JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in Jordan Progress in 2012 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 European Neighbourhood Policy: Working towards a Stronger Partnership
Date: 2013-03-20
Institutions: European Commission, High Representative of the Union
Subjects: European neighbourhood policy, Jordan, democratisation, economic integration, economic reform, educational reform, institutional reform, political cooperation, political reform, sustainable development, trade cooperation

EUROPEAN 
COMMISSION 

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

Brussels, 20.3.2013  
SWD(2013) 92 final 

JOINT STAFF WORKING DOCUMENT 

Implementation of the European Neighbourhood Policy in Jordan 
Progress in 2012 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 

European Neighbourhood Policy: Working towards a Stronger Partnership 

{JOIN(2013) 4 final} 
{SWD(2013) 79 final} 
{SWD(2013) 80 final} 
{SWD(2013) 81 final} 
{SWD(2013) 82 final} 
{SWD(2013) 83 final} 
{SWD(2013) 84 final} 
{SWD(2013) 85 final} 
{SWD(2013) 86 final} 
{SWD(2013) 87 final} 
{SWD(2013) 88 final} 
{SWD(2013) 89 final} 
{SWD(2013) 90 final} 
{SWD(2013) 91 final} 
{SWD(2013) 93 final} 

EN 

   EN 

 
 
 
 
  
 
 
 
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  2012,  although  developments  outside  this  period 
are also taken into consideration where relevant. It is not a general review of the political and 
economic  situation  in  Jordan.  For  information  on  regional  and  multilateral  sector  processes 
readers should also refer to the progress report of the Partnership for Democracy and Shared 
Prosperity. 

In 2012 the political instability already experienced in 2011 continued, with three successive 
cabinets  being  appointed.  This  picture  was  further  complicated  by  a  worsening  economic 
outlook,  in  an  overall  context  of  heightened  tension  in  the  region  notably  due  to  the  civil 
unrest in Syria. Jordan has played a vital role in providing support and hospitality to the ever-
growing number of Syrian refugees fleeing the atrocities. Recognising the burden this places 
on  the  country's  resources,  the  EU  provided  support  through  humanitarian  assistance  and 
longer terms measures with overall funding of over EUR 43 million. 

Cooperation between the EU and Jordan improved further in 2012. The political dialogue on 
foreign  and  security  matters  continued  to  take  place  at  the  most  senior  level  with  High 
Representative  Foreign  Affairs  and  Security  Policy/Vice  President  Ashton  visiting  Jordan 
frequently.  His  Majesty  King  Abdullah  also  visited  the  European  institutions  in  April  and 
President Barroso paid an official visit to Jordan in October. 

As  regards  the  implementation  of  the  ENP  Action  Plan,  there  were  some  positive 
developments as regards deep and sustainable democracy, in line with the recommendations 
set out in the previous Progress Report. Political reforms continued in 2012 in particular with 
the  establishment  of  an  independent  electoral  commission,  the  establishment  of  the 
Constitutional Court, the adoption of a new political parties’ law and a new electoral law. The 
latter law, however, has been strongly criticised by most opposition parties claiming it does 
not  ensure  a  fair  distribution  of  seats  and  perpetuates  the  previous  law  based  on  the  “'one 
person, one-vote” system (i.e. the single non-transferable vote). 

Jordan should step up its fight against corruption, which weakens citizens’ trust in democratic 
institutions and undermines the country’s economic and social development. 

In  November,  the  Jordanian  cabinet  adopted  a  number  of  austerity  measures  including  the 
abolition of government subsidies for fuel products, in order to drastically reduce the growing 
budget  deficit  that  has  threatened  to  plunge  the  nation  into  a  fiscal  crisis.  These  measures 
caused violent protests and spontaneous demonstrations all over the country with riots in more 
than a dozen cities. Over 300 protesters were arrested, although most of them were released 
within  a  few  days.  In  December,  King  Abdullah  instructed  the  government  to  release  those 
still in jail (some 120 people). 

In a number of instances in 2012, the General Prosecutor continued referring civilians to the 
State  Security  Court  with  offences  involving  free  speech,  contrary  to  the  constitutional 
amendments made in 2011. 

The  amendments  to  the  Press  and  Publication  Law  and  the  on-line  media,  adopted  in 
September, stirred a heated debate in the country. Representatives from domestic press voiced 
their  concerns  about  certain  controversial  provisions  in  the  law  including  inter  alia a  vague 

2 

 
 
definition of electronic publications, the licensing of online media, media outlets’s liability for 
posted comments, and the introduction of an obligation for chief editors to be members of the 
Jordan Press Association. 

A further example of the closer EU-Jordan cooperation can be reported in the transport area. 
In April, the European Aviation Safety Agency (EASA) and Jordan Civil Aviation Regulatory 
Commission (CARC) signed a working arrangement on technical cooperation in the field of 
civil aviation safety. 

In  the  area  of  migration,  the  EU-Jordan  Dialogue  on  Migration,  Mobility  and  Security 
mobility was launched in December. 

