WORLD TRADE  
ORGANIZATION  WT/TPR/M/206 
19 December 2008  
 (08-6240) 
Trade Policy Review Body 
10 and 12 November 2008  
 
 
 
TRADE POLICY REVIEW 
 
JORDAN 
 
Minutes of Meeting  
 
Chairperson:  H.E. Mr. Yonov Frederick Agah (Nigeria) 
 
   Page 
 
I.
 INTRODUCTORY REMARKS BY THE CHAIRPERSON 3  
II. OPENING STATEMENT BY THE REPRESENTATIVE OF JORDAN 4  
III. STATEMENT BY THE DISCUSSANT 7  
IV. STATEMENTS BY MEMBERS 11  
V. REPLIES BY THE REPRESENTATIVE OF JORDAN AND ADDITIONAL 
COMMENTS 21  
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 24 
VII. ADOPTION OF THE DRAFT REPORTS 25 
 
 
     
 
    
 
    
 
Note:   Advance written questions by WTO Me mbers and the replies provided by Jordan are 
reproduced in document WT/TPR/M/206/Ad d.1 and will be available online at 
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/206 
 Page 3 
 
 
  I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The first Trade Policy Review of Jordan was held on 10 and 12 November 2008.  The 
Chairperson (H.E. Mr. Yonov Frederick Agah) we lcomed the delegation of Jordan, led by 
H.E. Mr. Amer Al-Hadidi, Minister of Industry and Trade, as well as the discussant Mr. Teepu Khan 
(Pakistan).  As usual, the discussant would speak  in his personal capacity and not as a country 
representative.  In accordance with established proc edures, the discussant had provided, in advance, 
outlines of the main issues he intende d to raise (document WT/TPR/D/181). 
2. The Chairperson recalled the purpose of Trade Po licy Reviews and the main elements of the 
meeting's procedures.  The report by Jordan was contained in document WT /TPR/G/206 and that of 
the WTO Secretariat in WT/TPR/S/206.  As indicat ed in WT/TPR/6/Rev.1, the Member under review 
should provide written answers, by the beginning of  the review meeting, to questions submitted at 
least two weeks before the meeting.  Questions posed  subsequently should be answered, to the extent 
possible, before the start of the second session of th e meeting.  Questions left unanswered at the end 
of the second session should be answered in writing no later than one month after the meeting.  The 
following delegations had submitted qu estions in writing at least two weeks in advance of the meeting 
and these had been transmitted to the delegation of Jo rdan:  Brazil;  the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei); Colombia;  Argentina;  Japan;  the Republic of 
Korea;  the United States;  and China.  Copies of these questions and of Jordan's answers were 
available in the meeting room.  Written questions by  Canada;  the European Communities;  and India, 
submitted after the two-week deadline, had also b een transmitted to the delegation of Jordan, and 
copies, along with the answers, were available in the meeting room.  All advance questions and 
responses are reproduced in WT/TPR/M/206/Add.1.  
3. The Chairperson emphasized Jordan's economic reforms since its WTO accession. In spite of 
regional conflicts, the reforms had contributed almo st 6% to real GDP growth, on average, during 
2000-07.  Public debt had been reduced from almost 100% of GDP in 2002 to 60% in March 2008.  Jordan had also taken steps to improve its investment climate; this had resulted in a significant 
increase in foreign investment.  Some concerns remained, however, concerning administrative hurdles 
and the exclusion of certain activities from foreign investment, in particular in the services sector. 
4. According to the report by the Secretariat, th e average applied MFN tariff rate was 10.9%;  
the average rate of 16.7% on agricultural products w as considered to be relatively high for a net-food 
importing country.  The report also drew attention to  the penalty charged at Customs when importers 
failed to present an importer card, for which they were not all eligible.  The report also highlighted the 
overlapping incentives schemes, and the prevalence of de facto  or de jure  monopolies in a number of 
subsectors of the economy. WT/TPR/M/206 
Page 4  
 
  II. OPENING STATEMENT BY THE REPRESENTATIVE OF JORDAN 
5. The representative of Jordan
 said that his country had taken giant strides in reforming its 
economy to become an effective member of th e multilateral trading system, and accordingly had 
embarked on a comprehensive political, social, and ec onomic reform agenda with the aim of building 
a modern state, based on economic vitality with substantial potential for growth and prosperity, 
political inclusion and social stability. Improving the business environment, at the public and private 
sector levels, had been Jordan's top priority, in or der to unleash the growth potential and transform the 
country from an economy driven by primary goods  into an investment-driven and knowledge-based 
economy.  
6. Trade liberalization, privatization of state- owned enterprises, structural and institutional 
reforms, as well as sound monetary, fiscal, and excha nge rate policies had helped create and stimulate 
economic growth. Nominal and per capita GDP growth  rates had been high, despite major external 
shocks, including political instability in the region. 
7. The Jordanian economy had continued its str ong positive performance in recent years despite 
the surge in oil and  basic commodities prices in international markets , and the high level of 
uncertainty in the region. GDP growth had been  6%, at constant market prices in 2007; and 
competitiveness had improved; the public debt to GDP ratio had been reduced; and foreign reserves at 
the Central Bank of Jordan were high, while the inflation rate remained within comfortable and 
acceptable levels. Such economic growth had helped to  improve the standard of living of Jordanians 
by increasing the per capita GDP by more than 9% annually over the past two years, and reducing the 
unemployment rate from 14% in 2006 to 12% by end August 2008.  The Government had also kept its 
course of fiscal prudence, containing the budget defi cit to 5.4% of GDP. The recent debt buyback 
agreement with Paris Club members, in March 20 08, had substantially reduced the debt service 
burden.  
8. As for external trade developments, total e xports of goods had grown by 9.5% in 2007, 
exceeding the rate of growth in world exports: the value of national exports and re-exports had grown 
by 8.5% and 13.3%. , respectively.  Overall, extern al trade was up by 14.9% in 2007. This had further 
boosted the share of external trade in GDP, reinforci ng Jordan's integration with the rest of the world. 
FDI inflows had amounted to US$3.3 billion in 20 07 up from US$2.5 billion in 2006.  However, 
Jordan's economy was still facing numerous challeng es, mainly driven by the budget and current 
account deficits; the rise in inflation; high rates of poverty and unemployment. To this end, the 
Government had made economic and social develo pment a top priority and was working with all 
stakeholders to carefully design strategies and programmes to address such challenges. 
9. The recent global financial crisis presented additional challenges to the world economies 
including Jordan's. Although, no major risks had been identified within the banking system and domestic financial market, the Government, in an a ttempt to maintain and enhance financial stability, 
had guaranteed all individual depos its in all banks in Jordan until the end of 2009. The Government 
had also advised the Central Bank not to issue certif icates of deposits to maintain sufficient liquidity 
in the market, as well as considering the possibility of lowering the compulsory reserves. Moreover, 
the Government had formed a Higher Committee, ch aired by the Prime Minister, to identify and 
assess any possible effects on the national economy;  and a technical team, from all relevant government agencies, to establish an early warning system to enable the Government to properly 
respond to similar crises in the future. Jordan's major concern was the impact of global economic 
slowdowns on developed countries, in  particular on its main trading partners. Although the decline in 
oil and other basic commodities prices had reduced inflationary pressures, Jordan was concerned 
about possible negative effects on tourism, and dec lines in FDI inflows in the short and medium term .  WT/TPR/M/206 
 Page 5 
 
 
  10. With respect to poverty and unemployment, the Government had embarked upon several 
policies and programmes focusing on developing and strengthening the capacities of the civil society organizations, through the support of a Social Safe ty Net, and the Social and Economic Productivity 
Enhancement Program.  Its strategy focused on investi ng in its people, to foster excellence, creativity, 
innovation, competitiveness, productivity enhancement,  adoption of global standards, and reflection 
of entrepreneurship spirit. As a result, it had a ttained impressive human development indicators in 
view of its meagre resource-base; Jordan's human  development index was 0.773, which placed it 86
th 
out of 177 countries, with a 91.8% literacy rate in 2007.  
11. The Government had maintained its structur al reform programmes by implementing and 
executing several privatization in itiatives. Jordan's privatization  programme had commenced in 1996 
with the aim of repositioning the public sector in  the economy and limiting its role to a regulator 
rather than a producer of goods and services. The programme concentrated on national infrastructure 
and utilities, including transport, electricity, wate r and telecoms, and adopted a multi-track approach 
by facilitating capital sales, concession agreemen ts, sales to strategic investors, management 
contracts, and franchising and other methods incl uding BOT and BOO.  The Government had recently 
undertaken several reform measures to improve public administration and governance, including the 
Anti-Corruption Law and the Financial Capability Di sclosure Law in 2006, and the establishment of 
an ombudsman office. 
12. Jordan had fulfilled its WTO commitments and honored its obligations  under the multilateral 
trading system. Since its accession, the Governme nt had undertaken additional trade reforms to 
support its proper interaction within  the multilateral trading system. 
13. A competition and antitrust law enacted in 2004, was aimed at establishing the principle of 
market mechanisms and freedom of prices to protect  consumer interests and integrity of commercial 
transactions, as well as prohibiting alliances and anti-competitive practices.  The Companies Law had recently been amended to provide for lower minimum capital requirements for registering companies and for incorporating corporate governance principl es.  The Investment Law was currently being 
revised to improve the investment  incentives package.  A one-stop- shop had been established within 
the Jordan Investment Board to streamline investor s' procedures.  A temporary law had recently been 
issued to regulate brokerage firms that dealt with  international financial markets. The regulatory 
framework would be implemented under the superv ision of a council of representatives from the 
monetary authorities and the Ministry of Industry and Trade set up to regulate the registration of and to monitor such firms.  The temporary law was be ing discussed in the Parliament.  Negotiations for 
accession to the Government Procurement Agreem ent had progressed. Jordan looked forward to 
joining this agreement on terms that would serve  its development needs, being amongst the first 
developing countries to join such agreement.  Great progress had been made in strengthening 
intellectual property rights protection in order to promote innovation in the country.  The Patents and 
Trade Marks Laws had been amended to bring th em into conformity with the PCT and Madrid 
Protocol, in preparation for Jordan’s accession to th ese treaties.  Important steps had been undertaken 
to enhance trade facilitation. Jordan  Customs had developed criteria for the certification of operators 
to comply with WCO standards and requirements to secure and facilitate global trade through the 
"Golden List" programme, established in 2005.  Ef forts were being made to establish a one-stop 
window for imports to reduce the burden on importers  and speed up clearance.  Plans were under way 
to establish a one-stop shop for exporters, to facil itate the integration of Jordanian producers in 
international markets.  Amendments to the St andards and Metrology Law included a pro-active 
market surveillance concept to ensure complia nce with essential product safety requirements in 
relevant technical regulations. This would mini mize border control by the Jordan Institute for 
Standards and Metrology. The amendments also  addressed trade mark related violations and 
introduced sanctions and penalties to strengthen IPR enforcement.  The Government had utilized trade 
policies to promote sustainable development. Low customs tariffs were maintained on environmental WT/TPR/M/206 
Page 6  
 
