market both locally and internationally is a core goal of Jordan’s nationa l industrial policy, the more since it is seen as 
essential for reducing the huge ga p between imports and exports.  The main sectors of significance to 
the Jordanian economy include the pharmaceutical  industry, Dead Sea Cosmetics, Textile and 
Clothing, Automotive industry and Electronic a nd Household Appliances, their growth are a 
consequence of a combination of domestic, regi onal and international market developments. 
29. The pharmaceutical industry is one of the fastest-growing among the country’s manufacturing 
industries. It is mainly producing generics, worki ng under the country’s strict IPR rules, with a share 
of around 7% of patent-protected pharmaceuticals produced under license.
 Providing a high share of 
domestic value-added, the industry is also particularly export-intensive, with 70-80% of production 
going into exports. Jordan WT/TPR/G/206 
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 30. The Dead Sea cosmetics industry in Jordan is b ased on the mineral-rich salts and mud that are 
extracted from the Dead Sea, even though it  is relatively a young industry, Dead Sea Products are 
currently being exported to more than 65 countries worldwide. 
31. Textiles and clothing represents a major industrial  sector in Jordan and is growing rapidly. It 
employs over 50 thousands workers and genera tes about US$1.2 billion worth of exports.  
32. The Electronics and Household Appliances indus try had witnessed a considerable growth 
over the past years, resulting in increasing export s by more than 200% between 1998 and 2007. The 
industry mainly produces home appliances, insulate d wire and general purpose machineries, and is 
expected to expand more after Jordan's adoption of the International Electrotechnical Commission 
(IEC) standards in 2005.  
(4) SERVICES  
33. Jordanian overall economic performance is do minated by the dynamically growing services 
sector which accounts for two-thirds of GDP. The servi ce sector is highly liberalised due to Jordan’s 
wide-ranging GATS commitments when acceding to th e WTO. Within the balance of payments, the 
service account deficit has steadily improved ove r the last years from US$-141 million in 2003 , to 
US$50 million in 2007 due to rising net income fro m travel and tourism and from "other services" 
which are countering the growing deficit in the transport sector.   
34. Financial services liberalisation has led to the establishment of numerous foreign and 
domestic banks in Jordan. A well-functioning capital ma rket also provides for efficient lending to the 
private and public domestic sector. The liberal re gulatory environment and the smooth operations and 
liquidity of the Amman Stock Exchange have beco me major factors of attractiveness for foreign 
investments. The insurance industry, subject to slight ly more restrictions than banks, is less developed 
so far than the banking industry, but  has been picking up growth in recent years. 
35. Liberalisation and privatisation of the teleco mmunications sector and opening it to FDI has 
given a major stimulus to the development of th e ICT sector in Jordan. Based on a well developed 
fixed and mobile telecommunications infrastructure,  thriving ICT research and university education, 
and a qualified English and Arab speaking labour fo rce, the sector is evolving dynamically. While 
most of ICT activities (more than 80%) serve th e domestic market, IT consulting and software 
development have an export share of more than 40%. Developing the ICT sector plays an essential 
role in the National Agenda goal of transforming Jordan into a knowledge-based economy. To further 
exploit Jordan’s information technology capacity and the creativity of its people, the Government, in 
collaboration with the private sector, is in the process of finalizing an E-Commerce Strategy that aims 
at making Jordan a "leading" e-commerce centre in the region. 
36. The transport and logistics sector plays a vita l role for Jordan’s position as an important 
regional trade node. Improving the efficiency of the ro ad transport and the railway network, for goods 
transport as well as for passenger service, is an  important component of the national transport 
strategy, as well as the expansion of port and air traffic facilities. 
37. The tourism sector has become increasingly important for Jordan's economy. It is the largest 
services export sector, amounting for 68 percent of to tal receipts of the services account in the balance 
of payments (2007) and the largest private sector employer (directly and indirectly). In the last two years tourism has recorded high growth rates. Th e Jordanian tourism industry operates in a very 
competitive environment in which the country is successfully promoted as a high yield niche 
destination. The sector is moving towards golden era, as more projects, infrastructure development WT/TPR/G/206 Trade Policy Review 
Page 10 
 