Moreover,  in  December,  the  EU  and  Jordan  signed  a  Protocol  to  the  Euro-Mediterranean 
Agreement  on  the  general  principles  for  Jordan’s  participation  in  EU  programmes.  This 
represents a further step forward in EU-Jordan partnership, opening up new opportunities in 
many sectors. 

On  the  economic  front,  Jordan  continued  to  face  multiple  external  shocks.  High  prices  for 
imports of oil and food; repeated and extensive periods of interrupted natural gas flow from 
Egypt due to the sabotage of energy infrastructure (gas pipeline), a slowdown in remittance 
flows,  and  the  persistent  unrest  in  Syria  continued  to  have  a  negative  impact  on  Jordan’s 
economy. 

In  August,  Jordan  signed  an  agreement  with  the  International  Monetary  Fund  on  a  USD  2 
billion  stand-by  arrangement  to  support  the  country’s  economic  programme  from  2012  to 
2015 to address fiscal and external challenges and foster high and inclusive growth and looks 
forward  to  its  implementation.  Early  December,  the  Jordanian  government  formalised  its 
request for an EU Macro Financial Assistance (MFA) programme. 

In 2012 Jordan addressed a number of the key recommendations contained in the last year's 
the 
the  establishment  of 
ENP  progress  report,  notably 
Constitutional Court, the adoption of a political parties' law and an electoral law. Most of the 
other  key  recommendations  made  previously  remain  valid.    In  line  with  the  commitments 
agreed  in  the  ENP  Action  Plan,  Jordan  should  pursue  the  reform  process,  enforce  the  laws 
adopted and acts accordingly. Jordan is particularly invited: 

the  electoral  commission, 

•  To  build  an  inclusive,  participatory,  and  open  political  system  where  all  Jordanians  feel 
represented.  Review  the  electoral  law  framework  ensuring  the  universality  of  voter 
participation and equality of votes. 

•  To  strengthen  the  independence  and  impartiality  of  the  judiciary  and  its  administrative 

capacity, including completely ceasing to use military courts to judge civilians. 

•  To  enhance  the  fight  against  corruption  which  undermines  the  country’s  political, 
economic  and  social  development,  also  through  the  adoption  of  the  new  draft  National 
Anti-Corruption Strategy and related Action Plan. 

•  To  take  concrete  steps  to  eradicate  violence  against  women  and  to  promote  women's 

integration in politics, economic life, education and employment. 

3 

 
 
•  To withdraw its reservations on Article 15(4) of the UN Convention on the Elimination of 
All Forms of Discrimination against Women (CEDAW), in line with the recommendation 
of the UN Committee on the Elimination of Discrimination against Women. 

•  To proceed towards a de jure abolition of the death penalty. 

•  To  move  forward  with  the  ratification  of  the  Optional  Protocol  to  the  UN  Convention 

against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment. 

•  To  ensure  freedom  of  the  press  and  prevent  any  kind  of  interference  in  mainstream  or 
online  news  portals.  Discontinue  the  practice  of  referring  civilians  to  the  State  Security 
Court for free speech offences. 

•  Ratify the regional Convention on pan-Euro-Mediterranean preferential rules of origin. 

•  Pursue regulatory convergence to support efforts to increase exports and to prepare for an 
Agreement on Conformity Assessment and Acceptance of industrial products, and step up 
efforts towards a Deep and Comprehensive Free Trade Area (DCFTA). 

2. 

POLITICAL DIALOGUE AND REFORM 

Towards deep and sustainable democracy 

In  June,  Parliament  adopted  a  new  Elections  Law  that  added  to  the  existing  single  non-
transferable vote at Governorate level, a second, proportional vote at the national level. From 
early August until mid-October, the Independent Electoral Commission (IEC) compiled a new 
voters'  lists,  with  over  2.3  out  of  3.6  million  eligible  voters  registered.  For  the  first  time, 
voters were assigned to specific polling stations. However, in July the Islamic Action Front, 
Jordan's  major  political  party,  and  other  opposition  parties  announced  their  boycott  of  the 
electoral process from registration to voting. 

In  April,  Parliament  adopted  a  law  establishing  an  Independent  Electoral  Commission.  The 
IEC,  headed  by  Abdulilah  Al  Khatib,  started  its  work  in  May  and  is  responsible  for  the 
conduct and organisation of parliamentary elections, taking over from the Ministry of Interior. 
In August, the IEC invited for the first time the EU to observe the parliamentary elections that 
took  place  on  23  January  2013.  The  EU  deployed  a  full  electoral  observation  mission  (EU 
EOM).  In  its  preliminary  statement  released  on  25  January,  the  EU  EOM  reported  that  the 
legislative elections were well organised and administered despite serious inadequacies in the 
legal framework affecting the universality of voter participation and equality of votes. 

