Commission staff working document accompanying the Communication from the Commission to the European Parliament and the Council - Implementation of the European Neighbourhood Policy in 2008 - Progress Report Jordan {COM(2009) 188 final} {SEC(2009) 511} {SEC(2009) 512} {SEC(2009) 513} {SEC(2009) 514} {SEC(2009) 515} {SEC(2009) 516} {SEC(2009) 518} {SEC(2009) 519} {SEC(2009) 520} {SEC(2009) 521} {SEC(2009) 522} {SEC(2009) 523}
Date: 2009-04-23
Institutions: European Commission
Subjects: European neighbourhood policy, Jordan, impact study, the EU's international role

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.4.2009 
SEC(2009) 517 

COMMISSION STAFF WORKING DOCUMENT 

Accompanying the 

COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

Implementation of the European Neighbourhood Policy in 2008 

Progress Report Jordan 

{COM(2009) 188 final} 
{SEC(2009) 511} 
{SEC(2009) 512} 
{SEC(2009) 513} 
{SEC(2009) 514} 
{SEC(2009) 515} 
{SEC(2009) 516} 
{SEC(2009) 518} 
{SEC(2009) 519} 
{SEC(2009) 520} 
{SEC(2009) 521} 
{SEC(2009) 522} 
{SEC(2009) 523} 

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1. 

BACKGROUND AND OVERALL ASSESSMENT 

Jordan and the European Community first established contractual relations in 1977 through a 
Cooperation  agreement.  The  Euro-Mediterranean  Partnership  inaugurated  at  the  1995 
Barcelona  conference  established  a  policy  with  ambitious  and  long-term  objectives.  This 
partnership was reinforced in 2008 with the creation of the Union for the Mediterranean. The 
Association Agreement with Jordan, which entered into force in May 2002, sets out in more 
detail the specific areas in which the relations can be developed bilaterally. On this basis, the 
EU-Jordan ENP Action Plan was adopted in January 2005, for a period of three to five years. 
The  ENP  Action  Plan  supports  the  national  reform  process,  articulated  in  Jordan’s  ten-year 
national  agenda  and  the  initiative  “We  are  all  Jordan”  which  form  the  basis  for  Jordan’s 
National  Social  and  Economic  Development  Programme  for  2009-2011.  A  first  progress 
report was adopted in December 2006 and a second one in April 2008. 

Institutional  cooperation  through  the  EU–Jordan  Association  Council,  the  EU–Jordan 
Association  Committee  and  the  ten  subcommittees,  of  which  nine  were  activated,  enabled 
both sides to make  progress  with  the  implementation of the Association Agreement and the 
Action  Plan.  During  the  reporting  period  the  third  round  of  subcommittee  meetings  was 
completed.  

This document reports on progress made on the implementation of the EU-Jordan ENP Action 
Plan  between  1  January  and  31  December  2008,  although  developments  outside  this  period 
are  also  considered  when  deemed  relevant.  It  is  not  a  general  review  of  the  political  and 
economic situation in Jordan. 

In  November  2008  Jordan  submitted  a  paper  on  “Upgrading  of  Jordan-EU  relations”  to  the 
EU-Jordan Association Council. In that paper it expressed the desire to come to a qualitative 
and  quantitative  intensification  of  the  political  exchange  with  the  EU  on  a  wide  range  of 
common political and security challenges. It would like to see a higher level of participation 
in  those  exchanges,  more  diversified  substance  (e.g.  including  also  border  security; 
strengthening  of  parliamentary  relations  and  civil  emergency  planning)  and  a  higher 
frequency of these exchanges. 

Jordan  is  an  active  and  constructive  partner  in  the  ENP  and  in  the  different  subcommittee 
meetings where implementation of Action Plan measures is discussed. Limited progress could 
be  registered  as  regards  democracy  and  rule  of  law  and  social  policies,  but  good  steady 
progress was made in the economic field.  

Progress was made in the fight against corruption and domestic violence and on transparency 
and  capacity-building  of  the  judiciary.  On  the  other  side,  the  independence  of  judiciary  and 
the freedom of expression and association remain to be addressed.  

Good  progress  was  made  in  improving  the  business  environment  and  in  increasing 
competition in privatized sectors such as telecom and energy, as well as in sectors such as the 
environment. However, further improvements are needed, such as the adoption of a company 
law and a competition law and the implementation of social dialogue. The gap between rich 
and poor has been growing and moreover, an encompassing poverty reduction strategy is still 
to be implemented.  

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2.  ENHANCED POLITICAL DIALOGUE AND REFORM 

Democracy and the rule of law 

Objectives  in  this  area  include:  strengthening  democracy,  strengthening  the  rule  of  law 
including  good  governance  and  transparency,  enhancing  the  independence  and  impartiality 
of the judiciary, upgrading its quality and strengthening its administrative capacity. 

Though  the  2004  National  Agenda  committee  had  already  recommended  a  change  of  the 
electoral framework, and the National Centre for Human Rights (NCHR) in its annual report 
reaffirmed  its  recommendation  on  the  need  to  expedite  the  drafting  of  a  modern  law  for 
parliamentary  elections,  this  remains  to  be  addressed.  Specific  recommendations  of  the 
National  Agenda  committee,  such  as  the  establishment  of  an  independent  committee  to 
organise and supervise the elections, were not implemented either.  

In 2008, regulations were adopted to implement the provisions of the 2007 Law on Political 
Parties related to funding but no proper criteria for allocation of funding were defined. Instead 
it  was  decided  that  each  of  the  14  political  parties  would  receive  a  lump  sum  allocation  of 
EUR 50 000 per year. 

Progress  was  also  made  on  transparency  and  accountability  with  the  adoption  of  the 
Ombudsman  law  in  April  2008.  A  first  Ombudsman  was  appointed  in  June  2008.  Citizens 
can start lodging complaints with the Ombudsman as of February 2009. 

The implementation of the JUST Strategy (2007-2009) which aims at enhancing the capacity 
and  efficiency  of  the  judiciary  progressed  steadily,  with  EC  support.  The  organisational 
structure of the Ministry of Justice (MoJ), the courts and the Judicial Institute of Jordan was 
improved, internal standard operational procedures and guidelines were adopted and staff was 
trained  to  ensure  proper  implementation.  To  improve  access  to  justice  and  transparency, 
courts’  organisational  structures  and  procedures  were  published  and  customer  care  offices 
were established in some courts.  

No significant progress was made to enhance the independence of the judiciary. Among the 
most  serious  obstacles  to  its  independence  are  the  total  financial  and  administrative 
dependency of the judiciary on the Ministry of Justice, the prominent role of this Ministry in 
the appointment of judges and the existence of special courts outside the control of the High 
Council  of  Justice,  such  as  the  State  Security  Court  (military,  but  with  competence  over 
civilians). 

Progress  was  made  in  the  fight  against  corruption  with  the  establishment  of  the  Anti-
Corruption  Commission  (ACC)  in  January  2008.  It  progressively  became  operational, 
investigating complaints and referring cases to court. An Anti-Corruption Strategy for 2008-
2012  and  an  Action  Plan  were  adopted  in  September  2008.  The  EU  has  provided  technical 
assistance to the ACC that will continue in 2009. 

