WT/TPR/S/206 Trade Policy Review 
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II. TRADE AND INVESTMENT REGIMES  
(1) THE INSTITUTIONAL FRAMEWORK  
1. The Hashemite Kingdom of Jordan is a constitutional monarchy.1  According to Article 25 of 
the 1952 Constitution2, the legislative powers are vested in the National Assembly (Parliament) and 
the King.  The National Assembly consists of a Senate (upper house) a nd a Chamber of Deputies 
(lower house).  The Chamber of Deputies has 110 deputies elected by universal adult suffrage (up 
from 80 until the last elections for the Chamber in April 2003).3  There are currently 55 Senators;  
they are appointed by the King and their number must not exceed one half of the number of the Deputies.
4 
2. Executive authority is vested in the King together with the Coun cil of Ministers headed by the 
Prime Minister.  The King exercises his powers through the Ministers.5  The King also appoints and 
dismisses the Prime Minister by Royal Order; appoints and dismisses Ministers by Royal Decree, upon the recommendation of the Prime Minister; and appoints members of the Senate, and the Speaker from amongst them, and accepts their resignation.
6  Moreover, he is the supreme commander 
of the land, naval, and air forces.  The King also has the right to propose laws, and is the ratification 
and promulgation authority.7   
3. The Throne of the Hashemite Kingdom of Jord an is hereditary to the dynasty of King 
Abdullah Ibn Al-Hussein in a direct line through his male heirs.  The Royal title passes from the 
holder of the throne to his eldest son, and to th e eldest son, of that son and in linear succession 
thereafter.8   
4. Under Article 97 of the Constitution, the judiciar y is an independent and separate body.  The 
system comprises civil and criminal courts, including magistrate courts;  Sharia (religious) courts;  
and special courts.9  The Civil Court has jurisdiction over commercial disputes between private-sector 
parties, government departments or authorities and general establishments, according to Article 103 of 
the Constitution. Trade issues heard by civil courts can  be referred to the magistrates courts (cases 
within a value limit of JD 7,00010), the courts of first instance (which also serve as courts of appeal for 
magistrates court decisions), the courts  of appeal, and the Court of Cassation.11  Judges of the civil 
and Sharia courts are appointed and dismissed by Royal Decree.  Apart from the granting of amnesty 
or partial pardon to convicted individuals, and sanctioning the execution of capital punishment, the 
King has no power to overrule any court judgement, civ il or criminal.  Religious courts mainly hear 
                                                      
1 Jordan's Organic Law was instituted in April 1928. It  provided for a consultative parliament.  The first 
elections were held in April.  After Jordan gain ed full independence in May 1946, its Constitution was 
formulated and adopted by the Legislative Council on 28 November 1947, and ratified on 1 January 1952.  It is 
the one in current use today. 
2 Constitution of Jordan.  Viewed at:  http ://www.kinghussein.gov.j o/constitution_jo.html. 
3 WTO document WT/ACC/JOR/33. 
4 Article 63 of the Constitution. 
5 Article 26 of the Constitution states that: "The Executive Power shall be vested in the King, who shall 
exercise his powers throug h his Ministers in accordan ce with the provisions of the present Constitution." 
6 Articles 48 and 51 of the Constitution. 
7 Articles 28 to 40 of the Constitution. 
8 The legal capacity of the succe ssor is also taken into account. 
9 The Customs Court of First Inst ance and the Customs Court of Appe al are considered as special 
courts, established in accordance with Articles 222 and 223 of Customs Law No. 20 of 1998 and its 
amendments. 
10 Article 3 of Magistrates Courts Law No. 15 of 1952 and its amendments (latest in May 2008). 
11 WTO document WT/ACC/JOR.33. Jordan WT/TPR/S/206 
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cases involving marriage, divorce, wills, and legacies but  have jurisdiction in civil or criminal cases or 
issues related to domestic and foreign trade.  Sp ecial courts deal with issues such as customs and 
income tax. 
5. Jordan has five permanent national committe es entrusted with WTO-related matters:  
Agriculture, Trade and Environment, Non-Agricu lture Market Access, Trade Facilitation, and 
Services.  In addition, ad-hoc committees are established to discuss specified trade issues. All these 
committees discuss trade po licies and submit recommendations to the ministers involved, and to the 
Cabinet when needed. 
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
6. The Ministry of Industry and Trade (MIT) supervises the formulation and execution of 
policies related to industry and trad e.  The Foreign Trade Policy and Relations Department in MIT is  
responsible for all matters relati ng to multilateral trade agreements (WTO), as well as regional and 
bilateral trade agreements between Jordan and other countries.  This includes negotiating the 
agreements;  preparing draft agreements, and supe rvising their implementation;  conducting required 
studies, through relevant institutions, to evaluate their impact;  and amending agreements to develop 
the Jordanian economy. 
7. The Department is also Jordan's focal point for the WTO, functions as its Enquiry Point for 
services and is the notification authority for al most all WTO Agreements, with the exception of 
notifications related to sanitary and phytosanitary me asures.  These functions are carried out in close 
collaboration and coordination with other government  agencies through the five national committees 
(section (1) above);  the private sector is repr esented in these committees as  well as in the ad-hoc 
committees.  The Department is al so Jordan's Focal Point for the Social and Economic Council of the 
Arab League and deals with bilate ral economic and trade agreements. 
8. All policies, including trade policies, are formulated and implemented by means of legal 
instruments.  Bills are prepared by the relevant  ministries, and presented successively to the Council 
of Ministers, the Chamber of Deputies, and the Senate.12  They must then be passed by both the 
Senate and the Chamber of Deputies and ratified by the King through a Royal Decree.  Once these 
steps are completed the law would enter into  force 30 days after publication in the Official Gazette  or 
as stipulated in the law.  If the King does not see fit to ratify a law, he may, within six months from the date on which the law was submitted to him, refe r it back to the House coupled with a statement 
showing the reasons for withholding his ratification.   If any subsequent bill is passed for the second 
time by two thirds of the Members of each of the Senate and the Chamber of Deputies, it must be 
promulgated; if the law is not ratified by Royal Decr ee within the six-month period, it is considered as 
promulgated and effective.  If draft law fails to obta in the two-thirds majority of votes, it cannot be 
reconsidered during the same session;  the National Assembly may reconsider the draft during its subsequent ordinary session.
13 
9. In descending order of importance, the Cons titution is followed by Royal Decrees, Laws, 
Ministerial and Administrative Decisions.  Treaties and international agreemen ts concluded by Jordan 
have legal power in national courts.14  International agreements supersede in case of conflict between 
these agreements and national laws. 
                                                      
