WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/206/Add.1 
19 December 2008 
 (08-6265) 
Trade Policy Review Body 
10 and 12 November 2008 Original: English/ 
 anglais/  inglés 
 
  
TRADE POLICY REVIEW 
JORDAN 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Mr. Yonov Frederick Agah (Nigeria) 
 This document contains the advance writte n questions, and replies provided by Jordan.1 
__________________________________________________________________________________  Organe d'examen des politiques commerciales 10 et 12 novembre 2008  
EXAMEN DES POLITIQUES COMMERCIALES 
JORDANIE 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. M. Yonov Frederick Agah (Nigeria) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par la Jordanie.1 
__________________________________________________________________________________  
Órgano de Examen de las Políticas Comerciales 
10 y 12 de noviembre de 2008 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
JORDANIA 
Acta de la reunión
 
Addendum  
Presidente:  Excmo. Sr. Yonov Frederick Agah (Nigeria) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Jordania.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente.   
    WT/TPR/M/206/Add.1 
 Page 3 
 
 
 ADVANCE WRITTEN QUESTIONS BY MEMBERS 
 
BRAZIL  
 
Q1. Could you please provide further information on the eligibility criteria to join the Golden List 
programme mentioned in pa ragraph 12 of the Section on customs procedures?  
 Q2. What is the allocation of the resources deri ved from the collection of the internal taxes 
referred to in paragraph 36?  
 
CHAPTER III - TRADE POLICIES AND PRACTICES BY MEASURE 
(2) Measures directly affecting imports (iii) Rules of origin Page 25, paragraph 17 
 3. The document mentions that a certificate of origin is required for imported products from all 
countries.  Question
: Could Jordan inform the reason why such a certificate is required for all countries? 
 
Page 27, paragraphs 24,25 and Table III.2. 
 
Q4. In relation to the tariffs for the products men tioned in table III.2, what is the justification for 
using composed duties? Is there any plan to convert those tariffs into ad-valorem tariffs? 
 
CHAPTER IV – TRADE POLICIES BY SECTOR 
(2) Agriculture and Related Activities 
(iii) Main subsectors Page 65, paragraph 23 
 
Q5. Could Jordan explain what is the reason fo r applying a MFN tariff of 30% on products with 
self-sufficiency ratios far in excess of 100%?  SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU
 
 
SUMMARY OBSERVATIONS 
(1) The Economic Environment 
(page vii, paragraph 1)  
1. Jordan enjoyed a relatively high GDP growth rate  and moderate inflation in the years 2000 to 
2007. However, little information can be found in th e report on the development of Jordan’s labour 
market over the review period.  
Question
: Since a sound labour market is essential to  economic development and social stability, 
could Jordan please provide an overview of la bour market developments, including further 
elaboration on topics such as labour rights protec tion, participation by women, and other key 
indicators?  
(page vii, paragraph 2) 
 
The report states that Jordan relie s on a comparatively high level of workers’ remittances, which is a 
reflection of the large number of Jordanians work ing abroad, in the Gulf region in particular.  
 WT/TPR/M/206/Add.1 
Page 4  
 
 Question
: On average, what have been the skill levels  of the migrating workers? Have they been 
mainly skilled/professional or low/middle skilled workers? Has the migration of labour caused a brain drain problem? If so, can Jordan say what the economic effect has been? 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) MEASURES DIRECTLY AFFECTING IMPORTS (viii) Government procurement (page 40, paragraph 80) 
 The report states, "on government supplies tenders, local products currently benefit from a price 
preference margin of 15% over imported products." 
 
Question
: Could Jordan please explain the rationale for this discriminative measure against foreign 
products? Does the government of Jo rdan have any plan in the fu ture to abolish this measure? 
(3) MEASURES DIRECTLY AFFECTING EXPORTS 
(v) Free zone, special economic, and qualifying industrial zones (page 46, paragraph 109) 
 Quoting from the report, "QIZs are designated industr ial parks in Jordan and Israel from which goods 
can be exported duty-free and quota-free to the United  States. The QIZ rules require local content of 
at least 35%."  
Question
: Could the Jordan government consider reduci ng the local content requirement so as to 
attract more foreign investment in the future? 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(iii) State-trading, state-owned enterprises, and privatization (page 52, paragraph 137)  
Jordan’s privatization approach appears to vary acco rding to the specifics of the enterprise or service 
to be privatized.  
Question
: Will there be any limitations placed on forei gn investors during the privatization process? 
IV. TRADE POLICIES BY SECTOR 
(3) MINING, ENERGY, AND WATER (ii) Oil and natural gas (page 68, paragraph 39) 
 We note from the Report that the Natural Resourc es Authority (NRA) is responsible for negotiating 
agreements and granting concessions for the expl oration and exploitation of hydrocarbons.   
Question
: Are there any special concerns or criteri a used in the process of granting concessions, 
relating in particular to foreign investors? 
(page 68, paragraph 41) 
Investor interest in Jordan’s o il shale reserves has increased consider ably and several agreements have 
been signed with international oil companies.  
Question
: Does Jordan offer any incentives to investors in its oil shale exploration industry, aimed 
especially at foreign investors?  WT/TPR/M/206/Add.1 
 Page 5 
 
 
 (iii) Electricity 
(page 69, paragraph 42)  
Jordan’s electricity prices are not market dete rmined and the Electricity Sector Regulatory 
Commission was established with responsibilit y for determining electricity tariffs.   
Question
: Is there a concrete operating mechanism in place, which the Commission uses when 
formulating the price?  What major concerns  are taken into account in the price-setting? 
(4) MANUFACTURING 
(ii) Selected industries 
(b) Textiles and clothing industry (page 74, paragraph 63)  
The report states that, "The textile industry has b ecome Jordan’s largest export sector. Over 90% of 
garment exports were destined for the United Stat es in 2007. To a great extent, Jordanian textile 
factories have relied on imported te xtile fabrics, notably from China,  and foreign labour (about 30,000 
according to some estimates)."  
Question
:  It would be appreciated if Jordan coul d please explain its foreign labour employment 
policy in greater detail?  Is any limitation placed  on foreign investors operating in the Qualified 
Industrial Zones (QIZs) relating to the employment of foreign labour? 
(pages 74, paragraph 64) 
 
As stated in the report: "…the tariff advantage of the QIZ initiative is gradually being eroded by the 
implementation of tariff concessions under the FTA be tween Jordan and the United States. For certain 
goods such as textiles and clothing, import tariffs in the United States under the FTA will be fully 
eliminated by 2010."  The textile industry is one of  Jordan’s most important industries in that it 
creates a great number of job opportunities and is a major source of foreign exchange.  
Question :  We should be grateful if the government of Jordan could please advise whether it has any 
plan to assist garment manufacturing companies operating in the QIZs after 2010?  
 
COLOMBIA  
 2. Within what period of time does Jordan aim to fulfil its WTO notification commitments, in 
particular with respect to agricultural notifications? 
3. What are the main characteristi cs of Jordan's export policy as regards textiles and clothing?  
How does it intend to address the problems arising from the need to maintain competitiveness in those 
sectors? 
4. What are the main characteristics of the in centive schemes pursued by Jordan through its 
qualifying industrial zones, free zones, and the Aqaba Special Economic Zone?  
ARGENTINA
 
 
II. TRADE AND INVESTMENT REGIMES 
(4) Trade agreements 
(iv) Other preferential arrangements Paragraph 25, page 17 
 
Question
:  According to this paragraph, Jordan does not  participate in the Global System of Trade 
Preferences (GSTP) among developing countries.  Does it intend to become a member of that system? WT/TPR/M/206/Add.1 
Page 6  
 
 (5) Investment framework 
Paragraph 29, page 18 
 
Question
:  According to this paragraph, the Jordan I nvestment Board is implementing a project called 
the "one-stop shop" with a view to bringing togeth er all services (by public and private organizations) 
required by an investor in a single location.  Could Jordan please provide further details on this 
project and indicate when it was put into effect?  
III. TRADE POLICES AND PRACTICES BY MEASURE 
(2) Measures directly affecting imports 
(i) Registration and documentation 
Paragraph 10, page 24 
 
Question
: This paragraph states that depending on the nature of the product imported, a technical 
conformity/health/veterinary certificate and/or an impo rt permit or licence are required.  In what cases 
would these certificates, permits or licences be required? 
 
(4) Measures affecting production and trade 
(iii) State-trading, State-owned enterprises and privatization Paragraph 133, page 51 
 Question
:  According to this paragraph, the Government  is the sole importer of barley and wheat, the 
consumption of which is highly subsidized, and imports are executed by private traders under the 
direction of the Trade Directorate at the Ministry of Industry and Trade.  Could Jordan please provide further details on the import process a pplied to such essential commodities? 
 (v) Import prohibitions, restrictions, and licensing Paragraphs 39 and 40, page 32 
 
Question
: According to these paragraphs, Jordan has re placed the system of "prior approval" of 
imports by an import licensing regime, and under Import and Export Law No. 21 of 2001, as amended 
by Temporary Law No. 18 of 2003, the Council of Mini sters may prohibit or completely or partially 
restrict imports of any good, taking into account Jo rdan's international comm itments.  Could Jordan 
please explain how the licensing regime has changed w ith respect to "prior approval" and what the 
requirements for obtaining an import licence are?  In what cases – apart from those listed in Table III.5 on page 33 – and for what reason have  imports been prohibited, taking into account 
Jordan's international commitmen ts, during the period under review? 
 
IV. TRADE POLICES BY SECTOR 
(3) Mining, energy and water (ii) Oil and natural gas Paragraph 38, page 68 
 Question
:  According to this paragraph, in December  2004, the Government approved Jordan's Energy 
Master Plan, which seeks to diversify the energy mi x and raise the share of domestic energy supplies 
to 39 per cent of consumption by 2020.  Could Jo rdan please provide further details regarding the 
characteristics of this plan, and in particular, explain what the mentioned energy mix is?   WT/TPR/M/206/Add.1 
 Page 7 
 
 
 JAPAN  
 
IV. TRADE POLICIES BY SECTOR 
(5) SERVICES (iii) Transport 
Page88, paragraph 130 
 
The Secretariat report states, "Jordan has a stake in  two joint-ventures to im prove regional exchange 
of goods and promote tourism. One is the Syrian-Jordanian Shipping Company established in 1976; the other, the Arab Bridge Maritime Company, is jointly owned by Jordan, Egypt, and Iraq." 
 
Question
:  Please provide specific information on an agre ement or treaty between Jordan and Iraq, if 
any, in order to promote regional exchange from Jordan to Iraq, including such items as the 
simplification of customs clearance and the facilitation of roads.  KOREA
 
 
Secretariat Report, page 24, paragraph 10 
 
For customs clearance, the principal documents re quired are the customs declaration, commercial 
invoice, bill of lading (or air waybill), certificate of origin, and packing list. 
 
It has come to our attention that in exporting to Jordan, the original commercial invoice and certificate 
of origin must be attested by the local Chamber of Commerce in the country of origin and should be 
notarized by the Jordanian diplomatic mission in the country of origin. If this procedure is not adhered 
to, a fine not exceeding 4% of commodity valu e must be paid by the Jordanian importer. 
 
We are of the view that the requirement for notarization by the Jordanian Diplomatic mission seems to be an undue burden for the exporters. In light  of the above, we would appreciate it if Jordan 
respond to the following questions:  Question
:  Is this requirement mandatory for all Memb ers of the WTO? Are FTA partners of Jordan 
either subject to a more simplified procedure or exempt from such requirement altogether?  Does 
Jordan have any concrete plans to simplify(re move) the above mentioned procedure requiring the 
notarization by the Jordanian diplomatic mission? 
 
Secretariat Report, page 38, paragraphs 71, 72  
 New procurement legislation to bring the regime into compliance with the GPA is awaiting approval 
by Cabinet.  Question
:  Could Jordan provide more detailed inform ation with regard to the new procurement 
legislation awaiting approval by the Cabinet? 
 
Investment Framework 
 
The investment law published in the website of the Jordan Investment Board (JIB) states that "a non-
operating foreign company is exempted from registering to Jordan chambers and professional 
associations and their registration fees a nd from any obligations towards them." 
 However, Jordan’s Bar Association's Law No. 11 for the year 1972 in the Decree No. 43 states that : 
 WT/TPR/M/206/Add.1 
Page 8  
 
 All commercial or industrial public establishments , and all public shareholding companies or any 
foreign company, establishment, branch office or ag ency - regardless of its capital- must assign an 
attorney or a legal counselor registered in the lo cal bar association in accordance to a written contract 
recorded at the "Notary Public" - must notify the ba r in writing through its attorney or legal counselor 
within a month of his hiring date… 
 
If any company or establishment among the compani es or establishments mentioned above did not 
comply to the first paragraph of this article, by not  assigning an attorney or a legal counselor within 
3 months of the date this law is effective or its  establishment date, the company must pay an amount 
of JDs 2 per every delay day to the Bar Association. 
 
Question
:  Korea would like to request the confirmation from Jordan on whether the above two 
instances are referring to the same matter.  If so, could Jordan explain whether it has any plans to 
harmonize the above discrepancy so as to provide fu rther clarity to its foreign investment regime? 
 UNITED STATES
 
 
II. ECONOMIC ENVIRONMENT 
(1) E CONOMIC GROWTH  
Page 5, Paragraph 9  
 Question
:  Jordan credits some of its success in devel opment to foreign direct investment (FDI).  
Much of this investment has come from Saudi Arabia  and the Gulf.  With oil prices falling from this 
summer’s peak, what impact does Jordan predict th e reduction in oil prices will have on its inward 
FDI and also on remittances, which ar e among Jordan's top revenue sources? 
 (3) M
ACROECONOMIC AND STRUCTURAL POLICY REFORMS  
Page 7, Paragraph 17 
 
Question :  Jordan names civil society organizations as instruments for poverty reduction.  Many 
NGOs have been highly critical of the Associations  Law that was passed this  summer, saying that the 
law grants the government a great deal of control ov er their boards, their ability to fundraise and even 
their permission to exist.  Jordan's government is cu rrently preparing an amendment to that law.  What 
is the status of the amendment and how will it change the law as it was passed this summer? 
 
Page 7 Paragraph 22 
 
Question :  In 2006, Jordan passed an Anti-Corruption Commission Law.  Thus far, this commission 
has been criticized as weak and indeed some of its  members have had to resign because of corruption 
charges against them.  What actions will Jordan take to drive strength into this law and its 
commission?   
III. SECTOR PERFORMANCE AND POLICY 
(3) M
ANUFACTURING  
Page 9 Paragraph 31  
Question
:  The report says, "Textiles and clothing represents  a major industrial sector in Jordan and is 
growing rapidly. It employs over 50 thousands work ers and generates about US$1.2 billion worth of 
exports."  There are signs, however, that growth is coo ling.  What is the status of the industry and its 
future in Jordan?   WT/TPR/M/206/Add.1 
 Page 9 
 
 
 (4) S ERVICES  
Page 9 Paragraph 35  
Question
:  The report rightly praises the ICT sector wh ich has grown rapidly and improved services 
while lowering prices after privatization.  The incu mbents in the mobile sector are pressuring the 
Telecommunications Regulatory Commission to estab lish spectrum auctions processes that benefit 
incumbents.  How will Jordan resi st this pressure and continue to make the telecommunications 
market more open in mobile but also in internet service?  
IV. TRADE POLICY 
(2) R
ECENT TRADE POLICY REFORMS  
Page 11, Paragraph 51  
 
Question :  The "IPR entity" referenced in this paragr aph has been mentioned for several years without 
any apparent action.  When will this "entity" be cr eated? What will be its goa ls and its relationship to 
other organizations responsible fo r IPR (National Library, Customs, JISM, PSD, etc)?  What steps 
will Jordan take to create not only laws, but enforcement capacity?  
(4) F
UTURE DIRECTION OF TRADE POLICY  
Page 13 Paragraph 61  
Question
:  Jordan's rank in the Doing Business re port has been falling largely because of the 
perceived difficulty of administrative procedures.  What specific steps is Jordan taking to ease 
administrative burdens?  The e-government initiative is often mentioned as one possible solution but 
this effort has been slow with almost no success at most ministries.  How is the project being managed 
to support business procedures? 
 
QUESTIONS PERTAINING TO WTTPR/S206 
II. TRADE AND INVESTMENT REGIMES 
(1) T HE INSTITUTIONAL FRAMEWORK  
Page 10, Paragraph 4  
Question
:  Please comment on Jordan’s progress in increasing its courts specialization, especially 
their ability to try IPR cases and other business cases? 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M EASURES DIRECTLY AFFECTING IMPORTS  
(ii) Customs procedures 
Pages 24-25, paragraph 12  
Question
:  How many participants are there in the customs-business partnership program?  What 
percentage of import trade is covered by the program?  Page 25, paragraph 13  
Question
:  Paragraph 13 states that "[a]ccording to the au thorities, 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 value."  We 
request further explanation on how reference prices ar e used.  Is the reference price substituted for the 
declared value?  Are the referenc e prices used as transaction values or under an alternative basis of 
appraisement?  WT/TPR/M/206/Add.1 
Page 10  
 
 (v) Import prohibitions, restrictions, and licensing 
Page 33, Table III.5  
Question
:  The Secretariat’s report notes that Jordan continues to ban the importation of passenger 
cars using other than benzene as a fuel until Jordan’s  refinery is modernized to produce diesel fuel 
with low sulphur content.  It appears that this im port ban has been in effect since Jordan’s accession to 
the WTO in 2000.  When does Jordan  expect to complete the refine ry modernization and remove the 
ban?  
 What is Jordan’s justification for prohibiting th e importation of "dumpers designed for off-highway 
use"?  Could Jordan please provide the HS numb er(s) of the products c overed by this import 
prohibition?  
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(v) Free zone, special economic, and qualifying industrial zones 
Page 45, paragraph 99 
 
Question :  The Report states that industrial and co mmercial investments in free zones enjoy tax 
exemptions, but are required to meet one of severa l criteria, including the "use of local raw materials 
and manufacturing parts" and "import-substituti on".  Please comment on how these investment 
requirements should be interpreted in light of Jordan's obligations under Article 3.1(b) of the SCM 
Agreement. 
 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
(iv) Intellectual property rights 
 Questions
:  What is the status of Jordan's amendments to its Copyright Law?   
 What is the status of Jordan's amendmen ts to its JISM law regarding trademarks?  Does JISM have 
authority with respect to all IPR violations, as implie d in Paragraph 141, or is its authority limited to 
trademark-related violations? How and by whom ar e conformity marks selected, and what measures, 
if any, are in place to ensure that these marks do not conflict with prior trademarks? 
 
Does Jordan allow for co-e xistence between a prior trademark and a later geographical indication?  If 
so, we would appreciate information about how such co-existence is accomplished.  
IV. TRADE POLICIES BY SECTOR 
(3) M
INING , ENERGY , AND WATER  
(ii) Oil and natural gas 
Page 68, Paragraph 39  
 
Question :  Is it the case that Jordan’s hydrocarbon de regulation is behind schedule and that the 
government has extended the refinery's concession beyo nd 2046?  What is the role of nuclear energy 
or liquefied natural gas in Jordan’s current energy plans?  Please discu ss any plans to change 
significantly Jordan’s energy mix.  What plans does Jordan have for renewable energy, such as wind, 
solar, and hydroelectricity?  
(4) M
ANUFACTURING  
(i) Policy Framework 
Page 72, paragraph 56  
Question
:  The report states that the Jordan Upgradi ng and Modernization Program (JUMP) provides 
financial assistance to SMEs to enhance their comp etitiveness. The report also states that the program  WT/TPR/M/206/Add.1 
 Page 11 
 
 
 has import-substitution objectives one component of which is the National Linkage Program.  The 
Secretariat states that under this program, assistan ce is offered to establish new business and supplier 
links between industrial firms that rely on im ported production inputs, on the one hand, and local 
SMEs that are in a position to meet those input needs, on the other.  Please comment on how the eligibility criteria of this program should be in terpreted in light of Jordan's obligations under 
Article 3.1(b) of the SCM Agreement. 
 
(5) S
ERVICES  
(ii) Telecommunications and postal services (a) Telecommunications 
Page 84, paragraph 106 
 
Question
:  From the Secretariat’s report we learn that  Jordan has a de facto monopoly in fixed line 
services and a very limited market in internet service s because of the role of JTC/Orange.  What steps 
is Jordan taking to open the markets?  Does Jo rdan intend to change the way JTC does business? 
 
(iii) Transport 
(b) Road transport Page 88 Paragraph 131  
Question
:  Jordan’s road freight transportation in dustry is characterized by numerous one-truck 
companies and high costs.  Prohibiting foreign investment may limit the capital necessary for 
developing larger operations and networks.  Has the government considered opening the sector to 
foreign investment in order to enhance e fficiency and reduce costs in this sector?  
 
CHINA  
 
Question :  Does the current global financial crisis  have any impacts on the economic and trade 
performances of Jordan? If yes, what measur es has Jordan taken to meet the challenges? 
 
Secretariat Report Page 68 Paragraph 38  
 "In December 2004, the Government approved Jordan ’s Energy Master Plan, which seeks to diversity 
the energy mix and raise the share of domestic energy supplies to 39% of consumption by 2020." 
 Question
:  Given that domestic crude oil and gas production contributed only 4% to energy 
consumption in 2007, would Jordan please share with  us what the major measures are in the Energy 
Master Plan to achieve the target of 39% domestic share by 2020? 
 
Secretariat Report Page 38 and 39:  (viii) Government Procurement 
 
Question :  Would the Delegation of Jordan please share w ith us its analysis, if any, on the possible 
impacts of joining the Agreement on Government  Procurement on Jordanian economy and trade?  
 
CANADA  
 
Report by the Government of Jordan (WT/TPR/G/206) 
Part I. Introduction; Jordan’s Refo rm Agenda: paragraph 2, page 4 
 Canada commends Jordan on making difficult but ne cessary economic reforms and encourages strong 
pursuit of political reforms, including establishing an independent electoral commission.  Question
:  What steps has Jordan taken to ensure  public input into the trade policy agenda? WT/TPR/M/206/Add.1 
Page 12  
 
 Part II. Economic Environment; (3) Macroeconomic and Structural Policy Reforms: 
paragraph 19, page 7, and; Part III. Sector Pe rformance and Policy; (4) Services: paragraph 38, 
page 110  
Canada’s policies towards Jordan support its prior ity objectives to improve the education system and 
reform the labour market. Canada is proud to support  Jordan in its drive to modernize its education 
system. This reflects our confidence in the ability of the Jordanian government to see this process 
through.  Question
:  What steps has Jordan taken to ensure that its trade policy supports continuing 
development of the education sector and reform of the labour market? 
 
Report by the Secretariat (WT/TPR/S/206) Summary Observations; (4) Sectoral Policies: paragraph 16, page 10 
 Canada understands Jordan’s difficult situation cau sed by its near-total reliance on energy imports, 
and that it is looking to develop nuclear energy  capacity in order to lessen this dependence. 
 Question
:  How does Jordan’s trade policy address its en ergy needs, including the development of its 
nuclear, wind and solar energy capacity? 
 
Summary Observations; (2) Institutional Framework, page vii, paragraph 6 
 
In the Summary Observations of the Secretariat Re port, page vii, paragraph 6, it notes that: "The 
Ministry [of Industry and Trade]'s Foreign Trade Policy and Relations Depa rtment has responsibility 
for all matters relating to WTO, as well as regional and bilateral trade agreem ents between Jordan and 
other countries. The Department is also the WTO fo cal point and functions as Jordan's enquiry point 
for services; it is the notification authority for al most all WTO agreements, with the exception of 
notifications related to SPS measures. In areas such  as agriculture, Jordan has faced difficulties in 
providing notifications in a timely manner." Canada notes that all of Jordan’s 2008 notifi cations provide 30 days or less for comments.  
 
Question
:  What measures or steps is Jordan putti ng in place to overcome these difficulties, in 
particular notification of draft trade-related measures at an early appropriate stage when amendments can still be introduced and comments taken into account  (Articles 2.9.2 and 5.6. 2) and alignment with 
the WTO/TBT Committee recommended 60-day comment period (G/TBT/1/Rev.9, page 18, paragraph vii(a))? 
 
Canada notes in Jordan’s TBT notifications that a short period (approximately 15 days in 2008, and 
none in 2007) is provided between the proposed adoption of the measu re and its entry into force. 
Article 2.12 of the TBT Agreement obligates Member s to provide a reasonable interval between the 
publication of measures and their entry into for ce. This period is understood within the WTO/TBT 
Committee, per the Ministerial Decision, as "normally a period of not less than 6 months, except 
when this would be ineffective in fulfilling the legitimate objectives pursued" (G/TBT/1/Rev.9, 
page 20, paragraph 6a).   Question
:  Could Jordan explain whether processes are fo reseen to enhance Jordan’s compliance with 
WTO/TBT Article 2.12 and the Ministerial Decision?  Part III. Trade and Investment Regimes; (4) Trade Agreements; (iii) Bilateral agreements: 
paragraph 21, page 17  
  WT/TPR/M/206/Add.1 
 Page 13 
 
 
 The report notes that, under the Jordan-U.S. FTA  (JUSFTA), Jordan "will gradually eliminate 
virtually all tariffs on goods, except tobacco." It is Canada's understanding that, in addition to 
excluding tobacco from tariff elimination, Jordanian customs duties on beer, wines and spirits of HS 
Chapter 22 will be reduced to 44.5% of a 180% b ase tariff rate, rather than fully eliminated. 
 
Question :  Can Jordan please outline its precise tariff lib eralization obligations on beer, wines, and 
spirits under the JUSFTA? 
 
Part II. Trade and Investment Regimes, Anne x II.1: Aid for Trade; paragraphs 1 and 5, 
pages 21 and 22 
 
The Canadian Enquiry Point notes Jordan’s rep eated mention of assistance in both Jordan’s TPR 
Report (WT/TPR/G/206, pages 13 and 14) and the Secretariat’s Report (WT/TPR/S/206, page x, 
paragraph 19; and pages 21-22, paragraphs 1-5). In particul ar, the Secretariat’s Report 
(WT/TPR/S/206), on pages 21-22, states that:  "Jor dan has benefited from a range of trade-related 
technical assistance activities since its accession to the WTO. 1 Nevertheless, it continues to face 
significant challenges in the context of the changing international environment coupled with a chronic 
water shortage and full dependency on imported energy… The authorities believe that past technical 
assistance activities, and further assistance in other ar eas could help Jordan achieve greater integration 
into the global economy…"  
"There is a need for targeted technical assistan ce, which could be organized around a series of 
seminars/workshops and studies, in pertinent areas such  as trade remedies, intellectual property, tariff 
and customs reforms, notification procedures, comp etition policy and trade facilitation. Other specific 
assistance is needed in the areas of TBT and SPS to upgrade the capacity of the regulatory bodies 
responsible for setting the measures in compliance w ith international requirements; testing facilities 
and laboratories in Aqaba; practical training on how to conduct an impact assessment of draft 
technical regulations; training on specific conformity assessment modules, such as supplier declaration and type approval; supporting th e accreditation of the Amman Food Laboratory; 
supplementary laboratory equipment for JFDA; assistance in establishing a Food Information 
Management System (FIMS); as well as risk management, mutual recognition agreements, and the appropriate level of protection." 
 