The  Jordanian  and  the  European  Parliament  (EP)  continued  their  dialogue  in  2008  with  the 
visit of the EP Mashreq Delegation to Jordan in April-May 2008 and the organisation by the 
Jordanian  Parliament  of  an  extraordinary  session  of  the  Euro-Mediterranean  Parliamentary 
Assembly (EMPA) in October 2008 in Jordan. 

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Human rights and fundamental freedoms 

Objectives  in  this  area  include:  strengthening  the  freedom  of  the  media  and  freedom  of 
expression,  strengthening  freedom  of  association  and  the  development  of  Civil  Society, 
ensuring  respect  of  human  rights  and  fundamental  freedoms,  promoting  equal  treatment  of 
women, and promoting fundamental social rights and core labour standards. 

Jordan ratified the UN Convention on the Rights of Persons with Disabilities in March 2008 
and was thus one of the first countries in the world to do so. Most of the major international 
human  rights  instruments  are  enforceable  in  court  and  supersede  national  legislation. 
However,  as  indicated  in  last  report,  in  order  to  increase  their  application  by  the  courts, 
international  instruments  need  to  be  translated  into  domestic  laws,  relevant  professionals 
trained and public information campaigns organised. Furthermore, by the end of the reporting 
period, Jordan had 10 overdue reports under major UN human rights conventions. 

In  2008,  Jordan  continued  to  observe  its  de  facto  moratorium  on  executions  (in  place  since 
May 2006 and confirmed by a Decree in April 2007), even if Courts are  still issuing death 
sentences. In December 2008, Jordan abstained from the vote on the 2008 UNGA resolution 
63/168  calling  for  a  worldwide  moratorium  on  the  use  of  the  death  penalty.  This  is  a  step 
forward from Jordan’s vote against UNGA resolution 62/149 of December 2007. 

Some  progress  was  made  in  the  fight  against  torture  and  ill-treatment.  In  early  2008,  the 
Public  Security  Directorate  assigned  prosecutors  to  investigate  abuses  at  all  prisons  and 
allowed  the  National  Centre  for  Human  Rights  to  set  up  an  office  inside  Swaqa  prison. 
However, after it released a report on the April riot in Muwaqqar prison that was critical of 
the  government  response,  authorities  closed  the  NCHR  office  in  Swaqa  prison.  Though 
torture is a recognized crime under the Penal Code, the applicability of which was extended to 
all public officials in October 2007, no prosecutions for the crime of torture under the Penal 
Code  article  occurred  in  2008.  Jordan  has  not  ratified  the  Optional  Protocol  to  the  UN 
Convention  against  Torture  and  the  1996,  2000  and  2004  reports  under  the  Convention  are 
pending. Jordan started its penitentiary reform. EC support for penitentiary reform started in 
2008 and will continue. 

Under  the  Press  and  Publications  Law  of  2007  it  is  prohibited  to  imprison  anybody  for  the 
expression of  his  opinion  in  oral,  written  or  any  other  way.  However,  imprisonment  is  still 
possible  under  the  Penal  Code  if  an  opinion  is  deemed  to  "fuel  national  discord  and  incite 
sectarianism” or if it is considered “slander”. The level of coherence between the Law and the 
Penal  Code  has  not  yet  been  addressed  and  this  will  avoid  that  the  provisions  of  the  Penal 
Code are unduly used to curtail freedom of speech. Both charges stipulated in the Penal Code 
have  been  used  against  journalists  and  writers  and  on  a  number  of  occasions,  journalists 
received prison sentences. 

In  June  2008,  the  Parliament  adopted  amendments  to  the  Public  Gathering  Law.  Under  the 
modified  law,  political  parties  and  charity  organisations  do  not  need  prior  written  approval 
from the governor to hold their routine meetings and activities. In the case of demonstrations, 
an approval from the governor remains mandatory, but the response period for the Governor 
is shortened from 72 to 48 hours. The absence of a reaction from the Governor's Office within 
2  days  is  considered  as  a  'green  light'.  Those  elements  constitute  a  limited  progress  on  the 
freedom  of  assembly  since  governors  do  not  need  to  justify  their  refusal.  Public 
demonstrations convening contrary to the law are considered illegal and violators face prison 
terms  and/or  fines.  “Public  gathering”  is  defined  vaguely,  ranging  from  public  meetings  in 

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open  air  to  meetings/seminars/roundtables  among  NGOs  in  hotels,  and  high  penalties  are 
applied  for  violations.  In  practice,  governors  retain  the  power  to  deny  NGOs  permission  to 
hold meetings and workshops if they are deemed to be outside the scope of work of the NGO. 

The  freedom  of  association  remains  a  considerable  challenge.  Since  2007,  Jordan  has 
embarked on a process to renew the legal framework governing civil society organisations, in 
order  to  enhance  freedom  of  association  in  line  with  Jordan’s  political  reform  programme 
(National Agenda). However, the law that was adopted in July 2008 and entered into force in 
December  2008,  increases  state  control  over  the  creation  of  societies  (prior  Government 
approval  required),  their  membership  (no  foreign  membership  allowed),  their  funding  (no 
domestic  or  foreign  funding  without  prior  Government  approval)  and  their  functioning  in 
general, without judicial oversight (a civil society organisation can be dissolved by decision 
of the relevant ministry).  

In  recent  years,  the  Jordanian  authorities  took  significant  measures  to  protect  women  from 
violence, such as the opening of the first government-run shelter and the establishment of a 
family  protection  department  within  the  Public  Security  Directorate.  In  February  2008,  the 
Family  Protection  Law  was  adopted.  Family  members  in  need  of  protection  can  obtain  a 
protection injunction. Breaches of this injunction are punishable with fines or prison sentences 
of up to six months. The authorities can hold a suspect for 24 hours and hospitals, schools and 
community  centres  have  an  obligation  to  report  possible  cases  of  abuse.  However,  the  law 
fails  to  explicitly  criminalise  domestic  violence.  So-called  honour  crimes  still  occur  and 
perpetrators of these crimes still benefit from lenient sentences.  

Jordan maintains several reservations under the UN Convention on Elimination of All Forms 
of  Discrimination  against  Women  (CEDAW).  Under  the  nationality  law,  a  woman  is  still 
unable  to  pass  on  her  nationality  to  her  children.  Women  are  also  discriminated  against  in 
inheritance matters.  

Women  migrant  domestic  workers  are  particularly  at  risk  of  abuse.  Amendments  to  the 
Labour  Law  passed  in  July  2008  aimed  at  extending  social  protection  to  domestic  workers. 
However, declarations by the Ministry of Labour at the end of 2008 seem to indicate that the 
minimum wage will not be applicable to workers in the Qualified Industrial Zones (QIZ) nor 
to domestic helpers. In October 2008 the Ministry of Labour announced plans for the creation 
of  a  private  company  to  recruit  domestic  helpers.  The  company  would  be  owned  by  the 
General  Federation  of  Jordanian  Trade  Unions,  with  the  participation  of  other  stakeholders 
(including  human  rights  and  women's  NGOs).  The  company  is  expected  to  start  operating 
from March 2009.  

Regarding fundamental social rights and core labour standards, the Committee in charge of 
preparing  the  legislative  amendment  that  the  ratification  of  the  ILO  Convention  on  the 
freedom  of  association  and  protection  of  the  right  to  organize  (n°  87)  entails,  awaits  the 
Cabinet‘s approval and parliamentary ratification. 