12 The Prime Minister and Ministers sign Cabinet decisions, which are submitted to the King for 
ratification. 
13 Article 93 of the Constitution. 
14 Article 33 of the Constitution and Judicial Verdicts. WT/TPR/S/206 Trade Policy Review 
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Table II.1  
Main trade-related laws, April 2008 
Legislation Issue 
Agriculture Temporary Law No. 44 of 2002 Agriculture policy 
Audiovisuals Classification Licen sing and Monitoring Regulation 
No. 63 of 2004 Audiovisuals classification licensing and monitoring 
Commercial Agent and Mediators Law No. (28)  of 2001 Commercial agents and mediators 
The Companies Law No. 22 of 1997 and its amendments  Commercial register  
Competition Law No. 33 of 2004 Competition 
Consular Fees and Services Re gulation No. 77 of 2000 cancelling 
Consular Fees and Services Regulation No. 1 of 1989 and 
amendments Imports and Exports  Permits Regulation No. 114 of 
2004 Consular fees and services regulation 
Copyright Law and amendments No. 22 of 1992 Copyright 
Customs Law and amendments No. 20 of 1998 Customs 
Drugs and Pharmaceuticals and Temporary Law and amendments 
No. 80 of 2001  Drugs and pharmaceuticals 
Environment Protection Temporary Law No. 1 of 2003 Environment protection 
Food and Drug Administration Temporary Law No. 31 of 2003 Food and drug administration 
Food Control Temporary Law and amendments No. 79 of 2001 Food control 
Food Control Fees Regulation and amendments No. 99 of 2003 Food control fees regulation 
Law No 32 of 1984 Free zones 
General Sales Tax Law and amendmen ts No. 6 of 1994 General Sales Tax 
Geographic Indications Law No. 8 of 2000 Geographic indicators 
Illegal Competition and trade Secrets Law No. 15 of 2000 Illegal competition 
Law No. 20 of  2000 amending Imports and Re-exports Taxes & 
Fees unification Law No.7 of 1997 Import and re-export taxes and fees 
Imports and Exports Law and amendmen ts No. 21 of 2001 Imports and exports 
The Industrial Designs and Models Law  Industrial designs 
Industrial Drawings and Forms No. 14 of 2000 Industrial drawings 
Industrial Drawings and Form Regulati on No. 52 of 2002 Industrial drawings 
The Jordan Industrial Estates Corporation Law Industrial estates 
Industry and Trade Law No. 18 of 1998 Industrial policy 
Protection of Integrated Circuits Designs  Integrated circuits  
Integrated Circuits Designs Protection Law No. 9 of 2000 Integrated circuits designs protection 
Integrated Circuits Designs Protection Regulation No 93 of 2002 Integrated circuits designs protection 
Investment Temporary Law No. 68 of 2003 Investment 
Regulation No. 2 of 1996 Investment areas and sectors 
Law No. 16 of 1995 and its amendments of 2000 Investment promotion 
By-Law No. 54 of 2000  Non-Jordanians' investment 
Non-Jordanians Investments Re gulation No. 54 of 2000 cancelling 
Non-Jordanian Investment Prom otion Regulation No. 39 of 1997 Non-Jordanians' investments 
Patent's Law No. 32 of 1999 Patent  
Patent Law No. 21 of 1999 and its amendments Patents 
Patents' Regulation No . 97 of 2001 Patents 
New Botanical Items & Protection La w No. 24 of 2000 Plant protection 
Specifications and Standards La w No. 22 of 2000 Specifications 
Specifications and Standard Law No. 22 of 2000 Standards 
Law No. 34 of 1999, and Law No. 33 of 1952 Trade marks 
Trademarks Temporary Law No. 22 of 2003 Trade marks 
Regulation No. 37 of 2000 amendi ng Trademarks' Regulation No. 
1 of 1952 Trade marks 
National Production Protection Law No. 21 of 2004 Trade remedies 
National Production Protection Regulati on No. 55 of 2000 Trade remedies 
Anti-Dumping and Subsidy Regulation No. 26 of 2003 Trade Remedies 
Source: Information provided by the Jordanian authorities. 
10. Since becoming a Member of the WTO (secti on (4)(i)), Jordan has been reviewing and 
amending its laws, as well as establishing the adequate  monitoring institutions, to conform with its 
WTO obligations.  Several new laws have been introduced, including a competition law;  trade 
remedies law, covering anti-dumping, subsidies a nd countervailing, and safeguard measures;  and 
other laws relating to intellectual property rights.  According to the authorities, other laws are being Jordan WT/TPR/S/206 
 Page 13 
 
