JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in Jordan Progress in 2011 and recommendations for action Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Delivering on a new European Neighbourhood Policy
Date: 2012-05-15
Institutions: European Commission, High Representative of the Union
Subjects: European neighbourhood policy, Jordan, administrative reform, cooperation in the field of education, democratisation, economic reform, environmental cooperation, institutional reform, job creation, judicial cooperation, judicial reform, trade cooperation

EUROPEAN COMMISSION 

HIGH REPRESENTATIVE OF THE
EUROPEAN UNION FOR 
FOREIGN AFFAIRS AND 
SECURITY POLICY

Brussels, 15.5.2012  
SWD(2012) 116 final 

JOINT STAFF WORKING DOCUMENT 

Implementation of the European Neighbourhood Policy in Jordan 
Progress in 2011 and recommendations for action 

Accompanying the document 

JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

Delivering on a new European Neighbourhood Policy 

{JOIN(2012) 14 final} 
{SWD(2012) 110 final} 
{SWD(2012) 111 final} 
{SWD(2012) 112 final} 
{SWD(2012) 113 final} 
{SWD(2012) 114 final} 
{SWD(2012) 115 final} 
{SWD(2012) 117 final} 
{SWD(2012) 118 final} 
{SWD(2012) 119 final} 
{SWD(2012) 120 final} 
{SWD(2012) 121 final} 
{SWD(2012) 122 final} 
{SWD(2012) 123 final} 
{SWD(2012) 124 final} 

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1. 

OVERALL ASSESSMENT AND RECOMMENDATIONS 

This  document  reports  on  progress  made  on  the  implementation  of  the  EU-Jordan 
ENP Action Plan between 1 January and 31 December 2011, although developments 
outside this period are also taken into consideration when deemed relevant. It is not a 
general review of the political and economic situation in Jordan. For information on 
regional  and  multilateral  sector  processes  in  the  context  of  the  Partnership  for 
Democracy  and  Shared  Prosperity,  readers  should  also  refer  to  the  Partnership  for 
Democracy and Shared Prosperity progress report. 

in  nine  months,  a  worsening  economic  outlook, 

2011 was a politically and economically challenging year for Jordan: three successive 
governments 
increasing 
unemployment,  a  deepening  budget  deficit,  the  decline  of  foreign  investments  and 
increasing  energy  supply  costs  all  add  up  to  a  volatile  picture.  In  contrast  to  other 
countries in the region, protesters in Jordan did not call for regime change but rather 
for reform of the existing political system. Demonstrations initially focused solely on 
economic  claims  but  gradually  developed  a  more  political  agenda.  Calls  for  greater 
political  participation,  government  accountability  and  transparency  have  featured  as 
often in the protesters’ declarations as calls for increased job opportunities. 

Despite  the  difficult  context,  Jordan  made  an  important  quality  leap  in  its  political 
reforms’  process  through  the  adoption  in  September  of  far-reaching  constitutional 
amendments. The latter address a number of priorities agreed in the framework of the 
new EU-Jordan ENP Action Plan negotiated in 2010, in particular the establishment 
of an independent electoral commission, greater accountability of the government, the 
empowerment  of  political  parties  through  the  revision  of  legislation  and  the 
prohibition  of  torture.  In  other  cases,  the  amendments  go  beyond  Jordan’s  ENP 
Action  Plan  commitments,  i.e.  the  establishment  of  the  Constitutional  Court, 
limitation of the government’s ability to enact provisional (temporary) law and new, 
more restrictive, rules on the dissolution of the Parliament. 

The Public Gatherings Law which entered into force in May introduced some positive 
changes  in  terms  of  freedom  of  expression  and  assembly.  As  far  as  freedom  of  the 
press  is  concerned,  journalists  and  online  media  had  confrontations  with  security 
agencies,  notably  when  reporting  on  demonstrations.  Journalists  were  verbally  and 
physically attacked and news websites were closed down. Jordanian authorities were 
criticised for hounding journalists and for failing to hold police accountable. Although 
the  fight  against  corruption  is  high  on  the  government  agenda,  corruption  remains 
widespread. 

Following a period of modest growth and gradual recovery from the global financial 
crisis  throughout  2010,  the  Jordanian  economy  was  affected  by  the  Arab  Spring 
events and the conflict in neighbouring Syria, notably through the external sector and 
the  fiscal-policy  response  to  domestic  social  pressures.  The  emergency  fiscal 
measures adopted by the government in early 2011 could possibly interrupt progress 
towards fiscal consolidation, while delaying reforms in the public subsidy system. At 
the  same  time,  the  development  and  modernisation  of  the  tax  system  remains  a 
challenge  and  a  major  objective  of  the  public  finance  management  reform  program 
supported by the EU. 

2

 
 
Jordan continued to focus on the enhanced use of renewable energy sources. 

The  Protocol  for  the  Dispute  Settlement  in  bilateral  trade  that  entered  into  force  in 
July  2011  constitutes  a  concrete  achievement  of  EU-Jordan  cooperation.  Technical 
preparations  for  ACAA  negotiations  progressed  but  adoption  of  the  corresponding 
laws did not. The reforms of public finance management advanced in some respects  

The first meeting of the Jordan-EU Task Force took place on 22 February in Jordan. 
The Task Force has been established to deepen the EU-Jordan relations, support and 
encourage  the  political  and  economic  reforms  and  enhance  effective  coordination 
between the EU  and its Member States, as  well as other European and international 
bodies. 