Cooperation  on  foreign  and  security  policy,  regional  and  international  issues,  conflict 
prevention and crisis management 

In  2007  Jordan  was  invited  to  align  itself  with  EU  declarations  in  the  field  of  Common 
Foreign  and  Security  Policy  (CFSP)  on  a  case-by-case  basis  but  has  not  yet  taken  any 
decision on this.  

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Throughout  2008,  Jordan  continued  to  seek  opportunities  to  facilitate  peace  in  the  Middle 
East. It continued to support the Arab Peace Initiative and Palestinian national reconciliation. 
Jordan also played a role in the training of Palestinian police. Jordan sent significant amounts 
of humanitarian aid to Gaza and has been very effective in channelling aid to Gaza. 

Jordan  continues  to  host  many  Iraqi  refugees,  the  exact  number  of  which  is  disputed.1  This 
puts  considerable  pressure  on  Jordan’s  resources  and  infrastructure.  Iraqis  receive  free 
treatment in government hospitals and for the second consecutive year the government, with 
the support of the EC, allowed all Iraqi children to attend government schools, regardless of 
their residency status. In November 2008, an EU fact-finding mission was carried out to Syria 
and Jordan with the purpose of examining the resettlement needs of refugees from Iraq who 
are currently living in these countries.  

The  Government  also  announced  that  Iraqi  children  will  in  2008-2009  be  exempted  from 
paying  fees  and  textbooks  and  will  benefit  from  the  school  nutrition  programme.  See,  also, 
section 5. 

Cooperation,  exchange  of  information  and  best  practices  between  Jordan  and  EU  Member 
States in the area of counter-terrorism continued throughout 2008. 

An  exploratory  mission  from  the  European  Commission  under  the  Instrument  for  Stability 
took  place  in  July  2008,  to  explore  potential  cooperation  and  establishment  of  a  regional 
centre  to  provide  training  and  deal  with  potential  threats  from  chemical,  biological,  radio-
active and nuclear threats. 

Jordan  has  signed  and  ratified  the  Rome  Statute  on  the  International  Criminal  Court.  A 
draft implementation law is being prepared. 

3.  ECONOMIC AND SOCIAL REFORM  

Macroeconomic framework and functioning of the market economy 

During  2008,  the  Jordanian  economy  maintained  a  relatively  strong  growth  performance 
despite the sharp increase of the food and oil prices and the slowdown of the economy in the 
second semester. Real GDP growth averaged around 5.5% led by the growth in finance and 
tourism sectors as well as by gains in productivity.  

Inflation  rose  rapidly  the  first  three  quarters  of  2008  on  the  back  of  the  high  food  and  oil 
prices. The negative effect on the prices was exacerbated by the abolition of energy subsidies 
and the weakness of the dollar to which the dinar is pegged. To combat inflation and dampen 
liquidity growth, the Central Bank of Jordan raised the reserve ratio twice, before easing its 
policy  towards  the  end  of  2008  following  the  sharp  fall  of  the  commodity  prices  and  the 
strengthening  of  the  US  dollar.  As  a  result,  the  average  inflation  for  2008  reached  an 
estimated 14.9%. 

Notable  progress  was  made  on  the  fiscal  front.  The  abolition  of  the  oil  subsidies,  the 
improvements in the tax collection and the higher revenues from grants allowed the budget to 

1 

The FAFO study concluded that there are around 500 000 Iraqi refugees in Jordan, but this number is 
disputed. As of 31 December 2008, 52 656 had been registered by UNHCR.  

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withstand the pressures of the increased cost of food subsidies and fiscal deficit to narrow to 
5% of the GDP.  

However, the introduction of a link between public wages and past inflation could lead to an 
increased  budget  deficit  and  reduce  resources  available  for  public  investment  in  the  future. 
Efforts  for  structural  improvements  in  the  public  finance  management  continued  in  2008, 
including  launching  the  Government  Financial  Management  System,  the  introduction  of  a 
Medium-Term Expenditure Framework and the further strengthening of the framework for the 
public private partnerships. Furthermore, public debt, which was reduced during the year via a 
buyback  of  Paris  Club  obligations,  declined  to  around  62%  of  GDP  by  the  end  of  2008 
compared to 73% at the end of 2007.  

The  dinar's  peg  with  the  US  dollar  maintained  monetary  confidence  while  protecting  the 
competitiveness  of  the  Jordanian  exports  to  the  US,  the  largest  single  export  market.  The 
foreign reserves were maintained at healthy levels and recovered fast after the buyback of the 
Paris Club debt. 

The  surge  in  the  oil  and  food  prices  in  combination  with  the  fall  in  the  price  of  important 
export  products,  such  as  chemicals,  had  a  strong  negative  impact  on  the  current  account 
deficit which surged to 24% of GDP in 2008. Tight macroeconomic policies and efforts for 
export  diversification  should  be  continued  to  consolidate  the  progress  in  macro-economic 
stabilisation and growth policies. 

The turbulence in the global financial markets had a minimal impact in Jordan. During 2008 
the  general  weighted  index  of  Amman  stock  exchange  declined  by  around  19%  and  in 
contrast  with  other  equity  markets  foreign  inflows  remained  positive.  Interbank  rates 
increased  towards  the  end  of  2008  after  the  increase  of  the  banking  system  reserves  by  the 
Central Bank of Jordan. The authorities announced a guarantee scheme of bank deposits and 
strengthened the monitoring of key financial and economic indicators. 

The  government  through  its  employment  policy  and  the  activation  of  the  Development  and 
Employment  Fund  is  trying  to  boost  employment  in  small  firms.  At  the  same  time,  Jordan 
continued  its  consistent  efforts  to  attract  knowledge-intensive  investments,  to  expand  the 
industrial  -  economic  zones  that  require  high-skilled  labour  and  to  extend  the  vocational 
programmes.  

Employment and social policy 

Poverty  remains  high  in  Jordan  with  more  than  14.5%  of  the  population  living  under  the 
poverty  line  according  to  official  national  data,  although  unofficial  sources  give  higher 
figures.  In  June  2008,  Jordan  adopted  a  national  social  and  economic  development 
programme for the years 2009-2011. It aims at improving the productivity of individuals and 
directing  public  and  private  investment  into  social  infrastructure.  Under  the  EU-supported 
Poverty  Alleviation  through  Local  Development  programme,  a  comprehensive  Poverty 
Reduction  Strategy  was  finalised  in  April  2008  and  was  endorsed  by  Cabinet  in  November 
2008. It focuses on economic development, social protection, human capital development and 
governance.  In  March  2008  Jordan  adopted  the  Development  Areas  Law  to  encourage  the 
growth of targeted development areas in less urbanised regions (e.g. Irbid, Mafraq and Ma’an 
development areas). 

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The employment market is characterized by emigration of skilled Jordanians especially to the 
Gulf countries (in 2007, remittances of expatriates amounted to some EUR 2.3 million) and 
immigration  of  low-skilled  foreign  labour  (especially  for  domestic  helpers,  agriculture, 
construction  and  in  the  Qualified  Industrial  Zones).  Unemployment  is  still  high  (13% 
according to official sources, the lowest in eight years, although real figures might be much 
higher) and hits in particular people under the age of 25. In March 2008, Jordan prepared with 
the  help  of  ILO,  the  first  draft  of  an  employment  strategy  which  was  open  to  consultations 
until late 2008. It still has to be officially endorsed. In October 2008 the Ministry of Labour 
approved  raising  the  minimum  wage  from  JOD  110  to  JOD  150  per  month,  benefiting  an 
estimated number of 200,000 workers.  However, as mentioned the minimum  wage may not 
be applicable to workers in the Qualified Industrial Zones, nor to domestic helpers. The new 
minimum wage applies from January 2009. 