 
revised (such as the Law relating to the TBT Agreem ent, which would mainly incorporate the notion 
of market surveillance, and IPR-related laws on infringement). 
(3) POLICY OBJECTIVES  
11. Jordan's economic policy over the past 15 years has been largely dictated by the need to 
re-establish fiscal and monetary stability in the wake of the 1988-89 debt crisis.  Heavy external 
borrowing, coupled with major currency devalua tion, triggered the debt crisis, leaving the 
Government unable to meet its commitments.  It negotiated a comprehensive debt-rescheduling 
arrangement with the IMF and impl emented a stabilization programme.15  
12. The Government has embarked on a comprehe nsive political, social, and economic reform 
agenda, with the aim of building a modern State based on economic vitality with substantial potential 
for growth and prosperity, and social cohesion and stability.16  Efforts have been made to reduce the 
State's economic influence and boost the privat e sector.  The focus now appears to be on a 
fundamental reorientation of the economy with th e aim of moving towards a public-private sector 
partnership that will involve joint policymaking but  shift responsibility for most investments to the 
private sector. 
13. Jordan has made great strides in opening up and liberalizing its economy, notably through 
investment and trade-related legislation, and implementation of its pr ivatization programme 
(Chapter III(4)(iii)).  The Government recognizes the im portance of trade and investment to its overall 
goals.  Efforts are being made to promote and attract investments in:  infrastructure, apparel, pharmaceuticals, food and beverages, minerals, iron and steel, furniture, agriculture, tourism, health 
care, software, and information technology. 
14. Jordan is in favour of trade liberalization throug h the multilateral framework.  It also believes 
that its membership of the WTO sends a strong message to potential foreign investors about its 
commitment to a rules-based system.  At the same  time, it is pursuing regional agreements, such as 
the Pan Arab Free Trade Area (PAFTA), as well as b ilateral free-trade agreements, as it believes they 
are complementary to the multilateral trading system. 
15. Jordan’s trade policy is aimed at economic ope nness and integration into the world economy, 
through economic and trade partnerships in the region, and all over the world, and effective 
participation in the multilateral trading system.  The ultimate objective of the policy is to contribute to 
sustainable economic development (with an active ro le for the private sector in economic activities) 
that would improve the quality of life of Jordanians . Efforts to achieve such goals began in the 1990s 
with intensive economic and legislative reforms th at have culminated in a modern and regulatory 
environment conducive for business and a solid partne rship between the public and private sectors. 
(4) T
RADE AGREEMENTS  
(i) WTO 
16. Jordan deposited its instrument of ratification of accession and became a Member of the 
WTO on 11 April 2000.  It is a signatory to the WTO's Information Technology Agreement (ITA);  it 
is an observer to the Government Procurement Ag reement and is negotiating accession.  Jordan has 
not been involved in any dispute under the WTO Disput e Settlement Mechanism, either directly or as 
a third party.  It has made several trade-re lated notifications to the WTO (Table II.2). 
                                                      
15 Economist Intelligence Unit (2007). 
16 Ministry of Planning and International Coop eration.  Viewed at:  http://www.mop.gov.jo/. WT/TPR/S/206 Trade Policy Review 
Page 14 
 