In recognition of the efforts already made by the government, Jordan will receive an 
additional  financial  envelope  of  EUR  70  million  to  be  made  available  in  2012,  of 
which EUR 30 million immediately, through the new Support for Partnership, Reform 
and  Inclusive  Growth  (SPRING)  programme,  focusing  on  good  governance  and 
economic  growth  (notably  support  to  small  and  medium-sized  enterprises  and 
vocational training). 

On the basis of this year’s report and with a view to sustained implementation of the 
ENP Action Plan in 2012, Jordan is invited to:  

•  Adopt the law creating an independent electoral commission, the electoral law, the 
political parties’ law and the law on the establishment of the constitutional court, 
and ensure their effective implementation. 

• 

• 

Intensify  the  fight  against  corruption  as  it  undermines  the  country’s  political, 
economic and social development. 

in  politics,  socio-economic 

Increase  efforts  to  eradicate  violence  against  women  and  to  promote  their 
through  promoting  women 
integration 
entrepreneurs, women’s participation in the labour market and in education, in line 
with the recommendations listed in the preliminary report issued in October by the 
UN Special Rapporteur on discrimination against women. 

life 

•  Strengthen  the  independence  and  impartiality  of  the  judiciary  as  well  as  its 
administrative  capacity,  including  strengthening  the  financial  and  administrative 
independence of the Judicial Council. 

• 

In  the  light  of  the  constitutional  amendment  outlawing  torture,  proceed  with  the 
ratification of the Optional Protocol to the Convention against Torture and Other 
Cruel, Inhuman or Degrading Treatment or Punishment. 

•  Prevent any kind interference in mainstream and online news portals, to ensure the 

freedom of the press. 

•  Ratify the regional Convention on pan-Euro-Mediterranean Rules of Origin. 

•  Pursue  regulatory  convergence  to  support  efforts  to  increase  exports  and  to 
prepare  an  Agreement  on  Conformity  Assessment  and  Acceptance  of  industrial 
products and, eventually, a Deep and Comprehensive Free Trade Agreement. 

• 

Implement  the  recently  adopted  plans  for  improved  internal  audit  and  control  in 
the Audit Bureau and the Ministry of Finance. 

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•  Continue to develop renewable energy sources. 

2. 

POLITICAL DIALOGUE AND REFORM 

Towards Deep and Sustainable Democracy 

Influenced  by  other  countries  in  the  region,  Jordan  also  witnessed  in  2011  mass 
demonstrations  calling  for  political  and  economic  reforms  and  fight  against  the 
endemic corruption spreading at different levels. In response to the evolving domestic 
political  context  and  increasing  demand  for  reforms,  HM  King  Abdullah  set  up  the 
National Dialogue Committee and the Royal Committee on Constitutional Review in 
March and April respectively. 

The National Dialogue Committee, chaired by the Senate President Taher Al Masri, 
included over 50 representatives of political parties, journalists, lawmakers and civil 
society. The Islamic Action Front was invited but declined to take part. The National 
Committee was tasked with putting forward  consensus  based  drafts  for  the  electoral 
and political parties’ laws. In June, it presented a number of proposals including: the 
establishment  of  an  independent  electoral  commission  overseeing  the  elections 
process (in lieu of the Ministry of Interior); a new draft law making it easier to form 
political parties; and in order to encourage participation, the decrease of the number of 
people  required  to  found  a  party  was  cut  from  500  to  250,  including  at  least  25  of 
whom have to be women. 

The  Royal  Committee  on  Constitutional  Review,  chaired  by  Ahmad  Al-Lozi, 
former  PM  and  President  of  the  Senate,  was  entrusted  with  reviewing  the 
Constitution. In August, the Committee submitted its recommendations to Parliament. 
At the end of September, after introducing several changes, the Parliament endorsed 
42 constitutional amendments which entered into force on 1st October. 

The constitutional amendments represent a step forward for Jordan on its path of 
political reform. They are in line with the priorities agreed under the new EU-Jordan 
ENP Action Plan negotiated in 2010. Some of the main amendments include: 

•  Establishment of a Constitutional Court 

•  Establishment of an independent commission to oversee and manage elections 

•  Enhancement of civil liberties: any infringement of rights and public freedoms or 

of private life becomes a crime punishable by law 

•  Prohibition of torture  

•  Limitation of the government’s ability to enact provisional (temporary) laws  

•  Abolition  of  military  trials  for  civilians  and  limitation  of  the  jurisdiction  of  the 

State Security Court 

•  A system of greater accountability for ministers 

•  Reinforcement of judicial independence 

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•  New rules on dissolution of the Lower House; extension of the ordinary session of 
the  Parliament;  suppression  of  the  right  to  hold  dual  nationality  for  Jordanian 
ministers and MPs 

•  The  suppression  of  the  King’s  prerogative  to  postpone  elections:  however,  the 

sovereign retains the right to appoint the Prime Minister (and all senators). 

In  his  government-policy  statement  of  23  November  to  the  Lower  House,  PM  Al-
Khasawneh announced that the electoral and political parties’ laws and the one on the 
establishment of the Constitutional Court would be submitted to the Lower House for 
debate in January, February and March 2012 respectively. On 27 December 2011, the 
government  adopted  the  Independent  Electoral  Commission  Law  which  was 
submitted  two  days  later  to  the  Lower  House  for  debate.  The  Law  establishes  an 
independent body to organise and supervise  of elections. At the time of writing, the 
Law  is  still  being  debated  by  the  Parliament  and  therefore  subject  to  possible 
amendments. The draft law does not provide for adequate financing for the new body.  