  goods and most renewable energy and energy saving devices had also been exempted from sales tax 
and customs duties. 
14. Jordan had pursued a strategy of regional and bilateral trade liberalization to gain additional 
preferential market access in exchange for openi ng up its own import market and further exposing its 
businesses to the benefits and challenges of intern ational competition. Jordan was an effective 
Member in the Greater Arab Free Trade Agreemen t and Agadir Agreement, and had FTAs with the 
United States, Singapore, and EFTA states, in additi on to an Association Agreement with the EC, and 
had recently concluded negotiations on establishi ng an FTA with Canada, and discussions and 
negotiations were ongoing with MERCOSUR, Pa kistan, and Turkey. These WTO-consistent 
agreements were aimed at promo ting export-led growth in Jordan and considered as stepping stones 
for multilateral liberalization. Jordan would continue  to conduct an active trade liberalization policy, 
focusing on multilateral liberalization and opportuniti es for improved market access through bilateral 
and regional FTAs. 
15. Jordan viewed regional stability as essential to promoting economic development and 
prosperity for the region. Qualified industrial zo nes in Jordan had contributed significantly to 
translating the peace process into joint investments,  which had helped develop industries such as the 
garment industry and create job opportunities for Jordanians. 
16. Jordan was committed to help strengthen a free,  open, and stable multilateral trading system. 
It believed that a global trade package could expa nd economic growth and opportunity for all Member 
states.  The success of the DDA negotiations was param ount for Jordan's prosperity and for the global 
economy. Failure to revive the DDA would mean a triumph for protectionism, which would be 
detrimental to the multilateral trading system and in terests of all countries, particularly the small 
developing countries. 
17. The Government would continue to pursue its reform process while focusing on five main 
pillars: (i) attracting FDI and e nhancing and improving the busin ess environment; (ii) maintaining 
monetary and financial stability; (iii) ensuring fo od security and enhancing the competitiveness of the 
agriculture and industrial sectors; (iv) developi ng new and alternative energy resources;  and (v) 
export diversification. 
18. The Government was in the final stages of de veloping a National Trade Strategy that would 
serve as a guideline to policy-makers, the busin ess community, and the public. The Strategy was 
aimed at continuing to transform Jordan into an  open economy with streamlined administrative and 
regulatory procedures for trade and investment, deve loping and diversifying Jordan's sectoral export 
base for goods and services, and broadening its import and export markets.  A strategic reorientation 
and refocusing was also under way for Jordan's i ndustrial policy, under whic h particular emphasis 
was placed on measures to increase the competitive ness of small and medium-sized enterprises. 
Moreover, an investment strategy was being de veloped through which promotion and marketing 
activities would focus on potential industries that could offer favorable prospects for business.  
19. The Government was aware of the importa nce of facilitating business activity through 
alleviating regulatory burdens to existing and new investments and businesses.  Privatization of state-
owned economic assets would continue in sectors su ch as energy and transport.  With income from 
tariffs declining, the Government had embarked on a fiscal reform pr ogramme to maintain a sufficient 
degree of budgetary viability.  On the expenditure side, the abolition of fuel subsidies, accompanied by 
support for personal incomes had been a major, and perh aps the most important step in this direction. 
20. In conclusion, the Government of Jordan  was committed to conducting an active trade 
liberalization policy that was aligned with th e WTO principles and geared towards achieving 
sustainable development and improving the standards of living for the citizens of Jordan.  WT/TPR/M/206 
 Page 7 
 
 
  III. STATEMENT BY THE DISCUSSANT 
21. The discussant  said that Jordan was situated at the cr ossroads of Europe, Asia, and Africa and 
was a splendid tourism destination. Despite bei ng located in a simmering conflict zone, it had 
performed remarkably well in preserving its econom ic progress against external pressures, including 
the steep oil and food price hikes followed by the present global financial markets meltdown. It had 
maintained its GDP growth rate of over 5% per annum along with stability in several other 
macroeconomic indicators. Jordan's main natural r esources were copper, industrial minerals, oil shale, 
potash, phosphate, and uranium. It was a resource- short country and depended heavily on foreign 
grants, FDI, and remittances from its expatriate workers. The services sector contributed around two 
thirds to Jordan's GDP, and employed over 75% of the workforce. Manufacturing was responsible for 
about one fifth of GDP, and absorbed over 10% of total employment. Agriculture and related 
activities accounted for nearly 3% of GDP, and 3% of the labour force.  The country faced many 
challenges including achieving sustainable GD P growth, alleviating poverty, reducing the 
unemployment rate, improving educa tion and health services, modernizing the infrastructure, creating 
a more business-friendly environment to attract larger FDI inflows, re ducing public debt, and 
increasing the role of the private sector in the economy. 
(1) Macroeconomic environment  
22. Jordan’s GDP growth rate had picked up from 3% over 1996-2000 to around 5% in 2000-04. 
It had maintained an annual average rate of 5.9% during 2000-07 compared with 4.2% in 1990-99, which was a laudable achievement given Jordan’s di fficult external context and internal imbalances. 
GDP had reached 8.6% in 2004, spurred by a strong domestic demand and increasing FDI inflows; 
real GDP growth of 5.5% was projected for 2008, in  line with the growth trajectory. Pegging the dinar 
with the U.S. dollar had rendered stability to the dina r and credibility to the investment environment. 
Jordan had managed this growth trajectory amidst  regional instability and global energy, food, and 
financial crises. The services sector accounted for 70% of GDP, followed by manufacturing and 
construction. Tourism accounted for up to 10%, and had picked up after the Oslo Accord of 1993. 
Core inflation had remained modest while government  debt and fiscal deficit had also been reduced. 
The main driving forces behind this progress were  sound macroeconomic policies, capital inflows and 
workers’ remittances plus public grants, which t ogether amounted to an estimated 25% of GDP.  
23. In the wake of the 1989 financial crisis, Jord an had adopted broad ranging economic reforms 
centered around trade and investment promotion, expansion of the services sector, improving the 
quality of transport and communications infrastructur e, and a well developed financial market. Jordan 
had benefited from RTAs, FTAs and QIZs resulting in greater market access, while a stable exchange 
rate had helped reduce inflation and stabilize the macroeconomic environment.  On the other hand, 
Jordan’s economy was still exposed to structural imbalances and exte rnal shocks. Termination of free 
oil supply from Iraq, manifold increase in oil pri ces, and reduction of foreign grants, compounded by 
subsequent food and financial crises, had contri buted to the worsening current account balance, 
balance of payments, and budget deficit. Despite a successful privatization programme, domestic 
private investment remained weak, at an estimated  7% of GDP. Jordan’s agricultural trade account 
deficit had also increased sharply as the country  was heavily dependent on imported foodstuffs. 
Accordingly, it was compelled to provide sizeable food subsidies. It was also one of the five most water-stressed countries of the world. Unem ployment at 13.1% and poverty still haunted the 
economy. Population growth was among the highest in the world, estimated at 2.6%, compounded by 
the problem of low labour productivity and labour market imbalances. Other weaknesses of the 
economy included limited sources of funding, skewed  taxation structure, and costly transport 
infrastructure and utilities hampering private investment.    
24. However, the Jordanian Government deserved special commendation for consistent prudent 
policies that had lowered the poverty line to 14.2%, kept inflation in check, maintained GDP growth, WT/TPR/M/206 
Page 8  
 