 
Table II.2 
Selected notifications to the WTO, April 2008  
WTO Agreement Description of 
requirement Periodicity Most recent 
notification Comment 
Agriculture     
Article 10 & 18.2 Export subsidies Annual G/AG/N/JOR/8 
27 September 2006 No export subsidies 
for the calendar year 
2004 
Article 18.2 DS:1 & DS:2 Domestic support  G/AG/N/JOR/1-9, 
latest dated 
3 October 2006 DS measures 
notifications 2000 to 
2004 
Trade in Services     
Article III:4 or IV:2 Enquiry point Once, then 
changes S/ENQ/78/Rev.8 
3 November 2005 
 Foreign Trade Policy 
and Relations 
Department, MIT 
GATT Article XXIV:7(a)p        GATS 
Article V:7(a) RTAs  WT/REG215/N/1 
S/C/N/370 12 July 2006  S/C/N/193 FTA Jordan-Singapore 
   U.S.-Jordan FTA 
Implementation of Article VI     
Article 16.4 AD actions Semi-annual G/ADP/N/153/JOR 
19 January 2007 
 No action taken during 
the 6-month period  
Article 18.5 GATT 1994 Article VI  Laws and 
regulations Once, then 
changes G/ADP/N/JOR/3 
13 January 2000  
Implementation of Article VII     
Article 22 Customs valuation Once G/VAL/N/1/JOR/1 
2 October 2000 Notification of  
Customs Law No. 20 
for 1998 
Decision A.3 and A.4  Customs valuation Once G/VAL/N/3/JOR/1 
18 July 2000 Jordan applies the 
Decisions on interest 
charges and carrier media   
 Customs valuation Once G/VAL/N/2/JOR/1 
16 August 2000 Checklist of issues 
GATT 1994 Article XVII:4(a)) State trading 
enterprises Annual G/STR/N/1-9/JOR, 
latest dated 28 July 
2003 
 State-trading activities 
Import Licensing 
Article 1.4(a) & 8.2 (b) Import Licensing 
Laws and 
regulations Once, then 
changes G/LIC/N/1/JOR/2/A
dd.1 
3 September 2003 Temporary new 
Import and Export 
Law No. 18 for 2003 
LIC Article 5.1 Import Licensing Once, then 
changes G/LIC/N/2/JOR/2 
10 June 2005 Elimination of 
automatic import 
licensing for a number 
of products 
Preshipment Inspection 
Article 5  Laws and 
regulations Once, then 
changes G/PSI/N/1/Add.9 
21 March 2001 No laws and 
regulations relevant to 
the Agreement 
Market Access  Quantitative 
restrictions Every two years 
from 31 January 
1996 G/MA/NTM/QR/1/A
dd.10 
28 March 2006 No QRs maintained 
Subsidies and Countervailing 
Measures      
Article 27.4 Subsidies Annual G/SCM/N/163/JOR 
4 September 2007  Extension of export 
subsidy programme 
for calendar year 2008 
Article 25.11 Countervailing 
measures Semi-annual G/SCM/N/162/Add.
1 
11 October 2007 
 No countervailing 
action during the 
period 1 January to 30 June 2007 
    Table II.2 (cont'd) 
 Jordan WT/TPR/S/206 
 Page 15 
 
 
WTO Agreement Description of 
requirement Periodicity Most recent 
notification Comment 
Safeguards      
Articles 12.6, 18.5, and 32.6 of the 
Safeguards, AD and SCM Agreements 
 Safeguards 
Anti-Dumping SCM Once, then 
changes 
 G/SG/N/1/JOR/3 
G/ADP/N/JOR/3 G/SG/N/JOR/3 13 January 2000  New Law No. 21 for 
2004 to replace 
temporary law 
covering the three 
Agreements 
 
     Article 12.1 C   Everytime an 
investigation is 
initiated and 
when it is terminated 
   G/SG/N/9/JOR/7 
10 August 2007     
G/SG/N/8/JOR/6/Su
ppl.1 G/SG/N/10/JOR/6/S
uppl.1 
G/SG/N/11/JOR/2/Suppl.1 
27 February 2007 Several notifications 
made upon initiation 
and termination of an 
investigation   
  Imposition of 
safeguard measures on 
footwear 
Sanitary and Phytosanitary Measures Enquiry point Once, then 
changes G/SPS/NNA/ and  
G/SPS/ENQ/  
 NNA and enquiry 
point is the Ministry of 
Agriculture  
Article 7 Annex B Sanitary and 
Phytosanitary 
Measures Ad hoc G/SPS/N/JOR/1-18 
latest dated 17 
August 2006 Regular (Documents 
4; 14; 18) and the 
others are emergency 
measures 
Technical Barriers to Trade     
Annex 3C Code of Good 
Practice  G/TBT/CS/2/Rev.14 
22 May 2000 Jordan Institution for 
Standards and 
Metrology (JISM) 
Article 15.2 Implementation & 
administration of 
Agreement  G/TBT/2/Add.19 
 Jordan Institution for 
Standards and 
Metrology (JISM) 
Article 2.9 Notifications  G/TBT/N/JOR/3 
8 March 2007  Technical regulations 
Article 5.6 Notifications  G/TBT/N/JOR/4 
17 March 2008 Technical regulations 
 Establishment of 
enquiry point  G/TBT/ENQ/28 
27 October 2006 Jordan Institution for 
Standards and 
Metrology (JISM) 
Trade-Related Investment Measures     
Article 6.2 Investment  G/TRIMS/N/2/Rev.1
1/Add.3 
4 May 2004 Jordan does not 
maintain any TRIMs 
Trade-Related Aspects of Intellectual Property Rights     
TRIPS Article 63.2 Laws and 
regulations Once, then 
changes IP/N/1/JOR/I 
26 March 2001 
 P/N/1/JOR/c/1/Rev.1 23 March 2004 Copyright and 
neighbouring rights laws:  
Amended Law on 
Copyright 
Article 69 Contact points Once, then 
changes IP/N/3/Rev.9/Add.1 
31 January 2006 Directorate for the 
Protection of Industrial 
Property, MIT 
Source: WTO documents.  
17. Jordan grants at least most-favoured-nation (MFN) tr eatment to all its trading partners.  It is a 
strong believer in and advocate of the multilateral trad ing system.  Jordan is participating actively in 
the current round of multilateral trade negotiations and has particular interest in the areas of NAMA, agriculture, trade facilitation, and services, while also  following developments in areas, such as rules, WT/TPR/S/206 Trade Policy Review 
Page 16 
 