Canada also notes that there is an ongoing di scussion in the WTO TBT Committee on members’ 
experiences with technical assistance projects and suggests that information on Jordan’s experience 
would make a valuable contribution to this discussion.  
Question
:  Given the breath of trade-related technical assistance (TRTA) Jordan has received, Canada 
would be interested in receiving information from Jo rdan on the results of the aid received thus far.  
 
Part III. Trade Policies and Practices by Measure; (2) Measures Directly Affecting Imports, vii) 
Standards and other technical requirements: paragraphs 50, page 34 
 
                                                      
1 Assistance was granted for regional trade agreements , trade facilitation;  dispute settlement;  trade and 
environment; agriculture; customs valuation; market analysis and development; training on negotiations;  regional trade agreements; rules; sanitary and phytos anitary measures; services; tariff negotiations (non-
agricultural market access); tariff reforms; technical barr iers to trade; mainstream ing trade into development 
plans;  trade promotion strategy design and implementation; trade-related aspects of intellectual property rights; trade and investment; trade and co mpetition and transparency in government procurement. See Joint 
WTO/OECD TRTA/CB database, "Beneficiary Country: Jordan" . Viewed at: http://tcbdb.wto.org/benef_countr 
y.aspx. WT/TPR/M/206/Add.1 
Page 14  
 
 Mention is made in paragraph 50 that the Jordan Institution Standard and Metrology (JISM) acts as 
the TBT Enquiry Point and allusion is given in th e Summary Observations of the Secretariat’s Report 
(page vii, paragraph 6) that the Ministry is the notification authority.   Questions
:  (a) Could Jordan confirm whether JISM is al so the TBT notification authority pursuant to 
WTO/TBT Article 10.10 or whether it is another body?  
(b) Could Jordan explain how the authorities (e.g. WTO TBT Enquiry Point/Notification 
Authority) monitor the creation or modification of TBT technical regulations / conformity assessment procedures in its c ountry in order to determine whether a 
WTO notification is required under the transparency obligations of the TBT 
Agreement?  
(c) And when a determination is made, what is the mechanism (e.g. 
interdepartmental/inter-ministerial collabora tion) and timeline for the preparation of 
notifications?  
 
Paragraph 50 also notes that JISM prepares mandatory  technical regulations and voluntary standards, 
issues conformity certificates, functions as an accreditation body and carries out market surveillance and enforcement activities.   Questions
:  Could Jordan clarify whether: 
(a) JISM’s various functions and activities are managed independently in accordance 
with accepted principles of good governance?  
(b) JISM issues certificates of conformity for compliance with technical regulations and 
standards?  
(c) JISM is accredited as a conformity assessment body?  (d) Conformity assessment programs are offered in areas in which JISM offers 
accreditation programs? 
 
Part III. Trade Policies and Practices by Measure; (2) Measures Directly Affecting Imports, vii) 
Standards and other technical re quirements: paragraph 53, page 35 
 
Paragraph 53 mentions that the JISM is one of th e agencies responsible fo r implementing Jordan's 
risk-based border inspection system.  
 Question
:  Could Jordan provide further details on th e "risk based approach" it follows for border 
inspection? 
 
Part III. Trade Policies and Practices by Measure; (2) Measures Directly Affecting Imports, vii) 
Standards and other technical re quirements: paragraph 54, page 35 
 
According to paragraph 54 it appears that Jordan h as adopted a large number of voluntary standards.  
 Question
:  Could Jordan please clarify what proportion of these standards are based on international 
standards? 
 
Part III. Trade Policies and Practices by Measure; (2) Measures Directly Affecting Imports, vii) 
Standards and other technical re quirements: paragraph 56, page 36 
 According to paragraph 56, Jordan has published 706 technical regulations.  
 Question
:  What proportions of Jordan’s 706 mandatory technical regulations are based on 
international standards in accordance with  Article 2.4 of the TBT Agreement? 
  WT/TPR/M/206/Add.1 
 Page 15 
 
 
 Part III. Trade Policies and Practices by Measur e; (2) Measures Directly Affecting Imports, 
(vii) Standards and other technical requirements: paragraph 58, page 36 
 
Paragraph 58 notes that, "An independent accreditation body is to be established according to the draft 
accreditation law under consideration; and the scope of accreditation is to be expanded to include 
inspection and certification bodies. Pending the conc lusion of mutual recognition agreements, all 
imports, including those accompanied by valid techni cal certificates of conformity issued by foreign 
bodies in exporting countries, are subject to the risk-based system of inspection". We encourage 
Jordan with its plan to establish an independent  accreditation body and the goal of entering into 
mutual recognition agreements (MRA) with trading partners.  
 
Question :  Could Jordan clarify if whether it plans to continue to subject imported products for 
retesting after an MRA has been concluded and expl ain the rationale for this approach which could 
constitute an unnecessary obstacle to trade?  
 
Part III. Trade Policies and Practices by Measur e; (2) Measures Directly Affecting Imports; 
(vii) Standards and Other Tec hnical Requirements; (b) Sanitary and Phytosanitary (SPS) 
Measures: paragraph 63, page 37  
Paragraph 63 describes Jordan’s risk-based system  for inspection of imported food consignments. 
 
Question
:  Can Jordan please describe the process used  for classifying imported food products as low, 
medium or high risk and explain how this process conforms with Articles 3.1 and 5.2 of the WTO 
SPS Agreement?  Annex C of the WTO SPS Agreement requires that: 
• such procedures are undertaken and completed w ithout undue delay and in no less favourable 
manner for imported products than  for like domestic products; 
• the same criteria should be used in the siti ng of facilities used in the procedures and the 
selection of samples of imported products as for domestic products so as to minimize the 
inconvenience to applicants, impor ters, exporters or their agents; 
 Question
:  Can Jordan please explain how its risk cate gorization and related inspection regime is 
applied to locally produced food products and is  in conformity with Annex C of the WTO SPS 
Agreement? 
 
Part III. Trade Policies and Practices by Meas ure; (4) Measures Affecting Production and 
Trade; (iv) Intellectual Property Rights: paragraph 147, page 55  
The Secretariat report states that, "the exclusions from patentability [included in Jordanian law] are in 
line with the provisions of the TRIPS Agreement".   Question
:  Canada would appreciate if Jordan could provide more information on what are these 
exclusions from patentability.   Part III. Trade Policies and Practices by Meas ure; (4) Measures Affecting Production and 
Trade; (iv) Intellectual Property Rights: paragraph 148, page 55 
 
The Secretariat report states that compulsory licences can  be issued if "there is a need to export to 
countries suffering from epidemic diseases and emergency", among others.  
 WT/TPR/M/206/Add.1 
Page 16  
 
 Question
:  Canada understands from this statement that  Jordan has implemented the August 30, 2003 
WTO Decision, and would be grateful for furthe r details on how their regime is operating.  
 
Part III. Trade Policies and Practices by Meas ure; (4) Measures Affecting Production and 
Trade; (iv) Intellectual Property Rights: paragraph 150, page 56 
 The Secretariat report provides that one of the exceptions  to the right of a patent holder is, "the use of 
the patent for research and development purposes".   Question
:  Canada would be grateful if Jordan coul d further elaborate on the conditions under which 
the rights of a patent holder may be limited in these circumstances.  
 
Part III. Trade Policies and Practices by Meas ure; (4) Measures Affecting Production and 
Trade; (iv) Intellectual Property Rights: paragraph 163, page 57  
The Secretariat report states that Jordanian law recognizes "famous trademarks", whose reputation has 
transcended their country of origin and that are well known among Jordanian consumers. It goes on to 
note that such marks can be the subject of infringement  action even if they are not officially registered 
in Jordan.  Question
:  Canada would be grateful to find out whet her there have been any successful cases against 
the infringement of a "famous trademark" in Jordan so far. 
 
Part IV. Trade Policies by Sector; (2) Agricultu re and Related Activities: paragraphs 15 and 20, 
pages 63 and 64  
Paragraph 15 and paragr aph 20 indicate that despite being a water scarce country Jordan provides 
subsidies to irrigation water. Water shortage in Jord an is considered as chronic, but Jordan has no plan 
to eliminate water subsidies. Subsidizing irrigation wa ter results in a price that is less than its true 
value. Experience from other countries shows that subsidizing the use of water to make it more 
accessible leads to water being treated as abundant  which can exacerbate the conditions of water 
scarcity. Farmers respond to low water prices by using amounts of water that exceed the capacity of 
resource stocks. Market-based incentives can allocate scarce water efficiently. 
 Question
s:  (a) Given the chronic scarcity of water w hy does Jordan continue to subsidize water use 
in agriculture?  
(b) Are there plans to scale back water subs idies and replace them with more efficient 
market based-incentives? 
 
Part IV. Trade Policy by Sectors; (4) Ma nufacturing; (ii) Selected Industries; 
(c) Pharmaceuticals: paragraph 71, page 76  
The Secretariat report noted, "The pharmaceutical i ndustry has been one of the main beneficiaries of 
export subsidies through income tax relief. These subs idies are due to be phased-out by 2015 at the 
latest (Chapter III(3)(iv))."  Question
:  Could Jordan please further elaborate on thei r system of export subsidies and give further 
detail as to the phase-out program?   Part IV. Trade Policies by Sector, (5) Servi ces, (iv) Tourism, paragraph 152, page 92 
 
The Report states that prior Ministerial approval is required for establishing a hotel.  
  WT/TPR/M/206/Add.1 
 Page 17 
 
 
 Questions :  (a) What factors are taken into account in granting this approval?  
(b) What criteria are used in assessing applications?  
As for travel agencies, the Report states that doc umentary requirements for prior approval include a 
non-objection letter from the Jordan Tourism and Tr avel Agents Society and a bank guarantee.  
 
Question
:  What are the other key documentary requirements? 
 In respect of tourist guides, approval is granted by the Tourism Committee.   
Questions
:   (a) What factors are taken into account by  this Committee when approving applications?  
(b) What criteria are used?  
Part IV. Trade Policies by Sector, (5) Services, (b)  Postal and courier services, paragraph 119, 
page 86 
 Canada notes that the Jordan Post Compan y has been designated for privatization. 
 Question
:  Is there a timeline for privatization? 
 
Part VI. Trade Policies by Sector, (5) Services, (b)  Postal and courier services, paragraph 120, 
page 86 
 
Questions :   (a) Could Jordan please elaborate on its licensing system?   
(b) For instance how are international class  licences differentiated from domestic class 
licenses?   
(c) Is it based on the type of service provide d or rather the ownership/nationality of the 
companies providing the service?   
(d) Is there a limit on the number of licences available in either category?   (e) What are the criteria for obtaining a license under either category?  
Part IV. Trade Policies by Sector, (5) Services,  (v) Professional services; (c) Architectural and 
engineering services, paragraph 159, page 94 
 
This paragraph indicates that, "foreign engineering firms may only be engaged in projects where the 
required expertise is not available in Jordanian firms."  
Question
:  Who makes this determination and how is it made? 
 
Part IV. Trade Policies by Sector, (5) Services,  (v) Professional services; (c) Architectural and 
engineering services, paragraph 160, page 94  
This paragraph states that, "Engineers and engineer ing consulting offices are required to register with 
JEA and the association maintains a national register of all engineers licensed to operate in Jordan, 
including foreigners."   Question
:  Could Jordan direct us to resources online or otherwise, in which procedures and 
requirements for a licensure of foreign services are given?  Comments
 
 
Part II. Trade and Investment Regimes; (4) Trade Agreements;  (iii) Bilateral Agreements: 
paragraph 20, page 16; and Report by Jordan, paragraph 57, page 12 WT/TPR/M/206/Add.1 
Page 18  
 
  
Regarding the last sentence of the paragraph, "Jordan has begun negotiations for an FTA with 
Canada," and the sentence "bilate ral preferential agreements and FTAs are being negotiated with 
Turkey, Canada and Mercosur", in document WT /TPR/G/206, Canada would note that Jordan and 
Canada concluded FTA negotia tions on August 25, 2008. 
 
EUROPEAN COMMUNITIES
 
 
SUMMARY OBSERVATIONS 
 
(2) INSTITUTIONAL FRAMEWORK 
WTO Secretariat's report, page viii, para.10   
The WTO Secretariat's report outlines in detail Jo rdan's tariff escalation in different sectors.  
 
Question
:  Does Jordan envisage any changes in the current tariff structure? 
 
WTO Secretariat's report, page ix, para.11  
 
The WTO Secretariat's report describes the customs procedure in Jordan, under which all importers 
are required to present an importer card for custom s clearance purposes; or pay a penalty of 2.5% of 
the value of imports.  
 Question
:  Could Jordan explain why individuals have to pay a penalty of 2.5% of the value of their 
imports if they are not eligible for the importer card? 
 
WTO Secretariat's report, page x, para.18    
 
The WTO Secretariats' report outlines that "Jordan is  pursuing a strategy of trade liberalization at the 
multilateral, regional, and bilateral levels.  It h as made great strides, fo llowing its accession to the 
WTO, in reforming its economy and liberalizing its  trade regime.  The economy has shown resilience 
in a challenging external environment but it is likel y to remain vulnerable to surges in international 
prices for energy and food.  These and other structural problems (including water shortage) are being 
addressed through a policy agenda in which privati zation, investment, and trade liberalization have 
key roles".  Question
:  Could Jordan elaborate further on how it inte nds to encourage sustainable development and 
core labour standards in the context of  negotiations with third countries? 
 
I. THE ECONOMIC ENVIRONMENT (3) TRADE PERFORMANCE AND INVESTMENT  (ii) Investment  WTO Secretariat's report, page 8, para.17  
 The WTO Secretariat's report indicates that FDI has been constrained by, inter alia , administrative 
hurdles.   Question
:  Could Jordan elaborate on whether it has plans to address these administrative burdens 
with the view of improving business and investment climate and if so, give details of these plans? 
  WT/TPR/M/206/Add.1 
 Page 19 
 
 
 II TRADE AND INVESTMENT REGIMES 
(4) Trade Agreements (ii) Regional agreements Agreement with Egypt, Morocco, and Tunisia WTO Secretariat's report, page 16, para.19     
 The Report outlines that Jordan is a party to the Agadir Agreement, which entered into force on 
6 July 2006.   Questions
:  Could Jordan elaborate on how it has benefited from the implementation of the 
Agreement so far?  Could Jordan indicate whethe r and how does it intend to promote the Agreement 
among its private sector?  
(iii) Bilateral agreements 
WTO Secretariat's report, page 16, para.20     
 
The report states that Jordan is negotiating an FTA with Turkey. The negotiations began in June 2005 
and the last round took place in December 2007. We recall that Turkey has established a customs union with the EC and is aligning itself with the EC commercial policy. 
 Questions
:  Could Jordan provide more detailed informa tion on the current status of negotiations with 
Turkey, including the prospects of the next nego tiating round?  Could Jordan elaborate on its position 
concerning the expected scope and coverage of th e Agreement, both in tariff lines and trade value 
figures?  Could Jordan indicate the date by which ne gotiations with Turkey will  conclude and the date 
by which the Agreement will come into force? 
 
The WTO Secretariat’s Report further states that Jo rdan has initiated negotiations for an FTA with 
Canada, yet according to other sources, these ne gotiations have already been concluded. 
 Questions
:  Could Jordan provide information on the stat e of play of negotiati ons with Canada? Could 
Jordan specify the scope and coverage of this Ag reement, both in tariff lines and trade value figures? 
Could Jordan furnish information on whether it intends  to start any other FTA negotiations in the near 
future? 
 
(5) INVESTMENT  FRAMEWORK 
WTO Secretariat's Report, page 18  para. 28     
Paragraph 28 outlines the regime applying to ownership and investme nt for non-nationals based on 
the Organizing Non-Jordanians' Investment By-Law  No. 54 of 2000 and Jordan authorities have 
prepared a new draft regulation to replace the Regulation nº 54 of 2000.  According to initial 
information this new draft will allow 100% forei gn ownership in transport services, insurance agent 
services and travel agencies and tour operator services.  
Questions
:  Could Jordan inform us when the above  mentioned regulation will come into force? 
nCould Jordan furnish information whether it intends  to allow 100% foreign ownership in transport 
services, insurance agent services a nd travel agencies and tour operator services in the new law? 
Could Jordan give details on any plans to eliminat e the limit of 50% on foreign equity in engineering 
services and construction contracts? 
 WT/TPR/M/206/Add.1 
Page 20  
 
 TRADE POLICIES AND PRACTICES BY MEASURE 
I
NTRODUCTION  
WTO Secretariat’s Report, page 23 para. 1  
The WTO Secretariat's Report notes that the applie d MFN tariffs are generally within a range of 0-
30%, with a peak of 180% on certain alcohol and al coholic beverages and it  is understood that the 
reasons for such peaks are cultural and religious.  Question
:  Could Jordan elaborate on the reasons of its selective approach towards its trading partners 
as to the tariff dismantlement schedules for certain alcoholic beverages contained in bilateral FTAs? 
 WTO Secretariat's report, page 24-25, para. 12     
 
The WTO Secretariat's report states that in 2007, 15%  of the total consignmen ts were cleared through 
the green, 41% through the yellow and 44% through the red channel respectively. 
 
Question
:  Could Jordan furnish information on any future performance targets for improved customs 
clearance procedures as regards percentage of c onsignments going through red, yellow and green 
channels?  
M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration and documentation 
WTO Secretariat's Report, page 24  para. 6      
The WTO Secretariat's Report notes that registrati on in the Importers/Exporters Registry precludes 
inspection and approval of the relevant premises by the local municipality. 
 
Question
:  Could Jordan indicate the rationale for this requirement? 
 
(iii) Rules of Origin 
WTO Secretariat's Report, page 25  para. 17     
 The legal framework for the application of non-preferen tial rules of origin is set out in Articles 24-26 
of the 1998 Customs Law, as amended.
   The rules stipulate that, inter alia , goods must be wholly 
obtained in the exporting country, or undergo substantial transformation th at results in a change of the 
six-digit tariff classification of the goods, or contain at least 40% domestic content (Article 24).  A certificate of origin is required for imported produc ts from all countries.  The certificate should be 
issued by an authorized b ody in the exporting country. 
 Questions
:  Could Jordan explain why its non preferential rules of origin are stricter than the ones 
used in the context of preferential agreements? Wh y is a certificate of origin required for all non 
preferential imports?  Could Jordan indicate for wh ich purposes their non preferential rules of origin 
are applied? 
 
WTO Secretariat's Report, page 25  para. 22 
 
Paragraph 22 indicates that the Pan-Euromed rules of  origin are applied to trade under the Jordan-EC 
Association Agreement, the Jordan-EFTA FTA, th e Agadir Agreement, and Jordan-Israel Trade 
Agreement. The EC notes that this paragraph shoul d be further clarified with the following text: The 
Pan-Euromed protocol allows for diagonal cumu lation of origin among member countries, having 
concluded a Free Trade Agreement between them, incl uding the pan-euro-med protocol on rules of 
origin.  
  WT/TPR/M/206/Add.1 
 Page 21 
 
 
 Tariffs and taxes 
(e) Other duties, levies, and charges WTO Secretariat's Report, page 32  para. 35      
An import processing fee 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.  Tran sit fees are JD 20 per transaction; re-export fees 
are JD 15 per transaction.  According to the Custom s Law, these fees (services allowances) are to be 
paid to "eligible officers" in a manner determined by the Minister of Finance; the remaining sum is 
deposited in a special fund for the Customs Depart ment, to be used for improving customs houses, 
establishing housing compounds and housing loans for customs officials, as well as improving their 
living, sport, cultural, and so cial standards (Article 161D). 
 Question
:  Does Jordan intend to eliminate the import processing fees? 
 
WTO Secretariat's Report, page 32  para. 36-38     
 Paragraphs 36-38 outline the General Sales Tax and Special Tax systems. 
 
Question
:  Could Jordan provide more information on th e rates and structure of the "special taxes" 
mentioned in paragraphs 36 and 38? 
 
WTO Secretariat's report, page 35, para. 52      
The WTO Secretariat's report states  that the current Standards a nd Metrology Law is under review 
with the intention of incorporating provisions fo r market surveillance, to  ensure compliance with 
product safety requirements. 
 
Question
:  Could Jordan provide information as to in wh ich stage of review this law is? When are the 
amendments to the law expected to be adopted  by the Parliament and enter into force? 
 
(vii) Standards, and other technical requirements 
(a) Technical barriers to trade (TBT) 
WTO Secretariat's Report, page 36  para 57     
The WTO Secretariat's Report indicat es that Jordan is in the process of adopting six new technical 
regulations concerning product safety.  
Question
:  Could Jordan provide more detailed informa tion as to in which stage of adoption these 
regulations are and when are they expected to enter into force? 
 
WTO Secretariat's Report, page 36  para. 58     
The WTO Secretariat's report describes the Jordan ian accreditation system of conformity assessment 
bodies, which operates under the umbrella of the JISM and ensures compliance with the ISO/IEC 
17011 standard for accreditation bodies.  Implemen tation of this ISO standard would allow for 
negotiation of mutual recognition agreements with  foreign accreditation bodies.  Yet currently, all 
imports are subject to the risk-based system of in spection (only testing and calibration laboratories, 
and medical laboratories are being accredited).  
This Jordanian risk-based system of inspection can  be very costly for exporters and importers.  
 Question
:  Could Jordan inform us about the current st atus of the implementati on of the ISO standard 
that would pave the way for the negotiation of mutu al recognition agreements with foreign authorised 
laboratories? WT/TPR/M/206/Add.1 
Page 22  
 
 (b) Sanitary and phytosa nitary (SPS) measures  
WTO Secretariat's Report, page 37  para. 62   
According to the WTO Secretariat report, "a new food law is under consideration". 
 
Question
:  Could Jordan provide information as to in wh ich stage of preparation this law is? When is 
the new law expected to be adopted by the Parliament and enter into force? 
 
WTO Secretariat's Report, page 37  para. 65    
 
The WTO Secretariat report notes that "shipments must also be accompanied by a certified laboratory 
analysis of the contents of the imported articles."  Question
:  Could Jordan confirm that the laboratory analyses should not accompany all consignments 
of imported products and if laboratory analysis must accompany shipments, on what basis? 
 
WTO Secretariat's Report, page 37  para. 66  
 
The WTO Secretariat report describes the Jordan ian quarantine procedures, its exceptions and the 
basis for mutual recognition agreements.  
Questions
:  Could Jordan clarify its policy on risk-based import restrictions related to BSE, 
acknowledging that import beef restrictions – for some EC countries – have already been lifted? 
Could Jordan indicate when it will: 
 
(a) follow the World Organisation for Animal  Health (OIE) BSE risk classification on 
the basis of  which 25 EC countries belong (since May 2008) to either a "controlled" 
or "negligible" risk status, and 
(b) allow the import of beef and other meat products from all EC countries? 
 
(viii) Government procurement 
WTO Secretariat's Report, page 38  para. 71  
 
The report outlines that Jordan intends to modify it s procurement legislation, which will be the key 
element for the GPA accession.   Questions
:  In this respect, could Jordan inform about the state of play and the date of the actual 
adoption of this legislation?  
Could Jordan, furthermore, present details on the provisions contained in the draft procurement 
legislation?   In particular, will the new procurement legislation modify all current Acts on procurement, including 
those targeting sub-central government entities?  
 
(a) If so, will the legislation unify the procur ement rules on all levels  of procuring entities 
and establish one legal framework fo r procurement on all levels?   
 (b) If not, which entities (government departme nts and corporations, municipalities, rural 
councils) will continue to follow a specific regime? What would be the main feature 
of the specific regime, in particular in respect to publications, qualifications of (foreign) bidders and tendering procedures?  
  WT/TPR/M/206/Add.1 
 Page 23 
 
 
 WTO Secretariat's Report, page 38  para. 75 and para.79   
 
This report details measures taken by Jordan to become GPA compliant.  Question
:  Could Jordan indicate how it intends to re nder its procurement legislation GPA compliant 
regarding firstly, the pre-qualification/qualification of foreign suppliers (in all types of procurement) 
and secondly, regarding the requirements for particip ation of a Jordanian partner (local agent), both 
for the participation in tender procedures and for the execution (after sale service)?  
 
WTO Secretariat's Report, page 40  para. 82   
 
The WTO Secretariat outlines the tender pr ocess for procuring goods and services. 
 Question
:  Could Jordan indicate whether it intends to change the system of notification of bidders, so 
that the aggrieved bidder would be able to challe nge the award decision in front of a review body 
(written notification)?  
 It is noted from the report that currently, the Jo rdanian law does not foresee a specific system of 
impartial and effective remedi es for procurement disputes. 
 Questions
:  Could Jordan explain how the new legisla tion will address this?  Will there be a uniform 
remedies system put in place, which will be applicab le to all tender procedures, irrespective of the 
type of procurement and the le vel of the procuring entity?  
 
MEASURES DIRECTLY AFFECTING EXPORTS  
(iii) Export prohibitions, restrictions, and licensing 
WTO Secretariat's Report, page 43 para. 94 and  page 44  para. 96    
 
The WTO Secretariat's Report notes that the share of exports benefiting from the export subsidy in 
Jordan's total merchandise exports increased signi ficantly in 2006 (from 70,8 million US$ in 2005 to 
2,148 billion US$ in 2006.) The Report also notes that this subsidy has to be eliminated by the end of 
2015.  
 
Questions:  Could Jordan indicate the reasons for su ch a significant increase of the share of exports 
benefiting from the subsidy?  Is there any data c oncerning the share of exports benefiting from this 
subsidy available for the year 2007?  (4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(ii) Competition and pricing policies WTO Secretariat's Report, page 50  para. 131 
The report indicates price controls which can be applied to essential commodities.  
Currently there is a price control imposed by the JFDA (Jordan Food and Drug Administration) on the Infant Milk Formula for Babies Age 0-12 months. 
This price fixed by the JFDA has been very low fo r the last few years. As a consequence the only 
local manufacturer (joint venture) of infant milk  formula has faced heavy losses because this fixed 
price is even below the cost production. Infant Formulae is not subject to price control in more  than 95% of countries.  In Jordan this low price 
control policy is against foreign direct investment . Therefore, exporters are seriously considering 
stopping their sales in Jordan.  
 WT/TPR/M/206/Add.1 
Page 24  
 
 Question
:  Even if Jordan authorities co nsider the Infant Milk Formula for Babies Age 0-12 months as 
a medicine and keep the registration process, would it be possible to remove or adjust this price control that is damaging the production system and the market?  
WTO Secretariat's report, page 56, para. 151 
 The WTO Secretariat's report states that industrial designs are protected by the Industrial Designs and 
Models Law No.14 of 2000. We note, however, that no procedures exist in Jordan for controls to be 
exercised by public authorities in the absence of a specific complaint by the rights-holder for a 
specific product. This might lead to significant trade in fake copy products. 
 
Question
:  Could Jordan elaborate as to whether and how  it intends to give its public authorities the 
right to exercise control concerning industrial desi gns even in the absence of  a specific complaint by 
the rights-holder for a specific product?  
 