The  EU  made  an  allocation  of  EUR  70  million  available  from  the  SPRING  (Support  for 
Partnership, Reform and Inclusive Growth) programme, doubling its average annual bilateral 
cooperation,  to encourage the consolidation of reforms  in  the political, social and economic 
areas.  Part  of  this  support  targeted  the  electoral  process  in  Jordan,  including  institutional 
support  to  the  IEC  and  to  the  judiciary.  The  second  part  was  allocated  under  the  “Good 
Governance Development Contract” to support the strengthening of human rights, economic 
development and social protection. 

With  regard  to  freedom  of  association,  in  July  Jordan  refused  to  allow  the  civil  society 
organisations 'Tamkeen' and 'Acted' to accept foreign funding for projects targeting, the rights 

4 

 
 
of  migrant  workers  and  refugees  respectively.  These  were  the  first  refusals  of  European 
funding since the adoption of the 2008 Law of Societies, as amended in 2009. 

In  May,  Parliament  adopted  a  Political  Parties  Law  that  retained  a  significant  role  for  the 
Ministry of Interior in the registration and oversight of political parties. The law removed the 
requirement  for  founding  members  to  obtain  security  clearance  and  aimed  to  limit  the 
interference  of  state  entities  in  party  life,  but  did  not  prescribe  sanctions  for  doing  so.  The 
required  number  of  founding  members  (500)  remains  unchanged.  The  law  also  introduced 
requirements as to the gender balance (a minimum quota of 15 seats allocated to women) and 
geographical representation from governorates among founders. The law prohibits forming a 
political  party  on  religious,  sectarian,  ethnic,  or  factional  basis,  or  on  the  basis  of 
discrimination  of  gender  or  origin.  In  2012,  the  number  of  registered  political  parties 
increased from 18 to 23. 

With  regard  to  freedom  of  assembly,  public  protests  in  Jordan  continued  throughout  2012 
with several thousand demonstrations held, from small protests to larger marches. Jordanian 
police handled the protests in  a peaceful and professional manner. In several cases in 2012, 
however, the government arrested activists and brought politically motivated charges against 
them.  

Concerning freedom of expression, in January a demonstrator was sentenced to two years in 
prison by the  State  Security Court to over torching a picture of the King. The  demonstrator 
was  eventually  pardoned  by  the  King  Abdullah.  Several  cases  of  peaceful  speech,  some 
involving  journalists,  were  also  prosecuted  at  State  Security  Court,  despite  a  2011 
constitutional  amendment  that  limited  the  court’s  jurisdiction.  In  March,  clashes  in  Tafileh 
between  Gendarmerie  and  pro-reform  youth  led  to  violence,  arrests  and  ill-treatment  in 
custody  according  to  local  NGOs.  A  protest  in  Amman  against  the  continued  detention  of 
activists from Tafileh led to the arrest of some 30 persons charged with insulting the King. In 
September, security forces arrested a number of activists from Tafileh, Karak and Amman and 
charged them under terrorism provisions. They remain in detention. 

As regards media freedom, in April, a journalist and an editor from a local online news outlet 
were  arrested  when  an  article  implied  royal  interference  in  parliamentary  corruption 
proceedings.  In  September,  the  Parliament  adopted  an  amendment  to  the  Press  and 
Publications  Law  which  the  Government  claimed  would  ensure  better  organisation  and 
accountability in the sector. The law met with strong public criticism; with the online media 
community  joining  in  a  civic  protest  against  the  law  calling  for  disobedience.  The  law 
empowers a government agency - the Press and Publications Directorate - to define a website 
as an "electronic publication", to make a request for it to register and to punish it with a fine if 
it  does  not.  Once  a  website  is  registered,  the  Press  and  Publications  Law  applies  to  it, 
including  mandatory  membership  in  the  Jordan  Press  Association.  The  law  also  makes 
website owners liable for comments left by users on their websites as "press material"making 
the owner of the site responsible for them. The law further provides for the establishment of 
specialised courts dealing with press offences. 

No further progress was made towards judicial independence. The government did not adopt 
the  long  awaited  draft  Independence  of  Judiciary  Law  which  aims  to  consolidate  the 
independence of the Higher Judicial Council as the sole body authorised to appoint judges. 

One  positive  development  was  the  adoption  of  the  Constitutional  Court  Law  that  was 
approved  by  Royal  Decree  in  June  and  entered  into  force  in  October.  It  provides  for  the 

5 

 
 
establishment of an independent and separate judicial body to monitor the constitutionality of 
laws  and  regulations  in  force  and  to  interpret  the  provisions  of  the  Constitution.  The 
Constitutional Court supersedes the Higher Council for the Interpretation of the Constitution. 
The  constitutionality  of  laws  can  be  challenged  by  bodies  including  the  Senate,  House  of 
Representatives and the Council of Ministers. 

In the framework of the Commission financed programme “Strengthening democratic reform 
in the southern Mediterranean”, the Council of Europe agreed with the Jordanian authorities 
to cooperate in a number of areas, including justice. 