 
and dispute settlement .  As a developing country, Jordan str ongly believes that th e special needs and 
interests of developing and least developed c ountries should be fully taken on board, including 
through less than full reciprocity in reduction commit ments.  Jordan is participating in the "recently-
acceded members" (RAMs) group and is a Member of the WTO Arab Group.  It has also submitted 
proposals with other Members as small and vulnera ble economies (SVEs). The Jordanian authorities 
believe that Jordan made extensive commitments  during the accession process, and are calling for 
additional flexibilities to be granted to the RAMs, in particular those who qualify as SVEs in the 
DDA.  The authorities also indicated their desire for a successful conclusion of the DDA negotiations 
in the near future. 
(ii) Regional agreements 
(a) Pan Arab Free-Trade Area (PAFTA) 
18. Under the Pan Arab Free-Trade Area (PAFTA) Treaty, signed on 19 February 1997, and in 
force since 1 January 1998, all trade barriers am ong its members were eliminated without exception 
on 1 January 2005.17  Nonetheless, non-tariff barriers, in particular standards, lengthy bureaucratic 
and administrative procedures at the borders, and transit fees, are still reported as costly/lengthy 
procedures.  The treaty also provides rules of or igin (Chapter III(2)(iii)).  The principal entity 
responsible for implementing the programme is th e Economic and Social Council of the League of 
Arab States (LAS).  The PAFTA was notified to the WTO by Saudi Arabia in 2006.  In recent years, the PAFTA has contributed modestly to increasing inter-Arab trade (Chapter I(3)(i)). 
(b) Agreement with Egypt, Morocco, and Tunisia 
19. On 25 February 2004, Jordan signed a free- trade agreement with Egypt, Morocco and 
Tunisia;  the so-called Agadir Agreement entered into  force on 6 July 2006.  It commits the parties to 
removing substantially all tariffs on trade between  them and to intensif ying economic cooperation 
with regard to standards and customs proce dures.  The agreement also covers government 
procurement, financial services, contingency measures,  intellectual property, and dispute settlement.   
It adopts the Pan-EUROMED rules of origin, whic h allow for diagonal cumulation of origin amongst 
its member countries:  inputs originating in any of them, in EC countries or in EFTA countries, may 
be used for the purpose of duty-free exports to EC  markets under their Association Agreements with 
the EC.  The conclusion of this agreement is consid ered to be a major step  towards the objective of 
creating a Euro-Mediterranean free-trade zone in 2010. 
(iii) Bilateral agreements 
20. Jordan has signed bilateral economic-cooperation agreements with 45 countries;  these are 
non-preferential agreements aimed at discussing further ways to enhance economic and trade 
relations.  Jordan has also signed free-trade agreements (FTAs) with, inter alia,  the EFTA states and 
Singapore.
18  According to the authorities, there are ongoing  negotiations with Turkey to conclude an 
FTA within the framework of the Barcelona Pr ocess/Euro-Mediterranean framework. Jordan has 
begun negotiations for an FTA with Canada.  
                                                      
17 The PAFTA was originally known as the Greater Arab Free Trade Ar ea (GAFTA).  Its members are: 
Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libyan Arab Jamahiriya, Morocco, Oman, Palestinian Authority, Qatar, Saudi Arabia, Sudan, Syrian Arab Republic, Tunisia, United Arab Emirates, and Yemen. 
18 The FTA with the EFTA states was notified to  the WTO in document WT/REG133.  The FTA with 
Singapore was also notified to the WTO, on 7 July 2006 (documents WT/REG215S/C/N/370 and WT/REG215).  The agreement covers both trade in goods and services. Jordan WT/TPR/S/206 
 Page 17 
 
 
(a) Agreement with United States 
21. The Jordan-United States Free Trade Ar ea (JUSFTA) entered into force on 
17 December 2001;  its objective is to strengthen economic ties, promote investment and employment 
opportunities, and improve the competitiveness of bot h countries.  The agreement covers trade in 
goods and services, protection of intellectual pr operty rights, the environment, labour, and 
e-commerce.  It will gradually eliminate vi rtually all tariffs on goods, except tobacco.19 
22. Jordan's exports to the United States have incr eased by 453% since the entry into force of the 
JUSFTA (on average 91% annua lly between 2001 and 2006).20  Exports amounted to US$1.3 billion 
in 2007, a decline of 6% compared with 2006. The main exports were textil es and apparel, jewellery, 
machinery and equipment, plastics, and pharmaceutical s.  Imports from the United States increased by 
90% during 2001-06 (on average by 18% a year). Jordan's imports from the United States in 2007 
amounted to US$629.1 million, an increase of 13.5% over the previous year. The top imports into 
Jordan have been machinery and mechanical app liances, vehicles, arms and ammunition, cereals, 
aircraft and parts, electrical machinery and equipm ent and parts, and optical, measuring, precision, 
and medical and surgical instruments and parts.  JUSFTA was notified to the WTO, by the United 
States, under GATS Article V and GATT Article XXIV on 15 February 2002.21  A Factual Abstract 
(FA) was prepared in April 2007 on the Trade in Goods aspect of the agreement.22 
(b) Agreement with European Communities (EC) 
23. The agreement between Jordan and the European  Communities (EC) which entered into force 
on 1 May 2002, provides for the establishment of a free- trade area within 12 years, i.e. by 2014.  The 
rules of origin are set out in Protocol 3 of the Agreement.  Evidence of the originating status of 
products is furnished by the EUR.1 and Euro-med  movement certificate.  Diagonal cumulation of 
origin is foreseen in Protocol 3. 
(iv) Other preferential arrangements 
24. Jordan signed a tripartite trade agreemen t with Israel and the United States on 
16 November 1997.  The protocol establishes "quali fying industrial zones" (QIZs), which are areas 
accorded special status by the governments of Jordan  and the United States.  Products manufactured 
in these zones can be exported to the United States  duty- and quota-free, with no requirement for 
reciprocity (Chapter III(3)(v)).23 
25. Jordan does not participate in the Global System of Trade Preferences (GSTP) among 
developing countries.  However, it receives trad e preferences under the Generalized System of 
Preferences (GSP) of Belarus, Canada, EC, Japan, New Zealand, Russian Federation, Switzerland, Turkey, and the United States.
24 
                                                      