  and reduced the public debt. Jordan had gra duated from the IMF programme in 2002 and its 
macroeconomic policies revolved around:  a judici ous monetary policy, emphasis on privatization, 
and an open trade regime. The Government ha d introduced the National Agenda 2005, and  Jordan 
Vision 2020, and a new programme for Employment  and Combating Poverty. Under the National 
Privatization Strategy of 1999, Jordan had so far privatized 25 entities. The World Bank had rated 
Jordan’s privatization programme as one of the most successful in the Middle East region. 
25. The Government had taken several steps to control the deficits. Fuel subsidies were 
withdrawn on 1 January 2008 to control the fiscal defi cit. As a result of a debt buy-back agreement 
with the Paris Club, Jordan’s gross external de bt had been reduced from US$7,544 million in 2002 to 
US$5,342 in 2008 (from 78.8% of GDP to only 29.5% of GDP). The current account deficit had been 
financed by FDI and other long-term capital inflows.  To contain inflation, the Central Bank of Jordan 
had tightened the monetary policy, while Jordan had also eliminated import duties and sales tax on 
several products. The endemic energy shortage was being addressed through a comprehensive Energy 
Master Plan for 2007-20. Efforts were in place to overcome chronic foodstuffs shortage by boosting 
agricultural production. Jordan had also taken notable  strides in promoting the investment climate, 
and the World Bank Group Doing Business Report  had ranked Jordan 5
th among the Arab countries. 
Jordan had concluded several important regional an d bilateral free-trade agreements to capitalize on 
the synergies produced by enhanced trade.   
(2) Trade policy 
26. Jordan's active subscription to the multilatera l trading system embodied in the WTO was 
complemented by regional and bilateral expans ion through various RTAs and FTAs, which had 
bolstered Jordan’s trade substantially. After its accession to the WTO in 2000, Jordan had aligned 
itself to the international rules based trading regime , with macroeconomic policies with an equal focus 
on reducing structural imbalances in the economy . Intensive economic and legislative reforms had 
culminated in a modern regulatory environmen t conducive for business and a solid public-private 
partnership. Jordan was an active player in the cu rrent round of trade negotia tions and had particular 
interest in NAMA, agriculture, trade facilitation, an d services, while also following developments in 
rules, and dispute settlement . It was participating in the RAMs group and was a member of the WTO 
Arab Group, besides submitting proposals with ot her Members. As Jordan made extensive 
commitments at the time of its accession, it was calling for additional flexibilities in the round of agricultural negotiations to be granted to the RAMs , in particular SVEs.  Jordan had repeatedly 
expressed its desire for an early and successful conclusion of the DDA round. 
27. Jordan also had regional and bilateral economic and trade alliances. It was a member of the 
Pan Arab Free-Trade Area, and the Agadir Agreemen t had been in force since 1 January 1998. Jordan 
had signed bilateral economic cooperation agreements with 45 countries (non-preferential 
agreements) aimed at discussing ways to enhance economic and trade relations. It had also signed 
FTAs with the United States, the EFTA states, an d Singapore.  An agreement with the European 
Communities, which had entered into force on 1 May 2002, provided for the establishment of a free-
trade area by 2014. Negotiations for FTAs with  Turkey, Canada, and MERCOSUR were in the 
pipeline. Jordan had also signed a tripartite trad e agreement with Israel and the United States on 
16 November 1997 to establish "qualifying industr ial zones", from which manufactured products 
could be exported to the United States duty- and quota-free, with no reciprocity requirement.  Jordan 
received trade preferences under the GSP of Bela rus, Canada, the EC, Japan, New Zealand, the 
Russian Federation, Switzerland, Turkey, and the United States. 
28. Jordan’s manufactures accounted for about 70% of total merchandise exports, followed by 
chemicals, textiles and clothing products, machinery and transport equipment.  The share of mining products had declined from 11.1% in 2000 to 6.5%.  Jordan's merchandise exports had grown by 9.5% 
in 2007, surpassing the rate of growth in world exports; overall, external trade had expanded by  WT/TPR/M/206 
 Page 9 
 
 
  14.9% in 2007. Imports had more than tripled,  from US$4,013 million in 2000 to US$13,531 million 
in 2007. Import duties represented approximately 13.7% of total tax revenue collected during 
2004-06. 
29. Jordan had bound its MFN tariffs on all products except electricity.  The simple average of its 
final bound tariff was 16.3%, with some tariff reducti on commitments ending in 2010.  It had reduced 
its simple average applied MFN tariff rate from 14.7%  in 2000 to 10.9% in 2008:  the average rates in 
2008 were 17.1% for agricultural products, and 9.9%  for non-agricultural products.  The applied MFN 
tariffs were generally within a range of 0-30%, w ith a peak of 180% on certain alcohol and alcoholic 
beverages.  Non- ad valorem  MFN customs duties were applied on seven agricultural tariff lines at the 
nine-digit level. Simple average applied MFN tariffs were highest in agriculture (16.7%), followed by 
the manufacturing sector (10.6%), and mining and quarrying (7.3%). Exemptions from import duties 
had been granted by virtue of: company-specific exemptions for state-owned enterprises and non-profit organizations;  the Free Zones Corporation Law;  the Aqaba Special Economic Zone Authority Law;  the Investment Promotion Law;  and the De velopment Areas Law.  Export subsidies through 
income tax exemptions were to be phased out by 2 015 at the latest.  Prohibitions and controls were 
maintained on trade for TBT and SPS reasons. 
30. Jordan's legislation on trade remedies were br oadly aligned with WTO provisions. According 
to its Protocol of Accession, Jordan did not have the right to invoke the Special Agricultural 
Safeguard. Jordan had not taken any countervaili ng or anti-dumping actions.  Safeguard measures had 
been imposed in six cases, four of  which had since been phased out. 
(3) Sectoral policies 
31. Services represented the main sector of Jordan 's economy.  Jordan had made substantial 
accession commitments covering some 110 services subsectors.  It had also scheduled MFN 
exemptions for 12 measures. Balance-of-payments da ta indicated that Jordan was a net importer of 
services, with a deficit averaging JD 89.4 million pe r year during 2001-07.  Tourism, a prime services 
subsector, was the largest service sector exporter and accounted for 68% of total receipts of the 
services account in the balance of payments. 
32. Jordan was almost totally dependent on im ported oil and petroleum products, gas, and 
electricity. The energy subsector was undergoing ma jor modernization with the implementation of 
Jordan’s Energy Master Plan for 2007-20.  Particul ar efforts were under way to promote oil shale as 
an indigenous source of energy. In February 2008,  the Government had lifted virtually all remaining 
subsidies, resulting in a substantial increase in fuel prices to remove a heavy fiscal burden. 
33. In manufacturing, the textiles and clothing indus try had developed into Jordan's second-most 
important industry, after food and beverages, in terms of value-ad ded and contribution to GDP.  The 
QIZ initiative had allowed designate d industrial zones to export duty-free and quota-free to the United 
States, which had given a substantial boost to Jordan ’s T&C exports.  Pharmaceuticals were also vital 
in the Jordanian economy;  they were the second-larg est earner of foreign currency, after textiles and 
clothing.  Jordan's pharmaceutical industry specializ ed in the production of branded generics, mostly 
for export.  Mining accounted for 5% of GDP and 25% of export earnings. Fe rtilizer production was 
one of Jordan's largest industries.  The traditiona l markets for DAP fertilizers were in Asia and the 
Gulf region. Jordan was also one of world's lead ing producers and exporters of phosphate and potash. 
(4) Agriculture sector 
34. Only 3% of the land was available for cultiv ation; and only one third of the area under 
cultivation was irrigated. The sector was beset by the problem of small scale holdings:  60% of 
holdings were less than 3 hectares in 1997. Toma toes, Jordan's largest field crop, accounted for a WT/TPR/M/206 
Page 10  
 
  quarter of the volume of crop production in 2006.  Other important crops were potatoes, olives, 
cucumbers, citrus fruit, and watermelons. Jordan was heavily dependent on imported foodstuffs;  the 
agricultural trade deficit had increased sharply.  Fo od consumer subsidies were provided to ensure 
that food remained affordable for the poor segments of the population.  In early 2008, import duties on selected food items had been reduced to zero in or der to ease the social impact and inflationary 
pressures from the recent increase in international food prices.  In 2002, the Government had adopted 
a National Strategy for Agricultural Developmen t until 2010, which focused on creating a suitable 
environment for private-sector investment in agriculture, and improving processing and marketing of agricultural products. 
(5) Investment 
35. Jordan's average annual inflow of FDI ha d increased from US$155 million during 1990-00 
(37.1% of GDP in 2000) to US$3,121 million in 2006 (114.2% of GDP).  This was largely the result 
of the Investment Promotion Law, and the launch of the one-stop-shop facility, and some privatizations carried out through FDI. Jordan ranked 80
th out of 178 economies in the World Bank's 
Ease of Doing Business 2008 Index , and 8th out of 141 economies in 2006 in UNCTAD's Inward FDI 
Performance Index .  However, it was 59th in UNCTAD's Inward FDI Potential Index  in 2005, mainly 
because, in general, FDI in Jordan had been hampered by administrative hurdles for starting a 
business.  Jordan did not maintain trad e-related investment measures (TRIMs). 
36. The present financial meltdown added to the vulnerabilities of many countries. Jordan’s 
economy appeared to be in sound and capable ha nds, but the external context, including the 
international trading architecture, had to be fl exible enough to accommodate the developing countries’ 
realities, rather than placing them under a continuo us strain of stringent performance requirements. 
Jordan had considerable technical assistance requireme nts to enable it to integr ate effectively into the 
global trading system and minimize ordeals related to the present fuel, food, and financial crisis.   WT/TPR/M/206 
 Page 11 
 