These draft laws represent the backbone of the ongoing political reform process. Their 
adoption  by  the  Parliament  should  pave  the  way  for  consolidating  the  institutions 
safeguarding democracy, good governance and the rule of law, as well as ensuring to 
genuine  political  pluralism  and  to  the  empowerment  of  political  parties.  The 
implementation of these laws is a key requirement for meeting the aspirations of the 
Jordanian people. 

The EU will provide assistance to Jordan to ‘Support Democratic Governance’ under 
a financing agreement signed in December. In that context, support will be provided 
to the Lower House to fulfil its legislative and oversight role and to engage in policy 
dialogue with civil society. 

In  October,  the  government  announced  that  the  municipal  elections  (due  in 
December)  were  postponed  sine  die  and  that  the  new  Municipalities  Law  would  be 
revised. 

The revised Public Gatherings Law mentioned in last year’s report was adopted by the 
Parliament in March and entered into force in May. The Law introduces some positive 
changes in terms of freedom of expression and assembly. The organisers of public 
gatherings  no  longer  need  the  approval  of  the  Ministry  of  Interior  and  the  clause 
setting  the  maximum  number  of  organisers  at  seven  was  also  removed.  Moreover, 
organisers are now required only to notify the authorities 48 hours prior to the event. 
However, the National Centre for Human Rights (NCHR) took the view that some of 
the amendments were not in line with the Constitution and the relevant International 
Conventions  to  which  Jordan  is  party.  It  called  for  setting  up  objective  and  specific 
limits  the  authority  of  the  governor  to  break  up  a  gathering  and  requested  that  the 
governor and the security forces be required to consult with the organisers in the event 
of any breach of security or public order before breaking up the gathering.  

As  regards  freedom  of  the  press,  mainstream  and  online  news  portals  still  had 
confrontation with security agencies on several occasions notably when reporting on 
demonstrations.  In  February,  Ammon  News  online  news  website  was  hacked  and 
closed  down  for  a  few  hours  allegedly  for  publishing  a  statement  by  the  ‘Group  of 
36’. In 2011, several journalists were verbally and physically attacked by thugs and/or 
security forces at four major demonstrations. The Centre for Defending the Freedom 

5

 
 
of  Journalists  stated  that  the  attacks  on  journalists  which  took  place  in  July  were 
‘premeditated, 
International  non-governmental 
systematic’. 
organisations (NGOs) criticised the Jordanian authorities for hounding journalists and 
for failing to hold police accountable.  

intentional,  and 

In  April,  the  government  endorsed  a  seven-point  code  of  conduct  regulating  the 
government’s relationship with the media. Unlike the 2010 code of conduct, it allows 
journalists to work in the public sector. The Press and Publications Law, in force since 
October, focusses mainly on e-media and gives news websites the  option to register 
and receive the benefits of access to state press briefings. 

The spread of corruption in Jordanian society remains a matter of serious concern. 
Jordan’s  ranking  in  the  2011  Transparency  International  Corruption  Perceptions 
Index deteriorated from 50th in 2010 to 56th in 2011. During the reporting period, the 
fight  against  corruption  remained  a  key  priority  of  the  successive  governments  with 
however limited tangible results. King Abdullah underlined on several occasions that 
combating corruption is a priority and any public institution can be subject to scrutiny 
by the Anti-Corruption Commission. A number of scandals allegedly involving senior 
politicians were reported in 2011. 

In September 2011, the Lower House adopted the Anti-Corruption Commission Law, 
introducing  inter  alia  a  fine  (of  between  30,000  and  60,000  Jordanian  Dinars)  for 
those charged with character assassination. The relevant article, strongly criticised by 
the  press,  politicians  and  activists,  was  eventually  rejected  by  the  Senate  in  early 
January 2012. 

A EUR5 million EU budget-support intervention for the security sector will promote 
the rule of law and the accountability and transparency of law enforcement, in order to 
strengthen  democratic  and  good  governance  and  to  foster  a  civilian  culture  in  the 
security sector. 

Other human rights and governance-related issues 

In June 2011, Jordan became a member of the UN Human Rights Council. EU-Jordan 
cooperation in the multilateral context has further developed. Jordan also supported a 
number of EU initiatives in the UN context, e.g. the UN resolution on EU work in the 
UN General Assembly. 

Since  May  2006,  Jordan  has  continued  to  apply  a  de  facto  moratorium  on  the 
application of the death penalty. Jordan has not ratified the 2nd Optional Protocol to 
the International Covenant on Civil and Political rights. 

International and local NGOs urged the Government in May to take steps to prevent 
torture ‘in the light of allegations of severe abuse’ of detainees. The National Centre 
for  Human  Rights  (NCHR)  also  called  on  the  government  to  sign  the  Optional 
Protocol  to  the  Convention  against  Torture  and  Other  Cruel,  Inhuman  or  Degrading 
Treatment  or  Punishment  in  the  light  of  the  positive  constitutional  amendment 
adopted at the end of September outlawing torture. 

6

 
 
Jordan needs to make additional efforts to eradicate violence against women, also by 
introducing further measures to promote their integration into politics, the economy, 
education and employment areas. 

Children born to Jordanian women married to foreigners still cannot acquire Jordanian 
citizenship  thus  depriving  them  of  the  right  to  public  education  and  healthcare. 
Similarly  their  foreign  husbands  do  not  enjoy  same  civic  rights  as  Jordanian  men 
married  to  foreigners.  According  to  local  NGO  figures,  approximately  66,000 
Jordanian  women  are  married  to  foreigners  and  those  with  children  need  to  obtain 
security clearances, residence permits and medical reports for their ‘foreign’ children. 