IV. TRADE POLICIES BY SECTOR 
(5) SERVICES 
(ii) Telecommunications and postal services 
(a) Telecommunications  
WTO Secretariat's Report, page 84  para. 106   
 The report notes that the fixed-line subsector in Jordan is not opera ting competitively, and there is a 
virtual monopoly amongst internet service providers who still face a virtual monopoly with respect to 
internet connectivity.  The statement from th e Ministry of Information and Communications 
Technology sets out the policy initiatives fo r telecom and information technology. 
 
Question
:  Could Jordan indicate what kind of measures it will take in order to promote competition in 
this sector?  
 
WTO Secretariat's Report, page 84  para. 107   
 
Question :  Could Jordan please provide more detailed information on government plans to ensure 
their regulatory activities are compliant with the Competition Law.  
 
(b) Postal and courier services  
WTO Secretariat's Report, page 86  para. 119 
 The WTO Secretariat's Report describ es Jordan's new legislation, which facilitates a privatisation of 
the postal industry.   Question
:  Could Jordan provide more information on the nature of the postal regulatory authority 
established under the Temporary Post Services Law No. 5 of 2002 and the Postal Law No. 34 of 2007. 
In particular, could Jordan indicate if this regulat ory authority is independent  and give details on any 
possible review mechanism against decisions taken by it? 
 It is mentioned that Jordan Post Company, current ly fully government owned, has been designated for 
privatization.   
Question
:  Could Jordan update on r ecent developments since 2007? 
  WT/TPR/M/206/Add.1 
 Page 25 
 
 
 WTO Secretariat's Report, page 86  para. 121 
 
The Ministry of Information and Communications Technology has promised further, in its 2007 policy statement, promised further liberalization of postal services.  
Question
:  Could Jordan provide an update on this programme? 
 
(iii) Transport WTO Secretariat's Report, page 87  para. 127  
The WTO Secretariat Report states that on the one hand that there are no restrictions concerning the 
ownership of ships registered under the Jordanian fl ag, and yet on the other hand that there is a 50% 
foreign equity ceiling for maritime transport and ancillary services.   Question
:  Could Jordan clarify the relevant restrictions  for foreign shipping co mpanies established in 
Jordan that operate Jo rdanian-flagged vessels? 
 
(iv) Tourism 
WTO Secretariat's Report, page 92  para. 151 and 152   
According to the WTO Secretariat report, the Ministry of Tourism and Antiquities (MOTA) has instituted a licensing regime for regulat ory tourist establishments and services.  
 Question
:  Could Jordan give details on the licence's re quirements and how fees mentioned in par. 152 
are regulated?  
(5) S
ERVICES  
(i) Financial services 
(a)  Banking     
 
The Report outlines the core principles of Jordan's banking law and mentions the Central Banks recent 
regulation. 
 
Question :  Could Jordan please furnish information on its  alignment with the Basel core principles on 
banking supervision and outline any plan s to implement Basel 2 requirements? 
 
INDIA  
 
The business environment remains somewhat inhibited by, inter alia, administrative hurdles, limitations on foreign participation in certain activ ates, such as road transpor t, and costly transport 
infrastructure and utilities.  State ownership remains substantial (Para 3 of Secretariat Report refers). 
 Question
:  What are the steps taken  by Jordan to further improve business environment? 
 
Para 8 of Secretariat Report states that Jordan liberalized its trade regime significantly during its WTO accession process.  Its customs tariffs on all products, except electricity, are bound.  The simple average of the final bound tariffs is 16.3%, with 23. 9% for agricultural products (WTO definition) and 
15.2% for non-agricultural goods.  The imposition of  ad valorem tariffs on two of these lines (HS 
items 961310000 and 961320100) creates a risk concerning compliance by Jordan with its tariff 
binding commitments on these products.  Question
:  Is Jordan planning  to reduce or eliminate this risk? 
 WT/TPR/M/206/Add.1 
Page 26  
 
 According Para 10 of Secretariat Report Reduction of the tariff rates and the number of bands would 
help to simplify Jordan’s tariff structure and its  complex incentives regime with five overlapping 
schemes (Investment Promotion Law, industrial est ates, development areas,  free zones, and the 
ASEZ):  some of the incentives are the consequence of the tariff structure.  This would also contribute 
to better allocation of resources.   
 
Question
:  What plans Jordan has for simplifying its tariff structure? 
 As Para 11 of Secretariat Report Jordan h as modernized its customs procedures through the 
introduction of UNCTAD’s Automated System for Customs Data (ASYCUDA), combined with a 
risk-based inspection system.  A relatively high shar e of import consignments is nonetheless inspected 
at the border.    Question
:  What are the reasons for high share of import consignments inspected at the border? 
 
The Para 13 of Secretariat Report states … restricti ons, such as foreign equity limitations or Jordanian 
nationality requirements, are maintained to preserve Jordanian control or influence.  No commitments 
were made on postal services, railway, and road transport services, or on certain environmental, 
audiovisual, and business services. 
 
Question :  Does Jordan envisage liberalising these requirements to improve FDI inflows? 
 
According to 14 of Secretariat Report - Overall, Jo rdan would benefit from accelerating reforms in the 
transport subsector because of its importance for co mpetitiveness;  its internal and regional trade takes 
place predominantly through the port of Aqaba, and by land transport. 
 
Question :  Does Jordan have any time bound plans fo r further accelerating in transport subsector? 
 Para 19 of Secretariat reports that Jordan would stand to gain from further dismantling its tariff and 
non-tariff barriers to trade.    Question
:  What measures Jordan proposes to ta ke to achieve and consolidate gains? 
 
Para 28 of Secretariat reports that  Under Article 7 of the by-law, no n-Jordanian investment must be a 
minimum of JD 50,000, except in public shareholding companies.    Question
:  Does Jordan plans to reduce this ceiling to  attract non-Jordanian investments from the 
region and outside?  
 Para 126 of Secretariat report points out that sh ipping agents must have a general manager of 
Jordanian nationality.    Question
:  What are the reasons for maintaining such a provision? 
 
Para 131 of Secretariat Report mentions that Forei gn investment is prohibited in road passenger and 
freight transport services.  Other road transport services are subject to a 50% foreign equity ceiling. 
 
Question :  Are there any plans envisaged by Jordan  to further liberalise these prohibitions and 
enhancing foreign equity ceilings?  
 Para 12. of Jordan’s reports … moreover,  w ithstanding the temptation and political pressure to 
introduce price controls on basic foodstuff, the govern ment instead lifted import duties and sales taxes 
on some basic food products, thus alleviating to so me extent the pressure from rising import prices.  WT/TPR/M/206/Add.1 
 Page 27 
 
 
 Whereas Para 13. states that challenges resu lted in additional burden on the budget which 
demonstrated a deficit of 5.5% of GDP in 2008. Fu rther Para 62 states that with income from tariffs 
declining, the government has embarked on a fiscal re form program to maintain a sufficient degree of 
budgetary manoeuvrability. Broadening the tax base wh ile reducing tax rates wherever possible and 
appropriate will be the course to follow. On the e xpenditure side, the abolis hment of fuel subsidies 
accompanied by support for personal incomes has been  a major, perhaps the most important step in 
this direction. 
 
Question :  What are the specific measures Jordan is cons idering to  curb the rising budget deficit? 
Para 37 of Jordan’s Report informs that the Jordan ian 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 and personnel training colleges are being invested. On the other hand, Para 14 of its report, inter alia, blames 
unstable economic and political situation in  the region for unemployment and poverty. 
 
Question
:  Could Jordan please inform how the situation in the region has impacted on its economy in 
general and tourism sector in specific and what steps it plans to take to further improve attractiveness 
of this crucial sector to its economy?  WT/TPR/M/206/Add.1 
Page 28  
 
 REPLIES PROVIDED BY JORDAN 
 
BRAZIL
 
 
Q1. Could you please provide further information on the eligibility criteria to join the Golden List 
programme mentioned in pa ragraph 12 of the Section on customs procedures? 
 
Answer : 
The application to join the Golden List Programme must meet the following conditions in order to be 
accepted: 
- The company must have a large trade volume, w ith an acceptable compliance rate, equal to 
or exceeding 95%, for all customs declarations during the year preceding the date of the application. 
- The company has been in business for at le ast 5 years before filling its application and was 
not subjected to litigation by Jordan Customs. 
- The company has already implemented a "custo ms due diligence and supply chain security". 
 
Once the application is accepted by Jordan Customs,  the later will initiate an audit process in which 
the company must prove to have well-documented "customs due diligence and supply chain security" 
procedures, compliant with the customs-transaction measurements.  
For more information, visit Jordan Customs website:  www.customs.gov.jo 
 
Q2. What is the allocation of the resources deri ved from the collection of the internal taxes 
referred to in paragraph 36?   Answer:
 
Resources derived from the collection of internal  taxes are transferred to the government general 
budget, to be allocated according to the government's needs and priorities.   
 CHAPTER III - TRADE POLICIES AND PRACTICES BY MEASURE (2) Measures directly affecting imports 
(iii) Rules of origin 
Page 25, paragraph 17  
Q3. The document mentions that a certificate of origin is required for imported products from all 
countries. 
Could Jordan inform the reason why such a certificate is required for all countries? 
 
Answer:
 
The Certificate of origin is required for importe d products from all countries for the following 
reasons: - For  the purpose of  a safeguard or antidumping measure. 
- In cases of failure in meeting the transaction value 
- For the purpose of re-exporting products.  Page 27, paragraphs 24, 25 and Table III.2.  
Q4. In relation to the tariffs for the products men tioned in table III.2, what is the justification for 
using Composed duties? Is there any plan to convert those tariffs into ad-valorem tariffs? 
  WT/TPR/M/206/Add.1 
 Page 29 
 
 
 Answer:  
The tariffs of these products are composed du ties and were bound in Jordan's tariff schedule upon 
WTO accession. Such composed duties are applied to serve development needs ma inly in rural areas 
through providing protection for farmers producing these products, particularly in times when prices 
may fluctuate sharply.  
 
There are no plans, at the time being, to convert the above mentioned duties to ad-valorem tariffs. 
 
CHAPTER IV – TRADE POLICIES BY SECTOR 
(2) Agriculture and Related Activities 
(iii) Main subsectors 
Page 65, paragraph 23  
Q5. Could Jordan explain what is the reason fo r applying a MFN tariff of 30% on products with 
self-sufficiency ratios far in excess of 100%?"  Answer:
 
Applying 30% tariffs on the menti oned products is considered as a precautionary measure in case of 
surge of inputs, since Jordanian farmers may fa ce competition from similar products of other 
countries with lower costs of production.   
However, the government may redu ce customs tariffs below bound ra tes when needed to ensure 
availability of food with reasonable prices for Jordanians, as was the case during the recent global food crisis and the sharp rise in food prices, wh ere the government reduced applied tariffs below 
bound rates on around 100 tariff lines of basic food commodities.  
 
CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU
 
 MANUFACTURING (ii) Selected industries (b) Textiles and clothing industry 
(page 74, paragraph 63) 
 
The report states that, "The textile industry has b ecome Jordan’s largest export sector. Over 90% of 
garment exports were destined for the United Stat es in 2007. To a great extent, Jordanian textile 
factories have relied on imported te xtile fabrics, notably from China,  and foreign labour (about 30,000 
according to some estimates)."  
 
It would be appreciated if Jordan could please expl ain its foreign labour employment policy in greater 
detail?  
 
Answer:
 
Jordan’s labour market policy is first and forem ost aimed at creating decent work opportunities for 
Jordanians. However, within the framework of this  policy Jordan welcomes foreign labour in sectors 
where Jordanians are unable to take up vacant positi ons. For example, a sizable foreign workforce is 
employed in the QIZs and the construction sector. At the same time, Jordan has developed initiatives 
aimed at improving access for Jordanians to jobs held by foreign workers by, for instance, providing 
vocational training opportunities or stimulating indust ries to locate in areas with high unemployment. 
 Is any limitation placed on foreign investors opera ting in the Qualified Industrial Zones (QIZs) 
relating to the employment of foreign labour?  WT/TPR/M/206/Add.1 
Page 30  
 
 Answer:
 
 Within the policy regarding foreign labour explained  in question (i) above, no limitations are placed 
on foreign investors in the QIZs relating to the empl oyment of foreign labour. However, the Ministry 
of Labour does verify the need fo r such labour as well as worki ng conditions at facilities prior to 
approving requests for importing foreign labour. This  procedure is applied to both Jordanian and 
foreign investors on the QIZs.   
(pages 74, paragraph 64) 
 As stated in the report: "…the tariff advantage of the QIZ initiative is gradually being eroded by the 
implementation of tariff concessions under the FTA be tween Jordan and the United States. For certain 
goods such as textiles and clothing, import tariffs in the United States under the FTA will be fully 
eliminated by 2010."  The textile industry is one of  Jordan’s most important industries in that it 
creates a great number of job opportunities and is a major source of foreign exchange.  
We should be grateful if the government of Jord an could please advise whether it has any plan to 
assist garment manufacturing companies operating in the QIZs after 2010?   Answer:
 
The government has developed a draft National Strate gy for the Garment sector, which was prepared 
in close cooperation with the private sector in Jo rdan. The strategy was submitted to the Council of 
Ministers for adoption. This strategy aims at  enhancing competitiveness of the Garment Sector, 
increasing its exports, and improvi ng the local added value.  
 
Main pillars of the National strategy  for the Garment Sector, include: 
1. Decreasing production costs 
2. Promoting exports of the sector 
3. Promoting investment in the sector 
4. Improving Human Resources management and capabilities 
5. Enhancing supporting services 
 
(4) MEASURES AFFECTING PRODUCTION AND TRADE 
(iii) State-trading, state-owned enterprises, and privatization 
(page 52, paragraph 137) 
 
Jordan’s privatization approach appears to vary acco rding to the specifics of the enterprise or service 
to be privatized.  
 Will there be any limitations placed on forei gn investors during the privatization process? 
 Answer
: 
In implementing its privatization program, Jor dan follows a multi-track approach according to the 
nature and specificity of the sector slated for rest ructuring and privatization. This approach has 
significantly contributed to the acknowledged su ccess of the program and to boosting foreign direct 
investment, increasing private sector participation, job creation and alleviating public debt burden. 
By virtue of the Privatization law no. 25 for the yea r 2000, the main types of privatization followed in 
Jordan are inter alia: (a) Capital Privatization;  (b) Divestiture of governmental shares; (c) 
concession agreements; (d) Lease and investment c ontracts; (e) Management contracts; (f) 
Franchise; (g) BOT and its derivatives; and (h) IPO. According to the nature of the enterprise, the 
best privatization type is adopted. 
 
Moreover, and in order to create the required investment environment conducive to private sector 
participation, the Investment Promotion Law no. (1 6) for the year 1995 and its amendments for the  WT/TPR/M/206/Add.1 
 Page 31 
 
 
 year 2000 allowed foreign parties to invest in the country through ownership or partnership or 
shareholding in accordance with the prevailing legislation, whereby Jordanian and Non- Jordanian 
investors are afforded the same treatment according to the p revailing regulations and laws in the 
country. Foreign investors can, in most sectors,  acquire up to 100% of a company's shares. 
 TRADE POLICIES BY SECTOR 
(3) MINING, ENERGY, AND WATER 
(ii) Oil and natural gas (page 68, paragraph 39)  
We note from the Report that the Natural Resourc es Authority (NRA) is responsible for negotiating 
agreements and granting concessions for the expl oration and exploitation of hydrocarbons.   
 Are there any special concerns or criteria used  in the process of granting concessions, relating in 
particular to foreign investors? 
 
(page 68, paragraph 41) 
 
Answer
: 
Investor interest in Jordan’s oil shale reserves has increased considerably and several agreements 
have been signed with international oil companies.    
Does Jordan offer any incentives to investors in its oil shale explora tion industry, aimed especially at 
foreign investors?  Answer
: 
The Government of Jordan represented by the Na tural Resources Authority (NRA) grants petroleum 
exploration blocks under Production Sharing Ag reements (PSA) /Concession Agreements for 
international oil companies. Concession agreements usually provide for customs duties exemptions.  
 
Oil Shale Exploitation is granted to international companies on a Fiscal Regime "Royalty & Tax"/Concession Agreement. Concession Agreements us ually provide for custom duties exemptions. 
 (iii) Electricity 
(page 69, paragraph 42) 
 
Jordan’s electricity prices are not market dete rmined and the Electricity Sector Regulatory 
Commission was established with responsibilit y for determining electricity tariffs.   
 
Is there a concrete operating mechanism in place, which the Commission uses when formulating the price?  What major concerns are ta ken into account in the price-setting? 
 
Answer
: 
The Electricity Regulatory Commissi on sets prices of electricity ba sed on a clear tariff methodology 
for both retailers and bulk suppliers. The tariff me thodology takes into consideration financial costs 
for the service and the return for the licensees. The tariff is unsubs idized, however there is a cross 
subsidy within the electricity sector among the different types of consumer categories. 
 
COLOMBIA  
 
Within what period of time does Jordan aim to fu lfil its WTO notification commitments, in particular 
with respect to agricultural notifications?  WT/TPR/M/206/Add.1 
Page 32  
 
 Answer:
  
Jordan will exert all efforts to fulfil WTO notifica tion requirements with respect to agriculture. The 
latest notification was for the year 2005; however it s hould be noted that the delay in notifying the 
years 2006 and 2007 is due to the delay in availab ility of up to date statistics for the notification due 
for years 2006 and 2007. 
What are the main characteristics of Jordan's e xport policy as regards textiles and clothing?  How 
does it intend to address the problems arising from the need to maintain competitiveness in those 
sectors?  
Answer:
  
The government has developed a draft National Strate gy for the Garment sector , which was prepared 
in cooperation with the private sector in Jordan.  The strategy was submitted to the Council of 
Ministers for adoption. This strategy aims at increasing competitiveness of  the Garment Sector, 
increasing its exports, and improving the local added value.  
 Main pillars of the National strategy  for the Garment Sector, include: 
Decreasing production cost 
Promoting exports of the sector Promoting investments in the sector 
Improving Human Resources management and capabilities 
Enhancing supporting services 
 What are the main characteristics of the incentive schemes pursued by Jordan through its qualifying 
industrial zones, free zones, and the Aqaba Special Economic Zone?  
Answer:
  
 
A matrix containing investment incentives in Jordan is attached.  
Jordan's Investment Incentives Matrix 
Investment 
Entity/Investment 
Exemptions  
Jordan Investment 
Board Jordan Industrial 
Estates 
Corporation Free Zones  
Corporation Aqaba Special  
Economic Zone  
Development 
Areas 
Qualified Sectors and Activities Agriculture; mining; 
industry; hotels; hospitals; leisure and 
convention centers; 
distribution of water, gas and electricity; 
maritime and railways Industry Industry and 
trading Most economic 
activities Most economic 
activities 
Other Eligibility Criteria Subject to minimum 
capital requirement (JD50,000), with 
exception of 
participation in public shareholding 
companies None None None None 
Income Tax 10 year reduction 
 Reduction rate depends 
on sector and area in 
which the project is located: 
• Zone A - 25 percent 
• Zone B - 50 percent 
• Zone C - 75 percent 100% exemption 
for two years (may be applied in 
addition to 
incentives under the Investment 
Promotion Law)  100% exemption 
on export and transit trade 
earnings, and 
earnings derived from transferring 
goods within free 
zones  
Foreign workers 
exempt from income tax Flat 5% income 
tax (except banks, finance 
companies, 
insurance/ reinsurance 
companies and 
land transport companies, which 
are subject to 
applicable national taxes 
 
 Flat 5% income 
tax (except banks, finance 
companies, 
insurance/ reinsurance 
companies and 
land transport companies, which 
are subject to 
applicable national taxes) 
 
JIEC Law, Free  WT/TPR/M/206/Add.1 
 Page 33 
 
 
 Investment 
Entity/Investment 
Exemptions  
Jordan Investment 
Board Jordan Industrial 
Estates 
Corporation Free Zones  
Corporation Aqaba Special  
Economic Zone  
Development 
Areas 
Zones, Income Tax Law  
100% exemption 
for transit trade  
      
Also eligible for 
exemptions under 
other laws, including 
Investment 
Promotion Law, 
Social Services Tax 10 year reduction 
 Reduction rate depends 
on sector and area in 
which the project is located: 
• Zone A - 25 percent 
• Zone B - 50 percent 
• Zone C - 75 percent 
 100% exemption 
for two years (may be 
applied in addition 
to incentives under the Investment 
Promotion Law) Foreign workers 
exempt from social services tax 100% exemption 
(registered Enterprises only) 100% exemption 
(registered Enterprises only) 
Custom Duties 100% exemption on 
fixed assets, fixed 
assets needed for 
expansion, and spare parts No exemption  100% exemption 
on all imports 100% exemption 
on all imports 100% exemption 
on all materials, 
instruments, 
machines and appliances for 
construction, 
establishment or furnishing 
projects, including 
spare parts for maintenance 
Sales Tax on Imports 100% exemption on 
fixed assets, fixed assets needed for 
expansion, and spare 
parts No exemption 100% exemption 
on most imports 100% exemption 100% exemption 
on most goods and services 
Treatment of Sales 
within Zone Not applicable Not applicable Special 8% sales 
taxes on tourism 
goods and services consumed within the zones 7% sales tax on 
selected goods and 
services (mostly consumption goods and 
services) 7% sales tax on 
most goods and 
services 
 
ARGENTINA  
 
II. TRADE AND INVESTMENT REGIMES 
(4) Trade agreements 
(iv) Other preferential arrangements Paragraph 25, page 17  
According to this paragraph, Jordan does not par ticipate in the Global System of Trade Preferences 
(GSTP) among developing countries.  Does it intend to become a member of that system? 
 
Answer:
 
Becoming a member in the GSTP is something that Jordan would favourably consider. However, at 
the time being, there are not plan s to participate in the GSTP. 
 WT/TPR/M/206/Add.1 
Page 34  
 
 (5) Investment framework 
Paragraph 29, page 18  
According to this paragraph, the Jordan Invest ment Board is implementing a project called the 
"one-stop shop" with a view to bringing together  all services (by public and private organizations) 
required by an investor in a single location.  Could Jordan please provide further details on this 
project and indicate when it was put into effect? 
 
Answer:
 
JIB provides streamlined access to licensing and registration services for new projects through the 
One-Stop Shop (OSS). The OSS combines representa tives located at JIB from most of the 
governmental agencies dealing with the registration and licensing of projects offering a full service 
assistance package that is needed to get a business up and running in Jordan . Moreover, JIB provides 
long-term support for investments and concentrates  on an aftercare service that assures the smooth 
implementation and operations of investment projects. 
The OSS provides services of registering and licen sing the projects as well as issuing visas and 
permanent residency approvals for investors and fo reign labour needed for the project. All these 
services are provided within 14 worki ng days. Representatives of the following entities are located at 
the One- Stop Shop; 
- Ministry of Industry and Trade 
- Ministry of Interior  
- Ministry of environment  
- Ministry of Municipal Affairs  
- Ministry of Labour  
- Ministry of Health 
- Ministry of Tourism and Antiquities 
- Greater Amman Municipality 
- Department of Land and Survey 
 
III. TRADE POLICES AND PRACTICES BY MEASURE 
(2) Measures directly affecting imports 
(i) Registration and documentation Paragraph 10, page 24 
 
This paragraph states that depending on the na ture of the product imported, a technical 
conformity/health/veterinary certificate and/or an impo rt permit or licence are required.  In what cases 
would these certificates, permits or licences be required? 
 
Answer:
 
Conformity/ health/ veterinary certificates are required depending on the nature of the product, and 
as required in the relevant laws and regulations. There is no import permits, however some products 
require acquiring an import license pursuant to the Import/ Export law No. (21) of the year 2001 for, 
safety, environment, health, national security, pub lic order and moral;  and goods having an impact 
on the conservation of natural resources.  (4) Measures affecting production and trade 
(iii) State-trading, State-owned enterprises and privatization 
Paragraph 133, page 51  
According to this paragraph, the Government is the sole importer of barley and wheat, the 
consumption of which is highly subsidized, and imports are executed by private traders under the  WT/TPR/M/206/Add.1 
 Page 35 
 
 
 direction of the Trade Directorate at the Ministry of Industry and Trade.  Could Jordan please provide 
further details on the import process a pplied to such essential commodities? 
 
Answer  
The private sector is allowed to import wheat and barely. However, the Ministry of Industry and 
Trade also imports these commodities. The Minist ry ensures to maintain a 2 months strategic 
inventory from barley and 6 months strategic invento ry of wheat. Import is executed by the private 
sector by invited them for public tend er to buy and import all required quantities.. 
 (v) Import prohibitions, restrictions, and licensing 
Paragraphs 39 and 40, page 32 
 
According to these paragraphs, Jordan has replaced th e system of "prior approval" of imports by an 
import licensing regime, and under Import and Export Law No. 21 of 2001, as amended by 
Temporary Law No. 18 of 2003, the Council of Minist ers may prohibit or completely or partially 
restrict imports of any good, taking into account Jo rdan's international comm itments.  Could Jordan 
please explain how the licensing regime has changed w ith respect to "prior approval" and what the 
requirements for obtaining an import licence are?  In what cases – apart from those listed in Table III.5 on page 33 – and for what reason have  imports been prohibited, taking into account 
Jordan's international commitmen ts, during the period under review? 
 
Answer:
 
Jordan committed to eliminate the system of licensing  and prior approvals that  existed upon Jordan's 
accession to the WTO in 2000 and replace it with an automatic and non-automatic import licensing 
regime in accordance with the WT O Agreement on Import Licensing Pr ocedures, which was reflected 
in the Import/ Export Law No. 21 of 2001 and its regul ation and instructions.  Non-automatic licenses 
are applied in accordance with the provisions of Article 3 of the Agreement on Import Licensing 
Procedures, and are required to regulate quantitati ve restrictions, importation of goods likely to 
cause threat to safety, environment, health, na tional security, public order and moral, and goods 
having an impact on the conservation of natural resources 
 
IV. TRADE POLICES BY SECTOR 
(3) Mining, energy and water 
(ii) Oil and natural gas Paragraph 38, page 68  
According to this paragraph, in December 2004, th e Government approved Jo rdan's Energy Master 
Plan, which seeks to diversify the energy mix an d raise the share of domestic energy supplies to 
39 per cent of consumption by 2020.  Could Jord an please provide further details regarding the 
characteristics of this plan, and in particular, explain what the mentioned energy mix is? 
 
Answer
 
Energy mix means all energy forms which will be  utilized to cover the country's energy needs. 
Jordan's energy mix contains crude oil, nat ural gas, renewable, oil shale and nuclear. 
 According to the national energy strategy, Jor dan will maximize the share of local energy resources 
in total energy mix by maximizing the utilization of domestic resources such as oil shale and natural 
gas, generating electricity from nuclear energ y, expanding the development of renewable energy 
projects by promoting renewable energy sources to reach  a share of 7% in the primary energy mix in 
2015, and 10% in 2020, in addition to promoting energy conservation and awareness.  Regarding natural gas, Jordan is in the process of developing local sources of natural gas at Risha 
field. WT/TPR/M/206/Add.1 
Page 36  
 
 The national energy strategy provides for promoti ng oil shale as a new source of energy to reach 
share of 11% in the primary energy mix in 2015, and 14% in 2020. In this regard, the government is 
currently engaged in oil shale development namely Deep Reserves, Surface Reserves and Oil Shale 
Power Generation. 
 