 
 and personnel training colleges are being invested. The declaration of Petra as one of the new seven 
wonders of the world, is expected to attr act more tourists from all over the world. 
38. Jordan has given great attention to education,  in particular, which considers as a strategic 
sector of the Jordanian economy. Its educational system  is of international standards and its secondary 
education program is accepted in world-class universities. Jordan ian universities and colleges have 
been successful, over the last few years, in attracting an increasing number of foreign students to 
Jordan. The main part of this is due to delib erate actions, on behalf of the Government and 
universities, to reach to a comprehe nsive, high quality education system. 
39. Jordan’s political will in strengthening R&D infrastructure and linking its activities with 
national objectives of development was reflected in providing funding to strengthen the links between 
economic sectors and university Research and Deve lopment (R&D) programs, providing incentives 
for private companies to participate in R&D, a nd to enhance patent regi stration and intellectual 
property protection. 
40. Over the last two decades, Jordan's health services improved dramatically. The relatively 
advanced physical infrastructure and technologically  advanced medical equipm ent used in Jordan's 
healthcare sector ranks Jordan relatively high on a regional level and has long been a centre of 
medical expertise across the Middle East and North A frica. Jordan is aiming to lead with regards to 
medical tourism in the region. 
IV. TRADE POLICY  
(1) WTO  AND DOHA DEVELOPMENT AGENDA (DDA) 
41. Openness ratios in 2007 rank Jordan among th e most open economies in the world and second 
(behind the UAE) in the Arab region. Liberal trad e policy and far-reaching structural reforms have 
enabled the country to cope with a number of major external shocks. Jordan is committed to 
contribute towards the strengthening of a free, open and stable multilateral trading system. Jordan has 
been a Member of the WTO since April 2000. It h as fully implemented its wide-ranging commitments 
under the GATT, GATS and TRIPS agreements. It ha s signed the Information Technology Agreement 
(ITA) and is currently in an advanced stage of negotiations for its accession to the Government 
Procurement Agreement. 
42. The Government of Jordan is dismayed at the collapsed Doha Round talks as it believes that a 
global trade package could expand economic growth and opportunity for all member states.  With 
regard to its own positive experience from trade lib eralisation, it considers the success of the DDA 
negotiations as paramount for its own prosperity  and for the region’s and the global economy’s 
prospects. The failure to revive DDA would m ean a triumph for protectionism, which would be 
detrimental to the multilateral trading system and inte rests of all countries, particularly the smaller and 
developing members. Jordan will spare no effort in  working with all WTO members in any attempts 
to revive the Talks. 
43. At the same time, Jordan falls under small and vulnerable economies (SVE), and as a Net 
Food Importer Developing Country (NFIDC) calls for additional flexibilities in this round of 
agricultural negotiations. Jordan upholds Doha  and Hong Kong mandates for phasing out export 
subsidies, more stringent rules on domestic suppor t, and allows developing countries to designate 
special and sensitive products (SP) in addition to creating a new Special Safeguard Mechanism (SSM) 
while eliminating the SSG. Jordan WT/TPR/G/206 
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 44. In terms of non- agricultural market access ( NAMA), Jordan is actively participating in the 
"recently-acceded members" (RAMs); it has submitted a proposal, with other members, as small and 
vulnerable economies (SVEs). Therefore Jordan is  calling for additional flexibilities, welcoming a 
balanced tariff reduction formula, which will allo w these groups of countries to achieve rewarding 
industrial policies and diversification objectives as well as effective market access for their exports. 
Jordan also strongly supports eliminating all mark et access barriers on products of export interest for 
developing countries. 
45. Jordan believes in the important role of  the services sector in economic and social 
development, therefore, Jordan calls for the need to have a balanced outcome in services negotiations 
that will improve access conditions for the different modes of supply, as well as to establish effective 
disciplines on domestic regulation that would enhance access to markets. 
46. The successful negotiations and the agreement on Trade Facilitation is one of Jordan's 
priorities to ensure the harmonization of legisl ation and the supply chain logistics as well as 
development and technical adjustment requirements.  
47. Jordan also supports improvements in the curre nt trade remedy rules as well as the positive 
and equitable implementation of the aid for trade. 
(2) RECENT TRADE POLICY REFORMS  
48. Since accession, the Government of Jordan h as made substantial strides in undertaking 
additional trade policy reforms to s upports its multilateral integration. 
49. Upon joining the WTO, Jordan undertook to  negotiate accession to the Government 
Procurement Agreement in order to have access to this potential market. Jordan has made serious and 
substantial steps towards accession, including re vising its domestic procurement legislation. 
50. In line with Government's view for promoti ng innovation in the country, great progress has 
been made in strengthening intellectual propert y rights (IPR) protection pursuant to the TRIPS 
agreement of the WTO and other multilateral and b ilateral trade agreements, and has established an 
effective institutional and legal framework through a set of modern IPR legislations covering 
trademarks, patents, copyrights, industrial designs, integrated circuits, geographical indications, plant 
varieties and trade secrets. Also, Jordan has acceded to important international IPR agreements and 
treaties such as the WIPO Copyright Treaty and WIPO Performances and Phonograms Treaty, and is 
currently in the process of acceding to other intern ational agreements such as the Patent Cooperation 
Treaty for international protection of patents and Ma drid Protocol for international registration of 
trademarks.  
51. In order to further enhance IPR enforcement, the Government plans to establish an IPR entity 
that will be responsible for coordinating efforts of IPR agencies in the country. Also, the Police 
Department has recently established a specialized IPR Division to work closely with the relevant IPR 
agencies as an ex-officio authority in market surveillance. 
52. The Government of Jordan has also undertaken  important steps to enhance trade facilitation. 
Jordan Customs has developed standards for certif ying operators to implement the WCO Framework 
of Standards to Secure and Facilitate Global Trade through the "Golden List" program, established in 
2005. In July 2008, Jordan Customs signed a Mutu al Recognition Agreement with the United States 
Customs and Border Protection, which recognises the compatibility of the Golden list program with the US C-TPAT. WT/TPR/G/206 Trade Policy Review 
Page 12 
 