Some progress was made in the area of social dialogue and labour rights. According to the 
modified Labour Law from July 2008, a legal regime will be defined to protect domestic and 
agricultural  workers.  A  rising  number  of  reports  of  abuse,  including  non-payment  of  wages 
and mistreatment by employers, led the government of the Philippines to restrict the number 
of Filipino domestic workers in Jordan in January 2008.  

The  modified  Labour  Law  also  foresaw  the  creation  of  a  consultative  committee  in  the 
Ministry  of  Labour,  regrouping  the  authorities,  employers  and  workers.  By  end  2008,  this 
committee had convened once. No progress was made with respect of the freedom to establish 
labour unions, which can be established only with the approval of the Ministry of Labour. In 
2008,  this  Ministry  refused  the  creation  of  labour  unions  for  the  pharmaceutical  and 
telecommunications  industries  and  local  branches  of  existing  sector  trade  unions  were 
suppressed. The Economic and Social Council, officially established in December 2007, could 
not  start  operating  in  2008  as  its  45  members representing workers, employers, government 
and civil society, were not appointed. 

In the areas of social inclusion and social protection, Jordan worked closely with the World 
Bank to assess the impact of the price shock and the fiscal situation of low income and poor 
people. Jordan developed a social safety net based on the following components: increase of 
salaries  for  public  employees;  stable  prices  of  bread,  water  and  electricity;  expansion  of 
national  health  insurance  programme;  better  housing  for  the  poor.  It  provides  direct  cash 
subsidies to almost 3.5 million Jordanians with an annual income of less than approximately 
EUR 1110 (JOD 1000). The social safety net package is estimated at approximately EUR 330 
million  (JOD  301  million)  per  year.  Jordan  also  worked  on  the  preparation  of  the  Social 
Security Law that includes the establishment of the maternity and unemployment funds and 
the  progressive  coverage  of  the  social  security  to  all  workers  until  2011.  A  pilot  project 
covering all workers in the Aqaba region was prepared in 2008 and it is applied since January 
1st 2009. In the rest of the country only workers in companies with more than five employees 
are covered. Irbid will be the next region to be included in the pilot-law.  

Jordan continued to promote women’s participation in social and economic life through the 
activities  of  the  Ministry  of  Labour.  It  aims  at  raising  women's  participation  in  the  labour 
market by providing work opportunities that match their needs and by ensuring their rights at 
work. Women’s participation in the labour market stands at 14.6%, one of the lowest levels in 
the world. Jobs created during the first half of 2008 stood at 38,000 compared to 36,000 in the 
same period in 2007 according to surveys. The Ministry of Labour also established a gender 
unit  within  its  structure  to  address  gender  issues  at  Ministry  level  and  to  influence  the 
inclusion of gender mainstreaming in its policies. 

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Jordan  is  pursuing  sustainable  development  through  its  National  Agenda  and  Kulluna  al 
Urdun,  which  link  environmental  sustainability  and  reforms  in  sectors  such  as  water, 
agriculture, tourism, health, energy, industry and transport. These reform agendas also link the 
theme of sustainable development with the challenge of fighting poverty and unemployment. 
In  general,  the  new  development  plans  enabled  better  implementation  of  sustainable 
development by the Jordanian authorities. 

4. 

TRADE-RELATED ISSUES, MARKET AND REGULATORY REFORM 

Jordan's bilateral trade in goods with the EU increased during 2008 amounting to more than 
EUR 3.2 billion. Exports to the EU increased considerably with 35.8% while imports from the 
EU  increased  10.3%  compared  with  2007.  However  a  significant  trade  deficit  still  exists. 
Tariff  dismantling  continued  smoothly  in  accordance  with  the  EU-Jordan  Association 
Agreement. Tariff dismantling for products listed in Annex IV started in May 2008 based on 
two lists of products for which tariffs will be dismantled respectively over two years (all tariff 
lines falling under "ex 8703" - used vehicles) and seven years (mostly textiles and furniture). 
Considerable progress was made in the negotiations for the setting up of a dispute settlement 
mechanism, which could be concluded soon. Jordan actively participated in the Trade Senior 
Official’s  Working  Group  set  up  to  draw  a  Euromed  Roadmap  of  next  steps  in  the  field  of 
trade  till  2010  and  beyond.  This  road  map  is  due  to  be  adopted  at  the  Trade  Ministerial  in 
autumn 2009. 

Negotiations on the liberalisation of trade in services and right of establishment with the EU 
have not yet started. 

Concerning regional integration Jordan has not yet concluded its negotiations for a free trade 
agreement  with  Turkey.  Despite  some  small  progress,  the  results  of  the  implementation  of 
the  Agadir  Agreement  appear  to  be  modest  and  trade  between  the  four  countries  (Jordan, 
Egypt,  Morocco  and  Tunisia)  remains  limited  also  due  to  the  presence  non  tariff  barriers. 
Jordan,  along  with  the  other  three  partners,  implements  the pan-euro-med  system  of 
cumulation of origin in the framework of the Agadir Agreement. However, practices such as 
the ad hoc arrangement for the importation of specific products manufactured in the context 
of the Agadir Agreement should not be encouraged as they derogate from the pan-euro-med 
rules  of  origin.  The  same  goes  for  the  agricultural  and  processed  agricultural  products, 
covered by the Agadir Agreement, to which pan-euro-med cumulation of origin in practice is 
not applied. 

A  Customs  Administration  Modernization  Programme  is  on-going.  The  Strategic  Plan  for 
2008-2010 aims at facilitating the movement of passengers and cargo, combating illegal trade 
activities and development of infrastructure, organization and overall performance of Jordan’s 
Customs.  It  furthermore  takes  into  consideration  Jordan's  commitments  to  the  WTO, 
partnership  with  the  private  sector  and  good  governance  guidelines  to  apply  electronic 
government.  Jordan  continued  developing  the  'The  Golden  List',  programme  which  aims  at 
facilitating and securing supply chains for reliable traders. The rolling out of the ASYCUDA 
World  System  for  customs  declarations  processing  to  several  customs  centres  took  place  in 
the reporting period. The single window concept is operating manually in the customs centre 
and work is on-going to move to an electronic system. The adoption of the draft proposal to 
revise  the  customs  law  which  was  expected  in  2008  has  been  delayed  until  2009.  Jordan 
decided not to apply the Combined Nomenclature contrary to what is foreseen by Article 29 
of the Association Agreement. 

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Concerning  free  movement  of  goods  and  technical  regulations,  Jordan  continued 
preparations  to  negotiate  an  Agreement  on  Conformity  Assessment  and  Acceptance  of 
Industrial Products (ACAA). A draft law on standards, metrology  and Product  Safety and a 
draft Accreditation law have been prepared but not yet been adopted by the Parliament. The 
adoption  of  these  two  drafts  is  a  prerequisite  for  the  creation  of  the  horizontal  quality 
infrastructure which is the basis for progress in the preparation of the ACAA. The adoption of 
harmonised  standards  and  approximation  to  relevant  EU  directives  for  the  priority  sectors 
progressed (construction products, electrical appliances, pressure equipment, toys, measuring 
instruments  and  gas  appliances).  As  reported  last  year,  Jordan  is  an  affiliate  member  of  the 
European standards body CEN since January 2008. Despite awareness-raising efforts, private 
sector understanding about the importance of technical standards and development of quality 
infrastructure in access to export markets remains very limited.  