JAPAN
 
 
The Secretariat Report (WT/TPR/S/206 
IV. TRADE POLICIES BY SECTOR (5) SERVICES 
(iii Transport 
Question 1: page88, paragraph 130  
The Secretariat report states, ‘Jordan has a stake in  two joint-ventures to im prove regional exchange 
of goods and promote tourism. One is the Syrian-Jordanian Shipping Company established in 1976; 
the other, the Arab Bridge Maritime Company, is jointly owned by Jordan, Egypt, and Iraq.’ 
 Please provide specific information on an agreement or treaty between Jordan and Iraq, if any, in 
order to promote regional exchange from Jordan to Ira q, including such items as the simplification of 
customs clearance and the facilitation of roads.  Answer:
 
There is no special agreement with Iraq on simplification of customs clearance.   Regarding the facilitation of roads, an Agreemen t on Road Transport for Persons and Goods was 
signed in 1953 and is still in force. A new agreem ent has been concluded and will replace the 1953 
agreement  
 Iraq is a member of the Greater Arab Free Tr ade Agreement (GAFTA) in which Jordan is also a 
party. The two countries also have a bi lateral agreement for aviation services.  
 
KOREA
 
 
Secretariat Report, page 24, paragraph 10  
For customs clearance, the principal documents re quired are the customs declaration, commercial 
invoice, bill of lading (or air waybill), certificate of origin, and packing list. 
It has come to our attention that in exporting to Jordan, the original commercial invoice and certificate 
of origin must be attested by the local Chamber of Commerce in the country of origin and should be 
notarized by the Jordanian diplomatic mission in the country of origin. If this procedure is not adhered 
to, a fine not exceeding 4% of commodity valu e must be paid by the Jordanian importer. 
 We are of the view that the requirement for notarization by the Jordanian Diplomatic mission seems 
to be an undue burden for the exporters. In light  of the above, we would appreciate it if Jordan 
responds to the following questions:  Is this requirement mandatory for all Members of  the WTO? Are FTA partners of Jordan either 
subject to a more simplified procedure or exempt from such requirement altogether? 
 
Answer:
 
The fine is divided into 0.5% on commercial invoi ce and 0.5% on the certificate of origin, total of 1% 
on the commodity value and not 4%. The importer can receive back refund if he presents the papers 
within 60 days.  WT/TPR/M/206/Add.1 
 Page 37 
 
 
 The Consular fees Regulation was recently amended by Regulation No. 82 fo r year 2008 to provide 
for the elimination of the councilor fees of 21 JOD as sociated with the authentication of the certificate 
of origin, commercial invoice, sanitary certificate and packing list. However, the authentication of 
these documents by Jordanian diplomatic missions is  still required. This is applicable for all WTO 
members except for GAFTA member countries who a re exempted from such requirements based on 
reciprocity.  
 
Does Jordan have any concrete plans to simplif y (remove) the above mentioned procedure requiring 
the notarization by the Jordanian diplomatic mission?  Answer:
 
Jordan is studying the feasibility of elim inating the above required procedure.  
 Secretariat Report, page 38, paragraph 71, 72  
New procurement legislation to bring the regime into compliance with the GPA is awaiting approval 
by Cabinet  Could Jordan provide more detailed information w ith regard to the new procurement legislation 
awaiting approval by the Cabinet?  Answer:
 
In the context of Jordan's negotiations to join the Government Procuremen t Agreement (GPA) and to 
bring the procurement regime into compliance with this agreement, Jordan drafted new procurement 
legislation and is currently being discussed at the Le gislative Bureau at the Prime Ministry. The draft 
legislation aims at harmonizing procurement procedures in all ministries, government agencies, and 
institutions;  harmonizing procurement procedures pertaining to public works, goods and services;  
strengthening decentralization;  separating th e regulatory activities from operational activities 
through establishment of the Higher Procuremen t Commission (Regulatory Commission);  enhancing 
transparency, efficiency, fairness, equal opportu nities, and competitiveness;  introducing new 
methods of procurement, such as two-stage tenderi ng, procurement on the basis of quality and price, 
and procurement on the basis of quality only;  cla ssifying suppliers, engine ering consultants, and 
service providers;  strengthening capacity-building in procuring entities;  introducing bonds to 
replace guarantees;  introducing mechanisms for re medies, complaints, and dispute resolution;  and 
introducing e-procurement.   Investment Framework 
 The investment law published in the website of the Jordan Investment Board (JIB) states that "a non-
operating foreign company is exempted from registering to Jordan chambers and professional associations and their registration fees a nd from any obligations towards them." 
 However, Jordan’s Bar Association's Law No. 11 for the year 1972 in the Decree No. 43 states that : 
All commercial or industrial public establishments , and all public shareholding companies or any 
foreign company, establishment, branch office or ag ency - regardless of its capital- must assign an 
attorney or a legal counselor registered in the local  bar association in accordance to a written contract 
recorded at the "Notary Public" - must notify the ba r in writing through its attorney or legal counselor 
within a month of his hiring date… 
 
If any company or establishment among the compani es or establishments mentioned above did not 
comply to the first paragraph of this article, by not  assigning an attorney or a legal counselor within 
3 months of the date this law is effective or its  establishment date, the company must pay an amount 
of JDs 2 per every delay day to the Bar Association WT/TPR/M/206/Add.1 
Page 38  
 
 Korea would like to request the confirmation fro m Jordan on whether the above two instances are 
referring to the same matter.  If so, could Jordan explain whether it has any pl ans to harmonize the above discrepancy so as to 
provide further clarity to its foreign investment regime? 
 
Answer:
 
The Companies Law would apply to foreign non-operating companies and there is no need to appoint a lawyer for such companies.   
Trade and Investment Regimes – The Institutional Framework 
Secretariat Report, page 10 & 11, paragraphs 2 & 9  
 
In paragraph 9 of the Secretariat Report, the follo wing describes the legal framework of Jordan: "In 
descending order of importance, the Constitution is fo llowed by Royal Decrees, Laws, Ministerial and 
Administrative Decisions. Treaties and internationa l agreements concluded by Jordan have legal 
power in national courts. International agreemen ts supersede in case of conflict between these 
agreements and national laws." In light of the above, Korea would appreciate it if  Jordan could respond to the following questions: 
 Korea notes that the expression "in descending order of importance
" was used by the Secretariat. Can 
Jordan confirm that this expression has the sa me meaning as "in descending order of hierarchy "? If 
there is an underlying reason for the expression "in descending order of importance," please explain. 
 
Answer:  
The expression "in descending order of importance" does not have the same meaning as hierarchy; 
hierarchy is included in the three authorities (Leg islative, Judicial and the Executive authority) in 
Jordan. The expression "in descending order of impor tance" as mentioned in the secretariat report 
means that the royal decrees, laws, ministerial and administrative decisions are important legal 
instruments applied in Jordan with no means of hierarchy. 
 
Korea notes the expression "International agreements supersede in case of conflict between these 
agreements and national laws" in the Secretariat Re port. Can Jordan confirm that the "national laws" 
referred to in the Secretariat Report also includes Royal Decrees? 
 
Answer:  
National Laws are ratified and promulgated by  the HM the King through a Royal Decree. 
 
In paragraph 2, there is a reference to ‘Royal Or der’. Could Jordan explain how ‘Royal Order’ would 
fit into the context of the legal framework of Jord an, and whether ‘Royal Order’ would be a part of 
the "national laws" referred to in question b) above? 
 
Answer:  
The accurate English translation term is "Royal  Decree" and not "Royal Order". Royal Decrees are 
the legal instrument where the king exercises his pow ers. They are also the instrument to complete 
and finalize the ratification procedures of legislations.  To further clarify how royal decrees fit into the context of legal framework in Jordan: 
The prime minister and the ministers are appointed and dismissed by Royal Decrees. Article (35) of 
the constitution stipulates the following: " The Ki ng appoints and dismisses the Prime Minister; 
appoints and dismisses Ministers, upon the recommendation of the Prime Minister . "   WT/TPR/M/206/Add.1 
 Page 39 
 
 
 And Article (40) of the constitution stipulates th e following: "  The King exercises his powers through 
Royal Decrees. This Royal Decree is signed by the Prime Minister and the concerned Minister or 
Ministers, the king expresses his approval th rough his signature above all signatures.   
 
If both Royal Order and Royal Decrees are not included  as part of "national laws," then would Royal 
Order and Royal Decrees supersede internati onal agreements in case of conflict? 
 
Answer:  
Please see answer to Question (4/c) above.   
Trade and Investment Regimes – Trad e Agreements (Regional Agreements) 
Secretariat Report, page 16, paragraphs 18 through 2  
PAFTA
 
Does Jordan concur with the Secretariat’s assessment  that "the PAFTA has contributed modestly to 
increasing inter-Arab trade?" If so, what measures are being contemplated to increasing the 
effectiveness of PAFTA? 
 
Answer:  
An important increase in the Arab trade exchange  has been considerably witnessed since the full 
liberalization of goods in 2005 under the PAFTA. It's worth mentioning that Jordan's trade volume 
under PAFTA increased by 9% in comparison with the year 2006 and constituted a share of 34% of 
Jordan's external trade with member countries in 2007. Jordan is an active member in the PAFTA and in the Arab Economic and Social Council under the 
Arab League, through which initiatives and decisions are made with respect to enhancing the 
effectiveness of the PAFTA and . 
 
Agadir Agreement  
Could Jordan explain the difference in scope and th e treatment between the Agadir Agreement and the 
PAFTA?  
 
Answer:  
PAFTA:  
• Includes in its membership 17 Arab countries 
• Aims to facilitate trade among Arab countries members of PAFTA, in addition to establishing 
the Arab Common Market. 
• Reached full trade liberalization of goods throug h the full exemption of customs duties starting 
1/1/2005 
• Adopts rules of origin based on a flat rate of 40% local content   
• Grants special treatment to the least developed Arab countries (Yemen and Sudan).  
• Goods traded within PAFTA are treated as natio nal goods of member countries in terms of 
Rules of Origin, standards and specifications, security and health precautionary measures and 
local fees taxes.  
• Member countries are committed to eliminate a ll non tariff barriers in trade among them. 
 
Aghadir Agreement:  
• Includes in its membership 4 Arab countries (Jor dan, Egypt, Tunisia and Morocco). Any other 
Arab country; which is member in the Ar ab League, in PAFTA and signed an association 
agreement with EU, can join Aghadir agreement; 
• Building on the common grounds that the four c ountries share within the context of their 
bilateral trade agreements and Association Agreem ents with the EU, this agreement adopts the 
Pan-EuroMed Rules of Origin to allow for cu mulation of origin among Agadir countries for the 
purposes of exporting to the EU.   WT/TPR/M/206/Add.1 
Page 40  
 
 • Provides for full liberalization of trade in i ndustrial and agricultural goods and has entered 
into force in July 2006 
• Member countries are committed to eliminate a ll non-tariff barriers in trade among them. 
 
Could Jordan also elaborate on the reason the four  countries party to the PAFTA (Jordan, Egypt, 
Tunisia, and Morocco) decided to enter into a separate agreement? 
 Answer:
 
Barcelona Declaration provides for the establishment of  a Euro-Med Free Trade Area in 2010; nine 
Mediterranean partners have signed agreements that in clude preferential trade provisions with the 
EU.   
In light of this initiative, four countries (Jordan, Egypt, Tunisia and Morocco), which have an 
Association Agreement with EU, signed Aghadir agreemen t. This agreement aims mainly to facilitate 
exports to the EU market through the Pan-EURO MED Rules of Origin which allow for diagonal 
accumulation of origin amongst its member count ries and consequently contributes to economic 
integration among Agadir countries as well as with  the EU through enhancing the potential for using 
production input components originating in any of the member countries.  
Jordan-Singapore FTA
 
Could Jordan elaborate on the impact of the Jo rdan-Singapore FTA? Please provide –to the extent 
possible-- relevant statistics. 
 
Answer:  
Jordan considers its agreement w ith Singapore as a gateway for neighboring markets in South East 
Asia and vice versa.  Although bilateral trade volumes are still below expectations (aro und 61 million US Dollars in 2007), 
Jordan recognizes that for the agreement's benefits to  materials, more time and efforts are needed, 
particularly in carrying out more public awa reness campaigns, enhancing business to business 
interaction to explore trade opportunities and potentials.  
 
Qualifying Industrial Zones
 
Could Jordan provide further detail on the present st atus of the QIZ?  For this item, Korea looks 
forward to figures and associated explanations for:  the number of companies operating in the QIZs, 
category of products produced by the companies in the QIZs, export figures for the past 5 years, etc. 
 
Answer:  
Jordan currently has 13 Qualified Industrial Zones in which manufacturing is mostly garments and 
jewelry in a total of 46 factories. QIZ exports to the U.S. amounted to 723,278 million US$ till end of 
September 2008, compared to 900,973 m illion US$ for the same period in 2007. 
 
(With respect to paragraph 109, page 46 of the Secretariat Report) Have there been problems 
associated with the application of Rules of Origin  for products manufactured in the QIZs? If so, how 
were they addressed? 
 
Answer:  
Jordan has not faced any problems dealing with application of Rules of Origin for products 
manufactured in the QIZ.  
 
(With respect to paragraph 64, page 74 of the Secretaria t Report) In paragraph 64, it is stated that ". . . 
the tariff advantage of the QIZ initiative is gradua lly being eroded by the implementation of tariff 
concessions under the FTA between Jordan and the United States." Does Jordan agree with this 
assessment by the Secretariat?  WT/TPR/M/206/Add.1 
 Page 41 
 
 
 Answer:  
Jordan enjoys an FTA with the United States and  a Qualified Industrial Zones Agreement. Both 
agreements provide for quota and duty free access to  the US market for eligible products, and 
accordingly provide for an option for the manuf acturer to chose the mo st appropriate agreement 
based on considerations such as sources of inpu t materials, business relations and others.   
 
Trade and Investment Regimes – Investment Framework Secretariat Report, page 19, Table II.3 
 
Korea notes that in Table II.3 (Foreign Equity Limitations, July, 2008), there are a number of sectors 
either partially or wholly closed to foreign par ticipation. In particular , Korea notes limitations for 
distribution related services, construction services,  and several business services, among others.  
 Does Jordan have any time-table to remove or reduce the limitations to foreign equity participation in 
the aforementioned sectors?   
 
Answer:
 
Jordan has undertaken extensive commitments under that GATS that have provided for a full 
ownership of foreign investors in sectors such as Banking, Telecommunications, insurance, financial 
services, education and health services. As for the above mentioned sectors, there is no time table at 
the time being to remove or reduce the lim itations to foreign equity participation.  
 
Trade Policies and Practices by Measure – Measures Directly Affecting Exports Secretariat Report, page 44, paragraph 96, Table III.12 
 
Could Jordan explain the sudden increase in the inco me tax exemption authorized between the years 
2005 and 2006? What factors contributed to this sudden rise?  
 
Answer:
 
The above figure is in million and not in billion, a ccordingly, it should be read as follows (from 70.8 
million US$ in 2005 to 2,148 milli on US$ in 2006), as shown in Jo rdan's new and full notifications 
submitted earlier. 
 
The main rationale for introducing the export subsidy pr ogram was to offset the negative effects of the 
war on Iraq in 2003, and accordi ngly Jordan's export markets were ext ensively affected in the years 
2004 and 2005. This explains the remarkably low ex port values in these years compared to 2006, in 
addition to the market access pr ovided by FTA's, in particular GAFTA and USFTA. As well as the 
cancellation of the Jordanian Iraqi Protocol in  2004, which made Jordanian manufacturers target 
new export markets and thus resulted in more geogr aphic diversification of export destinations. 
 UNITED STATES
 
 
QUESTIONS PERTAINING TO WTTPR/G206 
II. ECONOMIC ENVIRONMENT 
(1) E CONOMIC GROWTH  
Page 5, Paragraph 9  
 
Jordan credits some of its success in development to foreign direct investment (FDI).  Much of this 
investment has come from Saudi Arabia and the Gulf.  With oil prices falling from this summer’s 
peak, what impact does Jordan predict the reduction in oil prices will have on its inward FDI and also 
on remittances, which are among Jordan's top revenue sources? WT/TPR/M/206/Add.1 
Page 42  
 
 Answer:
 
FDI from the Gulf countries has always contributed to the economic growth in Jordan over the past 
years, including times when oil prices were nuch low er than the current values. Despite its negative 
impacts on several economic aspects, Jordan simult aneously considers that the recent leap  in oil 
prices has indirect returns on the Jordanian ec onomy, as considerable portion of the huge excess 
liquidity availble in the Gulf countries will be directed to the region includng Jordan as FDI and/or 
portfolio investments, taking into consideratoin th e unpredicatbility of other internationl markets 
under the current financial crisis. And even with o il prices falling, it reached levels that are still 
higher than the noraml average recoreded before. Therefore, Jordan holds positive perspectives of 
inward FDI and remittances from Gulf countries for the coming period . 
 
(3) M ACROECONOMIC AND STRUCTURAL POLICY REFORMS  
Page 7, Paragraph 17  
Jordan names civil society organizations as inst ruments for poverty reduction.  Many NGOs have 
been highly critical of the Associations Law that was passed this summer, saying that the law grants 
the government a great deal of control over their boards, their ability to fundraise and even their 
permission to exist.  Jordan's government is currently  preparing an amendment to that law.  What is 
the status of the amendment and how will it change the law as it was passed this summer ? 
 
Answer:
 
The amendments to the Assocations Law take in to consideration the comments of the various 
stakeholders with the view to grant more indepe ndence for the associations in conducting their 
activities. 
 
Page 7 Paragraph 22 
 In 2006, Jordan passed an Anti-Corruption Commissi on Law.  Thus far, this commission has been 
criticized as weak and indeed some of its member s have had to resign because of corruption charges 
against them.  What actions will Jordan take to  drive strength into this law and its commission? ? 
 
Answer:
 
The Anti-Corruption Commission functions in full integrity and none of its members had any 
corruption charges against them. The Commissi on operates with neutrality, objectivity and 
independence. It pursues ca ses in different sectors.   
 III. SECTOR PERFORMANCE AND POLICY 
(3) M
ANUFACTURING  
 
Page 9 Paragraph 31 
 
The report says, "Textiles and clothing represents a major industrial sector in Jordan and is growing 
rapidly. It employs over 50 thousands workers a nd generates about US$1.2 billion worth of exports."  
There are signs, however, that growth is cooling.  What  is the status of the industry and its future in 
Jordan?   
 
Answer:  
Exports of the garment industry have recently showed so me decline which can be attributed to various 
reasons such as the increased competition in export markets and the rise in fuel prices which 
accordingly affected transport and shipping costs.   
In in attempt to mainatain the rowth of the sector and improve its competitvenss, the government 
developed a draft National Strategy for the Garmen t sector, which was prepared in cooperation with  WT/TPR/M/206/Add.1 
 Page 43 
 
 
 the private sector. The strategy was submitted to th e Council of Ministers for adoption. This strategy 
aims at increasing competitiveness of the Garment Sector, increasing its exports, and improving the 
local added value.   
 
Main pillars of the National strategy  for the Garment Sector, include: 
Decreasing production costs 
Promoting exports of the sector 
Promoting investments in the sector 
Improving Human Resources management and capabilities. 
Enhancing supporting services 
 
(4) S ERVICES  
Page 9 Paragraph 35 
 
The report rightly praises the ICT sector whic h has grown rapidly and improved services while 
lowering prices after privatization.  The incumb ents in the mobile sector are pressuring the 
Telecommunications Regulatory Commission to estab lish spectrum auctions processes that benefit 
incumbents.  How will Jordan resi st this pressure and continue to make the telecommunications 
market more open in mobile but also in internet service?  
 
Answer:  
Jordan notes this pressure and will continute to make the mobile telecommunications market more 
open. The Telecommuniocations Regualtroy Commiss ion is currently studying the issue of allocation 
of spectrum to come up with a suitable a rrangment that would address the situation. 
 
IV. TRADE POLICY 
(2) R ECENT TRADE POLICY REFORMS  
Page 11, Paragraph 51  
  The "IPR entity" referenced in this paragraph has been mentioned for several years without any 
apparent action.  When will this "entity" be creat ed? What will be its goals  and its relationship to 
other organizations responsible fo r IPR (National Library, Customs, JISM, PSD, etc)?  What steps 
will Jordan take to create not only laws, but enforcement capacity?   
 Answer:
 
A Cabinet decision was issued on July 4, 2006 approving the establishment of an autonomous body 
for Intellectual Property Rights in Jordan. Th e objectives of such include the following: 
 1- Enhancing protection of IPRs through empow ering the body with ex-officio authority. 
2- Unifying efforts of the various entities that  currently deal with protection of IPRs. 
3- Amending current laws and regulations (or devel oping new ones) to ensure coherence with IPR 
international standards.  
4- Coordinating with public and private en tities raise awareness on IP in Jordan. 
5- Capacity building and enhancing qua lifications of staff, and employing additional staff. 
 
Progress has been done in developing a concept pap er, through a steering committee that comprises 
of all relevant stakeholders in IPR enforcement,  to address the entity's responsibilities in enforcement 
of IPRs, coordinating mechanism s among responsible agencies and the entity's  role in fostering 
innovation and creativity.  
 WT/TPR/M/206/Add.1 
Page 44  
 
 (4) F
UTURE DIRECTION OF TRADE POLICY   
Page 13 Paragraph 61  
Jordan's rank in the Doing Busin ess report has been falling largely because of the perceived difficulty 
of administrative procedures.  What specific step s is Jordan taking to ease administrative burdens?  
The e-government initiative is often mentioned as one possible solution but this effort has been slow 
with almost no success at most ministries.  How is the project being managed to support business procedures?  ? 
 
Answer:
 
The Government of Jordan’s national E-Governme nt initiative, launched by His Majesty King 
Abdullah II, aimed to drive the nation’s transfo rmation into a knowledge society founded on a 
competitive, dynamic economy. As part of its effo rts to achieve such goal the E-government program 
has launched e-gov portal www.jordan.gov.jo  in the last quarter of 2006, which includes procedures 
for all governmental entities available to users.  E-services are available online from various 
governmental entities to all Citi zens, Business Sector, and Govern mental employees. Government 
departments that supply e-services include the Government Tenders Directorate, Income and Sales 
Tax, Jordan Customs, Ministry of Industry & Trade, the National Information Technology Center, 
Lands and Surveys Department, and the Hous ing and Urban Development Corporation 
 E-governemnt servcies that support business procedu res have progressed significantly during the past 
few years. Currently, trade registration services at  the Ministry of Industry and trade are web-
enabled; a sole propretiarship company can be reg istered online with the exception of the payment 
procedure which still has to take place at the prem ises of the Mnistry. In the same context, web-
enabled trade mark registration is expected to be operational very soon.   
The Ministry of Information and Communications Technology continues its efforts towards the 
succefull completion fo the E-Government project through the provision of government sevices that 
are complementary to business supporting sservices such as e-payment.  
  
QUESTIONS PERTAINING TO WTTPR/S206 
II. TRADE AND INVESTMENT REGIMES 
(1) T
HE INSTITUTIONAL FRAMEWORK  
Page 10, Paragraph 4  
Please comment on Jordan’s progress in increasing its c ourts specialization, especially their ability to 
try IPR cases and other business cases?   
 
Answer:
 
In an attempt to increase Jordanian courts specia lization, the Ministry of Justice has recently 
assigned eighteen judges in Amman, Irbid , Ma’an,  and Aqaba courts  to consider IPR cases. Also, 
the Ministry of Justice continues to conduct trai ning programes to build capacity of judges on issues 
related to IPR.  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS   
(ii) Customs procedures 
Pages 24-25, paragraph 12 
 
How many participants are there in the customs- business partnership program?  What percentage of 
import trade is covered by the program?   WT/TPR/M/206/Add.1 
 Page 45 
 
 
 Answer:  
There are (17) participants ( private sector compani es) in the customs-business partnership program. 
(4.4%) of import trade is covered  under the customs-business partnership program.    
 
Page 25, paragraph 13 
 Paragraph 13 states that "[a]ccording to the authoriti es, 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 value."  We request further 
explanation on how reference prices are used.  Is the reference price substituted for the declared 
value?  Are the reference prices used as tran saction values or under an alternative basis of 
appraisement? 
 
Answer:
 
Reference prices are used as a last resort to prov ide guidance to customs offi cers to ensure that  the 
procedures for detemining the transaction value at the different customs houses are unified,  when an 
importer fails to submit the required transaction value as stated in Article (28) of the Customs Law 
No. 20 for the year 1998.  In cases where the importer fails to submit the required transaction value, the reference price 
substitutes the declared valu e. Rreference prices are used as transaction values. 
 
(v) Import prohibitions, restrictions, and licensing Page 33, Table III.5  
The Secretariat’s report notes that Jordan conti nues to ban the importation of passenger cars using 
other than benzene as a fuel until Jordan’s refinery  is modernized to produce diesel fuel with low 
sulphur content.  It appears that this import ba n has been in effect si nce Jordan’s accession to the 
WTO in 2000.  When does Jordan expect to complete  the refinery modernization and remove the ban? 
 
Answer:
 
The modernization of the refinery will be comp leted by 2011 and at present the refinery is in 
negotiation with a strategic partner to implement the fourth refinery expansion project, through which 
the capacity of the refinaery is expected to be upgraded to produce diesel fuel with the required 
standards and specifications, and once this process ge ts completed, Jordan will be removing the 
ban.    
What is Jordan’s justification for prohibiting th e importation of "dumpers designed for off-highway 
use"? Could Jordan please provide the HS numbe r(s) of the products covered by this import 
prohibition? 
 
Answer
: 
The HS code of : "dumpers designed for off-highway  use" is ( 8704.10). Jordan is curently in the 
process of reviewing its import export instructions pu rsuant to the Import Export Law No. (21) to the 
year 2001 and will be considering the possibility of lifting the import pr ohibition of "dumpers 
designed for off-highway use". 
 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(v) Free zone, special economic, and qualifying industrial zones 
Page 45, paragraph 99  
The Report states that industrial and commercial inv estments in free zones enjoy tax exemptions, but 
are required to meet one of several criteria, including the "use of local raw materials and WT/TPR/M/206/Add.1 
Page 46  
 
 manufacturing parts" and "import-substitutio n".  Please comment on how these investment 
requirements should be interpreted in light of Jordan's obligations under Article 3.1(b) of the SCM 
Agreement)?  
Answer:
 
Jordan will be revisiting such requirement with the view to ensure its compliance with WTO relevant 
Agreements. 
 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
(iv) Intellectual property rights 
 
What is the status of Jordan's amendments to its Copyright Law? 
 Answer:
 
Jordan undertook needed amendments to its Copyright  Law no (22) of 1992, to achieve a high level of 
protection of copyrights and to ensure full complian ce with Jordan’s international commitments. The 
latest amendments ensured the effective enfo rcement of the ex-officio procedure, addressed the 
application of provisions related to allowing the use of published works without the author’s 
permission in specific cases provided that they don’ t conflict with a normal exploitation of the work 
and do not unreasonably prejudice the legitimate interst of the right holder. In addition, the amendments provided further clarification in rel ation to court decisions regarding destroying or 
changing the copies of pirated works that such decisions are upon the request of the author or any of 
his successors. 
 