Corruption in Jordanian society remains a matter of serious concern. Despite a stated policy 
of zero tolerance, progress remained slow in terms of concrete measures taken. Several high-
profile officials were arrested on corruption charges and the cases are still under investigation. 
In  April,  the  Parliament  adopted  an  amendment  to  the  Anti-Corruption  Law  introducing 
provisions  for  the  protection  of  whistle-blowers  and  witnesses.  The  EU  supports  the 
strengthening of the capacity of the Anti-Corruption Commission. A new draft National Anti-
Corruption Strategy and Action Plan were prepared. 

Other human rights and governance-related issues 

A  de  facto  moratorium  on  the  application  of  the  death  penalty  continues  to  apply.  It  is 
estimated that 95 persons are on death row in Jordan. The EU encouraged Jordan to consider 
proceeding towards a de jure abolition of the death penalty. 

Following  the  2011  constitutional  amendment  outlawing  torture,  the  EU  invited  Jordan  to 
sign  the  Optional  Protocol  to  the  Convention  against  torture  and  other  cruel,  inhuman  or 
degrading treatment or punishment, to establish an efficient national  preventive mechanism, 
instigate an inspection system that allows unannounced visits, and systematically publish data 
on torture. 

In  March,  the  UN  Committee  on  the  Elimination  of  Discrimination  against  Women 
recommended, inter alia, that Jordan withdraw its reservations from Article 15(4) of CEDAW 
and  revise  its  Nationality  Law.  In  May,  the  Special  Rapporteur  on  violence  against  women 
presented  her  report  to  the  20th  session  of  the  Human  Rights  Council  (HRC)  and 
recommended,  inter  alia,  that  Jordan  amend  Article  6  of  its  Constitution  and  amend  its 
Nationality  Act  to  grant  Jordanian  women  the  right  to  confer  their  citizenship  on  their 
children. In June, the Jordanian National Commission for Women launched the third National 
Strategy for Women for 2012-2015. In September, the Parliament deleted a provision in the 
amendment  to  the  Passports  Law  that  stipulated  that  women  needed  prior  agreement  from 
their spouses to obtain travel documents. 

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

Political  dialogue  between  the  EU  and  Jordan  on  foreign  and  security  policy  developed 
further,  notably  at  the  most  senior  level.    With  regard  to  the  Middle  East  Peace  Process, 
Jordan continued to be strong advocate of reviving the negotiations between the Palestinians 
and the Israelis. From January to March, Jordan sponsored exploratory talks between Israeli 
and Palestinian envoys in Amman. 

6 

 
 
As  a  custodian  of  Holy  Sites  in  Jerusalem  under  the  Jordan-Israel  peace  treaty,  Jordan 
frequently  criticised  Israel's  attempts  to  erase  the  Arab,  Muslim,  or  Christian  elements  of 
Jerusalem’s identity and to endanger Al Aqsa Mosque. 

Jordan  kept  an  open-door  policy  towards  refugees  fleeing  Syria.  The  number  of  refugees 
increased dramatically towards the end of the year. By the end of 2012, Jordan hosted over 
173 000 Syrian refugees registered and/or assisted by the UNHCR. The government of Jordan 
estimated  the  number  of  Syrian  refugees,  including  those  in  host  communities,  at  250.000 
overall by end of December. In July, Jordan opened the Za'atari camp for Syrian refugees near 
Mafraq in northern Jordan. In October, Jordan selected Marjeeb Al Fahood near Zarqa as the 
second refugee camp. 

Jordan  became  the  first  country  in  the  Middle  East  to  have  removed  all  minefields  from  its 
territory in accordance with its international obligations as a State Party to the Anti-Personnel 
Mine  Ban  Convention.  The  Permanent  Secretariat  of  CBRN  (Chemical,  Biological, 
Radiological and Nuclear) Risk Mitigation Centres of Excellence in the Middle East opened 
in Amman in October. 

3. 

ECONOMIC REFORM, SOCIAL REFORM AND DEVELOPMENT 

Macroeconomic framework1 

Despite the positive economic spillover from the Gulf countries, Jordan’s fiscal- and balance 
of payments position deteriorated in 2012, reflecting higher oil prices, the impact of regional 
tensions on inward investment, and the gas supply disruptions from the Egyptian pipeline that 
forced the import of more expensive fuels. The macroeconomic situation improved only in the 
second  half  of  the  year,  following  the  approval  by  the  IMF  of  a  USD  2  billion  adjustment 
programme, thereby contributing to the acceleration of the GDP growth from 2.6% in 2011 
to an expected 3% in 2012. Consumer price inflation remained broadly at the 2011 levels as 
the inflationary impact of the pass-through of international prices was largely offset by further 
monetary policy tightening. The central bank raised its policy interest rates by 50 basis points 
in February and increased by another 75 basis points the overnight deposit rate in December 
2012. 