 
  IV. STATEMENTS BY MEMBERS 
37. The representative of Brazil  noted Jordan's efforts to modernize its economy and regulatory 
practices, while also pushing for political inclus ion and social stability as essential elements to 
achieve the Government's National Agenda goal of  fostering a knowledge economy, which required a 
high degree of social cohesion. Social cohesion re quired increased GDP growth and reduced social 
inequalities and better health and education. Jordan  had chosen to build its social and economic 
development on the solid basis of openness to fore ign trade. The public debt had decreased from 
98.4% in 2002 to 60.3% in March 2008. The G overnment had taken tough decisions via the 
termination of generally available fuel incentives.  The Jordanian economy had also grown stronger as 
regards external vulnerability:  the weight of aid and public transfers in the balance of payments had 
diminished sharply, with transfers declining from 14% of the GDP in 2003 to 2.4% in 2007. 
38. Bilateral trade between Jordan and Braz il had increased from US$30 million in 2002 to 
US$292 million in 2007. However, it was still very modest, leaving much room for expansion.  
Brazil's growing exports to Jordan had diversif ied but imports still represented only a fraction of 
bilateral trade, totalling US$8 million. A Framework Agreement had just been signed by Jordan and 
the MERCOSUR countries in June 2008, in keeping w ith the progressive strengthening of relations 
between the Arab World and South America. A posit ive outcome in the FTA negotiations would help 
to fulfil the potential of bilateral trade. Agreements  had been signed in many areas, such as economic 
and commercial cooperation as well as science and technology.  
39. The representative of the Separate Customs Te rritory of Taiwan, Penghu, Kinmen, and Matsu 
(Chinese Taipei)  noted that the Government's structural re forms, especially in the trade liberalization 
and investment, had transformed Jordan into one of the most open economies in the region, in spite of 
the continuing instability in neighbouring areas.  Since Jordan's accession, it had enjoyed average 
annual real GDP growth of 5.9% and a relatively low rate of inflation of 3.1%.  The improved 
domestic business environment had dramatically boosted the annual inflow of foreign direct 
investment, making Jordan the eighth most attractiv e destination for foreign investment in 2006.  
Nevertheless, its high unemployme nt and poverty rates still presen ted tough social and economic 
challenges.  Chinese Taipei hoped that the Jordan 's National Agenda would alleviate these problems 
and transform it into a modern, knowledge-based econom y.  Jordan had become an active participant 
in the DDA negotiations and was a strong believer in , and advocate of, the multilateral trading system.  
Speaking as the coordinator of the RAMs, Chinese Ta ipei commended Jordan on its tireless efforts to 
engage collectively in the DDA negotiations and ho ped to see it continuing its reforms and further 
facilitate trade and investment in the future. 
40. The representative of Colombia  noted that Jordan had considerably liberalized its trade 
regime during its process of accession to the WTO.  Jo rdan had modernized its customs procedures;  
it was the first Arab country in the Middle East wh ich had approved competiti on legislation, and it 
had undertaken substantial commitments under the GA TS.  Colombia was not one of Jordan's major 
trading partners.  The value of Colombia's exports  had increased in recent years, but that trade was 
concentrated in certain areas, both as regards expor ts (coffee and emeralds) and imports (potassium 
nitrate).  The advantages for Jordan of belongin g to the multilateral trading system and having 
recourse to its rules were obvious.  It continued to  be a medium income country, with a significant 
increase in its real per capita income.  Complianc e with the rules of the multilateral trading system 
could have positive effects in Jordan and with  regard to international trade in general. 
41. The representative of Argentina  drew attention to the positive results of the reforms directed 
at trade liberalization, which had led to a real increase in GDP, while keeping the inflation rate 
relatively low in 2000-2007.  The reforms had re duced the public debt and increased the annual 
average of foreign direct investment in Jordan.  Argentina welcomed the initiatives that had enabled 
Jordan to improve educational and health fac ilities, modernize its infrastructure and overcome WT/TPR/M/206 
Page 12  
 
  structural problems.  Argentina emphasized the fact  that financial services ha d been broadly opened to 
foreign competition and that the foreign equity limitati ons in insurance services  had been eliminated.  
The regulatory framework for banking services has been strengthened and the telecommunications services had been liberalized in accordance with Jordan's GATS co mmitments.  Jordan had made 
great strides forward in reforming its economy and liberalizing its trade regime, binding its customs 
tariffs on all products except electricity.  In October 2008 the following agreements were signed 
during the visit of the King of Jordan, Abdullah II Bin Al Hussein, and Queen Rania al-Abdallah:  
Agreement on Economic and Trade Cooperation and Agreement for Sc ientific and Technological 
Cooperation.  On 27 August 2008 the signing took place in Buenos Aires of the Cooperation 
Agreement between the Jordanian Chambers of Commerce and Industry and the Argentine Chamber 
of Commerce.  Argentina hoped to increase its exports to the Jordanian market, as well as its bilateral 
trade. 
42. The representative of Japan
 welcomed the performance of Jordan’s economy and appreciated 
Jordan’s continued structural reform efforts, such  as the steady reduction of external debt and the 
privatization of state-owned enterprises. These issu es, and tax reforms, were among those identified 
by the IMF as recessing to address. Due to a number of privatized enterprises and the facilitated 
investment climate, FDI had been accepted in areas such as telecommunication, electricity, mining, 
and air transport. To address the fiscal deficit in the 2008 Budget, the Government had eliminated 
generally available fuel subsidies on 1 February 200 8. The large reduction of external debt in 2008 
had contributed to fiscal and economic stability. Jord an had promoted external  trade and investment 
policy as well as its policy to achieve market-ori ented economy, with cons ideration of pension 
recipients and lower income people. This was cl early illustrated by, for example, its WTO accession, 
free-trade agreements with the United States and th e EC, the Aqaba Special Economic Zone, and the 
Qualifying Industrial Zone in wh ich goods could be e xported duty-free and quota-free to the United 
States. Jordan was an active pa rticipant in the WTO and Japan hoped for its early accession to the 
Government Procurement Agreemen t through consultations with Members concerned, including 
Japan.    
43. The representative of the Republic of Korea  said that Jordan and Korea had enjoyed excellent 
economic, social and cultural relations over the year s.  Bilateral trade ha d shown constant positive 
growth, and was poised to surpass the US$700 milli on level in 2008. However, there was still 
potential for further developing bilateral trade and i nvestment relations. Culturally and socially, Korea 
and Jordan had worked together to nurture an envi ronment of mutual trust and understanding, to learn 
from each other’s development experiences, and work  towards ensuring better living conditions for its 
citizens.  Korea and Jordan had successfully starte d an official undergraduate programme for Korean 
studies at the University of Jordan in 2006;  fac ilitated the study of Korean college students majoring 
in Arabic language and culture to study in Jo rdan;  and established and successfully implemented 
numerous technical assistance programmes for governme nt officials, as well as projects to upgrade 
Jordan's economic and social infrastructure through various ODA projects.  Korea looked forward to 
continued cooperation in the area of Tae-Kwon-Do , which is highly popular in Jordan.  Korea 
welcomed Jordan’s sound economic growth, at an av erage annual rate of 5.9% during the past eight 
years. Furthermore, Jordan's economic fundamental s had improved greatly, in large part due to the 
aggressive reform programme undertaken since th e late 1980s, centered on trade liberalization, 
deregulation, and privatization.   Jordan had used its accessi on process to the WTO as a successful 
means to institute structural reforms in the dom estic economy. Korea welcomed the efforts of the 
Jordanian authorities, and urged them to con tinue these efforts in the coming years.   
44. The representative of the United States  said that the United States had worked closely with 
Jordan since 1952 to improve the lives of Jordanian citizens.  Total U.S. development assistance had 
exceeded US$5 billion (since 1952), and had funded a range of projects such as health care, 
education, construction to increase water availab ility, and support for microeconomic policy shifts 
toward the free market.  Jordan had signed a Th reshold Agreement with the Millennium Challenge  WT/TPR/M/206 
 Page 13 
 
 
  Corporation (MCC) in October 2006, and the MCC had subsequently deemed Jord an to be eligible for 
a Compact Agreement in recognition of its prog ress in economic, social, and political reform 
indicators.  In December 2007, the MCC Board of Di rectors re-selected Jordan to be eligible for MCC 
Compact funding.  Jordan was pursuing a strategy of  trade liberalization at the multilateral, regional, 
and bilateral levels.  Its economy had shown resilience in a challeng ing external environment and was 
likely to remain vulnerable to inte rnational prices for energy and food.  But, Jordan was addressing 
these and other structural problems (including wate r shortage) through a policy agenda in which 
privatization, investment, and trade liberalizati on played key roles. Jordan had developed a new 
energy strategy in 2007 aimed at developing more indigenous and renewable energy sources, 
including oil shale, nuclear energy, wind, and sola r power.  Fuel subsidies had been eliminated in 
2008.  The United States recognized the value of th ese formidable efforts, especially for a small 
economy so dependent on external resources. 
45. The U.S.-Jordan FTA had entered into effect  in December 2001 and achieved significant and 
extensive liberalization across a wide spectrum of tr ade issues.  It would eliminate all tariff and non-
tariff barriers to bilateral trade in virtually all in dustrial goods and agricultural products within ten 
years.  In 1999, when the United States had worked to support Jordan’s accession to the WTO, 
Jordan’s goods exports to the United States had amounted to US$31 million;  their bilateral goods 
trade had totalled US$307 million.  By comparis on, bilateral goods trade in 2007 had totalled 
US$2.2 billion, a 500% increase over 1999, U.S. goods imports from Jordan had totalled US$1.3 billion in 2007, a 6.6% decrease (US$93 million) from 2006.  But up 480% from their 2001 pre-FTA level.  Non-textile FTA exports from Jord an had continued to grow, topping more than 
US$150 million in 2007.  This growth demonstrated the FTA’s role in helping Jordan diversify its 
economy.  U.S. efforts to support Jordan’s rapi d and successful WTO accessi on were followed on the 
bilateral front by the United States-Jordan Trade and Investment Framework Agreement and a 
Bilateral Investment Treaty. Agreements like these ha d helped bolster Jordan’s efforts to diversify its 
economy and promote growth, and at the same time  reduce reliance on exports of phosphates, potash, 
and textiles; overseas remittances; and foreign ai d.  Jordan had signed the WTO Information 
Technology Agreement (ITA) and tourism was seen as another promising growth sector. 
46. Jordan was subsidizing exports through inco me tax exemptions, and the United States 
reminded Jordan of the WTO General Council d ecision to grant a conditional extension for 
maintaining these export subsidies until 2015 at the latest.  It commended Jordan for its efforts in 
negotiating accession to the Plurilateral Agreement on Government Procurement;  the progress made 
would demonstrate the flexibilities of the revised GP A for developing countries.  The Government of 
Jordan had made efforts to update its copyright  legislation to strengthen its protection and 
enforcement. The United States urged Jordan to underta ke the same efforts for trademark legislation.  
It would continue to work with Jordan to strengt hen and deepen their relationship and to achieve an 
ambitious result in the Doha ne gotiations.  This included new market access in services, industrial 
goods and agriculture, which could further enhance opportunities for Jordan to expand its exports and 
its export markets.  
47. The representative of China
 said that Jordan and China enjoyed a friendly relationship and 
good cooperation, and were important trading part ners.  In 2008, bilateral trade amounted to 
US$1.23 billion.  As of June 2008, China had US$11.56 million of FDI in Jordan and Jordanian 
investment in China was US$38.38 million.  In Dece mber 2005, China and Jordan signed the Bilateral 
Labour Service Cooperation Agreement. As of J une 2008, labour service cooperation provided by 
China was valued at US$390 million. Jordan was a net food importing country with limited natural 
resources, including arable land. However, it had achieved tremendous economic performance 
through continuing reforms. Real  GDP growth had been 6%, average inflation had been relatively 
low, and foreign currency reserves had reached US $6.9 billion.  The comp etitiveness of Jordanian 
economy kept improving.  China and Jordan were recently acceded developing members and had 
jointly made significant contributions to the multilateral trading system with extensive and WT/TPR/M/206 
Page 14  
 