 
 53. In progress are efforts to establish a one-stop window for imports to reduce the burden on 
importers and speed up clearance times. In addition, as part of efforts to enhance risk management procedures and further reduce clearance times, the cu rrent ASYCUDA++ system is being upgraded to 
ASYCUDA World, which has already been deployed in four customs houses and will be phased in to 
most of the others. 
54. Given the resource constraints in Jordan, th e Government has utilized trade policies to 
promote sustainable development. The Government  maintains low customs tariffs on environmental 
goods and has exempted most renewable energy  and energy saving devices from sales tax and 
customs duties. 
(3) B
ILATERAL AND REGIONAL TRADE AGREEMENTS  
55. Besides its demonstrated commitment to multilatera l system, Jordan has pursued a strategy of 
regional and bilateral trade liberalisation to gain additional preferential market access in exchange for 
opening up its own import market and further exposin g its businesses to the benefits and challenges of 
international competition. These WTO-consistent ag reements are aimed at promoting export-led 
growth in Jordan and viewed principally as stepping stones for multilateral liberalization. 
56. On the regional front, Jordan is an effec tive Member in the Greater Arab Free Trade 
Agreement (GAFTA), providing for full liberalization of trade in goods in the markets of (17) Arab countries as of January 2005. To further enhance economic integration between Arab countries and 
the European market, Jordan also signed Aghadi r Agreement which establishes a Free Trade Area 
between Jordan, Egypt, Tunisia and Morocco allo wing for accumulation of origin between the four 
signatory countries for the purpose of exporting duty-free to the EU. 
57. Bilaterally, Jordan has an FTA with the US whic h aims at progressively eliminating tariffs so 
that by 2010, there is complete free trade between  the two countries. Jordan's Qualifying Industrial 
Zones Agreement allows quota free and duty free acces s to the U.S. market. Jordan also signed an 
association agreement with the European Union (EU) in 1997, with fully liberalized free trade to be 
achieved within a 12 year period. In the same cont ext, Jordan signed an FTA with the EFTA states 
(Switzerland, Norway, Iceland and Liechtenstein); both  agreements are in force since 2002.  Jordan is 
the first country in the Middle East to sign an FTA with Singapore creati ng a gateway for business 
partnerships in the region and South Eastern Asia as well, the agreement entered into force in 2005. 
Further bilateral preferential trade agreements a nd FTAs are being negotiate d with Turkey, Canada, 
and MERCOSUR.  
(4) F
UTURE DIRECTION OF ECONOMIC AND TRADE POLICY  
58. Complementing its domestic structural reform a nd modernization policy, Jordan will continue 
to conduct an active trade liberalization policy, fo cusing on multilateral liberalization while seizing 
the sensible opportunities of improved market access through bilateral and regional FTAs. 
59. The Jordanian government is aware of the l ong path still before it on the way towards the 
goals of the National Agenda. In the wider context of national economic, structural and administrative 
reform the government is currently discussing a dr aft National Trade Strategy which is to serve as a 
guideline to policy makers as well as to business and to the general public, focusing the minds of the 
former in their deliberations and decisions while creating a climate of consistency, reliability and 
predictability for the latter. Banking on Jordan’s competitive assets, its geo-economic location in a 
prospering region, its well-educated people and most of  all its stable political, legal and social fabric, 
the National Trade Strategy aims at continuing transforming Jordan into an open economy with Jordan WT/TPR/G/206 
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 streamlined administrative and regulatory procedures for trade and investment, developing its sectoral 
export base and broadening its export markets. In th is way, Jordan will be able to unleash and expand 
its competitive advantages, moving forward to a dynamic, knowledge-based economy whose industry 
and services are taking full profit from the changing international division of labour, thus increasing 
overall economic welfare and raising the liv ing standards of the Jordanian people. 
60. On a parallel track, a strategi c reorientation and refocusing is  also underway for Jordan's 
Industrial Policy. The industrial policy does not fo llow a discriminatory "picking winners" course of 
favoring certain manufacturing sectors deemed promis ing over others. It puts particular emphasis, 
however, on measures to increase th e competitiveness of small and medium-size enterprises which by 
employment account for the bulk of manufacturing sector. Moreover, an investment strategy is being 
developed through which promoti on and marketing activities will focu s on potential industries that 
could offer favourable prospects for business. 
61. Deregulation and streamlining of administ rative procedures will have to continue . The 
government is aware of the importance of fac ilitating business activity, whether investment and 
establishing new businesses or alleviating the regul atory burden to established businesses. Industrial 
estates/zones can serve as an exercise ground to test the practicability of easing administrative and 
regulatory procedures. Eventually, however, su ch administrative facilitation as has proved its 
practicability will have to be a pplied throughout the country.  
62. With income from tariffs declining, the govern ment has embarked on a fiscal reform program 
to maintain a sufficient degree of budgetary manoe uvrability. Broadening the tax base while reducing 
tax rates wherever possible and appropriate will be the course to follow. On the expenditure side, the 
abolishment of fuel subsidies accompanied by suppor t for personal incomes has been a major, perhaps 
the most important step in this direction. 
63. Privatization of state-owned economic assets, such as in the transport, communication and 
energy sectors will continue, but for the time being the state will keep controlling minority stakes in major industries. Privatization has been beneficial  in so far as it has increased the efficiency and 
managerial capabilities of the respective industri es, attracted FDI and improved the competitiveness 
of privatized industries. Further privatization will proceed carefully, taking into account market 
conditions. It will have to make sure that an ad equate degree of domestic value-added is achieved. 
State ownership will be retained where it serves pursue wider economic objectives, especially where 
substantial positive externalities exist.  
V. JORDAN'S TECHNICAL ASSISTANCE AND CAPACITY BUILDING NEEDS  
64. To enable Jordan to effec tively integrate its economic sectors in the global economy and 
realize the benefits of the multilateral trading sy stem and the outcomes of the Doha Development 
Round, technical support is needed in the following areas: 
− Capacity building and public awareness program s in trade policy areas such as competition 
policy, IPR, trade defence instruments, customs reform, notification requirements under the 
WTO agreements. 
 