19 JUSFTA (2006), Economic Impact Study:  Searching for Effects of the FTA on Exports, Imports and 
Trade Related Investments,  June, USAID-AMIR Program. 
20 There is a rules of origin criterion of 35%.    
21 WTO documents WT/REG134 S/C/N/193 and WT/REG134. 
22 The Transparency Decision on RT As provides for an FA to be prepared by the WTO Secretariat 
(WT/L/671). 
23 Jordan Investment Board online information.  Viewed at: http://www.jordaninvestment.com/pages. 
php?menu_id=212&local_type=0&local_id=&local_details=&local_details1=&localsite_branchname=JIB. 
24 UNCTAD GSP – List of Beneficiaries UN 2008. WT/TPR/S/206 Trade Policy Review 
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(5) INVESTMENT FRAMEWORK  
26. The overarching goal of the Government of Jordan  is to increase the competitive ability of the 
national economy and enhance the investment envir onment.  Other objectives include job creation for 
the expanding, well-educated local workforce; the development of management skills and technical 
expertise;  and access to foreign markets, thro ugh foreign private-sector marketing channels. 
27. Companies Law No. 22 of 1997 and its amendments  allow incorporation in Jordan in the 
form of general partnership, limited liability compan ies, limited partnerships (by shares), and private 
or public shareholding companies.  Foreign invest ors register their enterp rises as Jordanian companies 
with the Companies' Registrar at the Ministry of Industry and Trade.  A branch of a foreign company 
must submit a copy of its Articles of Association and Memorandum of Association to the Controller of Companies, as well as written documentation certifyi ng that the company has been approved by the 
relevant authority for operating in Jordan.
25 
28. The Investment Promotion Law does not di fferentiate between domestic and foreign 
investors.  Article 24 of the Law stipulates that non- Jordanian investors in any project governed by the 
Law should be afforded the same treatment as Jordanian investor s.  The Law guarantees foreign 
investors the transfer of profits and repatriati on of the foreign capital invested.  According to 
Organizing Non-Jordanians' Investment By-Law No. 54 of 200026, issued in accordance with 
Article 24 of Investment Promotion Law No. 16 of 1995, non-Jordanians can own 100% of any 
project, except for specified sectors where foreign equi ty is either not allowed or may not exceed 49% 
or 50% depending on the project or activity, subject to decision (to the contrary) by the Council of 
Ministers (Table II.3).27  Under Article 7 of the by-law, non-Jordanian investment must be a minimum 
of JD 50,000, except in public shareholding compani es.  Land ownership for foreigners is generally 
allowed in Jordan, except in the fr ee zones where land is being leased.28  The Government has 
designated five investment locations in Jordan, i. e. industrial estates, QIZs, free zones, development 
areas, and the Aqaba Special Economic Zone, each  with its own laws, regulations, and incentive 
scheme (Chapter III(3)(v)). 
29. The Jordan Investment Board (JIB), chaired by the Minister of Industry and Trade, serves as 
Jordan's investment promotion agency.  It is a government organization committed to working with 
the private sector to promote Jordan's business en vironment and investment opportunities.  Efforts 
have been made by the Government to streamlin e and facilitate licensing procedures.  The one-stop 
shop is one of the key strategic pr ojects implemented by the JIB:  the idea behind the initiative is to 
bring together all the services (by public and private organizations) required by an investor in a single 
location. 
30. In 2006, the World Bank Group Doing Business Report  ranked Jordan 5th among the Arab 
countries, for ease of doing business, after Saudi Arabia, Kuwait, Oman, and the United Arab 
Emirates;  the UNCTAD World Investment Report for 2007 ranked Jordan 8th out of a total of 
141 economies for its inward FDI performance.  
                                                      
25 WTO document WT/ACC/Jo r/33, 3 December 1999. 
26 According to the authorities, a new by-law was submitted to the appropriate channels for approval. 
27 Article 8 of Investment By-Law No. 54 of 2000; and Jordan Investment Board online information. 
Viewed at: http://www.jordaninves tment.com/pages.php?menu_id=198&local _type=0&local_id=&local_details 
=&local_details1=&localsite_branchname=JIB. 
28 For non-Jordanian juridical persons, land ownership is subject to approval by the Minister of 
Finance.  Land exceeding a certain ar ea and outside zoning boundaries is su bject to Cabinet approval.  Natural 
persons may own land within zoning boundaries, subject to reciprocity by the country of origin of the applicant and on condition that the land area does not exceed 10 dunums. Jordan WT/TPR/S/206 
 Page 19 
 