What is the status of Jordan's amendmen ts to its JISM law regarding trademarks?  Does JISM have 
authority with respect to all IPR violations, as imp lied in Paragraph 141, or is its authority limited to 
trademark-related violations? How and by whom are conformity marks selected, and what measures, 
if any, are in place to ensure that these marks do not conflict with prior trademarks?   
 
Answer:
 
IPR related amendments to JISM law are limited to trademark related violations (i.e. fake or 
counterfeit products) and also sancti ons and penalties in this regard. 
 
Conformity marks are selected and approved by JISM. They are fixed on the products as a sign that 
products fulfill safety requirements set in Jordani an technical regulations and that the required 
conformity assessment procedures stated in the t echnical regulations are performed to demonstrate 
that to market surveillance authorities. These marks are in the regulatory a reas and they are similar 
to UL or CE marking which are used in the Un ite States and Europe wit hout any confusion with 
trademarks.  
Does Jordan allow for co-e xistence between a prior trademark and a later geographical indication?  If 
so, we would appreciate information about how such co-existence is accomplished.    Answer:
 
The Geographical indications law of 2000 provides protection for GIs and complies with the requirements of the TRIPS agreement. It empowers th e Trademark Registrar to reject the registration 
of any trademark which contains or consists of a geographical i ndication with respect to goods not 
originating from the place of origin implied by th e use of the geographical indication in a manner that 
misleads the public. The only exception within th e law is stated in the following article: 
Article 7:  The following are not deemed violation of the Law:  
A.  WT/TPR/M/206/Add.1 
 Page 47 
 
 
 1. To own a trademark being similar or iden tical to a geographical indication through 
the bona fide use thereof before the effectiven ess of the provision of such law, or 
before granting protection to the geographical indication in the place of origin. 
2. To submit a trademark registration applica tion in the kingdom being identical or 
similar to a geographical indication or to register thereof in bona fide.  
B. To use a geographical indication in any manner indicating another country, if being identical 
to Arabic familiar expression of a common name of any product or service in the kingdom. 
C. A person using his/her name or ancestor's name in a commercial activity in a manner that 
does not mislead public.  
D.  To use geographical indication which has no pr otection, or its protection was terminated in 
its place of origin, or is no longer used in this country. 
 IV. TRADE POLICIES BY SECTOR (3) M
INING , ENERGY , AND WATER  
(ii) Oil and natural gas 
Page 68, Paragraph 39  
Is it the case that Jordan’s hydrocarbon deregulation is behind schedule and th at the government has 
extended the refinery's concession beyond 2046?  What is the role of nuclear energy or liquefied 
natural gas in Jordan’s current energy plans?  Please discuss any plans to change significantly 
Jordan’s energy mix.  What plan s does Jordan have for renewable energy, such as wind, solar, and 
hydroelectricity? 
 
Answer
: 
Jordan is currently in the process of regulating hy drocarbons in the country. The concession of the 
refinery  ended  on 2nd of March 2008 but the Government of Jordan signed a service agreement with 
the refinery for import, storage, supply and distribu tion of oil products until the end of year 2008. 
This is a mutual agreement and renewable for further six months until the completion of the oil sector 
restructuring and establishment of marketing compani es. Meanwhile the restructuring/liberalizing the 
oil sector and opening the market for competion is in process. Four marketing/distribution companies 
and one logistic company will be  established through international tendering process which was 
launched in mid September 2008.  
Jordan will introduce the nuclear for generating the electricity and according to the national energy  
strategy the share of nuclear will be 6% of the energy mix by the year 2020. 
Currently there are no plans to introduce liquified natur al gas in Jordan and at present natural gas is 
been imported from Egypt by Arab Gas Pipeline. 
Jordan is highly dependent on imported energy and the local gas and oil production contributed only 
4% to energy consumption in 2007. Jordan will change  its energy mix by maximizing the utilization of 
domestic resources (oil shale, natural gas, etc..), generating electricity form nuclear energy, 
expanding the development of renewable energy projects and promoting energy conservation  and awareness. 
According to the national energy strategy, renew able energy sources have been  promoted to share 
7% in the primary energy mix in 2015, and 10% in  2020. Regarding wind energy there are two lots of 
wind farms projects approximatly 300 MW each. Fi rst lot comprises of the following projects: 
 Al-Kamshah 40  MW (Tow Bids were received on 31 of Aug. 2008 and currently are under 
evaluation). 
  Al-Fujeij 70 MW (Tender is expected to be  launched in October  2008). 
  Al-Harrir 150-200 MW (expected for bidding  beginning 2009). 
The second Lot (under measurements and wind data evaluation) includes:  
 Wadi Araba 50 MW   WT/TPR/M/206/Add.1 
Page 48  
 
  Ma’an Area 100-150 MW 
 Mafraq Area 100-200 MW 
 Al-Rishah 100-200 MW 
N. Gas
29%Oil Products
40%Nuclear
6% Renewable
7%Imported Electricity
1%
Oil Shale
11%Oil Products
51%
N. Gas
29%Oil Shale
11%Imported Electricity
2%Renewable
7%N. Gas  26% Imported Electricity  7%Renewable  1% 
Oil Products  66%The Energy Mix in Jordan (2007-2020)
2007
Domestic Resources 4%, Imported 96%
2015
Domestic Resources 25%, Imported 75%
Domestic Resources 39%, Imported 61%
  WT/TPR/M/206/Add.1 
 Page 49 
 
 
 The national energy strategy encourages solar en ergy projects as well, such as solar thermal 
application in households and major housing schemes wh ich is 14% at present and the target is to 
reach 20% by 2013. Also concentrating solar power up to 300 MW for electricity generation and photovoltaic systems (remote applications) are introdu ced as solar energy projects in the strategy. 
 
A Renewable Energy Law is expected to be issu ed by the end of 2008 and will provide the legal 
mandate for the Government to implement new ren ewable energy regulatory frameworks related to 
electricity market and grid access, fiscal and non- fiscal incentives for renew able energy investors and 
local technology manufacturers and green power promo tion. The Law will allow for the establishment 
of a Renewable Energy and Energy Efficiency Fund. 
 
Jordan lacks hydro resoruces and there are no plans fo r generating hydro electricity. However, the 
future implementation if the Red Sea-Dead Sea Channel project is associated with a project of 600 
MW capacity of hydroelectricity. 
 
(4) M
ANUFACTURING  
(i) Policy Framework 
Page 72, paragraph 56 
 
The report states that the Jordan Upgrading and Modernization Program (J UMP) provides financial 
assistance to SMEs to enhance th eir competitiveness. The report al so states that the program has 
import-substitution objectives one component of which is the National Linkage Program.  The 
Secretariat states that under this program, assistan ce is offered to establish new business and supplier 
links between industrial firms that rely on im ported production inputs, on the one hand, and local 
SMEs that are in a position to meet those input needs, on the other.  Please comment on how the eligibility criteria of this program should be in terpreted in light of Jordan's obligations under 
Article 3.1(b) of the SCM Agreement. 
 
Answer:
 
Article 3.1(b) of the SCM Agreement applies to meas ures contingent to the use of domestic goods over 
imported ones, which is not the issue under the Na tional Linkages Program (NLP) as a component of 
JUMP program. The assistance under consideration is not conditioned whether solely or as one of 
several other conditions upon the use of domestic o ver imported goods, and local firms are freely to 
excercise their rights to use the imported ones.  The National Linkages Program merely brings toge ther large manufacturing firms that use imported 
production inputs with local SMEs who are capable of meeting the needs and requirements of these 
firms. In this way, the NLP mainly helps in creating an enduring business-to-business relationship. 
 The assistance is passed to SMEs to identify areas required for upgrading in order to be qualified to 
meet the expectations of purchasing companies in domestice market as well as international markets. 
The NLP supports individual companies to improve their comptetiveness through having the the right 
standards of quality, adequate tools and technology , and through enhancing companies' managerial 
capabilities.  
  A enterprise is eligible to benefit from the program  if it is an SME that is in business for at least 2 
years, and employs  more than 10 Jordanians. Th e programme does not support or create new 
business (startups). 
 WT/TPR/M/206/Add.1 
Page 50  
 
 (5) S
ERVICES  
(ii) Telecommunications and postal services (a) Telecommunications Page 84, paragraph 106  
From the Secretariat’s report we learn that Jor dan has a de facto monopoly in fixed line 
services and a very limited market in internet s ervices because of the role of JTC/Orange.  What 
steps is Jordan taking to open the markets?  Does Jordan intend to change the way JTC does 
business?   
Answer:
 
The fixed line sector in Jordan is fully liberali zed and several licenses have been  issued to applicants 
for fixed line services. However, t hose licensees chose to offer thei r services using other options than 
fixed line telephony by using mainly Voice over IP  (VoIP), as fixed line telephony services need high 
capital investment basicly in infrastructure.  
 
(iii) Transport 
(b) Road transport Page 88 Paragraph 131  
Jordan’s road freight transportation industry is characterized by numerous one-truck companies and 
high costs.  Prohibiting foreign investment may limit the capital necessary for developing larger 
operations and networks.  Has the government considered opening the sector to foreign investment in 
order to enhance efficiency and reduce costs in this sector?  
 
Answer:
 
The sector is undergoing restructuring and accordingly it is still premature to decide on opening the 
sector to foreign investment. However, this is an issue t hat  will be considered in future in light of the 
development of the sector and the completion of its restructuring. 
 
CHINA  
 Does the current global financial crisis have an y impacts on the economic and trade performances of 
Jordan?  If yes, what measures has Jo rdan taken to meet the challenges? 
 
Answer:
 
The crisis will influence some of the sectors but Jordan is confident that the economy is strong and 
can absorb the emerging issues and developments worl dwide. The prices of oil and basic commodities 
are expected to keep going down in the short term, to be reflected in the local market and 
consequently lead to a lower infla tion rate and higher living standards. 
However, the global crisis persists in the medium  run; its consequences might lead to recession and 
slow down in the economy of developed countries, which means several economic sectors in Jordan 
including exports, tourism and remittances of expatri ates will be negatively influenced. Regarding the 
banking sector, H.E the Prime Minister stressed that local banks are isolated  from the crisis that 
involved several financial institutio ns in the world. Prudent policies, deep experiences of bank 
managements and their abidance by the Central Bank  of Jordan’s (CBJ) laws and regulations have 
played into the hands of the local banking indust ry and saved it from the financial storm that swept 
other markets. 
To handle the crisis, the government has set up an  ad hoc committee tasked with following up on 
related developments in the international are na and any possible impact on the national economy. 
The government also formed a technical co mmittee comprising represe ntatives from several  WT/TPR/M/206/Add.1 
 Page 51 
 
 
 ministries, the CBJ, the Department of Statistics and the Amman Stock Exchange to build a database 
for the economic, financial and monetary activities, and enable the government to respond on the spot 
to any development. The governme nt has recently announced that it would guarantee deposits at all 
banks operating in Jordan to unlimited amounts up to the end of next year. 
 
Secretariat Report, page 68 paragraph 38  
 
"In December 2004, the Government approved Jordan's  Energy Master Plan, which seeks to diversity 
the energy mix and raise the share of domestic energy supplies to 39% of consumption by 2020". 
Given that domestic crude oil and gas production c ontributed only to 4% to energy consumption in 
2007, would Jordan please share with us what the ma jor measures are in the Energy Master Plan to 
achieve the target of 39% domestic share by 2020?  Answer
: 
According to the national energy strategy, Jordan  will maximize the share of local energy resources 
in total energy mix by maximizing the utilization of domestic resources such as oil shale and natural 
gas, generating electricity from nuclear energ y, expanding the development of renewable energy 
projects by promoting renewable energy sources to s hare 7% in the primary energy mix in 2015, and 
10% in 2020 and promoting energy conservation and awareness.  As for natural gas, Jordan is in the process of devel oping local sources of natural gas at Risha field.  
 
The national energy strategy provides for promoti ng oil shale as a new source of energy which is 
expected to reach the share of 11% in the primary energy mix in 2015, and 14% in 2020. The 
government is currently engaged in oil shale developm ent in Deep Reserves, Surface Reserves and Oil 
Shale Power Generation .   
 Secretariat Report, page 38 and 39:  (viii) Government Procurement  
Would the Delegation of Jordan please share with us its analysis, if any, on the possible impacts of 
joining the Agreement on Government Proc urement on Jordanian economy and trade? 
 
Answer:
 
Accession to the Agreement is expected to pr ovide for additional market access for Jordanian 
producers but at the same time, domestic producers woul d be affected due to competition from foreign 
suppliers. An impact assessment study is curren tly conducted to evaluate the potential impact of 
acceding to the GPA on the Jordanian economy.  
 
CANADA  
 
Report by the Government  of Korea (WT/TPR/G/204) 
Part I. Introduction; Jordan’s Refo rm Agenda: paragraph 2, page 4 
 
Canada commends Jordan on making difficult but ne cessary economic reforms and encourages strong 
pursuit of political reforms, including establishing an independent electoral commission. 
What steps has Jordan taken to ensure p ublic input into the trade policy agenda? 
 
Answer:  
The government has undertaken several initiatives to enhance public -private partnership in policy 
formulation. Several national committees exist that comprise of representatives of public and private 
sector entities, and deal with issues related to multil ateral, regional and bilateral trade negotiations, 
in addition to trade and transport facilitation and environment issues.  WT/TPR/M/206/Add.1 
Page 52  
 
 Moreover, the Prime Ministry provid es access to the public through its website to provide comments 
on draft legislation prior to its adoption. Also, two pilot projects have been launched to establish a 
consultation mechanism on trade and environment issu es, to be operated by the Ministry of Industry 
and Trade and the Ministry of Environment. The consultation mechanism aims at strengthening the dialogue between the government and the privat e sector and civil society in trade and economic 
policy formulation and related regulatory aspects. 
 Part II. Economic Environment; (3) Macroeconomic and Structural Policy Reforms: paragraph 19, page 7, and; Part III. Sector Pe rformance and Policy; (4) Services: paragraph 38, 
page 110 
 Canada’s policies towards Jordan support its prior ity objectives to improve the education system and 
reform the labour market. Canada is proud to support  Jordan in its drive to modernize its education 
system. This reflects our confidence in the ability of the Jordanian government to see this process 
through. 
What steps has Jordan taken to en sure that its trade policy supports continuing development of the 
education sector and reform of the labour market?  
Answer:
 
Jordan is currently working on drafting a trade strate gy. This strategy will take into consideration the 
results of several analytical reports and studies that  were conducted to identify the strengths and 
weaknesses of the factors of pr oduction in Jordan and the comp etitiveness of the industrial sectors 
compared to other competitors in  the region. Education and labour market characteristics were 
among the factors that have been deeply studied and incorporated within the draft strategy. 
Jordan has liberalized the educational sector, ai ming at improving its quality and competitiveness. 
One of the new policy's pillars ca lls for increasing support  services, from which is education, to 
enhance its competitiveness and increase and diversify its  exports. The liberalization of other services 
and industrial sectors also assisted in guiding the labour market towards efficient conditions, 
influenced by the private sector's reactions and developments.  Report by the Secretariat (WT/TPR/S/204) Summary Observations; (4) Sectoral Policies: paragraph 16, page 10 
 Canada understands Jordan’s difficult situation cau sed by its near-total reliance on energy imports, 
and that it is looking to develop nuclear energy  capacity in order to lessen this dependence. 
How does Jordan’s trade policy address its energy n eeds, including the development of its nuclear, 
wind and solar energy capacity? 
 
Answer:
 
The national energy strategy takes into consid eration the socio- economic and all technological 
factors related to energy demand in the country. It  aims at reducing energy risk for Jordan through 
diversifying energy supplies, increasing the share of lo cal energy resources in the total energy mix, 
reducing the dependency on imported oil and enh ancing environmental protection which will be 
achieved through maximizing the utilization of do mestic resources, generating electricity from 
nuclear energy, expanding the development of renewable energy projects and promoting energy 
conservation and awareness. In addition, it will keep  energy costs down through developing a viable 
energy sector and competitive indus try structures which in turn will enhance economic growth and 
prosperity. 
 
Summary Observations; (2) Institutional Framework, page vii, paragraph 6 
 
In the Summary Observations of the Secretariat Re port, page vii, paragraph 6, it notes that: "The 
Ministry [of Industry and Trade]'s Foreign Trade Policy and Relations Depa rtment has responsibility  WT/TPR/M/206/Add.1 
 Page 53 
 
 
 for all matters relating to WTO, as well as regional and bilateral trade agreem ents between Jordan and 
other countries. The Department is also the WTO fo cal point and functions as Jordan's enquiry point 
for services; it is the notification authority for al most all WTO agreements, with the exception of 
notifications related to SPS measures. In areas such  as agriculture, Jordan has faced difficulties in 
providing notifications in a timely manner." 
Canada notes that all of Jordan’s 2008 notifi cations provide 30 days or less for comments.  
What measures or steps is Jord an putting in place to overcome these difficulties, in particular 
notification of draft trade-related measures at an ear ly appropriate stage when amendments can still be 
introduced and comments taken into account (Artic les 2.9.2 and 5.6.2) and alignment with the 
WTO/TBT Committee recommended 60-day comme nt period (G/TBT/1/Rev.9, page 18, 
paragraph vii(a))? 
 
Answer:  
According to the current law on Standards and Metrology 22/2000, all regulatory bodies have to 
notify the WTO focal point at the Ministry of Indus try and Trade at the earliest possible stage of 
preparation on proposed technica l regulations and conformity asses sment procedures. In addition, 
the Law states that an appropria te time shall be provided to receive comments from the WTO 
members. Moreover, a comment period of 60 days is defined in the instructions for preparation of 
standards and technical regulations.   The period from the publication of a TBT measure and its entry into force is decided upon by the 
Jordan Institute for Standards and Metrology's (JIS M) Board of Directors depending on the impact of 
the measure on the economic operators mainly traders and industrialists. The Board comprises of 
representatives of the private and public sectors that  make sure there is a balance between consumer 
protection and provision of an a ppropriate and enough period for economic operators to adjust their 
situations according to the new measures. Therefore,  the period varies from one month to six months 
except in urgent circumstances where immediate applic ation of the measure is needed. In addition, 
transition periods are given in cases when the ec onomic operators face difficulties in implementing 
technical regulations so as to accommodate changes in legislations.  To enhance Jordan's compliance with the recomme nded period for entry into force of TBT measures 
(6 months) JISM has to amend its instructions so  as to define such a period, as the current Law 
provides rather a flexible period based on the Board’s decision.  
Canada notes in Jordan’s TBT notifications that a short period (approximately 15 days in 2008, and 
none in 2007) is provided between the proposed adoption of the measu re and its entry into force. 
Article 2.12 of the TBT Agreement obligates Member s to provide a reasonable interval between the 
publication of measures and their entry into for ce. This period is understood within the WTO/TBT 
Committee, per the Ministerial Decision, as "normally a period of not less than 6 months, except when this would be ineffective in fulfilling the legitimate objectives pursued" (G/TBT/1/Rev.9, 
page 20, paragraph 6a).  Could Jordan explain whether processes are foreseen  to enhance Jordan’s compliance with WTO/TBT 
Article 2.12 and the Ministerial Decision? 
 
Answer
 
Same Answer of question 4 above. 
 
Part III. Trade and Investment Regimes; (4) Trade Agreements; (iii) Bilateral agreements: 
paragraph 21, page 17 
 
The report notes that, under the Jordan-U.S. FTA  (JUSFTA), Jordan "will gradually eliminate 
virtually all tariffs on goods, except tobacco." It is Canada's understanding that, in addition to WT/TPR/M/206/Add.1 
Page 54  
 
 excluding tobacco from tariff elimination, Jordanian customs duties on beer, wines and spirits of HS 
Chapter 22 will be reduced to 44.5% of a 180% b ase tariff rate, rather than fully eliminated. 
Can Jordan please outline its precise tariff liberalizat ion obligations on beer, wines, and spirits under 
the JUSFTA? 
 
Answer:
 
By 2010, all these items will be subject to an ap plied tariff rate of 81.9% , except for two items 
(HS: 220430000 , 220600000) whic h will be subject to an applied tariff rate of 22.751%. 
 Part II. Trade and Investment Regimes, Annex II. 1: Aid for Trade; paragraphs 1 and 5, pages 
21 and 22 
 
The Canadian Enquiry Point notes Jordan’s rep eated mention of assistance in both Jordan’s TPR 
Report (WT/TPR/G/206, pages 13 and 14) and the Secretariat’s Report (WT/TPR/S/206, page x, 
paragraph 19; and pages 21-22, paragraphs 1-5). In particul ar, the Secretariat’s Report 
(WT/TPR/S/206), on pages 21-22, states that:  
 "1. Jordan has benefited from a range of trade-re lated technical assistance activities since its accession 
to the WTO.
 2 Nevertheless, it continues to face significan t challenges in the context of the changing 
international environment coupled with a chroni c water shortage and full dependency on imported 
energy… The authorities believe that past technica l assistance activities, and further assistance in 
other areas could help Jordan achieve greater integration into the global economy…" 
 "5. There is a need for targeted technical assist ance, which could be organized around a series of 
seminars/workshops and studies, in pertinent areas such  as trade remedies, intellectual property, tariff 
and customs reforms, notification procedures, comp etition policy and trade facilitation. Other specific 
assistance is needed in the areas of TBT and SPS to upgrade the capacity of the regulatory bodies 
responsible for setting the measures in compliance w ith international requirements; testing facilities 
and laboratories in Aqaba; practical training on how to conduct an impact assessment of draft 
technical regulations; training on specific conformity assessment modules, such as supplier declaration and type approval; supporting th e accreditation of the Amman Food Laboratory; 
supplementary laboratory equipment for JFDA; assistance in establishing a Food Information 
Management System (FIMS); as well as risk management, mutual recognition agreements, and the 
appropriate level of protection."   Canada also notes that there is an ongoing di scussion in the WTO TBT Committee on members’ 
experiences with technical assistance projects and suggests that information on Jordan’s experience 
would make a valuable contribution to this discussion. 
 Given the breath of trade-related technical assistan ce (TRTA) Jordan has received, Canada would be 
interested in receiving information from Jordan on the results of the aid received thus far.  
 
                                                     
 
2 Assistance was granted for regional trade agreements , trade facilitation;  dispute settlement;  trade and 
environment; agriculture; customs valuation; market analysis and development; training on negotiations;  regional trade agreements; rules; sanitary and phytos anitary measures; services; tariff negotiations (non-
agricultural market access); tariff reforms; technical barr iers to trade; mainstream ing trade into development 
plans;  trade promotion strategy design and implementation; trade-related aspects of intellectual property rights; trade and investment; trade and co mpetition and transparency in government procurement. See Joint 
WTO/OECD TRTA/CB database, "Beneficiary Country: Jordan" . Viewed at: 
http://tcbdb.wto.org/benef_country.aspx.  WT/TPR/M/206/Add.1 
 Page 55 
 
 
 Answer:  
As mentioned in the report Jordan has received a wi de range of trade related technical assistance 
during the accession period to the WTO for the pu rposes of assisting Jordan in putting its legal 
framework technical capacities in compliance with  the requirements of WTO agreements, noting that 
Jordan was not granted grace periods nor transitiona l periods for implementation, particularly TBT, 
SPS, Customs Valuation and TRIPs agreements. The past technical assistance activities have  
supported Jordan in the efforts to integrate in th e world economy, through inter alia, upgrading some 
laboratories, simplifying customs procedures, upgr ading TBT and SPS regulatory authorities, raising 
the public awareness of public and private institutions of the WTO principles. Trade related technical 
assistance has also contributed to the government 's endeavours to enhance capacity of SME's.  
 
However, Jordan continues to face significant challe nges in the context of the changing international 
environment coupled with an increasing water shorta ge and full dependency on imported energy, and 
thus additional targeted technical assistance woul d help Jordan achieve greater integration for its 
economic sectors into the global economy and would enable Jordan to effectively participate in the 
multilateral trading system and realize its benefits.  
 
Jordan's technical assistance priorities and needs are detailed in section V of Jordan's Report in 
document WT/TPR/G/206. 
 
Part III. Trade Policies and Practices by Measure; (2) Measures Directly Affecting Imports, vii) 
Standards and other technical requirements: paragraphs 50, page 34 
 
Mention is made in paragraph 50 that the Jordan Institution Standard and Metrology (JISM) acts as 
the TBT Enquiry Point and allusion is given in th e Summary Observations of the Secretariat’s Report 
(page vii, paragraph 6) that the Ministry is the notification authority.  
(a) Could Jordan confirm whether JISM is also  the TBT notification authority pursuant to 
WTO/TBT Article 10.10 or whether it is another body?  
(b) Could Jordan explain how the authorities (e.g. WTO TBT Enquiry Point/Notification 
Authority) monitor the creation or modification of TBT technical regulations / 
conformity assessment procedures in its c ountry in order to determine whether a 
WTO notification is required under the transparency obligations of the TBT Agreement? 
(c) And when a determination is made, what is the mechanism (e.g. 
interdepartmental/inter-ministerial collabora tion) and timeline for the preparation of 
notifications? 
 
Answer:  
Jordan Institute for Standards and Metrology (JISM) acts as the TBT inquiry point while the TBT 
notification authority is the foreign trade policy and rel ations department at the Ministry of Industry 
and Trade. Regulatory bodies are obliged to provide the Ministry of Industry and Trade with copies of draft new or amended technical regulations  and conformity assessment pro cedures so as to notify the WTO 
Secretariat. Copies are also sent to JISM to be abl e to answer enquiries. In addition JISM maintains a 
database containing bibliographic information on dr aft as well as published standards, technical 
regulations and conformity assessment procedures. The basis for notification of  technical regulations 
and conformity assessment procedures is their effect on trade and in case they are not based on 
international standards.  No impact assessment is performed on technical re gulations and conformity assessment procedures to 
measure their significance to trade. Thus, all relevant technical regulations and conformity 
assessment procedures are notified to WTO if th ey are not based on international standards. WT/TPR/M/206/Add.1 
Page 56  
 
 Electronic forms of notifications are filled by th e regulatory bodies and sent electronically to the 
Ministry of Industry and Trade where they are forwar ded to the WTO Secretariat. Thus notifications 
are prepared and sent within three days.  
 
Paragraph 50 also notes that JISM prepares mandatory  technical regulations and voluntary standards, 
issues conformity certificates, functions as an accreditation body and carries out market surveillance and enforcement activities.  Could Jordan clarify whether: 
(a) JISM’s various functions and activities ar e managed independently in accordance with 
accepted principles of good governance?  
(b) JISM issues certificates of conformity for compliance with technical regulations and 
standards?  
(c) JISM is accredited as a conformity assessment body?  (d) Conformity assessment programs are offered in areas in which JISM offers 
accreditation programs? 
 