The temporary Law on honour crimes (introduced by the Government in 2010) was 
endorsed by the Lower House in January 2011 and adopted by the Senate in March. 

In  September,  a  new  Municipalities  Law  entered  into  force.  The  law  allows  the 
creation  of  municipalities  ‘for  communities  where  the  population  exceeds  5,000, 
provided  that  half  the  community  members  are  in  agreement".  However,  in  a  large 
number of cases the Minister of Municipal Affairs was forced by popular pressure to 
establish new municipalities without the consultation process required by the Law. In 
early October, 63 MPs signed a statement criticising the government for its policy of 
redrawing municipal boundaries. In mid-October, the government decided to increase 
the  tax  on  fuel  and  derivatives  from  6  to  8%  in  order  to  finance  the  new 
municipalities. The law increases women’s quota from 20% to 25% of municipal and 
council positions. 

Cooperation  on  Foreign  and  Security  Policy,  regional  and  international  issues, 
conflict prevention and crisis management 

The  EU-Jordan  political  dialogue  on  foreign  and  security  matters  has  further 
developed notably at the most senior level, with a frequency never achieved before. 

Jordan  remains  an  active  supporter  of  a  comprehensive  solution  to  the  Middle  East 
Peace Process, also by facilitating direct talks between the Palestinians and Israelis as 
part of the Quartet process. 

3. 

ECONOMIC AND SOCIAL REFORM 

Macroeconomic framework and functioning of the market economy 

The  political  turmoil  caused  a  slowdown  in  exports,  remittances  and  foreign  direct 
investment  (FDI)  inflows  in  the  first  quarter  of  2011.  This  was  mitigated  by  the 
rebound  of  key  economic  sectors  during  the  rest  of  the  year  and  real  GDP  growth 
attained 2.5% (against 2.3% in 2010). Inflation fell to 4.5 % on average, compared to 
5%  in  2010,  largely  due  to  the  absence  (since  January  2011)  of  pass-through  of 
international oil process to domestic markets and prudent monetary policy measures. 

Rising  global  commodity  prices  combined  with  weak  performance  of  the  tourism 
sector  (-20%)  and  workers’  remittances  (-4.5%)  have  contributed  to  considerably 
widening  the  current  account  deficit  to  9.5%    of  GDP  for  2011.  Net  capital  inflows 
have  shown  a  downward  trend  following  Jordan’s  sovereign-debt  downgrading  in 

7

 
 
February and November. FDI inflows declined from 6.2% of GDP in 2010 to 5.4%. 
The Amman  Stock Exchange  index fell  by  nearly  12% in comparison to its  level at 
the end of 2010. 

The  budget  deficit  reached  6.1%  of  GDP  in  2011  following  implementation  of 
expansionary  fiscal  policies  and  reduced  public  revenues,  up  from  5.4%  in  2010, 
while  the  public  debt  increased  slightly  to  68.5%  of  GDP  (against  66.8%  in  2010). 
Several external and domestic factors have taken their toll on the state finances. For 
example, the repeated terrorist attacks on the pipeline in Egypt used to export gas to 
Jordan  and  Israel  are  estimated  to  have  cost  the  state  budget  1.8  billion  Jordanian 
dinars (JD) (or about 8% of GDP) in 2011 due to the need to use alternative sources of 
energy (diesel and fuel oil). Financial-market conditions have remained sound overall, 
partly due to the dinar being pegged to the US dollar and the adoption by the Central 
Bank  of  Jordan  (CBJ)  of  good-governance  regulations.  In  order  to  encourage 
commercial bank lending, the Bank raised its key interest rates by 25 basis points. 

Jordan  has  advanced  with  reforms  to  improve  the  business  environment,  including 
by strengthening the legal framework for public private partnerships. According to the 
World Bank ‘Doing Business 2012’ report, Jordan now ranks 95th out of 183 countries 
following  progress  in  the  areas  of  starting  a  business,  dealing  with  construction 
permits,  registering  property  and  trading  across  borders.  To  further  support  private 
sector  development,  the  CBJ  has  recently  issued  new  temporary  regulations  to 
facilitate the access by small and medium-sized enterprises (SMEs) to bank credit. 

Employment and cohesion policy 

The unemployment level, at 12.9% of the labour force, showed a modest increase in 
comparison to 2010 levels (12.5%). The highest unemployment rates were recorded in 
the age groups 15-19 and 20-24 years, some 34% and 27% respectively.  Participation 
by  women  in  the  labour  market  (15%)  remains  one  of  the  lowest  in  the  world. 
Structural  problems  continue  to  hamper  the  labour  market  in  Jordan,  such  as  a 
continuing  trend  towards  declining  real  wages  and  a  low  skills/low-productivity 
balance,  due  to  the  presence  of  large  numbers  of  low-paid  foreign  workers  (around 
24% of the total workforce in 2011). The annual labour growth rate is estimated at 4% 
to 5%. A significant number of new jobs go to non-Jordanians 

Following  a  participatory  approach  led  by  the  Social  Security  Corporation,  Jordan 
adopted  a  national  employment  strategy  in  May  2011.  However,  the  related  action 
plan  is  still  being  finalised  and  will  be  launched  in  second  quarter  of  2012.  In 
addition,  the  capacity  and  resources  to  co-ordinate  and  implement  the  strategy  are 
lacking.  A  poverty  pockets  empowerment  programme  was  launched  in  June  2011, 
benefitting 32 regions classified as the most deprived.  