The  shocks  to  the  energy  sector  had  an  impact  on  public  finances,  including  through  the 
losses of the state-owned electricity company (estimated at USD 2 billion). With the aim to 
bring fiscal and energy policies back to a sustainable path and to address possible shortfalls in 
external flows, the authorities decided to embark on a series of fiscal structural reforms. These 
included  the  adjustment  of  energy  prices,  the  diversification  of  energy  supplies  and  the 
submission to the Parliament of legislative proposals on income taxation and social security 
reform. The efforts contributed to a moderate narrowing of the fiscal deficit (before grants) to 
10.1% of GDP from 11.7% a year earlier. The public debt grew to nearly 80% of GDP at the 
end of the year from almost 71% at the end of 2011. The current account deficit (including 
grants) widened to 17% of GDP from 12% in 2011, as the increased energy import bill was 
only  partially  offset  by  a  rebound  in  tourism  and  remittances.  This  result,  together  with  a 
significant  slowdown  in  inward  investment,  notably  in  the  first  half  of  the  year,  led  to  a 

1 Figures on GDP, inflation, trade and employment are generally from Eurostat based on data supplied by the 
national statistical offices; or IMF or Commission Staff estimates, as indicated in the Statistical Annex. When 
other data sources are used these are then indicated. 

7 

 
 
                                                 
deteriorating    balance  of  payments  position  and  to  a  sharp  decrease  (-40%)  in  foreign 
exchange reserves. 

Social situation, employment and poverty reduction 

The  unemployment  rate  is  expected  to  stand  at  12.2%  in  2012,  a  decrease  from  the  2011 
levels (12.9%). National figures indicate that the highest rate of unemployment was recorded 
in  the  15-19  and  20-24  years  age  groups,  while  unemployment  was  high  among  university 
degree  holders.  Job  creation  and  employment  generation  are  among  the  most  critical 
challenges  for  Jordan  and  have  a  direct  bearing  on  internal  stability.  As  of  January,  the 
government  increased  the  minimum  wage  from  JOD  150  to  JOD  190  per  month,  excluding 
non-Jordanians from the measure. 

In June, the government launched the National Employment Strategy 2012-2020, aiming to 
increase the participation of women in the labour market; increase youth employment; expand 
training  programmes  in  the  workplace;  develop  employment  services  and  career  guidance, 
and improve the terms and conditions of employment to attract more Jordanians to the labour 
market.  The  strategy  receives  support  from  the  EU  through  the  ETVET  budget  support 
programme (EUR 35 million). A committee, to be led by the Government and involving all 
stakeholders, to monitor the implementation of the strategy's action plan, remains to be set up. 
A  second  phase  Decent  Work  Programme  (DWP)  between  Jordan  and  the  International 
Labour  Organisation  was  launched  in  March.  The  aim  of  the  DWP  is  to  push  the  national 
employment agenda and enhance access to decent work opportunities. In September, Jordan 
hosted  a  regional  ministerial-level  seminar  "New  challenges  for  skills  development  in  the 
Arab  States  of  the  Southern  and  Eastern  Mediterranean"  and  a  new  Young  Mediterranean 
Leaders initiative was launched. 

In  the  area  of  social  protection,  social-security  coverage  was  extended  to  include  more 
enterprises  and  workers,  and  health  care  coverage  for  vulnerable  groups  was  expanded.  In 
January,  the  Social  Security  Corporation  started  to  implement  its  strategic  plan  2012-2016 
with the support of an EU technical assistance team. 

With  regard  to  labour  standards,  Jordan  made  no  progress  towards  ratifying  ILO 
Convention  No  87  'Freedom  of  Association  and  Protection  of  the  Right  to  Organise'  during 
the reporting period. 

4.  

TRADE-RELATED ISSUES, MARKET AND REGULATORY REFORM 

The EU is Jordan's second largest trading partner - just behind Saudi Arabia - accounting for 
15.5% of its trade volume in 20112. Bilateral trade flows slightly increased and during the 
first eleven months of 2012 amounted to EUR 3.4 billion. EU exports to Jordan increased and 
consisted  mainly  of  machinery  and  transport  equipment.  EU  imports  from  Jordan  increased 
and consisted mainly of chemicals, machinery and transport equipment. 

The  negotiating  directives  for  a  Deep  and  Comprehensive  Free  Trade  Area  (DCFTA)  with 
Jordan were adopted in December 2011. The DCFTA aims at progressively integrating Jordan 
into  the  EU  single  market.  It  should  lead  to  regulatory  convergence  in  areas  that  have  an 
impact on trade and investment, but also more generally on economic governance and on the 

2 Data for 2012 was not available at the time of writing. 

8 

 
 
                                                 
business  climate,  such  as  competition,  intellectual  property  rights,  public  procurement  and 
trade  facilitation.  The  DCFTA  should  also  include  provisions  on  investment  protection, 
further  liberalisation  in  agriculture,  trade  in  services  and  establishment.  A  first  meeting 
marking  the  start  of  the  preparatory  process  took  place  in  Amman  in  March  2012.  As  a 
follow-up, the Commission sent a set of questions to Jordan on various aspects of policy and 
legislation  related  to  the  DCFTA  and  proposed  to  resume  the  preparatory  work  as  soon  as 
possible. 