  comprehensive accession commitments. China was read y to work with Jordan and other Members for 
an early conclusion of the DDA negotiations. 
48. The representative of Canada
 pointed out that bilateral trade between the two countries had 
almost doubled over the past five years.  Canada valu ed its trade relations with Jordan.  Bilateral trade 
had almost doubled over the past five years.  In 2007, bilateral trade in goods had reached 
US$71 million, and Canadian goods exports to Jord an were estimated at US$56 million, as compared 
to US$15 million in 2000.  Canadian imports fro m Jordan totalled US$15 million.  Jordan was 
pursuing its extensive economic re form programme which would transform it into a modern State 
with a strong potential for growth and prosperity.  The price of oil and food had placed Jordan under a 
certain amount of pressure, but it was doing its utmost  to pursue its reforms in spite of the difficult 
external environment.  Since 2000, it had adopted several new laws to meet its WTO commitments, 
including a competition law;  a trade remedies  law, covering anti-dumping, subsidies and 
countervailing, and safeguard measures;  and other laws  relating to intellectual property rights.  As the 
first Arab country in the Middle East to adopt a law on competition and one of the rare developing 
countries to negotiate accession to the Plurilateral Agreement on Government Procurement, Jordan 
had shown leadership in opening up its mark et and integrating into the world economy. 
49. In the current economic climate, it was impor tant for countries to resist moving towards 
greater protectionism.  Jordan was pursuing its trad e liberalization at the multilateral, regional, and 
bilateral levels.  It participated in the Doha negotiations, including through its membership in the 
group of RAMs, and was encouraged to remain engaged in the discussions as all Members worked 
towards a successful conclusion of the Round.  Cana da had recently conclude d FTA negotiations with 
Jordan, as well as a Labour Cooperation Agreement and an Agreement on the Environment.  These 
had marked a positive step toward enhancing Ca nada-Jordan relations. The Canada-Jordan FTA 
would contribute to Jordan's economic developmen t.  Canada and Jordan had also concluded 
negotiations towards a bilateral foreign investme nt promotion and protection agreement (FIPA), 
which would provide greater predictability and cert ainty for investors in both markets.  Although 
Canadian investment in Jordan and Jordanian in vestment in Canada was modest, the expanding 
Jordanian economy and the privatization progra mme would provide significant opportunities for 
Canadian investors in a variety of sectors. 
50. Canada stressed the importance of the final lifting of the BSE bans on Canadian cattle and 
beef consistent with Canada's "controlled risk" status as determined by the World Organization for 
Animal Health.  Canada was also looking forward to the final lifting of other SPS-related measures 
affecting Canadian beef and cattle exports, based on science and international standards.  A speedy 
resolution of these issues would benefit both Canadian  exporters and Jordanian consumers.  Jordan's 
continued economic success would be determined by its ability to create a modern regulatory 
environment conducive for business, and solid partners hips between the public and private sectors, as 
well as foreign players.  Jordan had created an open regime in the financial services sector, which had 
been broadly opened to foreign competition.  The progressive liberalization of air transport services 
was also a positive step, as were Jordan's reforms to  open up competition in the telecoms sector.  State 
ownership remained substantial a nd limitations on foreign participati on in certain activities inhibited 
the business environment. Canada encouraged Jordan  to continue its efforts to further open key 
sectors to foreign competition.  Canada also st ressed the importance of maintaining a transparent 
framework in the publication and administration of it s trade regulations.  Jord an reached to work to 
improve its WTO notification processes to ensure that  its transparency obligations at the WTO were 
being met, and would encourage public input into the Government's trade policy agenda. 
51. The representative of India  noted that Jordan's economy was constrained by limited natural 
resources; and that its location in the midst of a turbulent region was another constant challenge. 
Nevertheless, Jordan had worked to become part of, and played an active role in, the globalized 
system.  Jordan had capitalized on its strategic geogr aphic location, its educated work force, and its  WT/TPR/M/206 
 Page 15 
 
 
  free enterprise economy to become a regional entr epôt and transit point for exports and imports 
between Western Europe and the Middle East. As a result of bold political, economic, and regulatory 
reforms undertaken since 1999, Jordan’s economy was expected to double in the current decade. Per 
capita income had grown by 65%, exports three-fold, fo reign investment at the same rate, and external 
debt had decreased from 84.5% to 28.5%.  India a nd Jordan enjoyed friendly relations.  Since the 
establishment of full-fledged diplomatic ties in 1950, Indo-Jordanian relations had been further 
consolidated.  India was the first non-Arab country  to welcome the signing of Jordan’s Peace Treaty 
with Israel and that had participated at Ministerial level in the signing ceremony at Wadi Araba in 1994.  Four agreements had been signed in 2006: Cooperation in Agriculture; Bilateral Investment 
Promotion and Protection; Coopera tion in Tourism; and Cultural Ex change Programme. Under a 1976 
agreement, a Trade and Economic Committee promoted  and monitored trade progress.  India-Jordan 
trade and investment relations had been steadily increasing;  and the commissioning of the Indo-Jordanian Chemicals company’s phosphoric aci d plant with an investment of US$170 million 
highlighting their commitment to deepen mutually beneficial economic and trade ties.  There were 19 
Indian textiles factories operating in Qualified Industrial Zones (QIZ) in Jordan employing around 
2,500 Jordanian and exporting garments overseas.  M/ s Bharti Telesoft had signed an agreement with 
Optimiza Co. to establish a signal cen tre in Jordan to serve customers in the Middle East and North 
Africa. 
52. The representative of Kuwait
 said that Jordan and the State of Kuwait had always had strong 
cooperation and friendship ties in the trade, economy, investment, and technical fields.  Bilateral trade 
had increased significantly through a free-trade ag reement, investment promotion and protection 
agreement, an agreement on avoidance of double taxation, and a land tran sportation agreement. 
Jordan was one of the main trading partners in th e Middle East.  The value of Kuwait's exports to 
Jordan had increased from US$120 million in 2006 to US$194 million in 2007, and the value of 
imports from Jordan had increased from US$74 mi llion to US$183 million.  Kuwait congratulated 
Jordan for the relative openness of its economy, and the reforms that had enha nced the transparency 
of its trade regime. 
53. The representative of the European Communities  observed that Jordan had undergone 
remarkable development and transformation in the l ast few decades, thanks in part to an economic 
reform programme focused on trade liberalization, deregulation, and privati zation. GDP growth had 
been consistently high, spurred mainly by in creases in FDI flows and increased productivity. The EC 
commended Jordan on the economic reforms rea lized, and its robust economic growth, and 
encouraged Jordan to continue on this path, and in  particular to ensure that economic growth was 
translated into higher employment and reduced povert y. The EC and Jordan had a stable and fruitful 
trade relationship, based on a bilateral Associati on Agreement. The EC was Jordan's main trading 
partner in terms of total trade, and its main sour ce of imports, which totalled €2.6 billion in 2007. The 
EC was Jordan's 5th main export destination and a major source of FDI. Under the framework of the 
European Neighbourhood and Partnership Instrume nt, the EC supported the modernization of the 
services sector, export development, and trade fac ilitation in Jordan.  Jordan had stepped up its 
economic integration with its Mediterranean neighbours, notably within the framework  of the Agadir 
Agreement. The EC encouraged Jord an to continue to consolidate th is arrangement and believed that 
comprehensive regional integration between the Me diterranean countries was instrumental for the 
prosperity of the region. 
54. Jordan was member of the World Organization fo r Animal Health (OIE). However, it did not 
always follow the international guidelines and r ecommendations set out by the OIE as regards the 
determination of BSE-risk status of exporti ng countries. The EC acknowledged recent improvements 
in this area, in particular the recommendation by  the Jordanian BSE Committee to lift the ban on 
"BSE risk-controlled" countries and allow the impor t of bovine and bovine products from them. This 
would allow Jordan to fully comply with the OIE guidelines.  The EC appreciated Jordan's initiatives 
to encourage investment, such as its membership of the Multilateral Investment Guarantee Agency, WT/TPR/M/206 
Page 16  
 