In the area of social protection, social-security coverage has progressed well since its 
start in 2008. In 2011, all the governorates were reached by the programme, achieving 
coverage of more than 60% of all (formal) workers at the end of 2011.  Maternity and 
unemployment  insurance  schemes,  adopted  in  2010,  became  operational  as  of 
September  2011.  The  strategy  to  be  adopted  by  the  Social  Security  Corporation  for 
the  period  2014-2016  was  approved  in  December  2011;  EU  technical  assistance 
contributed to this outcome. 

8

 
 
In terms of social rights, Jordan established a National Pay Equity Committee in July 
2011,  co-chaired  by  the  Ministry  of  Labour  and  the  Jordanian  National  Women’s 
Commission.  The  Committee  aims  to  promote  women’s  participation  in  the  labour 
market,  particularly  through  implementation  of  international  labour  standards  on 
equal remuneration and non-discrimination. 

A substantial package of measures was drawn up to strengthen social rights, provide 
decent  working  conditions  and  ensure  that  labour  standards  comply  with 
International  Labour  Organisation  (ILO)  commitments.  Jordan  has  not  ratified  the 
1948  ILO  Convention  on  Freedom  of  Association  and  Protection  of  the  Right  to 
Organise; nor do government regulations on labour unions comply with international 
standards.   

Rights  of  migrant  workers  in  general  and  of  domestic  workers  in  particular  lack 
proper  protection  and  measures  to  enforce  legislation  on  this  issue  are  still 
insufficient. 

4. 

TRADE-RELATED ISSUES, MARKET AND REGULATORY REFORM 

The  EU  was  for  many  years  Jordan's  leading  trade  partner  and  main  source  of 
imports.  Since  2008  it  has  become  Jordan's  second  trade  partner  -  behind  Saudi 
Arabia  -  covering  15.5%  of  total  trade  and  2.1%  of  Jordanian  imports.  Total  trade 
with  the  EU  amounted  to  approximately  EUR3.5  billion  in  2011.  The  EU  was 
Jordan's  largest  source  of  imports  (20.1%)  and  the  seventh  largest  destination  of 
exports  (3.7%).  Conversely,  Jordan  ranked  65th  among  EU's  trade  partners,  which 
resulted in a chronic and significant trade deficit with the EU, amounting to EUR 3,25 
billion in 2011).  

Tariff  dismantling  proceeded  as  planned  in  the  EU-Jordan  Association  Agreement. 
The Jordanian Customs Department issued in May 2011 a circular on the further tariff 
dismantling for the industrial products imported from the EU listed under Annexes III 
and IV, and the Annex to Protocol 2. Another positive development was the entry into 
force of the EU-Jordan dispute settlement Protocol in July 2011. 

During 2011, minor trade barriers persisted, namely on issues related to sanitary and 
phyto-sanitary  issues.  Jordan  continued  to  impose  safeguards  on  imports  of  ceramic 
tiles.  

Jordan  informed  the  EU  that  the  Council  of  Ministers  has  taken  the  decision  on 
14/12/2011 to cease the safeguard measure imposed on the imported ceramic tiles and 
entered into force on 16 December 2011. 

In February  2011 Jordan agreed  with  the EU  on  the  scope  of  future  negotiations  on 
trade  in  services  and  establishment.  These  negotiations  will  be  embedded  in  the 
framework  of  the  Deep  and  Comprehensive  Free  Trade  Agreement  negotiations,  for 
which the EU Council mandated the Commission in December 2011. 

The customs administration co-ordinates, under the single window concept, work of 
all  agencies  operating  at  the  border.  The  number  of  companies  participating  in  the 
‘Golden  List’  programme,  facilitating  trade  for    compliant  authorised  economic 

9

 
 
operators, increased in 2011 up to 34. The implementation of pre-arrival processing of 
declarations  was  pending.  Jordan  achieved  most  of  the  objectives  of  the  2008-2010 
Strategic Plan: facilitating movement of goods and persons (90%), and developing the 
customs  infrastructure  and  general  performance  (93%).  In  July  2011,  Jordan  signed 
the  regional  Convention  on  pan-Euro-Mediterranean  preferential  rules  of  origin. 
Jordan did not implement its new Customs Law yet. 

The  Gulf  Cooperation  Council  (GCC)  welcomed  Jordan’s  request  for  accession  in 
May  2011.  Depending  on  the  degree  of  Jordan's  participation,  the  adaptation  of  the 
Jordanian  regulations  to  those  of  the  GCC  could  involve  changes  in  several  areas, 
including the mechanisms for customs regulations and the reduction of duties, which 
would reduce customs revenues because customs duties in Jordan are higher than in 
the GCC states.  

In  the  area  of  free  movement  of  goods  and  technical  regulations,  preparations  to 
negotiate  an  Agreement  on  Conformity  Assessment  and  Acceptance  of  Industrial 
Products  (ACAA)  continued.  Jordan  had  chosen  electrical  products,  toys  and  gas 
appliances as priority sectors. Amendments to the law on standards and metrology as 
well as a draft accreditation law have been presented to the newly elected Parliament. 
Their adoption has been pending since 2008.  

A  twinning  project  started  in  October  2011  in  order  to  support  the  Jordanian 
Standards  and  Metrology  Organisation  implementing  the  2009  Road  Map  for  the 
conclusion  of  the  ACAA.  It  will  also  cover  the  reorganisation  of  the  market 
surveillance system. 