 
Table II.3 
Foreign equity limitations, July 2008 
50% foreign equity limitation  
Trade activities Purchasing goods and othe r moveable assets for rental purposes  (except financial leasing by banks, 
financial companies, and insurance companies)  
 Purchasing goods and other financial moveable assets to be sold for profit 
 Retail and wholesale trade 
 Importation and exportation 
 Distribution of goods and services 
 Material supply 
Transportation services Marine tran sportation and ancillary services  
 Air transportation services (excl uding airplane engine re novation;  investment in  duty-free shops at 
airports;  simulation aviation training;  and computer reservation systems) 
 Railway transportation services (excluding  passeng er and cargo transportation;  trailing services;  
and ancillary services of railway transportation, such as stations) 
 Road transportation services  
 Clearance  
Other services Engineering services 
 Construction contracts 
 Technical examination services related to soil testing and other chemical tests for building and 
construction purposes 
 Maintenance of road transportation vehicles 
 Maintenance of transmission or radi o and television broadcasting equipment 
 Photography, photocopying (e xcluding cinematography and television photography) 
 Recruitment and labour force supply 
 Brokerage (excluding financial brokerage and intermediary tr ansactions by banks, financial 
companies, and financial service companies) 
 Advertising services 
 Services of commercial agents , brokers, and insurance brokers 
 Money exchange transactions (excluding those provided by ba nks and financial companies) 
 Services of restaurants, cafés, and cafeterias (e xcluding meal service at hotels, and motels, and 
on-board ships and trains) 
 Travel agencies, sight-seeing tours and tourist trip organizers 
49% foreign equity limitation Regular and non-regular air transportation services for passengers, cargo, and mail 
 Chartering services of airplanes with crews 
No foreign ownership allowed  Passenger and cargo road transportation, includi ng services of taxis, buses, and trailers. 
 Quarries for sand, stones and crushed rock , and debris used for construction purposes 
 Investigation and security services 
 Sports clubs and sports events organizati on (excluding fitness and physical health clubs) 
 Clearance  
Note This table provides an overview of the foreign equity ceilings that are appli cable to specific sectors and activities in  Jordan.  
 The Council of Ministers has the right to approve higher ceilings than indicated in th e table, in development projects of spec ial 
 significance.  In all other sectors and ac tivities, 100% foreign ownership is permitted. 
Source:  Organizing Non-Jordanians' Investments By-Law No. 54 of 2000, issued pursuant to Article 24 of the Investment 
 Promotion Law of 1995. 
31. There are no restrictions on investment abroad  by Jordanian nationals.  Jordan has signed 
various investment framework agreements (Table II.4) .  Similar agreements have been initiated with 
Libya, Latvia, Malta, Belgium, Qatar, Oman, United Arab Emirates, Slovakia, and South Africa.  
Jordan is a member of the Multilateral Investment  Guarantee Agency, as well as ICSD.  It has signed 
avoidance of double taxation agreements with Alge ria, Bahrain, Canada, Egypt, France, India, 
Indonesia, Kuwait, Malaysia, Poland, Romania, Sudan, Syria, Tunisia, Turkey, the United Kingdom, and Yemen. WT/TPR/S/206 Trade Policy Review 
Page 20 
 
 
Table II.4 
Bilateral investment treaties, April 2008  
Country Date of signature Date of entry into force 
Germany 15/7/1974 10/10/1977 
France  23/2/1978 18/10/1979 
Great Britain  10/10/1979 24/4/1980 
Romania  2/7/1992 16/3/1999 
Turkey  2/8/1993 23/1/2006 
Malaysia  2/10/1994 3/3/1995 
Tunisia  27/4/1995 23/11/1995 
Yemen  18/6/1995 28/1/1998 
Egypt  8/5/1996 11/4/1998 
Italy  21/7/1996 9/11/1999 
Algeria  1/8/1996 5/6/1997 
Indonesia 12/11/1996 9/2/1999 
Congo (Republic of) 23/6/2004 .. 
United States  2/7/1997 12/6/2003 
Czech Republic 20/9/1997 25/4/2001 
Poland 4/10/1997 14/10/1999 
Netherlands 17/11/1997 1/8/1998 
Morocco 16/6/1998 7/2/2000 
Croatia 10/10/1999 27/4/2000 
Spain 20/10/1999 13/12/2000 
Bahrain  8/2/2000 5/7/2000 
Sudan  30/3/2000 3/2/2001 
Austria  23/1/2001 25/11/2001 
Switzerland  25/2/2001 11/12/2001 
Kuwait  21/5/2001 19/3/2004 
Syria  8/10/2001 11/5/2002 
China  15/11/2001 ..  
Bulgaria  7/8/2002 17/5/2003 
Lithuania  13/10/2002 5/5/2003 
Lebanon  20/10/2002 30/8/2003 
Belarus  16/12/2002 22/12/2005 
Singapore  16/5/2004 ..  
Korea  24/7/2004 25/12/2004 
Thailand 15/12/2005 ..  
Greece 21/12/2005 ..  
Ukraine 30/11/2005 ..  
Bosnia & Herzegovina 2/7/2006 24/7/2007 
Finland 1/11/2006 ..  
Kazakhstan 29/11/2006 ..  
India 30/11/2007 ..  
Russian Federation 13/2/2007 ..  
Oman 9/4/2007 ..  
Hungary 14/6/2007 ..  
Germany 13/11/2007 ..  
.. Not available. 
Source: Information provided by the Jordanian authorities. Jordan WT/TPR/S/206 
 Page 21 
 