  and efforts of the Jordan Investment Board (JIB) to  promote investment opportunities, particularly in 
the area of licensing.  However, Jordan remained far from realising its potential for investment to 
increase the diversification, productivity, and in ternational competitiveness of its economy. The EC 
encouraged Jordan to u ndertake further measures to eliminate the still significant restrictions on 
foreign investment, in order to improve the investment climate and increase FDI flows and growth.  
The EC welcomed the recent progress as regard s accession to the Agreement on Government 
Procurement (GPA) and it was strongly committed to concluding these long negotiations, initiated in 
2003. Jordan was one of the few developing WTO Members currently negotiating accession to the GPA. The EC urged Jordan to strengthen its effo rts to bring its procurement legislation into 
compliance with the GPA rules as soon as possible . 
55. The representative of Honduras
 welcomed the fact that Jo rdan was among the most open 
economies in the world, which viewed the success  of the negotiations on the Doha Development 
Agenda as fundamental for its own economy and fo r the regional and world economy.  There had 
been a GDP growth of 5.9 per cent and relatively lo w inflation during the period 2000-2007.  It was a 
middle income country with a GDP per capita of close to $3,000 in 2007, and with an economy 
dominated by services.  Jordan also relied on a high le vel of workers' remittances  and public grants.  It 
granted at least MFN treatment to all its trading partners.  It was a signatory to the Information 
Technology Agreement and an observer to the Plur ilateral Agreement on Government Procurement.  
It was participating actively in the multilateral trade negotiations and in the WTO Arab Group.  It was 
a member of the Pan Arab Free Trade Area and the Free Trade Area with Egypt, Morocco and 
Tunisia.  It had signed bilateral trade agreem ents with the United States, the EC, EFTA and 
Singapore.  Jordan was strengthening its investme nt regime, and the Investment Promotion Law, 
adopted in 1995, offered non-discriminatory treatme nt to foreign investors.  It had introduced 
UNCTAD's Automated System for Customs Data.  In 2002 Jordan had been the first Arab country in 
the Middle East to adopt competition legislation and was negotiating its accession to the Plurilateral 
Agreement on Government Procurement, while initia ting the process of amending its legislation on 
that matter.  Its intellectual prope rty regime had been reformed pr ior to its accession to the WTO and 
it had since further strengthened the protection a nd enforcement of intellectual property rights. 
56. The representative of El Salvador  noted that Jordan was a middl e income country with a GDP 
per capita of US$2,767 in 2007, with an economy  dominated by services.  Manufacturing was the 
second most important sector, accounting for about on e fifth of GDP, while agriculture accounted for 
3 per cent.  Jordan was continuing to pursue a tr ade liberalization policy at the multilateral, regional 
and bilateral levels.  Although the Jordanian economy remained stable in the face of the challenging 
external climate, it was likely to continue to be vulnerable to international increases in the prices of 
food and energy.  As an exporter of clothing, Jord an's exports had been stimulated by the tariff 
preferences which it enjoyed in the United States ma rket.  Jordan was facing up to the challenge of 
maintaining its levels of exports and employment generated by that sector, which was of the highest 
importance for its economy, within a context of hi gh international competitiveness in the textile and 
clothing sector.  Jordan was promoting the middle income countries initiative through the G-11, whose objective was to increase cooperation am ong middle income countries in several areas, 
including trade, as well as to ensure appropriate le vels of international cooperation for such countries. 
57. At the Presidential Summit in May 2007 the themes discussed included cooperation between 
the G-8 and the G-11 as a means of promoting infrastructure investment, support for small and 
medium-sized enterprises, scientific research and development and technology transfer.  Jordan was 
playing an active part in the various areas of nego tiation of the Doha Development Agenda, in some 
of them as part of the group of recently acceded Me mbers, with a view to promoting flexibilities for 
this group of countries.  Jordan had supported th e adoption of the General Council Decision for the 
continuation of extensions of the transition period pursuant to Article 27.2(b) of the Agreement on 
Subsidies and Countervailing Measures, which a llowed for the maintenance of certain incentive 
programmes of some developing countries until 2015.  In the future there were plans to strengthen  WT/TPR/M/206 
 Page 17 
 
 
  trade and diplomatic links between El Salvador and Jordan with the possibility of establishing an 
embassy of El Salvador in Jordan, with a view to  strengthening bilateral links in areas of policy, 
cooperation and trade and investment. 
58. The representative of Turkey  noted that wide structural re forms since 1990s had been shaping 
Jordan's economy into one of the most open economies in its region.  The continuing reforms, aiming 
at further liberalization of trade and investment regimes, higher economic and social development, 
and privatization of state enterprises had contri buted to the positive performance of the economy. 
However, there were some important challenges to  be faced:  relatively high unemployment, low 
labour productivity, and some restrictions that nega tively affected the business environment needed to 
be addressed.  Given the relatively high state owners hip, there was room for continuing privatization 
efforts, which had been accepted by the IMF as one  of the successful programmes in the Middle East 
region. Jordan could better reflect its growth po tential by further encouraging private sector 
participation in economic activities.  Similarly, removing limitations on fo reign participation in 
certain economic activities could also help to increase its economic competitiveness overcome the 
unemployment problem.  Trade had an important role in Jordan’s economy. Given the resource 
constraints in Jordan, trade policies were utilized to  promote sustainable development, to complement 
its domestic structural reform and modernization policy. Through its WTO membership, Jordan had 
taken important steps in integra ting its economy into the world markets and was participating actively 
in the Doha Development Round. 
59. Tariffs on all products, except electricity, were bound at rates generally within a range of 0-
30%. The simple average of the final bound tariffs was 16.3% while the simple average applied MFN 
rate was 10.9% in 2008. A large portion of its ta riff commitments had been implemented and the 
process would be completed in 2010. Due to its in creasing dependence on international trade, Jordan 
might benefit from the full realization of MFN tariff reductions as well as further market openings 
that would be carried out in line with its de velopment needs through the Doha Round outcomes. 
Bilateral trade and economic relations between Turk ey and Jordan had been increasing but were far 
from reflecting their real potential. Bilateral tr ade had exceeded US$400 million in 2007, with a 21% 
and 23.9% increase in exports and imports, respectiv ely, compared with 2006. In recent years, there 
had been increased interest by Turkish construc tion firms in the Jordanian market:  total ongoing 
construction projects by Turkish firms had amounted  to almost US$2 billion in 2007. The conclusion 
of the ongoing negotiations for a free-trade agre ement between the two countries would offer better 
opportunities to their traders and investors. 
60. The representative of Tunisia  commended Jordan for the considerable efforts it had made 
since its accession to the WTO to pursue its economic and trade liberalization policy, inter alia  by 
consolidating the opening-up process, creating an  environment conducive to the development of 
investment, and the expansion and diversification of its trade and economic relations by concluding 
free trade agreements with its main partners.  Sin ce it had joined the WTO, Jordan had embarked on 
the amendment and review of its laws and had established the m onitoring and control structures 
needed to meet its WTO obligations.  Its efforts had taken the form of different programmes, in 
particular the Social and Economic Transf ormation programme (2002-2004), the Social and 
Economic Development Plan (2004-2006), the Nati onal Agenda developed in  2006, and the private 
sector programme, Jordan Vision 2020.  The di fferent institutional and legislative measures 
introduced showed the will and determination of th e Jordanian authorities to move towards greater 
liberalization and conformity with the WTO rules and principles in spite of a difficult world climate.  
Jordan was aware of these challenges and had unde rtaken to pursue its economic reform programme 
with a view to unlocking its growth potential, ach ieving sustainable development, and improving the 
quality of life of its population while continuing its st ructural reforms and encouraging greater private 
sector participation.  Jordan contributed actively to the Round of multilateral trade negotiations as part 
of the group of Recently-Acceded Members (RAM s) and the Arab Group, also sharing certain 
positions with the small and vulnerable economi es (SVEs), and it defended the rights of the WT/TPR/M/206 
Page 18  
 
  developing countries as well as their needs and special interests.  Tunisia supported Jordan's call for 
technical assistance in the agreed areas in order to he lp it to integrate its economic sectors in the world 
economy and to take advantage of the multilateral trading system. 
61. The representative of Morocco
 pointed to the series of bold and continual reforms that Jordan 
was introducing to keep up with the development of international trade relations and meet the 
challenges of the modern world.  The main objectiv e of the policy of privatization and liberalization 
of trade and investment launched in 1996 had been  the creation of the best possible conditions for 
business competitiveness, for improving production,  and for boosting growth.  Foreign direct 
investment played a very important role in help ing to remedy the country's balance of payments 
situation, which had improved th anks to the multisectoral reforms undertaken by the Jordanian 
authorities.  Several administrative reforms had been  introduced with a view to ensuring the smooth 
functioning of the economy (creation of a new anti- corruption commission and a complaints bureau).  
Jordanian economic data proved that the outlook w as reassuring in spite of the current turbulence 
affecting the world economic environment.  The economic recovery in Jordan was also due to 
targeted reforms (modern intellectual property legisla tion in conformity with WTO rules, and efficient 
regulation in the trade facilitation context).  The de velopment of a national trade strategy was a vast 
project which should help to provide Jordan with an appropriate framework and tools to make its 
economy competitive and modern with the help of all segments of society. 
62. In the agricultural sector, the Jordanian author ities had implemented a number of measures 
aimed at encouraging investment and production (e limination of taxes on the sale of agricultural 
inputs).  Trade-distorting agricultural subsidies had been abandoned.  In the mining sector, growth in 
phosphate, potash and marble production and the incr ease in the volume of exports had meant more 
revenue for the State, enabling it to increase its in vestment in exportation and mining infrastructure.  
Industry was also experiencing a promising upturn, in  particular the pharmaceuticals industry, textiles 
and clothing, the automobile industry and the elect ronics industry, whose development was generating 
further employment.  The services industry continued to perform satisfactorily in the 
telecommunications, banking, transport and tourism sectors.  Reforms aimed to ensure that the 
Jordanian government's commitments under the Gene ral Agreement on Trade in Services were met.  
Jordan had opted for diversification of its tradin g partners by signing agreements both with its 
neighbours and with geographically distant countries.   It was a member of the Free Trade Agreement 
among 17 Arab countries, and of the Agadir Agreement with Egypt, Morocco and Tunisia.  It had also 
signed agreements with the United States, th e European Union, and the countries of the 
European Free Trade Agreement (Switzerland, Liechte nstein, Iceland and Norway).  Jordan needed 
considerable technical assistance and the necessary r esources needed to be mobilized so that it could 
take full advantage of the good results achieved.  Th is would enable it to continue its reform and 
modernization policies and to participate in multilate ral trade in a constructive and profitable way. 
63. The representative of Nigeria  noted that since the debt crisis in 1988-89, Jordan had embarked 
on an economic reform programme on trade liberaliza tion, deregulation, and pr ivatization, with the 
aim of achieving sustainable GDP growth, improving education and health services, modernizing infrastructure, creating a more friendly environment to attract larger FDI inflows, reducing the public 
debt, and increasing the role of the private sector in the economy.  These measures had led to a more 
favourable investment climate, thereby leading to strong economic performance.  Since becoming a 
WTO Member, Jordan had been reviewing and amendi ng its laws to conform to its WTO obligations, 
as well as establishing the monitoring institutions.  Th is would ensure stability in external economic 
relations and long-term growth based on efficiency  and innovation.  The pharmaceutical industry in 
Jordan was the fastest growing industry.  Nigeria wa s interested to know whet her IPR rules in Jordan 
allowed for exports under the 30 August 2003 Decisi on on the Implementation of Paragraph 6 of the 
Doha Declaration on the TRIPS and Public Health.  Jordan was participating actively in the DDA, in 
particular, in NAMA, agriculture, trade facilitation, services, rules, and dispute settlement.  Jordan 
had made extensive commitments during its acces sion process and its participation in the RAMs  WT/TPR/M/206 
 Page 19 
 