Answer:  
(a) As JISM is the national standardization body it is responsible for the publication of 
Jordanian standards, however, as a government al body it also has the power to issue 
technical regulations that either set safe ty requirements or are based on national 
standards. JISM also grants the quality ma rks and provides certificate of conformity 
to voluntary standards for export purposes. JISM does not provide certification in the regul atory areas, thus there is no conflict of 
interest with its market surveillance authorities. 
However, in case non conforming products that  bear the quality mark are detected in 
the market, they are seized and withdraw n from the market and the certification 
department is notified so as to suspend the use of quality mark until the corrective 
actions are performed by the holder of the quality mark.  
The Accreditation Unit is directly connect ed to the Board of Directors, and the 
decisions for granting accreditation are taken by an independent accreditation 
committee. However, a new law (Jordan A ccreditation Commission Law) to establish 
an independent accreditation body with th e required integrity and impartiality is 
being discussed by the Legislative Bureau at the Prime Ministry and is expected to be 
forwarded soon to Parliament for discussion and approval. 
(b) JISM issues certificates of conformity to standards only.  
(c) The Certification Department at JISM  is accredited by DAP (the German 
Accreditation Services) which is an MLA signatory to EA, IAF and ILAC. 
(d) Although national accreditation is granted to testing and calibration labs, yet JISM 
testing and certification services was grant ed accreditation from an independent 
Accreditation Body DAP (the German Accreditation Services). JISM also applies the 
policy taken by its Board that no applicati on from JISM conformity assessment bodies 
can be accepted by the Accreditation Unit. 
 
Part III. Trade Policies and Practices by Measure; (2) Measures Directly Affecting Imports, vii) 
Standards and other technical re quirements: paragraph 53, page 35 
 
Paragraph 53 mentions that the JISM is one of th e agencies responsible fo r implementing Jordan's 
risk-based border inspection system.  Could Jordan provide further deta ils on the "risk based approach" it follows for border inspection? 
 
Answer : 
JISM risk based boarder inspection system incorpor ates criteria that determine the risk of each 
shipment taking into consideration the risk of the products, history of the importers and country of  WT/TPR/M/206/Add.1 
 Page 57 
 
 
 origin/supplies. It is an electronic system that aut omatically modifies the risk classification of all 
factors based on detected non conformities. 
 
Part III. Trade Policies and Practices by Measure; (2) Measures Directly Affecting Imports, vii) 
Standards and other technical re quirements: paragraph 54, page 35 
 
According to paragraph 54 it appears that Jordan h as adopted a large number of voluntary standards.  
Could Jordan please clarify what proportion of these standards are based on international standards? 
 
Answer:  
The proportion of voluntary standards based on in ternational standards from the total number of 
standards is 45.5%, while the percentage of technical regulations based on inte rnational standards is 
27.5%. 
 
Part III. Trade Policies and Practices by Measure; (2) Measures Directly Affecting Imports, vii) 
Standards and other technical re quirements: paragraph 56, page 36 
 
According to paragraph 56, Jordan has published 706 technical regulations.  
What proportions of Jordan’s 706 mandatory t echnical regulations are based on international 
standards in accordance with Article 2.4 of the TBT Agreement?  
 
Answer:  
Same answer of question 11 above. 
 
Part III. Trade Policies and Practices by Measur e; (2) Measures Directly Affecting Imports, 
(vii) Standards and other technical requirements: paragraph 58, page 36 
 
Paragraph 58 notes that, "An independent accreditation body is to be established according to the draft 
accreditation law under consideration; and the scope of accreditation is to be expanded to include 
inspection and certification bodies. Pending the conc lusion of mutual recognition agreements, all 
imports, including those accompanied by valid techni cal certificates of conformity issued by foreign 
bodies in exporting countries, are subject to the risk-based system of inspection". We encourage 
Jordan with its plan to establish an independent  accreditation body and the goal of entering into 
mutual recognition agreements (MRA) with trading partners.  Could Jordan clarify if whether it plans to continue  to subject imported products  for retesting after an 
MRA has been concluded and explain the rationale  for this approach which could constitute an 
unnecessary obstacle to trade?   
Answer:
 
JISM is planning to sign an MRA agreement with th e EU (ACAA) in addition to MRAs with some 
Arab countries. Once these MRAs are concluded,  imported products comi ng from those trading 
partners and covered by these MRAs will enter th e Jordanian market provided that they bear 
attestation to conformity, without any further ret esting or re-inspection. However, the inspectors at 
borders and the market surveillance authorities have the right to take samples, and inspect and test 
products that are suspected to be unsafe.  
Part III. Trade Policies and Practices by Measur e; (2) Measures Directly Affecting Imports; 
(vii) Standards and Other Tec hnical Requirements; (b) Sanitary and Phytosanitary (SPS) 
Measures: paragraph 63, page 37  
Paragraph 63 describes Jordan’s risk-based system  for inspection of imported food consignments. 
Can Jordan please describe the process used for cla ssifying imported food products as low, medium or 
high risk and explain how this process conforms  with Articles 3.1 and 5.2 of the WTO SPS 
Agreement? WT/TPR/M/206/Add.1 
Page 58  
 
 Annex C of the WTO SPS Agreement requires that: 
• such procedures are undertaken and completed w ithout undue delay and in no less favourable 
manner for imported products than  for like domestic products; 
• the same criteria should be u sed in the sitting of facilities used in the procedures and the 
selection of samples of imported products as for domestic products so as to minimize the 
inconvenience to applicants, impor ters, exporters or their agents; 
Can Jordan please explain how its risk categorizati on and related inspection regime is applied to 
locally produced food products and is in conformity with Annex C of the WTO SPS Agreement? 
 
Answer:
 
The current risk-based system ( RBS) for inspection of imported food relies heavily on the 
categorization of food according to its compositi on and food characteristics like PH, Water activity, 
etc. 
Ready to eat food is categorized differently to raw food, and food processing is also taken into 
account.  Jordan Food and Drug Administration (JFDA) is currently reviewing the current RBS; country of 
origin, history of the product and other new param eters will be adopted in the modified RBS. The 
percentage of sampling for laboratory analysis w ill be decreased and the quality of physical check 
and documentary check will be improved th rough better training and supervision. 
 In reference to inspection regime applied to locally produced food products, food businesses are risk- 
categorized to allow for proportional inspection f requency. Because local  food businesses and food 
production lines are amenable to direct inspection by  JFDA, less emphasis is placed on sampling for 
laboratory analysis.  Part III. Trade Policies and Practices by Meas ure; (4) Measures Affecting Production and 
Trade; (iv) Intellectual Property Rights: paragraph 147, page 55 
 The Secretariat report states that, "the exclusions from patentability [included in Jordanian law] are in 
line with the provisions of the TRIPS Agreement".  Canada would appreciate if Jordan could provide mo re information on what are these exclusions from 
patentability.   
 
Answer:
 
Jordanian patent law provides for the exclusion fr om patentability in Article 4, which states that: 
 
"A patent shall not be granted in the following cases  : 
A . 
1. The inventions whose exploitation is detrim ental to public order or public morality  . 
2. The inventions whose non-exploitati on is necessary to protect the life and health of humans, 
animals and plants or to avoid severe damage to the environment  . 
 For implementing the provisions of items (1 ) and (2) of this paragraph, non-granting of 
 protection shall not be provided for just b ecause such patent exploitation is disallowed under 
 other enforceable laws  . 
B. Discoveries, scientific theories and mathematical methods . 
C. Diagnostic, therapeutic and surgical methods n ecessary for the treatment of humans or animals . 
D. Plants and animals other than micro organisms .  
E. Biological methods for the reproduction of plants and animals other than non-biological and 
microbiological methods.  " 
  WT/TPR/M/206/Add.1 
 Page 59 
 
 
 Part III. Trade Policies and Practices by Meas ure; (4) Measures Affecting Production and 
Trade; (iv) Intellectual Property Rights: paragraph 148, page 55  
The Secretariat report states that compulsory licences can  be issued if "there is a need to export to 
countries suffering from epidemic diseases and emergency", among others.  
Canada understands from this statement that Jo rdan has implemented the August 30, 2003 WTO 
Decision, and would be grateful for further details on how their regime is operating.  
 
Answer:
 
Article 22 of the Original Jordanian Patent La w was amended in 1/5/2007 by adding paragraph (d) 
which stipulates: 
"d. If the exporting will be done to countries which suffer from pandemics or epidemic illnesses in 
compliance with the Kingdom's obligations und er the World Trade Organization agreements and the 
decisions issued pursuant thereto." 
 
In 16/6/2008 Jordan ratified the protocol related to this matter. No real cas es have occurred in which 
Jordan needed to enforce a compulso ry license in accordance with the amended law, but instructions 
will be issued to organize the exact procedure. Suc h instructions will be compliant with the details 
included in the Decision of the General Council of 30 August 2003.  Part III. Trade Policies and Practices by Meas ure; (4) Measures Affecting Production and 
Trade; (iv) Intellectual Property Rights: paragraph 150, page 56 
 
The Secretariat report provides that one of the exceptions  to the right of a patent holder is, "the use of 
the patent for research and development purposes".  Canada would be grateful if Jord an could further elaborate on the conditions under which the rights of 
a patent holder may be limited in these circumstances. .  
 
Answer:
 
The Jordanian Patent Law doesn't specify the c onditions under which the rights of a patent holder 
may be limited in the case of "the use of th e patent for research and development purposes".   
 
Part III. Trade Policies and Practices by Meas ure; (4) Measures Affecting Production and 
Trade; (iv) Intellectual Property Rights: paragraph 163, page 57  
The Secretariat report states that Jordanian law recognizes "famous trademarks", whose reputation has 
transcended their country of origin and that are well known among Jordanian consumers. It goes on to 
note that such marks can be the subject of infringement  action even if they are not officially registered 
in Jordan. Canada would be grateful to find out whether there have b een any successful cases against the 
infringement of a "famous trademark" in Jordan so far. .    
 
Answer:
 
No cases were raised in Jordan regarding th e infringement of a famous trademark. 
 Part IV. Trade Policies by Sector; (2) Agricultu re and Related Activities: paragraphs 15 and 20, 
pages 63 and 64  
Paragraph 15 and paragr aph 20 indicate that despite being a water scarce country Jordan provides 
subsidies to irrigation water. Water shortage in Jord an is considered as chronic, but Jordan has no plan 
to eliminate water subsidies. Subsidizing irrigation wa ter results in a price that is less than its true 
value. Experience from other countries shows that subsidizing the use of water to make it more 
accessible leads to water being treated as abundant  which can exacerbate the conditions of water WT/TPR/M/206/Add.1 
Page 60  
 
 scarcity. Farmers respond to low water prices by using amounts of water that exceed the capacity of 
resource stocks. Market-based incentives can allocate scarce water efficiently. 
Given the chronic scarcity of water why does Jordan continue to subsidize water use in agriculture? 
 
Answer:
 
Despite its small contribution to the GDP, agriculture is a very important sector; it is the nucleus of 
income and development of the rural areas where appr oximately one-fifth of the Jordanian population 
resides. Beside its role in providing strategic f ood commodities for the local market, the sector also 
supports Jordan's exports to foreign markets. Maintaining a healthy and productive agricultural 
sector is a core political aim for both social and economic reasons.  
Such subsidize are compliant with Jord an's commitments under WTO agreements.  
 
Are there plans to scale back water subsidies and replace them with more efficient market based-
incentives? 
 
Answer:  
The water and irrigation strategy aims to reallocate  a considerable mount of fresh water by treated 
waste water for agricultural use.  Moreover, the Ministry of Wate r and Irrigation has taken several 
measures to conserve the val uable water resources through its Regulation No. (85) of 2002 
(Underground Water Control Regulation) . Such measures include the following: 
 
1- Controlling water drilling licenses  
2- Controlling miss use of water  
 
Part IV. Trade Policy by Sectors; (4) Ma nufacturing; (ii) Selected Industries; 
(c) Pharmaceuticals: paragraph 71, page 76 
 The Secretariat report noted, "The pharmaceutical i ndustry has been one of the main beneficiaries of 
export subsidies through income tax relief. These subs idies are due to be phased-out by 2015 at the 
latest (Chapter III(3)(iv))." Could Jordan please further elaborate on their system  of export subsidies and give further detail as to 
the phase-out program?   Answer:
 
Jordan export subsidy program is "The Partial or  Total Exemption from Income Tax of Profits 
Generated from Exports under Law No. 57 of 1985,  as amended". The program was established in 
1995, exempting profits gained fr om exporting activities, except Potash & fertilizers exports, 
Phosphate exports; and Exports subj ect to Trade Protocols. Exemptions are granted through 
submitting official documents to the income tax depar tment, verifying the amount of profit resulting of 
exports activities.   Rrecently on the 27
th of July 2007, recognizing Jordan's economic and financial development needs, 
Jordan was granted the approval of extending th e programme until the 31 of December 2015 to be 
subjected to annual review.  
 As for the phase out of the program, consultatio ns with relevant government bodies and private sector 
organizations will be held. Beneficiaries will be re-in formed of the expiry date of the programme. The 
government will be working on a plan in cooperation with the private sector, so as to devise 
alternative mechanism to enhance th e competitiveness of the manufacturi ng sector so as to be able to 
accommodate the elimination of the program by 2015.   WT/TPR/M/206/Add.1 
 Page 61 
 
 
 Part IV. Trade Policies by Sector, (5) Servi ces, (iv) Tourism, paragraph 152, page 92 
 
The Report states that prior Ministerial approval is required for establishing a hotel.  
a) What factors are taken into account in granting this approval?  b) What criteria are used in assessing applications? 
 
Answer:
 
The following criteria is taken into consideration in assessing applications: a) Bonds registration 
b) Brand name 
c) Lease contract or land stake for hotel 
d) The ministry of tourism grants a conditional appr oval for 2 years and can be extended for another 
2 years to provide the required classifications. 
 
As for travel agencies, the Report states that doc umentary requirements for prior approval include a 
non-objection letter from the Jordan Tourism and Tr avel Agents Society and a bank guarantee.  
What are the other key documentary requirements? 
 
Answer:
 
Documents related to the following are required: 
• No criminal record certificate for applicant 
• The registered capital of the applicant should be not less than fifty thousand JD' 
• Appointing a manager  
 In respect of tourist guides, approval is granted by the Tourism Committee.  
(a) What factors are taken into account by this Committee when approving applications?  
(b) What criteria are used? 
 
Answer:
 
The applicant should satisfy the following: 
• No criminal record certificate 
• Scientific certificate not less than high school 
• Language test at Jordan University 
• Training course for eight months. 
 Part IV. Trade Policies by Sector, (5) Services, (b)  Postal and courier services, paragraph 119, 
page 86  
Canada notes that the Jordan Post Compan y has been designated for privatization. 
Is there a timeline for privatization?  
Answer:
 
The privatization process for the Jordan Post com pany s scheduled to be completed during the 3rd 
Quarter of 2009.   
Part VI. Trade Policies by Sector, (5) Services, (b)  Postal and courier services, paragraph 120, 
page 86  
(a) Could Jordan please elaborate on its licensing system?   (b) For instance how are international class licen ces differentiated from domestic class licenses?   
(c) Is it based on the type of service provided or rather the ownership/nationality of the 
companies providing the service?   WT/TPR/M/206/Add.1 
Page 62  
 
 Answer:
 
The main differences between th e two licenses are in the license fees and nature and scope of their 
services: 
• The domestic license fees are 2000 JD while th e international license fees are 20,000 JD. 
• Domestic License allows for the transportation of  private postal articles only in Jordan, while 
the international license allows for the transpor tation of private postal articles inside and 
outside Jordan.  
 
(d) Is there a limit on the number of licences available in either category?   
 
Answer:  
No, there is no limit on the number of licenses availabl e in each category. Each application that is 
fully compliant with the requirements of the license will be given the requested license.  
 
(e) What are the criteria for obtaining a license under either category?   
 
Answer:  
A- The requested criteria under e ither category are as follows:  
• The applicant should have registered his com pany (whether a Jordanian company or a 
foreign company operating in Jordan) in accordance with the Companies Law.  
• The applicant should have one or more commercial mark registered in his name or he has the 
right to use or make use of, and the TRC s hall endorse it as his private mail mark.  
• None of the company founders or any of its  managers have been convicted of any crime, 
felony or bankruptcy.  
• The applicant should provide a written commitment to  abide by the instructions issued by the 
Telecommunications Regulatory Commission (TRC).  
B - The license application should be presented to th e TRC according to its formats for this purpose 
with all the documents that support the conditions mentioned in A.    Part IV. Trade Policies by Sector, (5) Services,  (v) Professional services; (c) Architectural and 
engineering services, paragraph 159, page 94 
 This paragraph indicates that, "foreign engineering firms may only be engaged in projects where the 
required expertise is not available in Jordanian firms." Who makes this determina tion and how is it made? 
 
Answer:
 
The Professional Committee established by the Minist ry of Labour is the responsible party for such 
determination. The Committee has representatives from the Ministry of Labour, Jordanian Engineers 
Association and other stakeholders. 
 
Part IV. Trade Policies by Sector, (5) Services,  (v) Professional services; (c) Architectural and 
engineering services, paragraph 160, page 94 
 
This paragraph states that, "Engineers and engineer ing consulting offices are required to register with 
JEA and the association maintains a national register of all engineers licensed to operate in Jordan, 
including foreigners."  Could Jordan direct us to resources online or othe rwise, in which procedures and requirements for a 
licensure of foreign services are given? 
 
Answer:
 
Website of the Ministry of Public Works and Housing: www.mpwh.gov.jo   WT/TPR/M/206/Add.1 
 Page 63 
 
 
 Website of the Jordanian Engineers Association: www.jea.org.jo   
 
COMMENTS 
 Part II. Trade and Investment Regimes; (4) Trade Agreements;  (iii) Bilateral Agreements: 
paragraph 20, page 16; and Report by Jordan, paragraph 57, page 12 
 
Regarding the last sentence of the paragraph, "Jordan has begun negotiations for an FTA with 
Canada," and the sentence "bilate ral preferential agreements and FTAs are being negotiated with 
Turkey, Canada and Mercosur", in document WT /TPR/G/206, Canada would note that Jordan and 
Canada concluded FTA negotia tions on August 25, 2008. 
 
EUROPEAN COMMUNITIES
 
 
SUMMARY OBSERVATIONS 
(2) INSTITUTIONAL FRAMEWORK 
WTO Secretariat's report, page viii, para.10   
The WTO Secretariat's report outlines in detail Jo rdan's tariff escalation in different sectors.  
Does Jordan envisage any changes in  the current tariff structure? 
 Answer:
 
Jordan is currently drafting a new Trade Strategy  that provides for revisiting the current tariff 
structure in order to promote higher value added in dustries and address the issue of tariff escalation.  
 WTO Secretariat's report, page ix, para.11  
 The WTO Secretariat's report describes the customs procedure in Jordan, under which all importers 
are required to present an importer card for custom s clearance purposes; or pay a penalty of 2.5% of 
the value of imports.  Could Jordan explain why individuals have to pay a penalty of 2.5% of the value of their imports if 
they are not eligible for the importer card? 
 
Answer:
 
This undersized penalty is imposed to assist in regulating the trading process by encouraging 
importing through registered traders (importers) that  are more experienced an d familiar with related 
regulations and import requirements.     
 
WTO Secretariat's report, page x, para.18     
The WTO Secretariats' report outlines that "Jordan is  pursuing a strategy of trade liberalization at the 
multilateral, regional, and bilateral levels.  It h as made great strides, fo llowing its accession to the 
WTO, in reforming its economy and liberalizing its  trade regime.  The economy has shown resilience 
in a challenging external environment but it is likel y to remain vulnerable to surges in international 
prices for energy and food.  These and other structural problems (including water shortage) are being addressed through a policy agenda in which privati zation, investment, and trade liberalization have 
key roles". Could Jordan elaborate further on how it intends to encourage sustainable development and core 
labour standards in the context of negotiations with third countries? 
 
Answer:
 
Jordan places great emphasis on environmental and labo ur aspects in relation to trade liberalization. 
For instance, in 2000 Jordan signed a Free Trade Ag reement with the United States, which includes WT/TPR/M/206/Add.1 
Page 64  
 
 specific obligations concerning en vironment and labour. Recently, Jor dan agreed, in principle, on an 
FTA to be signed with Canada that has attach ed parallel agreements on environment and labour. 
Also, Jordan is currently in the process of negotiating labour cooperation agreements with 
Bangladesh and the Philippines to regulate th e flow of workers between these countries and Jordan. 
Jordan will continue to address issues related to environment, labour and sustainable development in 
its relations with third countries.  
I. THE ECONOMIC ENVIRONMENT 
(3) TRADE PERFORMANCE AND INVESTMENT  (ii) Investment  
WTO Secretariat's report, page 8, para.17  
 
The WTO Secretariat's report indicates that FDI has been constrained by, inter alia, administrative 
hurdles.  Could Jordan elaborate on whether it has plans to address these administrative burdens with the view 
of improving business and investment climate and if so, give details of these plans? 
 
Answer
 
1-. The Government recently undertook several reform  measures to improve public administration in 
the country, including issuing a new Anti-Corruption Commission Law (2006); enacting the Diwan Al-Mathalem Law (2008) that establishes the Burea u of Grievances in Jordan; and finally ratifying 
the Financial Capability Disclosure Law (2006) 
2- The Government continued structural ref orms through implementing and executing several 
privatization transactions. Jordan commenced its privatization progr am. The program concentrated 
on national infrastructure and utilities, including tr ansport, electricity, water and telecoms, and 
adopted a multi-track approach through facilitating capital sales, sales to strategic investors, 
concession agreements, and management contracts. Jordan's privatization has contributed to 
increase the efficiency and hence production levels of  privatized firms, creating a competitive market 
where demand and supply can freely interplay, attr acting foreign direct investments, allowing the 
private sector to participate in infrastructure investments. 3- Additional steps are being taken in this regar d through the launching of the one-stop shop (OSS). 
The OSS provides services of registering and licensi ng the projects, as well as, issuing visas and 
permanent residency approvals for investors and fo reign labour needed for the projects. All these 
services are provided within 14 working days. 4- The time needed to grant several licences and a pprovals was reduced. (24 – 48 hours)     
5- The Government has unified taxes imposed on profits and properties.  6- The Ministry of Justice has issued 18 pr actices specialized in commercial issues.   
7- The required capital for establishing a company was reduced from 30 thousands to 1000 JDs. 
 II TRADE AND INVESTMENT REGIMES (4) Trade Agreements (ii) Regional agreements Agreement with Egypt, Morocco, and Tunisia 
WTO Secretariat's report, page 16, para.19 
 
The Report outlines that Jordan is a party to the Agadir Agreement, wh ich entered into force on 6 July 
2006.  Could Jordan elaborate on how it has benefited fro m the implementation of the Agreement so far? 
 
Answer: 
 
Trade statistics show an increase in trade volume  between Jordan and Agadir members by 24% in 
2007 compared to 2006. Studies are being conducted to identify potential sectors in Agadir members  WT/TPR/M/206/Add.1 
 Page 65 
 
 
 such as garments and automobile industries that c ould contribute to industrial integration among 
Agadir members.  
 
Could Jordan indicate whether and how does it in tend to promote the Agreement among its private 
sector? 
 
Answer:  
Jordan has held several training workshops in co operation with the Agadir Technical Unit for the 
private sector to increase the awareness on the Ag reement, as well as similar regional workshops 
with other members. Furthermore, Jordan has published a comprehensive brochure about the 
Agreement and an export manual, which were later circulated to the business community.      
 (iii) Bilateral agreements WTO Secretariat's report, page 16, para.20       
The report states that Jordan is negotiating an FTA with Turkey. The negotiations began in June 2005 
and the last round took place in December 2007. We recall that Turkey has established a customs union with the EC and is aligning itself with the EC commercial policy. 
Could Jordan provide more detaile d information on the current status  of negotiations with Turkey, 
including the prospects of the next negotiating round?  Answer:
 
Since 2005, six rounds of negotiations have been concluded and currently both parties have reached a 
very advanced stage of negotiations for the establ ishment of an FTA. Differences in negotiation 
positions are pending only in relation to custom s dismantling arrangements for certain industrial 
products and liberalization of the agricultural sect or. The Government of Jordan looks forward to 
concluding the negotiations in the nearest future.  
 
Could Jordan elaborate on its position concerning the expected scope and covera ge of the Agreement, 
both in tariff lines and trade value figures?  
Answer:
 
The Agreement will cover trade in industrial and agricultural goods.   According to a recent impact 
assessment study that was conducted by a national consultant in cooperation with the chamber of 
Industry to evaluate the potential impact of th e FTA, Jordanian exports to Turkey are expected to 
reach USD 32 million after signing the FTA. On the ot her hand, imports from turkey are estimated to 
reach USD 638 million . 
 
Could Jordan indicate the date by which negotiatio ns with Turkey will conc lude and the date by 
which the Agreement will come into force? 
 
Answer:  
Jordan looks forward to concluding  the negotiations in the nearest future. The Agreement, after being 
concluded and signed, will enter into force after completion of domestic ratification procedures in 
both parties.   
The WTO Secretariat’s Report further states that Jo rdan has initiated negotiations for an FTA with 
Canada, yet according to other sources, these ne gotiations have already been concluded. 
Could Jordan provide information on the stat e of play of negotiations with Canada? 
 
Answer:
 
Jordan and Canada c oncluded the negotiations on  the FTA in August 2008. 
 WT/TPR/M/206/Add.1 
Page 66  
 
 Could Jordan specify the scope and coverage of this  Agreement, both in tariff lines and trade value 
figures?  
Answer:
 
The agreement covers aspects related to dismantlin g customs tariffs on industrial and agricultural 
goods. It also covers aspects related to SPS, TBT,  Trade Facilitation, Customs Procedures, Dispute 
Settlement, Rules of Origin as well as Labour and Environment.    
 
Could Jordan furnish information on whether it intends  to start any other FTA negotiations in the near 
future? 
 
Answer:  
Jordan is in the process to initiate nego tiations with MERCOSUR and Pakistan.  
 (5) INVESTMENT
 FRAMEWORK 
WTO Secretariat's Report, page 18  para. 28    
 
Paragraph 28 outlines the regime applying to ownership and investme nt for non-nationals based on 
the Organizing Non-Jordanians' Investment By-Law  No. 54 of 2000 and Jordan authorities have 
prepared a new draft regulation to replace the Regulation nº 54 of 2000.  According to initial 
information this new draft will allow 100% forei gn ownership in transport services, insurance agent 
services and travel agencies and tour operator services. 
Could Jordan inform us when the above me ntioned regulation will come into force? 
 
Answer:  
The draft regulation is currently under discussion at th e Legislative Bureau at the Prime Ministry.   
 
Could Jordan furnish information whether it intends  to allow 100% foreign ownership in transport 
services, insurance agent services and travel agen cies and tour operator services in the new law? 
 
Answer:  
The draft regulation is curently under discussion at th e Legislative Bureau of the Prime Ministry.   
 
Could Jordan give details on any plans to eliminat e the limit of 50% on foreign equity in engineering 
services and construction contracts?  
Answer
 
Jordan doesn't have such plans.     
TRADE POLICIES AND PRACTICES BY MEASURE 
I
NTRODUCTION  
WTO Secretariat’s Report, page 23 para. 1      
The WTO Secretariat's Report notes that the applie d MFN tariffs are generally within a range of 0-
30%, with a peak of 180% on certain alcohol and al coholic beverages and it  is understood that the 
reasons for such peaks are cultural and religious. Could Jordan elaborate on the reasons of its selective approach towards its trading partners as to the 
tariff dismantlement schedules for certain alcoho lic beverages contained in bilateral FTAs? 
 