In  the  area  of  sanitary  and  phyto-sanitary  issues,  Jordan  pursued  work  on  a  new 
food  law,  aiming  at  approximation  with  EU  standards.  Cooperation  with  the  EU, 
including through twinning and TAIEX, focused on phyto-sanitary capacity building, 
the  strengthening  of  laboratories,  better  meat  hygiene  during  slaughter  and  staff 
training.  

No  changes  in  the  rules  on  the  establishment  were  introduced  and  100%  foreign 
ownership  is  still  banned  in  transport,  insurance  agents,  travel  agencies  and  tour 
operators. 

The Parliament has not yet dealt with the amendments to company law (to reduce the 
minimum capital of limited liability companies from 30.000 dinars to 1 dinar and to 
shorten the registration period).  

Jordan’s  business  environment  suffered  from  high  energy  prices  (see  energy 
section). Jordan’s ranking in the World Bank’s ‘Doing Business 2012’ report shifted 
only  marginally  from  95th  to  96th.  A  significant  improvement  took  place  in  the 
trading  across  borders  ranking  from  74th  to  58th.  An  Economic  National  Dialogue 
Committee  was  established  in  May  to  formulate  proposals  to  improve  the  business 
climate and review fiscal policy.  

No significant developments were observed in the area of accounting and auditing. 
With  EU  support,  Jordan  conducted  a  study  on  services  in  2011  that  helped  the 
government  to  identify  priority  areas  for  its  service-competitiveness  strategy:  health 

10

 
 
tourism,  engineering,  business  services,  education,  creative  industries,  and  transport 
and distribution. 

The  Central  Bank  of  Jordan  adopted  Implementation  Regulations  for 
the 
establishment  of  a  Credit  Bureau,  which  will  facilitate  the  provision  of  financial 
services. 

Other key areas 

The  Income  and  Sales  Tax  Department  adopted  new  information  systems  and  audit 
techniques including the new Audit Tracking System at the Large and Medium-Size 
Taxpayer Directorates. 

The  2011  revised  Competition  Law  entered  into  force  in  October,  authorising  the 
government to regulate food prices and markets.  

Jordan’s  record  on  intellectual  property  rights  (IPR)  is  improving  but  a  large 
proportion  of  videos  and  software  sold  in  the  marketplace  continues  to  be  pirated. 
Jordan  is  examining  ways  to  strengthen  IPR  enforcement,  including  granting 
enforcement officers ex-officio authority to seize pirated items and bring cases against 
violators.  Jordanian  customs  procedures  to  combat  IPR  infringements  are  to  a  large 
extent aligned with EU ones. 

Jordan  changed  its  2010  decision  to  merge  the  three  procurement  departments  in 
Ministry of Finance, Ministry of Public Works and Housing and Ministry of Health. 
In July 2011, experts were tasked to finalise a unified by-law suitable for the work of 
the  three  procurement  departments,  and  in  harmonization  with  the  international 
standards.  

Jordan continued introducing international standards and best practices e.g. in the area 
of  migration  statistics,  and  improved  its  IT  infrastructure  according  to  the  National 
Statistical Strategy 2008–2012.  

Concerning  public  internal  financial  control,  the  Ministry  of  Finance  and  Audit 
Bureau signed in March 2011 a Memorandum of Understanding, ultimately leading to 
withdrawal of the Audit Bureau from the pre-payment audit after the establishment of 
financial control units in the public institutions under the guidance of the Ministry of 
Finance.  SIGMA  supported  the  Audit  Bureau  to  implement  its  Strategic  Plan  2011-
2015  and  the  Ministry  of  Finance  to  elaborate  a  Road  Map  Activity  Plan  for  the 
reform  of  the  internal  control  and  the  internal  audit  system.  In  November  2011,  the 
Audit  Bureau  made  for  the  first  time  its  Annual  Audit  Report  (of  2010)  public  and 
accessible on its website.  

Jordan  participated  in  implementing  the  2011-2012  industrial  cooperation  work 
programme that Euro-Mediterranean Industry Ministers adopted on 11-12 May 2011 
in  Malta.  However,  progress  in  implementing  the  Euro-Mediterranean  Charter  for 
Enterprise was hampered by the budget deficit.  

There is no consolidated enterprise policy. Very slow progress has been recorded in 
the development of a comprehensive export-promotion strategy that was finalised in 
August  2011.  The  Government  focused  its  effort  in  2011  on  a  mechanism  to 
encourage bank lending to SMEs. A $250 Million loan-guarantee mechanism is being 

11

 
 
established.  In  March  2011,  the  Government  announced  an  SME  Fund  ($150-200 
million) to create income-generating opportunities outside the capital.  

5. 

COOPERATION ON JUSTICE, FREEDOM AND SECURITY 

Although  Jordan  is  not  a  signatory  to  the  1951  Refugee  Convention,  it  has  given 
hospitality  to  a  very  large  community  of  refugees  from  the  occupied  Palestinian 
territories and Iraq. Moreover, according to UN sources, Syrians continue to arrive in 
Jordan and by the end of 2011 some 2 500 Syrians were registered with the UNHCR. 
However, the number of Syrians fleeing to Jordan has been increasing since then.  

In  December  2011,  two  EU-funded  projects  were  put  in  place  with  the  aim  of 
improving working and living conditions of migrant workers.   