 
  group would allow it additional flexibilities at th e end of the DDA.  Technical assistance and 
capacity-building needs centred around helping Jordan  to effectively integrate its economic sectors 
into the global economy and to realize the benefits  of the multilateral trading system and the outcomes 
of the Doha Development Round.  Nigeria urged Members to provide adequate assistance to enable 
Jordan to realize its objectives. 
64. The representative of Pakistan  noted that Jordan was an island of stable economy in an 
unstable region. Its increased foreign reserves, decr eased debt to GDP ratio, and a consistent 6% per 
year growth rate demonstrated its economic stre ngth and vibrancy. Jordan had not achieved this 
commendable performance in isolation. Inflation and price hikes driven by food and fuel prices 
globally had not been without a positive policy respon se. Jordan had taken a bold step to safeguard 
the interest of its citizens:  the Government had abolished the duty and sales tax on food products and 
had increased salaries.  Two of Jordan's trade po licy initiatives illustrated the proactive and visionary 
approach of its policy makers: the National Agenda and Jordan Vision 2020. Jordan Vision was an outstanding example of private public partnershi p. Jordan’s openness to wards the global trading 
system complemented by regional and bilateral free-trade agreements demonstrated its liberal and 
output-oriented policies. The Government decision to eliminate subsidies on fuel was another bold 
step, despite the challenges due to oil prices inflati on, unemployment, and poverty.  Pakistan enjoyed 
a close relationship with Jordan and was working towards increasing bilateral trade and investment 
cooperation. Mutual cooperation between Jordan an d Pakistan could yield synergies in many areas 
and they were exploring all avenues, including negotiations on FTA.  
65. The representative of Oman
 said that Jordan and Oman had centuries of fraternal relations 
which were comprehensive through strong and ever growing political, economic, and trade relations. 
They had joined the WTO nearly at the same time, were active partners in the group of Recently 
Acceded Members, and were members of the Pan Arab Free-Trade Area.  Oman was highly impressed by the Jordan's su ccessful and far-reaching economic reforms, including its liberal 
investment regime, revised legi slative and legal framework, tran sparent regulatory regime, and 
improved business environment. The Government of Jordan had also taken difficult decisions, such as 
removal of fuel subsidies. An important pillar of  the economic reforms was much greater emphasis on 
the role of the private sector. Jordan's economic gr owth had accelerated despite external shocks, such 
as the surge in oil and food prices and the regiona l security environment.  Jordan was a strong and 
active supporter of the multilateral trading system;  it was fulfilling its WTO commitments and was 
participating actively in WTO activities as well as bilateral and regional tr ading arrangements that 
were complementary to the multilateral trading syst em. Oman and Jordan were working with other 
Members for the early successful conclusion of DDA negotiations. However, their special interests 
and problems as recently acceded members needed to  be resolved in a fair and equitable manner.  
66. The representative of Qatar, on behalf of the GCC delegations
 noted Jordan’s strong 
commitment towards reform and trade liberalizati on, and to the multilateral trading system, despite 
the instability in the region and the adverse developments in the world economy, particularly the 
sharp increases in oil and food prices. Jordan was a strong trading partner for the GCC delegations. As 
a development country, Jordan was doing its best in domestic reform to adapt to the rules and 
principles of the WTO, for example, through the decisi on to eliminate subsidies on fuel with a view to 
removing any distortive measures in the economy. Th e decision had been taken despite the challenges 
to the economy posed by the rise in oil prices, f ood prices, inflation, unemployment, and poverty. The 
special consideration and flexibilities requested by  Jordan as a recently acceded member and a SVE 
should be provided in this round of  negotiations. Current efforts to enhance the participation of the 
private sector in Jordan's economic policy would further improve its business environment. 
67. The representative of Egypt, on behalf of the Arab Group  noted that the Jordanian economy 
had been developing positively. Trade liberaliza tion, privatization of state-owned enterprises, 
structural and institutional reforms, as well as sound monetary policies had contributed to higher GDP WT/TPR/M/206 
Page 20  
 
  growth rates, despite major external  challenges.  It had been remarkable to achieve a GDP growth rate 
of 6% in 2007, and at the same time reduce the pub lic debt to the GDP ratio, while maintaining high 
foreign currency reserves of around US$6.9 billion, a nd keeping the inflation rate at around 5.4%, and 
increasing merchandise exports by 9.5%. Moreover, investment policies in coordination with the 
private sector had contributed to increasing FDI from US$155 million annua lly in the 1990s to 
US$3.12 billion in 2006. An example of Jordan’s sound reform policies was the bold decision to 
eliminate fuel subsidies. Egypt, on behalf of the Arab Group, commended the Jordanian Government 
for its economic performance.  Since joining the WTO in April 2000, Jordan had fully implemented 
all the relevant agreements, and had shown its  commitment towards strengthening the multilateral 
trading system, through its positive contribution to  the Doha negotiations. Nevertheless, Members 
should not forget Jordan's status as a small and vulnerable economy (SVE), and as a net food 
importing developing country (NFIDC), which entitle d it to additional flexibilities in the different 
tracks of the Doha negotiations. 
68. The representative of Bahrain
 noted that Jordan's liberal trad e policies, adopted since it joined 
the WTO, had helped it to maintain stable econom ic growth.  Jordan was embarking on policies and 
measures designed to promote investment and attract  foreign direct investment, reduce tariffs, and 
remove trade barriers and tariff restrictions.  It had made efforts to reduce the role of the public sector 
in the economy and had diversified its economic base.  These efforts had demonstrated strong 
commitment to an open multilateral trading system.  In spite of the political instability in the region and the current world economic crisis, Jordan had u ndertaken audacious reform s, such as its decision 
to eliminate subsidies on fuel with the view to  removing any distortive measures in the economy.  
Jordan had included the private sector in the Gove rnment's efforts to improve trade and industry 
policy formulation and to create a flourishing environment for business and investment.  The good performance of Jordan's economy was due to the intensive economic and legislative reforms 
following the 1989 debt crisis, the strong commitmen t to fulfil its WTO obligations, its active and 
constructive participation in the WTO bodies and negotiations, and to its regional and bilateral 
free-trade agreements.  Jordan had played an active role in the DDA negotiations, and special 
consideration should be given to its request for flexibilities, as a recently acced ed member and SVE.  
Trade policies had been designed to strengthen Jo rdan's economic base and increase its performance; 
they had resulted in strong economic performance over the last years. 
69. The representative of Singapore
 said that Singapore and Jordan shared long-standing good 
bilateral economic relations.  The Jordan-Singapore Free Trade Agreement, which entered into force 
in 2005, had institutionalized these bilateral ec onomic ties and had promoted greater trade and 
investment flows.  It was a milestone in cross -regional economic relations.  Jordan was Singapore’s 
12th largest trading partner in the Middle East with total trade of US$102.2 million in 2007, 
representing an 87% increase over 2006.  Singapore 's companies were making good headway in 
Jordan.  Jordan’s pursuit of a progressive economi c agenda was highly commendable.  Jordan was 
taking concrete steps to improve its business e nvironment by modernizing its infrastructure, 
undertaking privatization initiatives, and im proving education services.  Jordan’s 8th position out of 
141 economies in 2006 in UNCTAD’s In ward FDI performance Index was testament to its positive 
steps to improve its investment climate, such as through the Investment Promotion Law.  On the 
research and development front, steps taken to streng then its IPR regime had also contributed to the 
rapid development of the Jordanian pharmaceutical  industry to become the economy’s third largest 
export sector.  Jordan’s experience had demonstrated  that IPR could be a powerful tool for economic 
development.  Singapore shared Jordan’s belief a nd advocacy of the multilateral trading system and 
welcomed Jordan's commitment to  accede to the WTO Agreement on Government Procurement, the 
Patent Cooperation Treaty, and the Madrid Protocol.  Singapore urged Jordan to continue reforms that 
would address some remaining challenges, such as reviewing policies on foreign equity limitations, 
rationalizing its tariff structure, and improving its  services commitments.  As small countries that 
depended strongly on free and open in ternational trade, Jordan and Si ngapore had clear interests in the 
successful conclusion of the Doha Round negotiations.  WT/TPR/M/206 
 Page 21 
 