Answer:
 
In principle, Jordan usually excludes alcohol and to bacco from tariff dismantlement for social and 
health reasons in the FTA's that Jordan is party  to. In some FTA's Jordan granted limited reductions  WT/TPR/M/206/Add.1 
 Page 67 
 
 
 in customs duties on alcohol and cigarettes. Such preference is granted depending on several factors 
such as the expected trade volume under su ch FTA's, and impact on government revenues.  
 WTO Secretariat's report, page 24-25, para. 12  
The WTO Secretariat's report states that in 2007, 15%  of the total consignmen ts were cleared through 
the green, 41% through the yellow and 44% through the red channel respectively. 
Could Jordan furnish information on any future performance targets for improved customs clearance 
procedures as regards percentage of consignmen ts going through red, yellow and green channels? 
 Answer:
 
Jordan Customs launched the (Golden List) program , which qualifies companies to consign through 
green channel. Jordan Customs is currently worki ng to expand this program to increase the number 
of the companies included in the golden list. Fu rthermore, Jordan Customs applies the (Tag and 
Track) system that facilitates the movement of imports between border points. (Details about the 
program are available on Jordan Custom s' website: www.customs.gov.jo)     
 M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Registration and documentation WTO Secretariat's Report, page 24  para. 6  
The WTO Secretariat's Report notes that registrati on in the Importers/Exporters Registry precludes 
inspection and approval of the relevant premises by the local municipality. Could Jordan indicate the rationale for this requirement? 
Answer:
 
Registering in the Importer/Exporter Registry at  the Ministry of Industry and Trade requires a 
municipal professional licence as a pre condition for registering. The professional licence provides 
the permission to carry out activities that are officially authorized  to be undertaken in the registry.             
 
(iii) Rules of Origin 
WTO Secretariat's Report, page 25  para. 17  
The legal framework for the application of non-preferen tial rules of origin is set out in Articles 24-26 
of the 1998 Customs Law, as amended.
   The rules stipulate that, inter alia, goods must be wholly 
obtained in the exporting country, or undergo substantial transformation th at results in a change of the 
six-digit tariff classification of the goods, or contain at least 40% domestic content (Article 24).  A certificate of origin is required for imported produc ts from all countries.  The certificate should be 
issued by an authorized b ody in the exporting country. 
Could Jordan explain why its non preferential rules of  origin are stricter than the ones used in the 
context of preferential agreements? Why is a certif icate of origin required for all non preferential 
imports? 
 
Answer:
 
In general, rules of origin in the customs la w are less stricter than those applied in preferential 
agreements. The certificate of origin is required for all non preferential imports due to the following 
reasons:  For the purposes of safeguards and antidumping measures. 
In cases of failure in meeting the transaction value. 
For statistical purposes. For re-exporting procedures.  
 
Could Jordan indicate for which purposes their non preferential rules of origin are applied?  WT/TPR/M/206/Add.1 
Page 68  
 
 Answer:
 
Same answer to question 19 above  
 
WTO Secretariat's Report, page 25  para. 22 
 
Paragraph 22 indicates that the Pan-Euromed rules of  origin are applied to trade under the Jordan-EC 
Association Agreement, the Jordan-EFTA FTA, th e Agadir Agreement, and Jordan-Israel Trade 
Agreement. The EC notes that this paragraph should be further clarified with the following text: The 
Pan-Euromed protocol allows for diagonal cumu lation of origin among member countries, having 
concluded a Free Trade Agreement between them, in cluding the pan-euro-med protocol on rules of 
origin. 
 
Answer:  
Jordan agrees with the clarification. 
 
Tariffs and taxes (e) Other duties, levies, and charges 
WTO Secretariat's Report, page 32  para. 35 
 
An import processing fee 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.  Transit fees are JD 20 per transaction; re-export fees are 
JD 15 per transaction.  According to the Customs La w, these fees (services allowances) are to be paid 
to "eligible officers" in a manner determined by the Minister of Finance; the remaining sum is 
deposited in a special fund for the Customs Depart ment, to be used for improving customs houses, 
establishing housing compounds and housing loans for customs officials, as well as improving their living, sport, cultural, and so cial standards (Article 161D). 
Does Jordan intend to eliminate the import processing fees? 
 
Answer:  
The revenues of this fee are directed to the Customs Department and other involved government 
agencies as a return for the services they provide and is used to improve such  services in terms of 
training, improving customs houses and other aspects.      
 
WTO Secretariat's Report, page 32  para. 36-38 
 
Paragraphs 36-38 outline the General Sales Tax and Special Tax systems. 
Could Jordan provide more information on the rates a nd structure of the "special taxes" mentioned in 
paragraphs 36 and 38? 
 
Answer:  
 
Schedule (1): Goods Subject to the Special Tax (based on Regulation No. (80) of 2000) 
ID DESCRIPTION CHARGEABLE UNIT RATE OF SPECIAL TAX 
1. Cement of all kinds: 
a) Imported and locally purchased by 
manufacturers of cement pipes 
and columns and manufacturers 
of cement mixtures, registered at the Department. 
b) Others  
 Ton 
 
  
Ton   
Zero   
 
 zero 
2. Construction and reinforcement iron 
bars Ton Zero 
4. Beer, including non-alc oholic beer Liquid 1000 fils 
5. Ethyl alcohol, indentured. Litre Zero 
6. Spirits and alcoholic beverages, 
including wines and other fermented beverages. Litre 2000 fils  WT/TPR/M/206/Add.1 
 Page 69 
 
 
 ID DESCRIPTION CHARGEABLE UNIT RATE OF SPECIAL TAX 
7. Tobacco and tobacco products: 
a) Tombac: 
1) ordinary 
2) sweetened 
b) cigarettes: 
1) put to home use 
  
 
2) supplied to the armed forces 
c) cigars   
 
 
Kg Kg 
  
Packet of 20 cigarettes value  
Packet of 20 cigarettes value 
 value   
  
2500 fils 
2500 fils   
300 fils + 102% from value 
 260 fils +  102% from the value 
 
10% 
8. A) Motor cars and other motor 
vehicles principally designed for 
the transport of persons (other 
than those of heading No.87.02), including station wagons and 
racing cars, whether imported or 
locally produced not earlier than five years 
 
  
 
  
 
   
 
   
B) Motor cars and other motor 
vehicles principally designed for the transport of persons (other 
than those of heading No.87.02), 
including station wagons and racing cars, whether imported or 
locally produced earlier than five 
years 
 
 
  
 
   
 
C) Small vehicles, hand-driven only , 
specially designed for cripples or 
paralytics in both legs or in one 
leg and vehicles specially designed as ambulances and 
hearses 
 D) 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. 
 
E) Motor vehicles that works, fully or partially, on electric batteries (Hybrid), regardless the cylinder capacity. Value 
  
  
    
 
  
 
Value  
 
  
 
   
 
 Value 
 
   
 
Value  
 
Value  35% (till 30 April 2007) 
49% ( during the period 01 May 2007 
till 30 April 2008) 
52%( during the period 01 May 2008 till 30 April 2009) 
56% from 01 May 2009 
  56% (till 30 April 2007) 
73%( during the period 01 May 2007 
till 30 April 2008) 76% (during the period 01 May 2008 
till 30 April 2009)  
81% from 01 May 2009 
 
25%   
 
16%  
 
 Zero 
 
  
 WT/TPR/M/206/Add.1 
Page 70  
 
 WTO Secretariat's report, page 35, para. 52     
 
The WTO Secretariat's report states  that the current Standards a nd Metrology Law is under review 
with the intention of incorporating provisions fo r market surveillance, to  ensure compliance with 
product safety requirements. 
Could Jordan provide information as to in whic h stage of review this law is? When are the 
amendments to the law expected to be adopted  by the Parliament and enter into force? 
 
Answer:
 
The draft Law is under discussion at the Legislative Bureau. After the approval of the Prime Ministry, 
the draft law will be submitted to the Parliame nt for its approval during its ordinary session.  
 
(vii) Standards, and other technical requirements 
(a) Technical barriers to trade (TBT) WTO Secretariat's Report, page 36  para 57  
 The WTO Secretariat's Report indicat es that Jordan is in the process of adopting six new technical 
regulations concerning product safety. Could Jordan provide more detailed information as to  in which stage of adoption these regulations are 
and when are they expected  to enter into force? 
 
Answer:
 
Two technical regulations concern ing safety of toys and low voltage equipment have already entered 
into force since 20-10-2008. The technical regulatio n concerning safety of gas appliances is expected 
to enter into force before the end of 2009. The fir st draft of the technical regulation on pressure 
equipment is prepared and will be  soon notified to the WTO Secretariat for a comment period of two 
months. Therefore it is expected that the pressure e quipment technical regulation will enter into force 
by March 2009.  The measuring instrument is bein g drafted and is expected to enter into force by mid 
of 2009. The technical regulation concerning ge neral product safety will be published upon the 
approval of the amended Law on Standards and Metrology. 
 
WTO Secretariat's Report, page 36  para. 58    
 The WTO Secretariat's report describes the Jordan ian accreditation system of conformity assessment 
bodies, which operates under the umbrella of the JISM and ensures compliance with the ISO/IEC 
17011 standard for accreditation bodies.  Implemen tation of this ISO standard would allow for 
negotiation of mutual recognition agreements with  foreign accreditation bodies.  Yet currently, all 
imports are subject to the risk-based system of in spection (only testing and calibration laboratories, 
and medical laboratories are being accredited).  This Jordanian risk-based system of inspection can  be very costly for exporters and importers.  
Could Jordan inform us about the current status of  the implementation of the ISO standard that would 
pave the way for the negotiation of mutual re cognition agreements with foreign authorised 
laboratories?  Answer:
 
The ISO/IEC 17011 Standard is implemented by  the Jordanian Accreditation Body; however the 
impartiality and integrity is not  fully achieved, as the Draft Jordanian Accreditation Commission Law 
that will give the Jordanian Accreditation System th e required independence is not yet approved.  In 
addition the ISO/IEC 17040 Standard is used as a basis in the development of mutual recognition 
agreements    WT/TPR/M/206/Add.1 
 Page 71 
 
 
 (b) Sanitary and phytosa nitary (SPS) measures  
WTO Secretariat's Report, page 37 para. 62  
According to the WTO Secretariat report, "a new food law is under consideration". 
Could Jordan provide information as to in which st age of preparation this law is? When is the new 
law expected to be adopted by the Parliament and enter into force? 
 
Answer:
 
The draft of the new food law was discussed by the "H igher Committee of Food Control" in a series of 
sessions during August-October 2008, and a final dr aft was approved. The final draft will be 
presented to Jordan food and Drug Administration (J FDA) Board for approval by mid December to 
be afterwards submitted to the Cabinet; It is expec ted to be discussed and adopted by the  Parliament 
shortly after that. 
 
WTO Secretariat's Report, page 37 para. 65 
 The WTO Secretariat report notes that "shipments must also be accompanied by a certified laboratory 
analysis of the contents of the imported articles." Could Jordan confirm that the laboratory analyses should not accompany all consignments of imported products and if laboratory analysis must accompany shipments, on what basis? 
 
Answer:
 
Yes Jordan confirms the above.  
 
WTO Secretariat's Report, page 37 para. 66  
 
The WTO Secretariat report describes the Jordan ian quarantine procedures, its exceptions and the 
basis for mutual recognition agreements. Could Jordan clarify its policy on risk-based import restrictions related to BSE, acknowledging that 
import beef restrictions – for some EC countries – have already been lifted? 
 
Answer:
 
Import beef restrictions – for some EC countri es – have already been lifted since October 2008. 
Currently, Jordan allows the import of beef and othe r meat products from all EC countries according 
to relevant OIE regulations . 
Could Jordan indicate when it will: 
(a) follow the World Organisation for Animal He alth (OIE) BSE risk classification on the 
basis of  which 25 EC countries belong (since May 2008) to either a "controlled" or 
"negligible" risk status, and 
b) allow the import of beef and other meat products from all EC countries? 
 
This issue was discussed by the "BSE Committee" and a decision was taken in October 2008 to fully 
comply with the (OIE) BSE risk cl assification. Based on this decision Jordan will allow the import of 
beef and other meat products from all EC countries. 
 (viii) Government procurement WTO Secretariat's Report, page 38  para. 71   
The report outlines that Jordan intends to modify it s procurement legislation, which will be the key 
element for the GPA accession.  In this respect, could Jordan inform about the state of play and the date of the actual adoption of this legislation?  
 WT/TPR/M/206/Add.1 
Page 72  
 
 Answer
: 
The new draft procurement legislation is under di scussion at the Legislative Bureau at the Prime 
Ministry.   
Could Jordan, furthermore, present details on the provisions contained in the draft procurement 
legislation?  
 
Answer:
 
The new draft procurement legislati on consists of 12 Chapters as follows: 
• Chapter I: Definitions and General Prov isions: Consists of 34 Articles. 
• Chapter II: Classification and Qualification of  Contractors, Suppliers and Consultants: 
Consists of 24 Articles. 
• Chapter III: Procurement Methods of Works, Suppl ies and Ordinary Services: Consists of 12 
Articles. 
• Chapter IV: Procurement Committees: Consists of 15 Articles. 
• Chapter V: Procedures for Tendering and Opening and Evaluation of Offers: Consists of 61 
Articles. 
• Chapter VI: Monitoring Procurement Processes: Consists of 23 Articles. 
• Chapter VII: Special Provisions: Cons ists of 3 Sections as follows: 
- Section 1: Works: Consists of 5 Articles. 
- Section 2: Supplies: Consists of 39 Articles. 
- Section 3: Procurement of Services: Consists of 38 Articles. 
• Chapter VIII: Procuring Information and Communica tion Technology: Consists of 6 Articles. 
• Chapter IX: Use of Information and Communication Technology Net and Systems in 
Government Procurement: Consists of 2 Articles. 
• Chapter X: Participation of Small and Medi um Enterprises in Procurement Transactions: 
Consists of 3 Articles. 
• Chapter XI: The Higher Procurement Commission Monitoring and Objections: Consists of 2 
Sections as follows: 
- Section 1: The Commission's Monitoring an d Supervision: Consists of 6 Articles. 
- Section 2: Objections: Consists of 6 Articles. 
• Chapter XII: Penalties and General Provisions: Consists of 2 Sections as follows: 
- Section 1: Penalties: Consists of 4 Articles. 
- Section 2: General Provisions : Consists of 8 Articles.  
 
In particular, will the new procurement legislation modify all current Acts on procurement, including 
those targeting sub-central government entities?  
 
Answer:  
The below Articles of the Draft Legislation address this issue: Article (4) Scope of Application, sates: The provisions of this Regulation shall apply to al l of the Government Institu tions’ Procured Items, 
with the exception of the following Procured Items: 
1. Security Procured Items of the Armed Forces; 
2. Security Procured Items of the Public Security Directorate and the Civil Defense 
Directorate; 
3. The Procurement processes relati ng to internal or external na tional security provided that 
such is specified by a decision of the Council of Ministers. 
 
Article (288) Cancellations, states:  
Upon applying this Regulation, th e following shall be cancelled:  WT/TPR/M/206/Add.1 
 Page 73 
 
 
 1. Regulations of Governmental Works Regulation No. (71) For the year 1986 and its 
amendments. 
2. Supplies Act No. (32) For the year 1993 and its amendments. 
3. Medicine and Medical Supplies regulation No. (91) For the year 2002 and its amendments. 
4. Works and Supplies Regulations adopted by Governmental institutions, taking into 
consideration any exceptions mentioned in this regulation.  
5. Any provision or rule under other legisla tions contravenes with this Regulations 
 
If so, will the legislation unify the procurement ru les on all levels of procuring entities and establish 
one legal framework for pr ocurement on all levels?  
 
Answer:  
Yes.  
If not, which entities (government departments and corporations, municipalitie s, rural councils) will 
continue to follow a specific regime? What would be the main feature of the specific regime, in 
particular in respect to publications, qualifications  of (foreign) bidders and tendering procedures?  
 
WTO Secretariat's Report, page 38  para. 75 and para.79  
This report details measures taken by Jordan to become GPA compliant. 
Could Jordan indicate how it intends to render its procurement legislation GPA compliant regarding 
firstly, the pre-qualification/qualification of foreig n suppliers (in all types of procurement) and 
secondly, regarding the requirements for participation of a Jordanian partner (local agent), both for the 
participation in tender procedures and for the execution (after sale service)?  
 
Answer:
 
The Pre- qualification (for a certain Project or Tender, in light of its special nature, size or sophisticated nature) of foreign Contractors,  Suppliers, Consultants, Service Providers and 
Information Technology Providers, is addressed in C hapter II of the new draft regulation, as follows: 
 
Article (37) Prequalification for International Tenders 
Where the Tender is offered internati onally in accordance with the provis ions of Article (87) of this 
Regulation or international tendering was intende d, the Competent Procuring Entity shall select 
Contractors, Suppliers, Service Providers or inform ation technology providers who are allowed to 
participate in the Tender or the Project Tenders  on the basis of prequalification procedures 
mentioned in Article (41) or the provisions of qualifying Consultant s according to the provisions of 
Section (3) of Chapter (VII) of this Regulation.   Article (87)Local or International Tendering A- Tenders must be offered locally unless the agreements and protocols referred to in Article (5) of 
this Regulation stipulates tendering in other manners, including the international Tendering in 
accordance with the terms and provisions of such agreements and protocols.  
B- Subject to the provisions of Paragraph (A) of  this Article, Procurement may be conducted 
through an International Tendering in any of  the following cases, subject however to the 
provisions of the enacted C onstructions Contractors Law and Engineers Association Law:  
C- If the local Contractors, Suppliers, or Consultants do not possess the conditions, 
specializations, and expertise required to implem ent the Procurement transactions of Supplies, 
Works or Ordinary Services. This shall be done  by a decision by the Competent Minister upon a 
report by persons of competence and expertise. 
D- If it was not possible to obtain the Procured Items from local Bidders and upon exhaustion of 
all Procurement methods stipulated in this Regulation. WT/TPR/M/206/Add.1 
Page 74  
 
 E- Jordanian Bidders may participate in International Tendering.  
 Article (5)Procurement accord ing to Agreements and Treaties 
A- To the extent that this Regulation conflicts with Procurement rules of a donor or funding 
agency, the application of which is mandatory pu rsuant to an obligation entered into by the 
Jordanian Government, the requirements of tho se rules shall prevail in the Procurement 
processes.   
B- To the extent that this Regulation conflicts with  Procurement rules according to trade protocols 
and agreements concluded between the Governme nt of the Hashemite Kingdom of Jordan and 
Arab and foreign governments and entities and other international and regional entities or 
organization, the requirements of such pr otocols and agreements shall prevail in the 
Procurement processes. 
 Article (41)Prequalification of Contractors, Suppli ers, Consultants, Service Provider and information 
technology provider   
A- The procedures and criteria for prequalifying C ontractors, Suppliers, Consultants Service 
Providers and information technology providers for a certain Project or Tender, in light of its 
special nature, size or sophisticated nature shall be regulated pursuant to instructions issued by the Commission for this purpose. These instructions  shall be published in the Official Gazette. 
B- The Procuring Committee shall examine prequalific ation requests, and it may form technical 
committees to examine such.  
C- The Competent Minister shall grant the me mbers of technical committees that examine 
prequalification requests and the secretary thereof awar ds in accordance with the instructions 
referred to in Paragraph (A) of Article (86) of this Regulation.  
 
Regarding the requirements for participation of a Jo rdanian partner (local agent), both for the 
participation in tender procedures and for the execution (after sale service) 
 
Article (87)Local or International Tendering A- Tenders must be offered locally unless the agreemen ts and protocols referred to in Article (5) 
(See above) of this Regulation s tipulates tendering in other manners, including the international 
Tendering in accordance with the terms and prov isions of such agreements and protocols.  
B- Subject to the provisions of Paragraph (A) of  this Article, Procurement may be conducted 
through an International Tendering in any of  the following cases, subject however to the 
provisions of the enacted C onstructions Contractors Law and Engineers Association Law:  
C- If the local Contractors, Suppliers, or Consultants do not possess the conditions, 
specializations, and expertise required to implem ent the Procurement transactions of Supplies, 
Works or Ordinary Services. This shall be done  by a decision by the Competent Minister upon a 
report by persons of competence and expertise. 
D- If it was not possible to obtain the Procured Items from local Bidders and upon exhaustion of 
all Procurement methods stipulated in this Regulation. 
E- Jordanian Bidders may participate in International Tendering.  
 
WTO Secretariat's Report, page 40  para. 82  
The WTO Secretariat outlines the tender pr ocess for procuring goods and services. 
Could Jordan indicate whether it intends to change th e system of notification of bidders, so that the 
aggrieved bidder would be able to  challenge the award decision in front of a review body (written 
notification)?  
 
Answer:
 
Below are abstracts of the new draft legislation th at address this issue: Chapter (11) of the draft 
regulation,  Articles (271), (272), (273), (274), (275) and (276) of Section 2 under Chapter 11:  WT/TPR/M/206/Add.1 
 Page 75 
 
 
 Section (2)  
 O
BJECTIONS  
Article (271) Right to object  
A) Any bidder who allegedly assume that he has suffered or may suffer any loss or has incurred 
any damage due to the procur ing entity or the competent procurement entity carrying out 
any measure or issuing any decision in  prejudice to obligations and responsibilities 
entrusted to it under the provisions of this regulation and the instructions issued pursuant 
thereto , may object to the invalidity of such measure or decision , subject to the provisions of Article (56) of this regulation .  
B) Notwithstanding contents of para (A) of this  Article, the competent procurement entity’s 
decision to reject all offers or cancellation of th e bid pursuant to the provisions of any of the 
two Articles (131) and (132) as the case; shall not be subject to objection. 
  
"Article (131) Rejection of Bi ds and Cancellation of the Tender 
 
The Competent Procuring Entity shall be entitled to  undertake any of the following without incurring 
any liability before the Bidders who have submitted Bids: A- Reject all Bids at any time prior to identifying the successful Bid.  
B- Cancel the Bid at any time before signing the contract, if this achieves best interest.  
 
Article (132) Rejection of Bids 
A- The Committee shall reject a Bid in  any of the following cases: 
1- If the Bidder that submitted the Bid is not qualified.  
2- If Bidder that submitted the Bid has submitte d, or participated in, another Bid for the 
Procurement in question, in which case both tenders, shall be rejected. 
3- If the Bidder that submitted the Bid does not c onform to the Bidding Documents according to 
the provisions of Paragraph (C) of Article (123) of this Regulation; 
4- If a Bid security was not prov ided, if such a security was required by the tender Bidding 
Documents; 
5- In any other circumstance provided for in this  Regulation, including the circumstances referred 
to in Paragraph (B) of Article (160) of this Regulation. 
B- The Committee may reject any Bid if its prices are much less than the cost or current prices or 
prices estimated by the Procur ing Entity, provided that, be fore doing so, the Committee shall 
request the Bidder concerned to provide clarificati on as to the basis of the Bid price. If the 
Committee decides to reject the Bid, it shall include in the Register of the Procurement 
Proceedings a detailed statement of the reasons for rejection." 
 
Article (272) Objection procedures. 
A) The objection request shall be submitted in  writing and the reasons to the competent 
procurement entity within (7) days from the date of bidder’s knew the causes of objection, or 
as from the date should have known such c auses, or from the date of announcement on the 
bulletin board of the competent procurement entity, if objection has been submitted against 
any decision or measure taken prior signing the procurement contract.  
B) Taking any essential decision in the objected pr ocurement transaction shall be suspended 
for seven (7) days from the submission date of  the objection by a decision taken by the 
chairman of the competent procurement entity or chairman of the commission, as the case, 
and any one of them may extent his decision for a period not exceeding (30) days from the 
date of submission of the objection.  
C)
 Extension of the suspension period for taking any substantial decision in the procurement 
process , shall not be allowed if it has been confirmed to the chairman of the competent 
procurement entity or the chairman of the commi ssion , that public interest considerations WT/TPR/M/206/Add.1 
Page 76  
 
 necessitate to proceed in the pr ocurement process, provided such  considerations be stated in 
the procurement procedures register .  
D) Any decisions by the competent procurem ent entity, objection committee, commission or 
court shall be recorded pursuant to the provisi ons of this regulation, and causes thereof, as 
well as relevant measures taken, in the procurement register.  
 
Article (273) Determination of objection.  
A) The procurement committee sha ll determine and decide regarding the objection within (7) 
days from the date of submission.  
B) The bidder shall have the right to object in writing against the procurement committee 
decision issued concerning the objection submitte d to it , within (5) days from the date being 
informed the committee decision as follows :-  
 
1- To the concerned Minister if the decision has  been issued by the subsidiary or local 
procurement committee, and the Minister  shall take decision concerning the 
objection, within (10) days from submitting thereof to him.  
2- To the objection committee formed in the co mmission pursuant to the provisions of 
para (A) of Article (274) of this regulation.  
 Article (274) Objections Committee  
A) One or more committees to be formed in  the commission and to be cited " Objection 
Committee " headed by the commission chairman  or any high-caliber employee of the 
commission nominated by him , and the membership of the following :-  
 
1- One high-caliber employee of the commission to be nominated by its 
chairman.  
2- One high-caliber employee of the government tendering department , or employees of 
the general supplies department , as the case may be , nominated by the General 
Manager .  
3- Two members from the list referred to in Ar ticle (276) of this regulation, provided 
one shall be legal and the other technical.  
B) The objection committee shall be entrusted determination of objections submitted 
to it, pursuant to the provisions of item (2) of para (B) of Article (273) of this 
regulation. Determination shall be within (10) days of the objection submission date and its resolution shall be contestable before the supreme court of justice.  
C) The competent procurement entity must abide by the decision of the objection committee, 
and each measure inconsistent with its  decision shall be null and void.  
D) The commission shall ensure availability of secret ariat service for the objections committee.  
E) If the department is the challenged party, th en the department representative in the objection 
committee shall not attend the committee mee tings or vote therein, and the commission 
chairman shall nominate a high-caliber commissi on employee as a substitute member in the 
committee instead of the department representative.  
F) The chairman and members of the objection comm ittee mentioned in items (1 and 2) of para 
(A) of this Article as well as the secretary thereof shall be paid remuneration pursuant to the 
instructions referred to in para (A) of Article (86) of this regulation.  
 Article (275) Reply to objections.  Unless objection is dismissed, the Minister or th e objection committee may take any of the following 
measures concerning objections:-  
 
A) Declare the legal rules and regulations go verning the objected measure and decision , and 
to direct the competent procuremen t entity to act in conformity with the provisions of this  WT/TPR/M/206/Add.1 
 Page 77 
 
 
 regulation as well as the instructions issued  pursuant thereto , and the tender documents or 
procurement contract .  
B) Prevent the competent procuremen t entity from acting or proceed  in acting contradictory to 
the provisions of this regulation, instructions  issued pursuant thereto, tender documents or 
procurement contract.  
C) Cancel, wholly pr partially, the competent pr ocurement entity’s unlawful act or decision, 
except the decision leading to the cance llation of the procurement contract.  
D) Request the competent procurem ent entity to revise any unlawful decision issued by it or 
substitute the same by another decision, except the decision leading to the cancellation of 
the procurement contract.  
 