On the occasion of the EU-Jordan Social and Migration Working Group in June 2011, 
Jordan  expressed  interest  in  engaging  in  a  Dialogue  on  Migration,  Mobility  and 
Security, (which includes the option of concluding a Mobility Partnership), as offered 
by the EU to southern Mediterranean countries.   

With  reference  to  money  laundering,  Jordan  continues  to  seek  participation  in  the 
Egmont Group.   

Jordan  is  a  transit  country  for  drugs  trafficking  from  Iraq.  Measures  were  taken  to 
increase public awareness about drugs. 

In  the  area  of  judicial  cooperation,  Jordan  has  not  yet  acceded  to  the  1980  Hague 
Convention  on  the  Civil  Aspects  of  International  Child  Abduction  or  the  1996 
Convention on Parental Responsibility and the Protection of Children. Jordan has not 
taken steps either to accede to the Council of Europe conventions on the Transfer of 
Sentenced Persons and on Cybercrime with their respective Additional Protocols.  

6. 

TRANSPORT,  ENERGY,  ENVIRONMENT,  THE 
RESEARCH AND INNOVATION 

INFORMATION  SOCIETY, 

Jordan  continued  to  implement  the  National  Transport  Strategy  2009–2011.  In 
January  2011, Jordan, Syria, Lebanon and Turkey agreed to develop a joint sectoral 
outlook  for  economic  integration  through  unified  transport  legislation  to  comply 
with EU and international standards. The Parliament ratified altogether four laws, of 
which  one  is  permanent  (on  Land  transport  regulatory  Commission)  and  three 
temporary  laws,  (namely:  the  Laws  on  Railroads  establishing  the  Jordan  Railway 
Corporation,  on  Passenger  Public  Transport).  The  budgetary  situation  of  Jordan,  as 
well as the international debt crisis has hindered the progress of major infrastructure 
projects (like the National Railway Network) negotiations with lenders. Maintaining a 
high level of aviation safety in Jordan is of utmost importance; cooperation between 
Jordan and EU continues to strengthen aviation oversight. 

Energy-dependent  Jordan  pursued  efforts  to  reduce  the  import  bill  and  to  diversify 
energy  supply.  It  took  steps  towards  the  use  of  more  domestic  resources  (gas,  oil 
shale,  uranium  for  nuclear  energy  generation,  renewables)  and  explored  gas  import 
options (Liquid Natural Gas, Iraqi imports). 2011 was marked by several interruptions 

12

 
 
of Egyptian gas imports when sections of the import pipeline were blown up. This led 
to a considerably higher energy bill and electricity tariffs. In December 2011, Jordan 
and Egypt signed a new gas supply agreement. Jordan agreed with Iraq an increase in 
oil imports. Jordan continued liberalisation of the oil sector and the expansion of the 
refinery.  Jordan  implemented  energy  efficiency  measures  in  public  facilities. 
Preparations for the development of renewable energy facilities were pursued. These 
efforts are instrumental in developing the Mediterranean Solar Plan. The EU supports 
capacity  building  in  wind  energy  and  concentrated  solar  power.  Jordan  took  further 
steps towards its first nuclear power plant. Following the Fukushima nuclear accident, 
the  issue  of  future  nuclear  power  generation  was  widely  debated  in  the  country. 
Preparations to build a nuclear research reactor continued. 

Jordan  launched  work  on  the  third  national  report  under  the  UN  Framework 
convention on Climate Change (UNFCCC). Sub-regional cooperation (Israel, Jordan, 
occupied Palestinian territory) was launched on the impact of climate change on water 
availability. No new Clean Development Mechanism project was registered at the UN 
level, leaving the number of registered projects at two. Jordan is being encouraged to 
build  capacity  and engage  in  the  new  carbon-market  mechanism  to  be  developed 
following  the  UNFCCC  Conference  of  the  Parties  17th  meeting.  Jordan  is  also 
encouraged to fully implement the Cancun and Durban agreements and in particular 
to  devise  a  low-carbon  development  strategy  including  updating  information  on 
targets or actions that it will implement. 

Jordan  started  updating  its  strategic  environment  plan,  with  a  view  to  further 
mainstreaming  environment  in  relevant  sectors.  It  launched  an  action  plan  for 
management of electronic waste as well as works on the third national communication 
under  the  UN  Framework  convention  on  Climate  Change  (UNFCCC).  Jordan  is 
encouraged to build capacity and engage in the new carbon market mechanism to be 
developed  following  the  UNFCCC  COP  17.  Jordan  is  also  encouraged  to  fully 
implement  the  Cancun  and  Durban  agreement.  The  government  adopted  a  water 
resource reallocation policy to regulate distribution between governorates and demand 
sectors,  including  substitution  of  fresh  water  resources  with  treated  waste  water. 
Jordan still needs to clarify its next intended steps with regard to the ratification of the 
Gaborone  amendment  to  the  Convention  on  International  Trade  in  Endangered 
Species (CITES). The EU provided technical assistance for updating the environment 
law. 

In the field of civil protection, Jordan intensified the cooperation with the countries 
from the region and the exchange of best practices with the EU in the field of disaster 
prevention, preparedness and response through its participation in the EU Programme 
for Prevention of, Preparedness for, and Response to natural and man-made disasters. 