Jordan  and  the  EU  continued  cooperation  on  the  harmonisation  of  sanitary  and  phyto-
sanitary rules with EU standards, particularly through two twinning projects. Jordan prepared 
a new food law, which aims at harmonisation with EU rules. It issued legislation regarding a 
national  identification  and  farm  registration  system.  Jordan  continued  to  participate  in 
workshops under the European Commission’s “Better training for safer food” programme. 

As  regards  the  business  climate,  Jordan  remains  one  of  the  better-performing  Middle  East 
and  North  Africa  (MENA)  countries  in  the  international  surveys  on  the  ease  of  doing 
business.  A  recent  investment  climate  survey,  sponsored  by  the  World  Bank,  reveals  good 
scores  on  perceptions  of  corruption,  security  and  property  rights.  The  survey  also  points  to 
strong  performance  of  Jordanian  enterprises  (average  capacity  utilization  rate  of  85  percent 
for manufacturing firms) and high total factor productivity.  

As  regards  the  right  of  establishment,  the  required  capital  for  establishing  a  company  was 
reduced during the reporting period. Jordan is working on a draft regulation enabling 100% 
foreign  ownership  in  transport  services,  insurance  agent  services,  travel  agencies  and  tour 
operator services. 

Amendments to the 1997 company  law are being reviewed by the Parliament. They aim at 
facilitating  the  establishment  of  companies  and  at  attracting  investments  in  a  more  flexible 
environment.  Furthermore,  Jordan  is  working  on  a  corporate  governance  manual  for 
companies. 

Jordan  made  progress  in  financial  sector  reforms.  The  Basel  II  principles  for  effective 
banking supervision are applied from January 2008.  

Other key areas 

Offices for large, medium and small taxpayers were set up in 2008 by merging the sales tax 
and  income  tax  departments.  The  computerisation  of  both  tax  procedures  and  systems 
continued  in  the  reporting  period.  Following  rejection  by  the  parliament  of  the  draft  law  to 
modernise  the  tax  legislation,  a  new  draft  aiming  amongst  others  at  merging  all  tax-related 
legislation  in  one  single  law,  broadening  the  tax  base,  enhancing  efficiency  and  self 
compliance,  limiting  tax  evasion  and  more  generally  improving  the  business  climate,  was 
submitted to the Cabinet. 

The  review  of  the  competition  law,  reported  on  last  year,  is  still  under  preparation.  It  will 
transform  the  Competition  Directorate  in  the  Ministry  of  Industry  and  Trade  into  an 

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independent  competition  commission  established  under  the  framework  of  National  Agenda. 
Some  issues  still  remain  to  be  resolved  as  regards  the  functioning  of  specific  sectoral 
regulatory authorities (transport, telecoms, energy, etc.) in competition matters. In accordance 
with  the  2004  Competition  Law,  a  Committee  for  Competition  Matters  was  formed  as  an 
advisory body on the general competition strategy and on matters related to the provisions of 
the law. No progress in the field of state aid can be reported. 

As regards intellectual property rights, Jordan submitted in August 2008 its instruments of 
accession to the Nice agreement on international classification of goods and services for the 
purposes of the registration of marks; the international classification of the figurative elements 
of  marks  under  the  Vienna  agreement;  and  to  the  Budapest  Treaty  on  the  international 
recognition of the deposit of micro-organisms for the purposes of patent procedures. All three 
entered  into  force  for  Jordan  in  November  2008.  The  trademark  law  was  amended  in  April 
2008. Jordan is also working on a new patent law. Jordan benefits from a twinning project to 
upgrade the professional capacity of the staff in charge of IP enforcement.  

New  public  procurement  legislation  to  render  the  national  procurement  regime  compliant 
with  the  WTO  Government  Procurement  Agreement  (GPA)  is  awaiting  Cabinet’s  approval. 
Legislation compliant with the general procurement agreement is a prerequisite for Jordan’s 
future accession to the GPA. Jordan is also preparing a study on the impact of its accession to 
the  general  procurement  agreement.  Jordan  continued  its  preparations  for  a  full-fledged  e-
procurement programme. The overall objective of the programme is to increase the efficiency 
and transparency of the procurement system. 

The Department of Statistics of Jordan (DOS) continued to participate to the EU-MEDSTAT 
II  programme.  It  aims  to  produce  harmonised  series  of  statistics  over  a  period  of  time  at 
national  and  regional  levels,  as  an  essential  tool  to  accompany  the  establishment  of  the 
planned Mediterranean Free Trade area. 

The draft law on the modernisation of the Audit Bureau to enhance public external audit was 
submitted to the Council of Ministers in May 2008 but has so far not been adopted. It strives 
for full financial and administrative independence through a separate allocation for operations 
from the state budget. 

On enterprise policy, Jordan assessed its progress in implementing the Euro-Mediterranean 
Charter  for  Enterprise.  The  country  made  good  progress  in  public-private  consultations  and 
the provision of services for enterprises. Access to finance is relatively easy with the Jordan 
Loan Guarantee Corporation providing a range of guarantee schemes for Small and Medium-
size Enterprises (SMEs). In the field of innovation, some networks of innovation centres and 
incubators  are  already  operational.  However,  there  is  a  need  to  complete  the  policy 
framework:  enterprise,  industrial  and  innovation  policies,  sector-specific  development 
strategies and an export promotion strategy are still under preparation.  

5.  COOPERATION ON JUSTICE, FREEDOM AND SECURITY 

The  third  meeting  of  the  EU  Jordan  Sub-committee  on  Justice  and  Security  and  of  the 
Working Party on Social affairs - which also cover migration issues - were held in May 2008. 

Cooperation with Jordan on border management advanced slowly. While efforts have been 
made with EC assistance to improve the efficiency of border management personnel through 
training on document examination, no further policy developments were noted. 

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Exchange of information and best practices on migration issues took place under the Euromed 
regional programme on migration.  

Migratory  pressure  remains  high  due  to  the  large  number  of  Iraqis  present  in  Jordan  (see 
section  on  foreign  policy).  In  May  2008,  Jordan  introduced  the  obligation  of  a  visa  for  all 
Iraqis visiting Jordan. A system of visa application was organised through a collaboration of 
the  Jordanian  Government  and  TNT  postal  services.  Visa  applications  can  be  made  in  16 
offices  in  8  major  Iraqi  cities  and  can  be  obtained  at  the  border.  The  process  is  lengthy.  A 
fast-track system has been established for humanitarian cases. The Jordanian government also 
decided to exempt Iraqi citizens who wish to return to their country from paying overstay fees 
and to substantially reduce the fees for those who choose to stay in Jordan.  

Jordan  did  not  proceed  to  ratification  of  the  2003  United  Nations  Convention  on  Trans-
national Organized Crime. The signature and ratification of its three Additional Protocols on 
the Trafficking of Persons, especially Women and Children, the Smuggling of Migrants and 
on the Illicit Manufacturing of and Trafficking in Firearms are also pending. The convening 
of  an  Inter-Departmental  Committee  is  planned  to  develop  a  strategy  for  the  Convention’s 
implementation once fully ratified. Despite the pending ratifications, the new law on human 
trafficking,  approved  in  2009,  was  drafted  having  in  mind  the  provisions  of  the  second 
protocol on trafficking. 