Jordanian customs apply a single window concept. The number of companies participating in 
the ‘Golden List’ programme further increased to 39. The implementation of pre-arrival and 
pre-departure  processing  of  declarations  was  still  pending  as  Jordan  has  not  adopted  a  new 
Customs  Law.  The  new  law,  will  include  provisions  to  extend  the  competence  of  customs 
authorities  to  pursue  intellectual  property  rights  infringements.  With  regard  to  its  new 
Strategic  Plan  for  the  2011  to  2013  period,  Jordan  performed  well  on  each  of  the  four 
objectives:  anti-smuggling  and  combating  of  illicit  trade,  contributing  to  the  investment 
environment, supplying the treasury with financial revenues, and developing performance and 
institutional  capacity.  Jordan  is  yet  to  ratify  the  Regional  Convention  on  pan-Euro-
Mediterranean preferential rules of origin signed in 2011. Jordan regularly participated in the 
meetings of the pan-Euro-Med Working Group, which is currently discussing the revision of 
the rules of origin in the framework of the regional Convention. 

There  were  no  significant  developments  in  2012  with  respect  to  Jordan’s  2011  request  to 
accede to the Gulf Cooperation Council (GCC). 

In the area of free movement of goods and technical regulations, Jordan made progress in 
preparing  for  negotiations  on  the  Agreement on  Conformity  Assessment  and  Acceptance  of 
industrial products (ACAA) aimed at facilitating the access of Jordanian industrial products to 
the  EU  internal  market  (and  vice-versa).  The  Jordanian  authorities  continued  to  transpose 
sectoral legislation in the three priority sectors — gas appliances, toys and electrical products. 
So far, 44 draft transpositions of EU directives have been submitted to Commission services 
for assessment, including a horizontal framework for industrial products. However, delays in 
the  adoption  of  the  amendments  to  the  Law  on  Standards  and  Metrology  providing  for  the 
enforcement of most of the new standards are jeopardising progress at technical level. 

The  Jordanian  Standards  and  Metrology  Organisation  became  an  associate  member  of 
European  Cooperation  for  Accreditation  (EA)  and  an  affiliate  member  of  the  European 
Committee for Electrotechnical Standardisation (CENELEC). 

The  EU  and  Jordan  continued,  with  Twinning  and  TAIEX  support,  sanitary  and 
phytosanitary  cooperation  particularly  on  food  safety,  animal  identification  and  farm 
registration and on the accreditation of the Jordanian Faculty of Veterinary Medicine. Jordan 
supported 
in  a  Commission/European  Food  Safety  Agency/TAIEX 
participated 
Mediterranean seminar on regional coordination of animal identification and disease control 
measures. Planned reforms of the food law, which aim to approximate EU standards, are still 
pending. 

The SME policy contributed positively to the business climate, but in the World Bank Doing 
Business  report,  Jordan  fell  to  106th  place  overall,  as  none  of  the  measures  were  deemed  to 
bring substantial improvements. 

9 

 
 
In the area of financial services there was only limited progress. The process for the selection 
of a strategic partner to establish a Credit Bureau was ongoing. 

Other key areas 

With  regard  to  the  reform  of  the  tax  system,  Jordan  prepared  a  draft  Income  Tax  Law 
changing  the  rate  structure  to  become  more  progressive.  The  draft  aims  to  exempt  a  larger 
number  of  lower  income  households  from  income  taxes  and  to  raise  corporate  taxes  from 
banks,  telecom  and  mining  companies.  The  Income  and  Sales  Tax  Department  (ISTD) 
continued  to  modernise  its  tax  management  systems.  Through  new  information  technology 
systems and audit techniques, the ISTD identified about EUR 762 million of tax arrears. The 
next step should be to target the arrears through the justice system. 

The  government  took  various  measures  to  facilitate  small  and  medium  sized  enterprises’ 
access to finance, one of the most critical factors for doing business in Jordan. These included 
a EUR 273 million loan guarantee fund and Jordan becoming an EBRD country of operation 
as  of  September.  In  July,  the  government  mandated  the  Jordan  Enterprises  Development 
Corporation to manage the Governorate Fund, which aims to invest EUR 163 million over a 
six-year period in productive and income-generating projects. The first seven projects, for a 
total amount of EUR 3.8 million, were selected in September. Jordan continued to participate 
in Euro-Mediterranean industrial cooperation and shared knowledge, tools and good practice 
in  areas  covered  by  the  Euro-Mediterranean  Charter  for  Enterprise  and  in  specific  sectors: 
textiles and clothing, tourism, raw materials and space. 

In the area of statistics, Jordan started preparation of the Jordan-HIMS project as part of the 
Mediterranean  Household  Migration  Survey  (MED-HIMS)  and  continued  to  improve  its 
national  accounts  sector,  water  accounts  and  water  statistics.  Jordan  started  to  prepare  the 
population and housing census due in 2014. 