 
ANNEX II.1:  AID FOR TRADE 
1. Jordan has benefited from a range of trade-related technical assistance activities since its 
accession to the WTO. 1  Nevertheless, it continues to face signi ficant challenges in the context of the 
changing international environment coupled with a chronic water shortage  and full dependency on 
imported energy.  Jordan's economic reform programme, centred on trade liberalization and 
privatization, aims to, inter alia , raise its profile as an investment location in the midst of an unstable 
region, and transform it (with its relatively yo ung population) into a modern knowledge-based 
economy.  The authorities believe that past techni cal assistance activities, and further assistance in 
other areas could help Jordan achieve greater integration into the global economy. 
2. Jordan received grants and concessional loan s estimated at US$216 million between 2001 and 
2006, and trade development assistance averag ed US$13 million annually between 2001 and 2006, 
with the exception of 2005 when it increased to  US$57.5 million.  This significant increase was 
mainly the result of a large EC funded project, a sector reform facility (SRF), estimated at 
US$49.7 million.2  Assistance granted under the heading of trade policy and regulations averaged 
US$15 million a year between 2001 and 2006.  The ma jor donors of gross official development 
assistance (ODA) to Jordan over the period covered were the United States, European Communities, 
Japan, the Republic of Korea, Switzerland, UNCTAD, FAO and UNIDO. 
3. Technical assistance by the WTO has been de livered mostly through regional activities and 
workshops, and trade policy courses, as well as nati onal workshops or technical missions.  National 
technical assistance activities were focused on agricult ure, NAMA, briefings for parliamentarians and 
academia, trade facilitation, trade and development,  customs-related issues, and dispute settlement. 
4. The Task Force on Aid For Trade (AFT), mandated by Ministers at the 6th WTO Ministerial 
Conference in December 2005, identified the follo wing broad categories for intervention:  trade 
policy and regulations;  trade development;  in frastructural development;  productive capacity 
building;  adjustment to cushion the effects of trad e liberalization; and other trade-related assistance 
needs.3  Major areas of emphasis for Jordan ar e trade policy and regul ations, and economic 
infrastructure.  The Government attaches great im portance to building human capacity to formulate 
and implement trade policy, as well as to support ongoing development projects across the country.  
Additional support is also required to enhance the competitiveness and export capacities of the private 
sector, particularly SMEs. 
                                                      
1 Assistance was granted for regional trade agreements , trade facilitation;  dispute settlement;  trade and 
environment; agriculture; customs valuation; market analysis and development; training on negotiations;  
regional trade agreements; rules; sanitary and phytosanitary measures; services; tariff negotiations (non-agricultural market access); tariff reform s; technical barriers to trade; ma instreaming trade into development 
plans;  trade promotion strategy design and implementation; trade-related aspects of intellectual property rights; 
trade and investment; trade and competition and tran sparency in government procurement. See Joint 
WTO/OECD TRTA/CB database, "Beneficiary Country: Jordan" . Viewed at: http://tcbdb.wto.org/benef_countr 
y.aspx. 
2 The overall objective of the SRF programme is to support the preparation and implementation of 
targeted strategies and measures ai med at improving private-sector development as the main driving economic 
force. Through sustainable public-sector reform and private-sector development, it aims to further raise living standards over the medium term. The programme will help support Jordan improve its policy, institutional, 
legal, and regulatory framework, fo cusing on investment promotion an d export development. Improving access 
to finance for small and medium-sized enterprises is also essential for the future prosperity of the Jordanian economy. 
3 The first two categories are to follow the definition of the Joint WTO/OECD database;  other 
categories fall under the AFT only if the activities in ques tion have been explicitly identified as trade-related 
priorities in the recipient country's national development strategy. WT/TPR/S/206 Trade Policy Review 
Page 22 
 
 
5. There is a need for targeted technical assistance, which could be organized around a series of 
seminars/workshops and studies, in pertinent areas such  as trade remedies, intellectual property, tariff 
and customs reforms, notification procedures, compet ition policy and trade facilitation.  Other specific 
assistance is needed in the areas of TBT and SPS to upgrade the capacity of the regulatory bodies 
responsible for setting the measures in compliance w ith international requirements; testing facilities 
and laboratories in Aqaba; practical training on how to conduct an impact assessment of draft 
technical regulations; training on specific conformity assessment modules, such as supplier declaration and type approval; supporting th e accreditation of the Amman Food Laboratory; 
supplementary laboratory equipment for JFDA; assistance in establishing a Food Information 
Management System (FIMS);  as well as risk ma nagement, mutual recognition agreements, and the 
appropriate level of protection.