Jordan  continued  to  implement  its  international  obligations  in  the  fight  against  drugs  in  a 
regional  context.  It  is  party  to  all  three  United  Nations  Conventions  on  Narcotic  Drugs  and 
cooperated  with  the  Mini  Dublin  Group  in  the  preparation  of  a  narcotics  situation  report  in 
November  2008  (see  Sector  Report).  It  also  participated  in  meetings  of  the  United  Nations 
Commission on Narcotic Drugs (ECOSOC CND), the Arab Office for Narcotic Affairs and is 
a member of the Unified Arab Law Interpol. The resources of law enforcement agencies are 
deployed as effectively as possible to take account of existing and future challenges. Jordan 
has bilateral agreements on counter narcotics cooperation with all its ENP neighbours as well 
as with Iraq, Iran, Pakistan, Turkey, Hungary and Romania.  

Jordan established in 2008 a Higher Council for Drug Awareness, chaired by the Ministry of 
the Interior, to develop a general anti-drugs strategy. Current practice focuses on prevention 
alongside law enforcement. Penalties for use and trafficking are severe, but addicts and first 
time  offenders  who  seek  treatment  are  exempted  under  the  provisions  of  the  1988  Law. 
Jordan is strongly committed to regional and international information exchange and training 
on  the  improvement  of  drug  rehabilitation  strategies.  It  participated  actively  in  the  regional 
Euromed Police II programme, implemented by CEPOL. 

Jordan implemented the 2007 Anti-Money Laundering Law through a National Anti-Money 
Laundering  Committee,  and  an  Anti  Money  Laundering  Unit  which  reports  suspicious 
transactions  to  the  Public  Prosecutor’s  Office.  Compulsory  reporting  exists  for  banks,  real 
estate  agents,  financial  institutions,  precious  metal  commissions  and  cash  couriers. 
Foundations  and  charities  are  vetted  indirectly  through  other  financial  institutions.  Due 
diligence  and  KYC  (know  your  customer)  principles  have  a  statutory  basis  and  money 
laundering is a criminal offence.  

Jordan  participated  actively  in  Euromed  regional  programmes  on  police  and  justice  
(Euromed Justice II and Euromed Police II). In the framework of these programmes, contacts 
and exchanges have taken place with judicial, police and other law enforcement counterparts 
across the region on areas such as family law, cybercrime, fight against terrorism, combating 

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child  pornography  and  experience  with  implementation  of  relevant  Council  of  Europe 
Conventions. Jordan has not ratified any instrument under the Hague Convention on Private 
International Law and did not participate in the Malta Process (see Sectoral Report).  

6. 

TRANSPORT,  ENERGY,  THE  ENVIRONMENT,  THE  INFORMATION  SOCIETY, 
RESEARCH AND DEVELOPMENT 

Jordan is currently assessing and updating its 2008-2010 national transport policy in order to 
cover  the  period  2009-2011.  As  regards  infrastructure  planning,  Jordan  is  preparing  an 
increased involvement of the private sector through public private partnerships (PPP) projects. 
The  ‘Executive  privatisation  commission’  has  been  given  the  responsibility  to  develop  PPP 
methodology and promote PPP projects with potential investors. Improved transport planning, 
strengthening  of  planning  capacities  in  the  Ministry  of  Transport  as  well  as  co-ordination 
between key ministries and public agencies will be needed in order to ensure that investment 
resources  for  PPP  projects  are  concentrated  on  the  most  strategically  important  and 
economically viable projects in the transport sector.  

The land transport sector, in particular road haulage, continued to suffer from low efficiency 
and a regulatory body for the land freight sector still needs to be established. As regards the 
implementation of the railways master plan (including the upgrading of the railway network) 
the Government has begun expropriation procedures in order to acquire the necessary rights of 
way. In May 2008 a contract was awarded to construct a light railway from Zarqa to Amman 
under a BOT (build, operate, transfer) scheme. The construction of this light railway is a part 
of overall plans to increase public transport use.  

During  2008,  Jordan  completed  the  establishment  of  a  separate  aviation  regulator  (the  Civil 
Aviation Regulatory Commission), and the creation of autonomous corporatised airports and 
air  navigation  services  entities.  Jordan  continued  to  pursue  a  policy  of  gradual  market 
liberalisation  and  alignment  with  European  safety  standards.  After  the  signing  of  a  civil 
aviation horizontal agreement in February 2008 (cf. last report), the Jordanian authorities and 
the European Commission launched in November 2008 negotiations on a Euro Mediterranean 
aviation  agreement  that  should  ensure  the  adoption  of  common  standards  in  the  field  of  air 
transport and the progressive opening-up of the market access.  

In the maritime sector Jordan continued to align with international conventions and standards. 
Jordan strengthened the enforcement of its Maritime Security Code through the setting up of a 
follow-up  committee.  Jordan  restructured  and  strengthened  the  capacity  of  its  Jordan 
Maritime  Authority,  placing  a  particular  emphasis  on  ship  inspection.  The  regulation  of  the 
ports  sector  needs  to  be  strengthened  to  ensure  that  the  planning  of  new  investment  in  port 
development is securely anchored in overall national transport strategies. 

Jordan and the EU continued energy cooperation including in the context of the 2007 Joint 
Energy Declaration. Jordan started implementing its 2007-2020 energy master plan. Its main 
energy challenges are the rapid rise in electricity demand and energy dependence.  

In  April  2008,  Jordan  participated  in  an  EU-Mashraq  Ministerial  meeting  which  promoted 
Mashraq energy cooperation and the completion of the Arab gas pipeline. Ministers of Egypt, 
Lebanon,  Jordan  and  Syria  agreed  to  take  steps  to  connect  the  Arab  gas  pipeline  to  the 
European network. The pipe now fuels Rehab power station and is completed up to Homs in 

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Syria. Jordan participated in the EC supported Euro-Mashraq gas master plan project, which 
contributes to developing a Euro-Mashraq natural gas market. 

In  November  2008,  a  comprehensive  energy  law  was  submitted  to  the  Parliament.  It 
continued to work towards a new energy regulator and to address energy price distortions. It 
promoted  independent  power  production  and  reinforced  the  domestic  electricity  networks. 
Jordan completed the privatisation of the electricity distribution sector. It took steps to open 
up the oil sector, worked towards the strengthening of oil storage and marketing capacity, and 
prepared the construction of the Aqaba-Zarqa oil pipeline and the refurbishment of the Jordan 
refinery. 

Jordan  further  worked  on  electricity  interconnections  with  Mashraq  countries.  In  February 
2008, the Jordan-Jericho electricity line was inaugurated. Reflections started on further links 
between Jordan and the West Bank. Jordan, Egypt and the Palestinian Authority explored the 
possibilities  for  more  network  interconnections.  Jordan,  the  Palestinian  Authority  and  Israel 
exchanged  views  on  future  electricity  interconnections.  Jordan  and  Iraq  re-launched  an  oil 
agreement and exports to Jordan started.  