Concerning the reform of internal financial control and audit, the Ministry of Finance and 
the Audit Bureau developed a multi-year training plan to reinforce internal control units and 
to  complement  Audit  Bureau’s  plan  to  withdraw  from  internal  control.  This  initiative 
followed the recommendation of the last year’s progress report and continued to be supported 
by  the  EU  under  the  Public  Financial  Management  Programme  launched  in  2010.  SIGMA3 
missions supported the Audit Bureau in the implementation of its Strategic Plan 2011-2015. 

There were no significant developments in the fields of competition policy, establishment, 
company law, intellectual property rights, consumer protection, movement of capital and 
public procurement. 

5. 

COOPERATION ON JUSTICE, FREEDOM AND SECRURITY 

In  the  area  of  migration,  the  EU-Jordan  Dialogue  on  Migration,  Mobility  and  Security 
mobility  was  launched  on  12  December.  In  the  framework  of  the  implementation  of  this 
dialogue,  a  first  EU  mission  visited  Jordan  between  25  and  28  February  2013  to  discuss  at 
technical level, with Jordanian authorities and experts, matters related to passport and identity 
documents,  management  of  borders  and  migration,  as  well  as  asylum  and  international 
protection. 

3SIGMA stands for “Support for Improvement in Governance and Management”, a joint initiative of the OECD 
and the EU, principally financed by the EU.  

10 

 
 
                                                 
Jordan  continued  to  accommodate  a  large  number  of  Syrian  refugees,  in  addition  to  large 
communities of refugees from the occupied Palestinian territory and Iraq. Although Jordan is 
not a signatory of the 1951 Refugee Convention, by December over 173 000 Syrian refugees 
registered or were awaiting registration with the UNHCR. 

Jordan  remained  a  destination  and  transit  country  for  persons  subject  to  forced  labour. 
Migrant workers continued to be caught between lack of proper protection against employers' 
abuse and insufficient enforcement of legislation in force. Instructions issued by the Ministry 
of  Labour  regulating  the  entrance,  vacation,  clearance  and  final  departure  of  Egyptian 
workers, making up a majority of migrant workers in Jordan, made some of them victims of 
blackmail  by  their  employers.  The  EU  provided  support  to  civil  society  organisations 
advocating migrants’ rights. 

Jordan participated in the new EuroMed regional projects Migration III, Police III, Justice III 
and Statistics III. 

The  National  Committee  to  Combat  Human  Trafficking  did  not  make  any  significant 
progress  in  implementing  the  National  Strategy  2010-2012.  In  March,  the  Government 
approved by-laws under which it established shelters for victims of human trafficking. 

In  July,  Jordan’s  Anti  Money-Laundering  and  Financing  of  Terrorism  Unit  joined  the 
Egmont Group as the ninth Arab member. 

Jordan  participated  in  the  International  Workshop  on  Drug  Prevention  and  Monitoring: 
Situation  and  Perspectives  in  the  ENP  Southern  Partnership  countries  organised  by  the 
European  Commission  and  the  European  Monitoring  Centre  for  Drugs  and  Drug  Addiction 
(EMCDDA)  under  the  auspices  of  the  Cypriot  Presidency,  which  took  place  in  Cyprus  in 
October. 

Jordan  and  EU  Member  States  further  strengthened  judicial  and  police  co-operation.    A 
preparatory  project  on  justice  reform  was  launched  through  the  SPRING  programme  to 
support the consolidation of the judicial independence strategy.  France provided training to 
several  high-ranking  officers  of  the  Derak,  the  Jordanian  Gendarmerie,  on  public  order 
operations  and  helped  restructure  its  organisational  restructuring  and  human  resources 
management.  An  EU  funded  project  assisted  Jordan 
inmates  using 
internationally recognised criteria, and in introducing a health file for inmates. Another EU-
funded  project  helped  to  draft  a  criminal  justice  strategy.  A  number  of  international 
conventions regarding family law, notably children, remained unsigned. 

in  classifying 

6. 

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

Regarding  transport,  Jordan  cooperated  with  the  Mediterranean  Aviation  Safety  Cell 
(MASC) within the European Aviation Safety Agency (EASA) on regulatory convergence in 
the  field  of  safety.  Following  improvements  in  compliance  with  safety  standards,  Jordanian 
aviation was removed from the list of air carriers whose operations are subject to operational 
restrictions  within  the  EU.  The  first  Joint  Committee  under  the  EU-Jordan  Air  Transport 
Agreement  took  place  in  January  2013.  In  January,  Jordan  extended  the  validity  of  the 
National Transport Strategy 2009–2011 to 2014. Regarding maritime transport, Jordan made 
progress  in  implementing  standards  on  training,  certification  and  watch  keeping.  As  a 

11 

 
 
consequence,  the  EU  recognised  the  Jordanian  system  of  training  and  certification  of 
seafarers. In November, a twinning project that aims to reverse a rising trend in the number of 
traffic accidents involving pedestrians was launched with the Jordan Traffic Institute.  