The Telecommunication Regulatory Commission (TRC) concluded a market review, 
which enables the TRC to impose regulatory obligations on any operator found to be 
dominant  in  the  relevant  markets.  These  are:  Fixed  Broadband  Market,  Mobile 
Market,  Fixed  Narrowband  and  Dedicated  Capacity  Market.  Mobile  market  leader 
Zain  launched  3G  network  services  in  March  2011  that  has  resulted  in  quick 
elimination  of  Jordan Telecom Group, 3G monopoly  of  the  market  (first  3G  license 
was  granted  to  Orange  Mobile  in  2009).  Alternative  technologies  for  providing 
broadband service are being deployed (i.e. Wi-Max, Mobile Broadband and Cables), 
leading  to  further  competition  among  service  providers.  A  twinning  project 

13

 
 
"Institutional  strengthening  of  the  Telecommunications  Regulatory  Commission  in 
Jordan" started in September 2011. 

In  the  area  of  research  and  innovation,  the  High  Council  for  Science  and 
Technology  is  finalising  the  draft  of  a  National  Science  and  Technology  Innovation 
Policy  and  Strategy  2012-2016.  The  2nd  phase  of  the  Support  to  Research  and 
Technological Development and innovation initiatives and strategies programme was 
officially launched in 2011 with an EU Contribution of EUR5 million.  As regards the 
participation  of  Jordan  in  the  7th  Framework  Programme,  up  to  mid-October  2011, 
Jordan had 21 signed grant agreements, involving 28 participants and benefiting from 
an EU contribution of EUR 2.7 million. The participation of Jordan in the Framework 
Programme is satisfactory considering the low number of inhabitants and researchers 
in comparison with other Mediterranean Partner Countries. The main thematic areas 
of  main  interest  are  Environment  (including  Climate  Change),  Information  and 
Communication Technologies, Food, Agriculture, Fisheries and Biotechnologies and 
Marie-Curie Actions. 

7. 

PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH 

Reform  efforts  in  basic  and  higher  education,  and  in  the  vocational  education  and 
training  sector  (VET)  need  to  be  better  integrated  and  coordinated  specially  at  the 
policy level. Education reform continued steadily, with the increase of net enrolment 
rates in secondary education (up to 75% in 2011), a successful parental involvement 
programme  in  preschool  education  and  the  roll-out  of  a  school-based  development 
and  improvement  programme.  In  March  2011,  the  Government  endorsed  a  new 
teacher  policy  framework  (which  is  still  to  be  implemented)  and  endorsed  the 
establishment  of  the  teachers’  union.  However,  changes  in  leadership,  a  shortage  of 
classrooms  especially  in  urban  areas,  important  transfers  of  students  from  private  to 
public  schools  and  a  lack  of  attention  given  to  knowledge-society  skills,  had  a 
negative impact on efforts to improve the quality of education.  In December, the EU 
signed  a  new  financial  agreement  over  EUR  23  million  to  support  the  multi-donor 
support  programme  to  the  National  Education  Strategy  (ERfKE  II  –  Education 
Reform for the Knowledge Economy).   

In  the  higher  education  field,  the  Ministry  of  Higher  Education  and  Scientific 
Research  prepared  an  executive  development  programme  for  2011-2013,  aimed  at 
increasing  the  quality  of  higher  education  delivery,  strengthening  the  education-
research nexus and securing adequate funding.  Brain drain continued to be a major 
problem  in  2011,  with  many  professors  and  researches  leaving  to  work  in  the  Gulf 
countries. 

EU-Jordan higher education cooperation progressed well, with Jordan using exchange 
opportunities  offered  by  the  Erasmus  Mundus  programme.  Two  new  projects 
involving  10  Jordanian  universities  were  selected  in  2011,  leading  to  the  planned 
mobility of 80 students and staff (52 of these mobility schemes were financed out of 
the additional EU funding allocated under the review of the European Neighbourhood 
Policy). Three additional Tempus IV  projects involving Jordanian universities were 
selected.  Only three institutions and two Jordanian researchers participated in 2011 in 
the Marie Curie scheme aimed at fostering international research collaboration.  

14

 
 
In  the  vocational  education  and  training  sector,  the  Centre  for  Accreditation  and 
Quality Assurance still lacks a legal basis and there is no clarity about the provision of 
funding. An EU budget-support programme started at the end of 2010, with the aim of 
providing  new  momentum  to  the  VET  sector  reform  process  and  supporting  the 
development of training of excellence in key innovative sectors (including renewable 
energy  and  energy  efficiency,  water  and  the  environment).  The  European  Training 
Foundation  continued  its  support  to  engage  social  partners  in  human  capital 
development and contributed to the reform process of career-guidance development. 

Jordan participated in the Euro-Med Heritage Programme in projects concerning the 
management  of  ancient  theatre  complexes,  youth  outreach  and  education  and  the 
promotion of cultural heritage. One  new Jordanian  proposal was selected under the 
Euro-Med Audiovisual programme.  

In May 2011, Jordan adopted a youth strategy for 2011-2015, drawn up by the Higher 
Council for Youth. Authorities are already considering a revision of the strategy for 
2012, given the lack of a participatory approach in its formulation and failure to take 
into  account  the  new  employment  strategy.  .The  number  of  young  Jordanians  and 
Jordanian youth workers benefitting from the exchange opportunities provided by the 
Youth in Action programme more than doubled, form 63 in 2010 to 132 in 2011. One 
new Jordanian project was selected in the Euro-Med Youth Programme IV.   

Jordan  continued  health  sector  reform  and  updated  the  Health  Strategic  Plan  2008-
2012. It participated in the EU-supported ‘Episouth Plus’ project aimed at increasing 
health security in the Mediterranean region and South East Europe. 

15