 
  V. REPLIES BY THE REPRESENTATIVE OF JORDAN AND ADDITIONAL 
COMMENTS 
70. The representative of Jordan  said that this review had offe red an opportunity to demonstrate 
Jordan's commitment towards WTO Agreements, guide d by the spirit of transparency. The comments 
and advice received from Members had been valuable and insightful, and would guide Jordan towards 
realizing its goals. 
71. Jordan had always believed in trade liberaliza tion and thus, trade policies and regulations had 
been set in a way that had strongly directed its economy towards integration into the global economy. 
Jordan had started to collect the fruits of its  economic reform programmes despite the political 
instability, shortage of natural resources, external inflationary pressures, and high rates of poverty and 
unemployment. 
72. Those outcomes had included a sustained growth  rate of around 6% during the previous seven 
years;  over 9% growth in GDP per capita during the previous two years;  reduction of the unemployment rate from 14% to 13% in 2007 and 12% until August 2008;  reduction of the budget 
deficit to 5.4% of GDP;  an average increase of 60% in national exports during the previous eight 
years;  and a significant increase in FDI inflows, to US$3.3 billion in 2 007, a 32% growth rate 
compared with 2006. 
73. The Government would continue its efforts to facilitate procedures related to doing business. 
Amendments would be introduced to the Investme nt Law to enhance the effectiveness of the 
one-stop-shop operations within the Jordan Invest ment Board, which currently provided licensing 
approvals for investors within only 14 days; a nd the required minimum capital for establishing a 
company would be reduced from JD 30,000 to JD 1,000. 
74. The Government had undertaken numerous step s to enhance and strengthen enforcement of 
IPR protection. Amendments had been introduced to the Standards and Metrology Law to address 
trademark-related violations. Jordan was currently  considering additional measures to enhance ex-
officio authority in the law. The Government had undertaken efforts to increase courts' specialization 
in IPR cases;  recently, eighteen sp ecialized judges had been assigned to specific courts to handle such 
cases.    
75. Regarding international IPR treaties and agre ements, the Jordanian Patent Law had been 
amended to allow for compulsory licences to be issued in accordance with WTO Decision of 2003 
related to TRIPS and public health. Moreover, the patent and trade marks laws had been amended to 
comply with the Patent Cooperation Treaty and Madrid  Protocol. Draft regulati ons to implement these 
amendments had been prepared and the relevant  instruments of accession would be submitted to 
WIPO. 
76. Jordan was committed to eliminating the export subsidies programme by  2015, in accordance 
with the related WTO General Council Decision.  The Government would also launch a public 
awareness campaign to the private sector in this rega rd and would be working with the private sector 
to devise an alternative mechan ism to enhance the competitiveness in the manufacturing sector to 
enable exporters to adjust to the phase-out of the programme.  
77. To further facilitate import and export pr ocedures, the Consular Fees Regulation  had been 
amended recently to provide for the elimination of co nsular fees associated with the authentication of 
the certificates of origin, commercial invoices, san itary certificates, and packing lists, in accordance 
with paragraph 72 of Jordan's protocol of accession to the WTO.  WT/TPR/M/206 
Page 22  
 
  78. Jordan recognized the importance of adhe ring to OIE international guidelines and 
recommendations in developing SPS measures. Ther efore, in compliance with the OIE BSE risk 
classifications, the Jordanian BSE committee, had r ecently decided to allow the import of beef and 
other meat products from all "controlled risk" countries.  
79. Jordan had an open investment regime; foreign investors had been granted full ownership in 
industrial projects and in a wide range of services with the exception of some minor services sectors 
that had been subject to partial limitations on fore ign ownership.  The Government was in the process 
of introducing amendments to the non-Jordania n Investments Regulation, which would allow full 
ownership by non-Jordanians in investment projects that would contribute to the economic development of the country. 
80. Jordan had taken note of the comments regardi ng the need for rationalizing tariffs, and would 
take them into consideration for furt her developing its trade strategy.  
81. Jordan appreciated the supporting comments by several Members regarding Jordan's 
accession to the GPA. Accession negotiations had reach ed an advanced stage and Jordan hoped to 
joining the agreement on terms that would adequate ly serve its development needs. Acceding would 
provide additional market access for Jordanian prod ucers but, at the same time, domestic producers 
would be confronted with fierce competition from fo reign suppliers. Hence, an impact assessment was 
being conducted to evaluate the poten tials and challenges.  Furthermor e, in order to bring Jordan's 
procurement regime in compliance with the GPA, new procurement legislation was currently being 
discussed within the Government. The draft legislation contained provisions that would mainly enhance transparency and harmonize procurement procedures in all government entities; strengthen 
decentralization; and separate regulatory activities from operational ones through the establishment of 
a Regulatory Commission. Jordan's accession to the GPA would require the continuous support of the 
GPA Members through more flexibility during the negotiation process. 
82. Jordan’s was contributing to the strengthening of  a free, open, and stable multilateral trading 
system. Reviving the DDA negotiations would send a positive signal to the world, especially under 
the current global financial crisis.  
83. Jordan’s reform efforts had been continuous a nd its reform strategies had been ambitious;  
they were set out in the National Agenda with the ultimate goal of providing citizens with a higher 
standard of living. Specific strategies and work plans had been integrated in the Government's 
budgetary planning. 
84. Jordan appreciated the appraisal by delegations  and their advice regarding the performance of 
the economy, which were very encouraging.  The achievements so far had been attained with the 
support of Members and Jordan's trading partne rs. Jordan had challenges and was committed to 
continue to reform and change in a manner that would be mutually beneficial. The continued support 
of trading partners would assist Jordan in coping with the emerging challenges and further enhance its 
economic development.   
85. The discussant
 stated that he had been pleased to lear n about Jordan, and its reforms made in 
many sectors of the economy. Jordan had formed its  trade policy and other macroeconomic policies to 
sustain its progress. Questions by Members had b een satisfactorily answered by the Jordanian 
delegation.  The review was a continuous process , especially in the present financial crisis. All 
countries had to work together to tackle the cha llenges and to help countries like Jordan move to 
beneficial policies in order to progress to wards a steady, stable, and secure future. 
86. The representative of the European Communities  asked, in a follow-up question concerning 
the GPA, whether the Agreement would prevail in th e event of conflict with the national procurement  WT/TPR/M/206 
 Page 23 
 
 
  legislation. The EC also sought clarification as to  how international procurement rules and special 
procedures would be transposed into the Jordanian legal system so that foreign and local suppliers 
could benefit from them.  
87. The representative of China  asked Jordan whether it could share with  Members the study 
evaluating the potential impact on the Jordan ian economy of acceding to the GPA.    
88. The representative of Jordan  explained that in accordance with the Constitution of Jordan, any 
international treaty or agreement that was signed had to be ratified by Parliament and would have the 
effect of a law.  The treaty on the accession to the GPA would thus be an enacted law, and regulations 
would be issued accordingly. With regard to th e impact assessment of the GPA accession, Jordan 
would be pleased to share the study, once completed, with Members.  WT/TPR/M/206 
Page 24  
 
  VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
89. This first Trade Policy Review of the Hash emite Kingdom of Jordan has allowed us to 
improve our understanding of its tr ade and related policies, and th e developments since its accession 
to the WTO in 2000.  Our discussions have greatly be nefited from the participation of H.E. Amer Al-
Hadidi, Minister of Industry and Trade, and his dele gation.  We are also grateful for the contribution 
of our discussant, Mr. Teepu Khan, and for the full engagement of many Members. 
90. Members commended Jordan on its impressive economic performance in spite of  a 
challenging external environment.  High real GDP growth, relatively low inflation, and a declining 
public debt are the fruits of an ambitious economic  reform programme centred on structural reforms 
and trade liberalization. While Jordan's measures to  liberalize its investment regime were welcomed, 
it was also noted that foreign investment remains restricted in certain activities, notably transport 
services.  Members encouraged Jordan to improve its business environment, strengthen competitiveness, and further open up its econom y, with a view to diversifying it. 
91. Members recognized Jordan's commitment to th e WTO, including the current round of trade 
negotiations.  They also acknowledged Jordan's partic ipation in various regional and bilateral trade 
agreements.  It was noted that the reduction of bound tariff rates, and further simplification and 
rationalization of Jordan's tariff regime should contribute to better resource allocation.  Some 
Members encouraged Jordan to reform its governme nt procurement regime, and looked forward to its 
accession to the plurilateral Agreement on Governme nt Procurement.  Clarification was sought on 
why a penalty is charged at Customs when importers  fail to present an importer card and why not all 
importers were eligible for an importer card. 
92. A number of concerns were also raised, notably  with regard to certain  aspects of Jordan's SPS 
regime, compliance with notification obligations  under the WTO, customs procedures (including 
customs formalities), import prohibitions and licen sing, price controls, and internal taxation.  
Members also asked questions with respect to tec hnical barriers to trade;  intellectual property;  
agriculture;  energy;  manufacturing (including textiles and clothing);  and services.  Jordan was 
reminded of its commitment to phase out export subsid ies by 2015 at the latest.  Some Members also 
urged that trade-related technical assistance be provided to Jordan. 
93. Members expressed their appreciation for the r esponses provided by the Jordanian delegation 
to questions that were posed during the review  exercise, and looked forward to receiving written 
answers to any outstanding questions within one month. 
94. In conclusion, Members congratulated Jordan on the positive economic r esults it has achieved 
since its WTO accession.  They en couraged Jordan to pursue its re forms and improve its multilateral 
commitments on goods and services, with a view to enhancing the transparency  and predictability of 
its trade regime, and adherence to WTO principles.   Members could help by keeping their markets 
open for products and services of interest to Jordan.  
95. Once again, I thank Members for their active par ticipation in the first Trade Policy Review of 
Jordan and the Secretariat for the ex cellent report.  I also thank the in terpreters for their usual efficient 
work.  WT/TPR/M/206 
 Page 25 
 
 
  VII. ADOPTION OF THE DRAFT REPORTS 
96. The Trade Policy Review Body  adopted:  the Third Appraisal of the Operation of the Trade 
Policy Review Mechanism (WT/TPR/W/38);  the Ru les of Procedures for Meetings of the Trade 
Policy Review Body (WT/TPR/W/39);  and the Re port of the Trade Policy Review Body for 2008 
(WT/TPR/W/40).    
97. The Chairman  noted that the Appraisal Report had gone through a number of informal 
consultations and, as a result, some changes were  made to the Rules of Procedures for the Trade 
Policy Review Body.  The Secretariat  informed Members that the 2009 programme of reviews had 
been modified with the addition of Niger.  The full programme would be issued soon with the exact 
dates of the meetings.   
98. The representative of the European Communities  stated that the EC remained somewhat 
disappointed with the overall modest results of th is appraisal in terms of further improving the 
mechanism.  The Appraisal Report did not reflect most  of the proposals since they had been not able 
to meet with the agreement of Members.  Howeve r, the EC appreciated the improvements included in 
the report, as well as the new deadline for the 4th appraisal and hoped that discussions could be 
continued with the objective of improving this useful mechanism even further.  
99. The representative of Japan  agreed with the EC that a wide range of issues remained 
outstanding. Japan's time frame proposal was included in paragraph 8 of the Appraisal Report.   Japan 
sincerely hoped that, according to paragraph 17 of the report,  the 4th appraisal of TPRM would start 
as soon as possible within the next three years. Japan  reiterated its intention to  participate in a positive 
debate on further stimulating di scussions in future TPR sessions.  
__________