Article (276) Panel of Experts to consider the objections.  
A) By a decision of the Prime Minister upon recommendation by the commission chairman , a 
panel including between 20 to 25 legal and technical experts shall be selected , provided that members are not government employees , Membership of this panel shall be revised 
once every two years .  
B) The panel of experts to consider objections sha ll include experts in the field of works, 
supplies, services as well as legal experts in the field of procurements.  
C) The commission shall issue instructions necessary to identify persons to be mentioned in the 
panel for considering objections, as  well as criterion for specifying their remuneration, and 
the party / parties to pay such remuneration.  
 It is noted from the report that currently, the Jo rdanian law does not foresee a specific system of 
impartial and effective remedi es for procurement disputes. 
Could Jordan explain how the new legislation will address this?   Answer:
 
Please see answer to questions 34 above. 
 
Will there be a uniform remedies system put in place, which will be applicable to all tender 
procedures, irrespective of the type of procurement and the level of the procuring entity?  
 
Answer:  
Please see answer to questions 34 above.  M
EASURES DIRECTLY AFFECTING EXPORTS  
(iii) Export prohibitions, restrictions, and licensing 
WTO Secretariat's Report, page 43 para. 94 and  page 44  para. 96 
 
The WTO Secretariat's Report notes that the share of exports benefiting from the export subsidy in 
Jordan's total merchandise exports increased signi ficantly in 2006 (from 70,8 million US$ in 2005 to 
2,148 billion US$ in 2006.) The Report also notes that this subsidy has to be eliminated by the end of 
2015.  
Could Jordan indicate the reasons for such a signifi cant increase of the share of exports benefiting 
from the subsidy? 
 
Answer:  
- The above figure is in million and not in billion,  accordingly, it should be read as follows 
(from 70.8 million US$ in 2005 to 2,148 milli on US$ in 2006), as s hown in Jordan's new 
and full notifications submitted earlier. 
- The main rationale for introducing the export subsidy programme was to offset the 
negative effects of the war on Iraq in 2003, and accordingly Jordan's export markets were extensively affected in the years 2004 and 2005. This explains the remarkably low WT/TPR/M/206/Add.1 
Page 78  
 
 export values in these years compa red to 2006. In addition to the market access provided 
by FTA's, in particular GAFTA and USFTA. 
- Due to the cancellation of the Jordanian Iraqi Protocol in 2004, Jordanian 
manufacturers targeted new international markets, which resulted in more geographic 
diversification for Jordanian exports. 
 Is there any data concerning the share of exports benefiting from this subsidy available for the year 
2007? 
 
Answer:
 
As indicated in Jordan's new and full notificati on for the year 2007 doc.G/SCM/N/177/JOR the total 
exports value benefiting from this subsidy is 533,965,829.45 US $. This  demonstrates that consistency 
in figures with the years 2001 - 2005 had came about  again in the year 2007 as shown in the table 
below, and that the unanticipated increase in th e year 2006 was no more than impairment state due to 
the associated economic conditions of exports in that year. 
 
Export subsidies provided by Jordan in the form of income tax relief on profits generated from 
exports, US$ million, 2001-07 
 
 Income tax relief  
(export subsidy) Total exports benefiting 
from the export subsidy Total export value 
2001 8.9 593.6 1,700 
2002 7.8 522.2 2,200 
2003 8.3 552.4 3,000 
2004 1.2   76.7 3,950 
2005 1.1   70.8 4,300 
2006 32.2 2,148.0 4,800 
2007 8.0   533.9 5,700 
 
(4) M EASURES AFFECTING PRODUCTION AND TRADE  
(ii) Competition and pricing policies WTO Secretariat's Report, page 50  para. 131  
The report indicates price controls which can be applied to essential commodities.  
Currently there is a price control imposed by the JFDA (Jordan Food and Drug Administration) on the 
Infant Milk Formula for Babies Age 0-12 months. This price fixed by the JFDA has been very low fo r the last few years. As a consequence the only 
local manufacturer (joint venture) of infant milk  formula has faced heavy losses because this fixed 
price is even below the cost production. Infant Formulae is not subject to price control in more  than 95% of countries.  In Jordan this low price 
control policy is against foreign direct investment . Therefore, exporters are seriously considering 
stopping their sales in Jordan.  Even if Jordan authorities consider the Infant  Milk Formula for Babies Age 0-12 months as a 
medicine and keep the registration process, would it be  possible to remove or adjust this price control 
that is damaging the production system and the market? 
 
Answer:
 
Infant Formula is priced in accordance with Drug & Pharmacy Law which is done through the 
pricing committee (assigned by the same law). Currently the law is under revision and one of the 
main changes is shifting the registration of the infant  formulas to the Food Department at the Jordan 
Food and Drug Administration; this automatically im plies their price exemption. The Law amendment 
is scheduled to be presented to and di scussed by the current Parliament session  WT/TPR/M/206/Add.1 
 Page 79 
 
 
 WTO Secretariat's report, page 56, para. 151 
 
The WTO Secretariat's report states that industrial designs are protected by the Industrial Designs and 
Models Law No.14 of 2000. We note, however, that no procedures exist in Jordan for controls to be 
exercised by public authorities in the absence of a specific complaint by the rights-holder for a 
specific product. This might lead to significant trade in fake copy products. 
Could Jordan elaborate as to whether and how it in tends to give its public authorities the right to 
exercise control concerning industrial designs even  in the absence of a specific complaint by the 
rights-holder for a specific product?  
 
Answer:  
Jordan is in the process of amending the Customs la w No. 20 for the year 1998 with the view to give 
public authorities the right to exercise control concerning industrial designs.  IV. TRADE POLICIES BY SECTOR 
(5) SERVICES 
(ii) Telecommunications and postal services 
(a) Telecommunications  
WTO Secretariat's Report, page 84  para. 106 
 
The report notes that the fixed-line subsector in Jordan is not opera ting competitively, and there is a 
virtual monopoly amongst internet service providers who still face a virtual monopoly with respect to 
internet connectivity.  The statement from th e Ministry of Information and Communications 
Technology sets out the policy initiatives fo r telecom and information technology. 
Could Jordan indicate what kind of measures it will take in order to promote competition in this 
sector?  Answer:
 
The Telecommunications Regulatory Commission (TRC) is motivated to open the fixed sub-sector to immediate opportunities for the private sector to innovate and invest, and, to bring existing national assets into play within the telecommunications ma rket. In line with regulatory international best 
practice, and in the light of successful LLU depl oyments in other countries around the world, most 
notably in the European Union, where LLU has become  an essential tool that will further stimulate 
competition in the ICT sectors, thereby helping to achieve sustainable economic development, the 
TRC believes that the introduction of Local Loop U nbundling regulation forms an important input to 
the quest by TRC to perform its obligations und er the Telecommunications Law regarding stimulation 
of competition. The introduction of  Local Loop unbundling services is  essentially expected to promote 
more service-based competition and the Jordanian market to witness enhanced competition in all 
telecommunication services that rely on the incumbent local loop including voice, data communications and internet. Such competition will increa se internet penetration, improve quality of 
service, increase investments and employment, add new services and consequently  increase the total 
revenue of ICT sector.  
 
In keeping with the above, the TRC released on Ma rch 6, 2008 the " Notice Requesting Comments on 
the Implementation of Local Loop Unbundling, Co llocation and Infrastructure Sharing in Jordan" 
aimed at stimulating the industry, including cu rrent licensees and potential newcomers, into 
providing views and ideas on the proposal by the TRC to introduce regulation that will require 
designated operators who provide fixed telecommu nication services in Jordan to offer Local Loop 
Unbundling and Infrastructure Sharing services and oth er operators to offer Infrastructure Sharing 
Services.   WT/TPR/M/206/Add.1 
Page 80  
 
 The TRC is currently in the process of establishi ng a regulatory regime for the introduction and 
realisation of Local Loop Unbun dling and Infrastructure Sharing services in Jordan in the near 
future  WTO Secretariat's Report, page 84  para. 107 
 Could Jordan please provide more detailed inform ation on government plans to ensure their 
regulatory activities are compliant with the Competition Law.  
Answer:
 
o The fixed Telecommunications sub-sector has b een fully liberalized since 1/1/2005 and it is 
now fully open for competition. 
 o In December 2004, the new Integrated Licensing and Regulatory regime was established with 
the principle of a unified licensing framework supported by a body of regulation. This new 
regime eliminates any limitations on the number of licenses that will be issued or on the type 
and range of public services that may be provid ed, or on the types of associated networks 
used, except as required by considerations rel ating to normal network safeguards, security, 
use of scarce resources, and technical limitations. 
 o Following that the TRC transitioned the four P ublic Mobile Wireless Service providers; Zain, 
UMNIAH, XPress, Orange Mobile and Orange Fixed to the new Integrated Licensing Regime 
(Individual Licenses) and 23 existing class licens ees to the new licensing regime (New Class 
Licenses), which expanded the scope of services they can provide thus allowing them to 
compete with the incumbent Jordan Telecom more than ever. 
 
o 16 new Individual Licenses and 34 new Class Licenses were awarded since 2005 to provide 
Public Telecommunication Services in Jordan. 
 
o Currently, the total numbers of licensees for P ublic Telecommunication Services in Jordan is 
(77), classified as follows:  (22) Individual Licensees. 
 (55) Class Licensees. 
 
o Thirteen ISPs are curren tly operating in Jordan. 
 
o Internet service can now be provided thr ough VSAT solution. Currently, one licensee is 
providing these services (Jordan Bell Teleco m) and there is a request from other two 
licensees to provide this service in Jordan. 
 
o Five Radio Spectrum Licenses for Fixed Broad band Wireless Access services (FBWA) were 
awarded through a competitive bidding pro cess. Two Licenses have already started 
commercial offering of such services using WiM AX technology, the first Licensee (Umniah) 
has started on 21/11/2007, and the second one (w i-tribe) has started on 22/6/2008, where the 
other three Licensees are expected to launch their services in 2009.  
 
o There are no restrictions or limitations on the establishment of alternative international 
telecommunication submarine gateway in Jordan in accordance with the prevailing licensing 
conditions. Currently, one licensee (Vital) start building its own Landing Station in Aqaba 
and this will be an alternative station to the one  owned by Jordan Telecom Company. This is 
expected to result in the reduction of in ternet connectivity prices in Jordan. 
  WT/TPR/M/206/Add.1 
 Page 81 
 
 
 o Lately, five Individual Licensee's in Jordan got  the necessary approval from the TRC to 
provide international gatewa ys access services with different capacity range from 155Mbps 
to 2-STM4 so the competition among the licensee's in the field of providing the international 
connectivity service will increase.     
 
Having achieved the basic liberalisation of the sector , through the developments mentioned above, the 
Statement of Government Policy 2007 On the Info rmation & Communications Technology & Postal 
Sectors concentrated on promoting an environm ent to bring about effective competition. 
 Accordingly, the Government required the TRC to take all such steps as may be necessary in order to 
facilitate the rapid entry of new competitors into  the ICT sector and the r apid introduction of new 
services by those entities, as well as by any existi ng licensee. The following steps were undertaken by 
TRC:  - The TRC has issued Competition Safeguards In structions and these instructions shall be 
 strictly adhered to by all Licensees. 
- The TRC has improved and simplified the licen sing system by reducing the requirements of 
 licensing.   - The TRC engaged in a Request for Concepts on Next Generation National Broadband  Networks (NGNBN)"  this consultation pr ocess ended early 2007 and aimed at stimulating 
 the industry, into providing views and ideas that would lead to the realization of Next 
 Generation National Broadban d Networks in Jordan.  
- The TRC issued Decision Regarding Mobile  Virtual Network Operator on 29/7/2008. Two 
 Individual licensees have already shown interest in providing such services in the Kingdom.   
 
(b) Postal and courier services  
WTO Secretariat's Report, page 86 para. 119 
 The WTO Secretariat's Report describ es Jordan's new legislation, which facilitates a privatisation of 
the postal industry.  Could Jordan provide more information on the natu re of the postal regulatory authority established 
under the Temporary Post Services Law No. 5 of  2002 and the Postal Law No. 34 of 2007. In 
particular, could Jordan indicate if this regulator y authority is independent and give details on any 
possible review mechanism against decisions taken by it? 
 
Answer:
 
The regulatory authority referred to under both laws is the Telecommunications Regulatory 
Commission (TRC) established by means of the Te lecommunications Law No. 13 of 1995 and its 
amending temporary law No. 8 of 2002 whic h is an independent body financially and 
administratively, answerable to the Prime Minist er, tasked with regulating the telecommunications 
and information technology sectors.   In fulfilment of the provisions of the Postal S ervices Law No. 34 of 2007, TRC also started to take 
responsibility for regulating the postal sector in  the Kingdom and monitoring all postal service 
providers and their compliance with the law. 
 As stipulated in the Telecommunications Law, TRC performs its duties independently of the Ministry 
of Telecommunications and Information Technology, but  in compliance with the general policy of the 
government. 
 
In accordance with Postal Services Law No. 34 of  2007, TRC shall carry out the following tasks and 
authorities: WT/TPR/M/206/Add.1 
Page 82  
 
 • To set the bases that the public postal operato r is committed to abide by, when determining 
the services remuneration it provides by virtue of the restrictive right granted to it under the 
provisions of article (12) of this law.  
• To issue licenses to the private pos tal operator by virtue of a reg ime issued for this purpose, 
in which the bases and conditions of licensing a re specified as well as the duties imposed by 
the Commission against that.  
• To monitor the implementation of the public pos tal operator of the conditions of performance 
contract concluded with him, and to submit a report in that respect to the Minister within two months of the end of each financial year, and at  any other time it deems fit, attached to it are 
its recommendations in this respect.  
• To control the implementation of the provisions of this law, and  to ascertain any breach of its 
provisions, and to take the appropriate measures in this respect.  
• To regulate the postal services in the kingdom in  accordance with the public policy approved 
by the Council of Ministers and to issue the related instructions. 
 
As for the matter of review mechanism, Article (60) of the Telecom Law stipulates the following:   a)    The specialized bodies in the Commission sha ll resolve the complaints submitted by Beneficiaries 
against Licensees, as well as the complaints s ubmitted by Licensees against other Licensees.  
b)    The specialized Commissioner shall be responsible for concluding a settlement, drawing  
       Up guidelines for negotiations betw een the disputants, or to resolve the dispute 
       Himself or by means of one or more persons he appoints for this purpose.  His decision  
       Shall be implemented immediately upon issuance, and objections to the decision will be  
       Permitted before the Board within thirty days of the date of issuance; otherwise the         Decision will be considered final.        
 
Please note that all this information is available on TRC website: www.trc.gov.jo  
 
It is mentioned that Jordan Post Company, current ly fully government owned, has been designated for 
privatization.  Could Jordan update on recen t developments since 2007? 
 
Answer:
 
Since the year 2007, the Technical Committee of this  project has been working on the Preparatory 
Work Program and has finalized the Business Plan fo r the Jordan Post Company. The Sales Strategy 
Report has been approved by both the Technica l and Steering Committee and the needed decisions 
recommended in this report were submitted to the government for approval. The next phase of the 
project includes the issuance of the sale tender documents.     WTO Secretariat's Report, page 86 para. 121  
The Ministry of Information and Communications Technology has promised further, in its 2007 
policy statement, promised further liberalization of postal services.  Could Jordan provide an update on this programme?  
Answer:
 
Jordan is working towards the gradual liberalization of  postal services in terms of the reserved area 
given to the Jordan Post Company. The revised Postal  law will take this matter into consideration.  
  WT/TPR/M/206/Add.1 
 Page 83 
 
 
 (iii) Transport 
WTO Secretariat's Report, page 87  para. 127  
The WTO Secretariat Report states that on the one hand that there are no restrictions concerning the 
ownership of ships registered under the Jordanian fl ag, and yet on the other hand that there is a 50% 
foreign equity ceiling for maritime transport and ancillary services.  
Could Jordan clarify the relevant restrictions for foreign shipping companies established in Jordan that 
operate Jordanian-flagged vessels?  
Answer:
 
Limitations on maritime services sector are outlined in  Jordan's Services Sc hedule under the GATS. 
However, Jordan is currently revisi ng the Marine Transportation Strate gy, including legislations and 
regulations related to foreign ownership.      (iv) Tourism 
WTO Secretariat's Report, page 92  para. 151 and 152  
 
According to the WTO Secretariat report, the Ministry of Tourism and Antiquities (MOTA) has 
instituted a licensing regime for regulat ory tourist establishments and services. 
Could Jordan give details on the licence's requi rements and how fees me ntioned in par. 152 are 
regulated? 
 
Answer:
 
License requirements are as follows: 
• Bonds registration 
• Brand name 
• Lease contract or land stake for hotel 
• The Ministry of Tourism and Antiquities grants a conditional approval for 2 years and can be 
extended for another 2 years to provide the required classifications. 
 
NOTE: 3,4,5  STAR HOTELS CAN TAKE APPROVAL FROM JORDAN INVESTMENT BOARD  
 (5) S
ERVICES  
(i) Financial services (a)  Banking   
 The Report outlines the core principles of Jordan's banking law and mentions the Central Banks recent 
regulation. Could Jordan please furnish information on its alignm ent with the Basel core principles on banking 
supervision and outline any plans to implement Basel 2 requirements?  Answer:
 
At the beginning of the year 2005 and for the purpose of early preparation for Basel II implementation, the Central Bank of Jordan (C BJ) formed a number of committees (steering 
committee, technical committee and five working groups),  each group is specialized either in one of 
the risk types or in one of Basel II pillars. 
 
The mentioned committees and working groups prep ared a questionnaire to assess the readiness of 
the banking sector towards moving to the new accord . Based on the results of this questionnaire, the 
CBJ issued at the end of the year 2006 its plan fo r implementing the new accord, which consists of 
offering the standardized approach (SA) to calculat e credit risk, the SA approach to calculate market WT/TPR/M/206/Add.1 
Page 84  
 
 risk and the basic indicator approach (BI) to calcul ate the operational risk, taking into consideration 
that banks should move to the more advanced  approaches by the end of the year 2012. 
 In Feb 2007, the CBJ issued a draft of Basel II regula tions to be implemented in parallel with Basel I 
regulation during the year 2007 to deal with any problems the banks may face before the actual 
implementation of Basel II in 2008.   
 The CBJ issued the final version of Basel II regulations in March 2008 and according to these 
regulations banks are required to start the actual im plementation at the end of the first quarter of the 
year 2008.  
 
INDIA
 
 
The business environment remains somewhat inhibited by, inter alia, administrative hurdles, limitations on foreign participation in certain activ ates, such as road transpor t, and costly transport 
infrastructure and utilities.  State ownership remains substantial (Para 3 of Secretariat Report refers). 
What are the steps taken by Jordan to further improve business environment ? 
 
Answer:
 
 - The Government recently undertook  several reform measures to improve public administration 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) - The government established a One-Stop Shop (OSS) to provide for streamlined access to licensing 
and registration services for new projects. The O SS combines representatives located at the Jordan 
Investment Board (JIB) from most of the governme ntal agencies dealing with the registration and 
licensing of projects offering a full service assistance package that is needed to get a business set up 
and running in Jordan, including issuing visa s and permanent residency approvals for investors and 
foreign labour needed for the pr ojects. All these services are prov ided within 14 working days. 
Moreover, JIB currently provides long-term suppor t for investments and concentrates on an aftercare 
service that assures the smooth implementation and operations of investment projects. 
- The Government has unified taxes imposed on profits and properties.  
- Eighteen practices specialized in commercial issues were issued by the Ministry of Justice.   
- The required capital for establishing a company  was reduced from 30,000 JD to 1000 JD. 
 
Para 8 of Secretariat Report states that Jordan liberalized its trade regime significantly during its WTO accession process.  Its customs tariffs on all products, except electricity, are bound.  The simple 
average of the final bound tariffs is 16.3%, with 23. 9% for agricultural products (WTO definition) and 
15.2% for non-agricultural goods.  The imposition of  ad valorem tariffs on two of these lines (HS 
items 961310000 and 961320100) creates a risk concerning compliance by Jordan with its tariff binding commitments on these products. Is Jordan planning  to reduce or eliminate this risk?  Answer:
 
The equivalent ad valorem tariffs on these two lines  (which are the only lines with non-advalorem 
tariff out of total 6480 tariff lines) were calculat ed on the basis of the methodology in the WTO 
document (JOR(05)/166/Rev.). It should be noted t hat when calculating the simple average of the 
bound tariffs for non- agricultural go ods, it remains at the same level of (15.2%), and accordingly the 
risk concerning compliance by Jordan with the tariff binding commitments is insignificant.  
 
According Para 10 of Secretariat Report Reduction of the tariff rates and the number of bands would 
help to simplify Jordan’s tariff structure and its  complex incentives regime with five overlapping  WT/TPR/M/206/Add.1 
 Page 85 
 
 
 schemes (Investment Promotion Law, industrial est ates, development areas,  free zones, and the 
ASEZ):  some of the incentives are the consequence of the tariff structure.  This would also contribute 
to better allocation of resources.   What plans Jordan has for simp lifying its tariff structure? 
 
Answer:
 
Jordan is currently drafting a new Trade Strategy  that provides for revisiting the current tariff 
structure in order to simplify it.  
As Para 11 of Secretariat Report Jordan h as modernized its customs procedures through the 
introduction of UNCTAD’s Automated System for Customs Data (ASYCUDA), combined with a 
risk-based inspection system.  A relatively high shar e of import consignments is nonetheless inspected 
at the border.   What are the reasons for high share of impor t consignments inspected at the border? 
 
Answer:
 
The inspection at the border is required before is suing the customs declaration; for which the 
ASYCUDA system is lodged. This kind of inspect ion is an x-ray general inspection for security 
requirements applied for all consignments entering Jo rdan's borders for the local consumption.    
 
According to 14 of Secretariat Report - Overall, Jo rdan would benefit from accelerating reforms in the 
transport subsector because of its importance for co mpetitiveness;  its internal and regional trade takes 
place predominantly through the port of Aqaba, a nd by land transport. Does Jordan have any time 
bound plans for further accelerating in transport subsector?  
Answer:
 
Transport sector has undergone restructuring through  the establishment of the Transport Regulatory 
Commission, the Maritime Authority and the Jordani an Civil Aviation Commission, as well as 
restructuring the Ministry of Transport, to carry out its duties of planning and monitoring the performance of the sector.  A Transport Strategy is currently being drafted which will provide for 
programs and work plans to implement restructuring plans for the sector.  
Para 19 of Secretariat reports that Jordan would stand to gain from further dismantling its tariff and 
non-tariff barriers to trade.   What measures Jordan proposes to take to achieve and consolidate gains? 
 
Answer:
 
Achieving a successful Doha Round would provide gains for all WTO members, particularly in 
market access areas related to tariff and non tariff barriers.  
 
Para 28 of Secretariat reports that  Under Article 7 of the by-law, no n-Jordanian investment must be a 
minimum of JD 50,000, except in public shareholding companies.   Does Jordan plans to reduce this ceiling to attr act non-Jordanian investments from the region and 
outside?  
 
Answer:
 
There is no plan to reduce this ceiling. However, such minimum requirement did not impede the 
continuing high inflows of FDIs that increased fr om 424 million USD in 2002 to 3.3 billion USD in 
2007. This is a strong sign of the irrelevant ef fect of this requirement on attracting foreign 
investments.  
 WT/TPR/M/206/Add.1 
Page 86  
 
 Para 126 of Secretariat report points out that sh ipping agents must have a general manager of 
Jordanian nationality.   What are the reasons for maintaining such a provision? 
 
Answer:
 
Amending the regulations regarding the manager of th e shipping agents will be studied and discussed 
with the relevant authorities.  
 
Para 131 of Secretariat Report mentions that Forei gn investment is prohibited in road passenger and 
freight transport services.  Other road transport services are subject to a 50% foreign equity ceiling. 
Are there any plans envisaged by Jordan to furthe r liberalise these prohibiti ons and enhancing foreign 
equity ceilings? 
 
Answer:  
The road transport is undergoing a restructuring pr ocess and this is it premature to set plans for 
liberalizing the sector at the time being.   
Para 12. of Jordan’s reports … moreover,  w ithstanding the temptation and political pressure to 
introduce price controls on basic foodstuff, the govern ment instead lifted import duties and sales taxes 
on some basic food products, thus alleviating to so me extent the pressure from rising import prices. 
Whereas Para 13. states that challenges resu lted in additional burden on the budget which 
demonstrated a deficit of 5.5% of GDP in 2008. Fu rther Para 62 states that with income from tariffs 
declining, the government has embarked on a fiscal re form program to maintain a sufficient degree of 
budgetary manoeuvrability. Broadening the tax base wh ile reducing tax rates wherever possible and 
appropriate will be the course to follow. On the e xpenditure side, the abolis hment of fuel subsidies 
accompanied by support for personal incomes has been  a major, perhaps the most important step in 
this direction. 
What are the specific measures Jordan is cons idering to curb the rising budget deficit? 
 
Answer:
 
The recent debt buyback agreement with Paris Cl ub members, which was executed in March 2008, 
has substantially reduced the de bt service burden of the budget. 
The government of Jordan is adopting the princi ple of self reliance coupled with improving the 
efficiency and management of domes tic revenues, as well as promoting the principle of relying on 
own budget resources and reducing the dependence on foreign grants.  
The government of Jordan continued its efforts to improve the performance of public finance and 
enhance the efficiency of the usage of public f und through introducing further corrective actions and 
measures at the financial and legislative levels with the intent of increasing domestic revenues, tax 
and non-tax revenues, and rationalizing public expenditures, particularly in the area of oil subsidy, so 
as to minimize economic distortions, enhance the investment environment and improve the competitiveness of national exports, thus expanding  the level of national economic activity.   
 
Para 37 of Jordan’s Report informs that the Jordan ian 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 and personnel training colleges are being invested. On the other hand, Para 14 of its report, inter alia, blames 
unstable economic and political situation in  the region for unemployment and poverty. 
Could Jordan please inform how the situation in th e region has impacted on its economy in general 
and tourism sector in specific and what steps it plans to take to further improve attractiveness of this 
crucial sector to its economy?   WT/TPR/M/206/Add.1 
 Page 87 
 
 
 Answer:  
Periods of instability in the region have always b een a challenge for Jordan to overcome; as such 
situations affect the local economy directly and i ndirectly. Besides its contribution to raising oil 
prices and insurance, transportation costs, political volatility in the Middle East has negative impacts 
on Jordanian exports as neighboring countries are considered among the main markets for Jordanian 
producers. Political risk also affects investors' de cisions when seeking opportunities in the region. 
Further more, hosting hundreds of thousands of c itizens from neighboring co untries, seeking safety 
and stability in Jordan, creates additional pressure on the local economy. However, Jordan has 
attributed a secure and stable environment although  surrounded with instability in the region.   
 
Jordan depends intensely on workers' remittances, in particular from Jordanians working in the gulf 
countries. Hence, any economic slowdowns in these countries may affect the amount of the 
remittances.   Apparently, tourism is one of the first industries t hat are affected by political instability all over the 
world as demand on tourist destinations in unstable regions shrinks. Many tourists visit Jordan under 
regional tour programs; therefore, any political incident in a neighbor ing country will lead to 
canceling several tour programs that includes Jordan.   In general, Jordan has succeeded in minimizing nega tive effects of political instability in the region 
on the tourism sector. This is reflected in the in creasing numbers of international arrivals, tourism 
receipts and tourist projects.  
 
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