In 2008, Jordan became a partner in the Regional Centre for Renewable Energy and Energy 
Efficiency  for  the  Middle  East  and  North  Africa  countries.  The  Cairo-based  Centre  was 
inaugurated  in  June  2008  and  is  supported  by  the  European  Commission,  Denmark  and 
Germany. Jordan further implemented its energy efficiency strategy and continued to put high 
emphasis on the use of renewable energy sources.  

Jordan  pursued  Euro-Mediterranean  energy  cooperation,  in  particular  through  the  multiple 
projects.  The  July  2008  Summit  of  the  Union  for  the  Mediterranean  endorsed  the 
development of a Mediterranean Solar Plan.  

Jordan  continued  to  develop  a  longer  term  strategy  to  build  nuclear  power  plants,  launched 
plans  to  construct  a  nuclear  research  reactor  and  started  the  exploitation  works  of  domestic 
uranium  reserves.  Jordan  established  a  High  Commission  on  Nuclear  Energy  Strategy.  In 
March  2008,  the  nuclear  energy  law  and  the  law  on  nuclear  safety,  security  and  radiation 
protection  entered  into  force.  Under  these  laws  the  Jordan  Atomic  Energy  Commission  and 
the Jordan Radiation and Nuclear Regulatory Commission were established. In May 2008, the 
European Commission and Jordan held a workshop on nuclear safety and security, which was 
followed  up  by  an  experts’  mission  in  view  of  a  possible  nuclear  safety  cooperation 
programme. Jordan pursued the preparations for the use of domestic oil shale. 

In  the  field  of  climate  change,  Jordan  is  in  the  final  phase  of  preparing  a  second  national 
communication, as well as a greenhouse gas inventory, an assessment of climate impacts and 
adaptation  measures.  Jordan  prepared  further  Clean  Development  Mechanism  (CDM) 
projects. One of the seven Jordanian projects is registered at the UN level. Adaptation studies 
are in the final stage of preparation. Jordan has not yet adopted a formal position regarding the 
post-2012 climate regime.  

The  Ministry  of  Environment  took  steps  to  implement  its  strategic  plan  for  2007-2010.  A 
national environment action plan is under preparation. The legislative framework continues to 
require  further  development,  in  particular  with  regard  to  implementing  legislation.  No  new 
legislation  was  adopted  in  2008,  but  Jordan  continued  preparing  new  legislation  on  an 
environmental fund, as well as on monitoring and inspections. Jordan also started preparing 
legislation  in  the  fields  of  water,  waste  management,  air  quality  and  environment  liability. 

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The  Government  adopted  a  water  demand  management  policy  in  2008.  Work  continued  to 
develop  a  policy  strategy  on  solid  waste  and  a  new  water  strategy.  Steps  were  taken  to 
implement existing strategies and plans, but continued attention is required.  

Furthermore, the Ministry of Environment took steps to implement administrative reforms at 
governorate  level,  and  decentralisation  is  on-going.  Nevertheless,  further  strengthening  of 
administrative capacity is still a major challenge. Coordination between involved authorities 
also requires attention. Reform of the water sector policy and institutional set-up continued. 
Some  activities  took  place  to  promote  integration  of  environment  considerations  into  other 
policy sectors such as tourism and transport. Monitoring and enforcement continue to require 
special  attention.  Some  steps  were  taken  to  promote  the  establishment  of  an  integrated 
permitting  system.  A  state-of-the  environment  report  was  finalised.  Some  steps  were  taken 
concerning  access  to  information  and  public  participation.  Jordan  started  promoting  the 
application of strategic environmental assessments in sectoral plans and programmes.  

Implementation  of  ratified  international  and  regional  conventions  and  protocols  requires 
particular attention. Jordan continued participation in the Horizon 2020 Initiative and the EU 
Water  Initiative.  Jordan  hosted  the  December  2008  Euro-Mediterranean  Ministerial 
Conference  on  Water,  launching  the  preparation  of  a  regional  water  strategy  for  the 
Mediterranean.  Cooperation  and  information  exchange  took  place  between  the  European 
Commission  and  Jordan,  including  on  water  resource  management,  environmental  reporting 
and  civil  protection.  Other  topics,  such  as  other  water-related  issues  were  identified  for 
possible closer cooperation. 

On the basis of the national strategy for the development of the information society spanning 
the  years  2007-2011,  the  Ministry  of  Information  Technology  and  Communications 
Technology (MoICT) and the Telecommunication Regulatory Commission (TRC) continued 
to implement and fine-tune the information society policies. The MoICT continued the efforts 
to provide broadband Internet access for all schools and universities. A national e-commerce 
strategy (2008-2012), including an action plan, was developed by MoICT in cooperation with 
major stakeholders. The Ministry of Industry and Trade is in charge of the implementation of 
the strategy.  

MoICT drafted a regulation for the accreditation of Certification Authorities in the framework 
of  the  e-Transaction  Law  and  the  TRC  will  be  responsible  for  the  implementation.  The 
MoICT continues efforts to provide broadband Internet access for all schools and universities.  

The TRC published a tender for a licence to provide Third Generation mobile services (3G). 
TRC also authorised the provision of MVNO (Mobile Virtual Network Operator) services and 
has issued a public consultation on local loop unbundling, collocation of facilities and sharing 
of  the  fixed  infrastructure.  After  the  award  of  five  spectrum  licences  for  the  provision  of 
Fixed  Broadband  Wireless  Access  (FBWA)  services,  two  licences  started  operations  at  the 
end of 2007  and mid-2008; the  other three  services will be launched in 2009. Finally, TRC 
has issued a licence for Internet access services via Very Small Aperture Terminals (VSAT) 
and  five  licences  for  the  provision  of  international  gateway  access  services  with  a  wide 
capacity range. 

As regards the audiovisual sector, the Government intends to establish a converged regulator 
for  telecoms  and  broadcasting,  leading  to  a  merger  between  the  TRC  and  the  Audiovisual 
Commission (AVC). The AVC had prepared a strategy for audiovisual policy in 2006, which 
still remains to be adopted by the Government. In March 2008, the Government adopted a law 

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stipulating that a five per cent tax on all advertisements placed in media as well as a two per 
cent tax on the fee for licensing or renewing radio and satellite station licences will be levied. 
The  revenues  will  be  used  to  support  cultural  activities.  Although  the  Government  is  not 
anymore  the  sole  Jordanian  broadcaster  of  television,  the  first  independent  television 
company in Jordan has difficulties in obtaining the necessary licences from the Government 
allowing it to broadcast its full stock of programmes.  

Regarding research and technology the negotiations between the EC and Jordan on science 
and technology development were successfully concluded  the agreement initialled in January 
2009.  The  agreement  is  expected  to  be  formally  adopted  before  the  end  of  2009.  It  will 
consolidate  the  dialogue  between  the  EC  and  Jordan  and  will  also  aim  at  improving  the 
participation of Jordanian researchers in the research framework programmes. The agreement 
will  be  operated  through  a  Joint  Committee  which  will  be  composed  of  Commission  and 
Jordanian representatives. Although a scientific research fund established by the Ministry of 
Higher Education and Research became operational at the beginning of 2008, the fund has not 
financed  any  projects  yet.  A  better  coordination  and  cooperation  between  the  various 
stakeholders  involved  in  the  running  of  the  fund  is  being  sought.  The  success  rate  of 
Jordanian researchers in the 7th research framework programmes remains comparatively high; 
10 Jordanian institutions have been selected for funding. 

7. 

PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH 

In  the  area  of  education,  a  second  phase  of  the  Education  Reform  for  the  Knowledge 
Economy project (ERfKE) is currently under preparation under the guidance of the Ministry 
of Education. The timeframe for ERfKE II will be is 2009-2013, and its objective is to take 
the  reform  to  the  school  level.  In  addition,  the  Ministry  of  Higher  Education  is  preparing  a 
similar initiative for higher education.  

Jordan  continued  to  benefit  from  academic  co-operation  and  partnerships  with  European 
universities  through  Tempus,  with  the  selection  of  three  projects  under  the  first  Call  for 
Proposals under Tempus IV. While the programme’s impact has been very high in terms of 
the individuals and universities involved, it has yet to affect the direction of higher education 
policy  development.  Only  one  Jordanian  student  received  a  scholarship  under  Erasmus 
Mundus  for  the  academic  year  2008-09.  Jordan  also  participated  in  the  Erasmus  Mundus 
External Cooperation Window. Some faculty members were also selected to participate in the 
mobility  for  the  academic  year  2008-09.  A  further  three  Jordanian  students  received 
scholarships  in  European  integration  studies  at  masters  level  for  students  from  the  ENPI 
region under a special pilot project for the academic year 2008-09. 

On  vocational  training,  the  Parliament  approved  a  new  law  on  the  Employment  and 
Technical  and  Vocational  Education  and  Training  Council  in  July.  The  law  established  an 
employment  and  TVET  (technical  and  vocational  education  training)  Training  Fund,  thus 
guaranteeing the financial resources to enhance quality and capacity of training. The law also 
foresees  the  establishment  of  an  accreditation  and  certification  centre  for  TVET  under  the 
supervision  of  the  Minister  of  Labour.  In  addition,  the  Ministry  established  an  E-TVET 
Development  and  Coordination  Unit.  The  establishment  of  a  Higher  Council  for  Human 
Resources  Development  with  a  mandate  to  facilitate  coordination  among  education  and 
training stakeholders is still expected (the draft by-law is under preparation).  

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Jordan consistently and actively promoted the benefits of youth exchanges, voluntary service 
and intercultural dialogue. In October 2008, the Ministry of Political Development hosted the 
eighth  Euromed  Youth  Meeting  in  Amman  bringing  together  representatives  of  Euromed 
Youth  Units  from  participating  Mediterranean  countries  as  well  as  national  agencies  of  the 
Youth  in  Action  programme  with  a  particular  focus  on  how  to  enhance  and  develop  youth 
dialogue  through  regional  cooperation  (see  Sectoral  Report).  International  cooperation  has 
impacted  strongly  on  Jordanian  youth  policy,  influencing  the  regulations  on  establishing 
youth  organisations  as  well  as  methodological  approaches  for  the  development  of  informal 
education  for  young  people.  Jordan  launched  two  calls  for  proposals  under  Euromed  Youth 
III,  resulting  in  the  selection  of  6  projects.  Further  efforts  are  needed  to  raise  interest  in 
voluntary  service  and  non-exchange  related  actions  as  well  as  the  benefits  offered  by 
participation in similar activities under Youth in Action. 

In the area of culture, a musical festival and a street art festival took place with EC support in 
respectively  June  and  September  2008,  providing  Jordanian  artists  with  an  opportunity  to 
cooperate  with  their  European  counterparts.  Cultural  policy  however  lacks  a  targeted,  long-
term  vision,  tending  to  be  perceived  as  supplementary  to  tourism  development.  Within  the 
framework  of  regional  programme  Euro-Med  Audiovisual  II,  a  third  edition  of  the  Cinema 
Caravan was organised in August 2008. The programme provided training for members of the 
Amman Filmmakers Cooperative helping to establish links with the Ministry of Culture and 
the  Royal  Film  Commission.  The  latter,  in  particular,  has  been  an  active  participant  in 
Jordanian cultural life and a reliable and proactive partner in the EU cultural initiatives.  

Jordan pursued reform in the health sector on the basis of the National Social and economic 
development programme 2009-2011 and the health ministry’s Strategic Plan 2008-2012. The 
main  aims  include  better  access  to  quality  health  services  particularly  in  remote  and  rural 
areas and full health insurance coverage. Jordan prepared an amendment of the Public health 
law which includes tobacco control measures. In November, Jordan participated in the second 
Euro-Mediterranean  ministerial  health  conference,  which  opened  new  perspectives  for 
regional health cooperation The European Commission continued to invite Jordan to the EU 
Network of competent authorities in health information. In 2008, Jordan remained involved in 
the  “EpiSouth”  network  for  EU,  Mediterranean  and  Balkan  countries  on  communicable 
diseases.  

8. 

FINANCIAL COOPERATION – 2008 KEY FACTS AND FIGURES 

The ENPI financial envelope for Jordan under the National Indicative Programme 2007-2010 
is  EUR  265  million.  The  programme  is  geared  towards  supporting  the  achievement  of  key 
policy objectives as outlined in the Action Plan and pursues four priorities: political reform, 
democracy,  human  rights,  justice  and  good  governance;  trade  and  investment  development; 
sustainability of the growth and development process; institution building, financial stability 
and support for regulatory approximation. 

In  2008,  the  Commission  continued  to  support  the  extensive  national  reform  efforts  and 
programmed assistance for a total amount of EUR 65 million under the ENPI. This assistance 
is targeted at three priority areas: support to trade and investment development, through the 
allocation  of  EUR  48  million  to  the  "Trade  and  Transport  Facilitation  Programme"  and  the 
"Support  to  Enterprise  and  Export  Development  Programme";  support  to  the  reform  of 
criminal justice, the anti-corruption institutions and fight against radicalization through a EUR 
7  million  programme;  and  support  to  institution  building  through  the  allocation  of  EUR  10 

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million  for  the  “Support  to  the  Action  Plan  Programme”,  which  is  a  flexible  tool  that  can 
respond to priorities as they arise.  

to  be 

that  continued 

Programmes 
the 
implemented 
implementation  of  the  National  Agenda  and  of  the  public  financial  management  reform,  to 
research and technological development, to NGO’s working on the promotion of democracy 
and  political  participation,  to  the  reform  of  the  education  sector  and  to  poverty  reduction 
through local development. 

included  support 

in  2008 

to 

Twinning projects have been developed in sectors such as anti-terrorism, penitentiary reform, 
renewable energy and environmental legislation. 

Jordan  also  benefits  from  cooperation  activities  financed  under  the  ENPI  multi-country 
(including  the  Neighbourhood  Investment  Facility)  and  regional  programmes.  Jordan  is  a 
partner in the CBC Mediterranean Sea basin programme (EUR 173,607 million for the whole 
programme in the period 2007-13). Through this programme the populations of the maritime 
regions bordering the Mediterranean Sea will receive funding for joint co-operation projects 
aimed at fostering sustainable development and enhancing human contacts.  

As  was  already  the  case  in  2007,  an  additional  amount  of  EUR  12  million  was  mobilized 
through  the  Development  Co-operation  Instrument  to  support  a  programme  aiming  at  the 
improvement of water distribution in the Zarqa area, to address the needs of Iraqi refugees in 
this area. 

Donor  coordination  has  been  strengthened,  with  increased  involvement  of  the  Minister  of 
Planning  that  seems  keen  to  drive  this  process  and  improve  –  with  EC  assistance  –  the 
information management of aid flows, with a view to facilitating harmonisation. 

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