− Economic and environmental impact assessment studies on trade related matters and sector 
specific studies, including impact assessment of legislations and technical regulations. 
 WT/TPR/G/206 Trade Policy Review 
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 − Capacity building for government officials in trade negotiation skills and trade policy issues 
through specialized training courses and internships at the WTO Secretariat. 
 
− Establishing a cooperation program between the WTO and a selected Jordanian university to 
develop a university degree on WTO issues in the departments of Law or Economics.  
 
− Upgrading the capacity of regulatory bodies res ponsible for setting technical regulations and 
sanitary and phytosanitary measures to en sure the compliance with the TBT and SPS 
Agreements through the following: 
• Upgrading current testing facilities and est ablishing testing facilities and labs for 
selected fields (gasoline and diesel; and El ectro Magnetic Compatibility (EMC); and 
energy efficiency in electrical equipment; food laboratories; plant and animal quarantine facilities; testing capacities for resi dues of fertilizers, veterinary drugs and 
vaccines) 
• Enhancing food inspection capacities through establishing a Food Information 
Management System (FIMS).  
• Training on specific conformity assessment modules such as supplier declaration and 
type approval.  
• Supporting the accreditation of food laboratories. 
• Establishing the necessary risk management systems. 
• Establishing systems for recognition of equivalence of SPS measures. 
 
− Upgrading the capacity of relevant entities responsible for trade facilitation through the 
following:  
• Financing authorized legal translati on of trade regulations; procedures and 
publication on the internet.  
• Organizing training courses for customs officers and the related parties. 
• Know how transfer; in addition to implem entation of best international practices, 
particularly those related to notifi cation of trade related publications. 
• Upgrading Customs' infrastructure in terms of computerized systems, PCs, 
telecommunication networks, a nd quality of provided services. 
• Establishing needed infrastructure for introducing Single window system and 
providing international resident expe rts to assist in implementation. 
 
− Upgrading the capacities of Jordanian businesses, particularly SME's, including agricultural 
producers, to enhance their competitiveness and export capacities, through improving energy efficiency; enhancing the use of renewable en ergy by industries; enhancing capacities in 
packing and classification of agricultural pr oducts; attaining Good Manufacturing Practices 
(GMP) for pharmaceutical industries; creating ma rketing channels for Jordanian exporters in 
WTO member markets through match-making and business to business meetings; and other 
means. 
 
− Provide technical assistance and capacity building to improve Jordan’s e-commerce 
environment and support the implementati on of Jordan's e-commerce strategy.  
 
− Technical assistance and capacity building suppor t to R&D institutions, particularly in trade-
related areas. 
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