Jordan's  dependence  on  energy  imports,  the  interruption  of  Egyptian  gas  imports  and  the 
associated increasing energy bill, continued to pose serious budgetary challenges in 2012. In 
May, the government raised electricity tariffs for several sectors although with limited impact 
on small households. In November, Jordan and Egypt reached an agreement to increase gas 
supplies.  Jordan  pursued  efforts  to  reduce  the  energy  bill  including  by  diversifying  energy 
supplies and reducing electricity imports. In September, Jordan agreed with Iraq on additional 
oil  supplies,  natural  gas  imports  and  the  construction  of  an  oil  and  gas  pipeline.  Jordan 
decided  to  construct  a  liquefied  natural  gas  (LNG)  terminal  in  Aqaba.  It  explored  possible 
sources  of  LNG  imports  with  countries  including  Qatar  and  Russia.  It  began  to  exploit 
domestic oil shale with a view to commencing production by 2016. Preparations for building 
a  first  nuclear  power  plant  continued.  There  were  delays  in  decisions  on  its  site  and  the 
technology  supplier.  There  was  civil  society  opposition  and  in  May  the  House  of 
Representatives  recommended  stopping  the  project  until  all  feasibility  studies  had  been 
finalised. Several new electricity generation facilities were launched in 2012. In April, Jordan 
adopted the Renewable Energy and Energy Efficiency Law and in July the relevant bylaws, 
thus improving the investment climate in this area. In September, the government adopted an 
energy  efficiency  by-law  aiming  to  reduce  the  energy  costs  of  networks  and  public  and 
private  buildings.  The  EU  renewable  energy  and  energy  efficiency  programme  (EUR  35 
million),  launched  in  December  2011,  and  the  wind  energy  and  solar  concentrated  power 
piloting project (EUR 10 million), supported reforms in these areas. 

In the field of climate change, the Ministry of Environment conducted risk assessments and 
identified adaptation measures in areas such as health and food security. In July, Jordan joined 
the  Climate  and  Clean  Air  Coalition  to  Reduce  Short-Lived  Climate  Pollutants.  Regional 
cooperation on climate change related water availability continued with the water authorities 
of  Israel,  the  PA  and  Jordan. Jordan is encouraged to build capacity and engage in the new 
carbon market mechanism to be developed following the 17th and 18th sessions of the United 
Nations  Framework  Convention  on  Climate  Change  Conference  of  the  Parties.  With  the 
support  of  the  newly  launched  regional  technical  assistance  project  for  climate  change  and 
related matters, Jordan is encouraged to devise a low-carbon development strategy. Additional 
efforts should be made to fully implement the Cancun and Durban agreements. 

In  the  field  of  the  environment,  Jordan  actively  participated  in  ENPI  financed  regional 
projects  namely  the  Sustainable  Water  Integrated  Management  (SWIM)  project  and  those 
falling  under  the  Horizon  2020  depollution  initiative  (the  Mediterranean  Environment 
Programme;  and  the  Shared  Environmental  Information  System  support  project  led  by  the 
European Environment Agency). Under the pollution reduction project component of Horizon 
2020, the integrated solid waste management project at Al-Ekaider is one of the four leading 
projects  of  the  Mediterranean  Hot-Spot  Identification  Programme  (MeHSIP)  Project 
Preparation  Implementation  Facility  (PPIF)  financed  under  FEMIP  and  managed  by  the 
European Investment Bank (EIB). 

Jordan  actively  participated  in  the  Integrated  Maritime  Policy  (IMP-MED)  technical 
assistance project under the ENPI South programme. 

In the area of civil protection, the flagship programme for Prevention of, Preparedness for, 
and  Response  to  natural  and  man-made  disasters  (PPRD  South)  contributed  to  the 

12 

 
 
establishment  of  a  regional  framework  of  disaster  management  authorities  that  could 
intervene  collectively  in  the  event  of  disasters  overwhelming  the  affected  country.  Indeed, 
sustainable development requires adequate disaster risk reduction efforts. Jordan is among the 
168  governments  that  adopted  in  2005  the  "Hyogo  Framework  for  Action:  Building  the 
Resilience  of  Nations  and  Communities  to  Disasters",  which  emphasizes  the  central  role  of 
disaster  risk  reduction  for  all  development  policies.  However,  work  on  Disaster  Risk 
Reduction  (DRR)  and  climate  adaptation  is  only  at  the  beginning  and  it  will  require 
considerable  further  support  to  develop  capacities  and  processes.  DRR  policy  is  fostering 
dialogue  with  Civil  Society  and  NGOs,  thus  contributing  to  a  more  sustainable  democracy. 
Analysis of the regulatory and institutional frameworks started with the aim of strengthening 
capabilities and inter-ministerial coordination in the second phase of the programme. 

There  were  no  further  developments  with  regard  to  strengthening  the  independence  and 
administrative capacity of the Telecommunications Regulatory Commission (TRC). The EU 
continued to support the strengthening of the TRC through a twinning project. In November, 
Jordan adopted a policy on the Communications, Information Technology and Postal Sector. 
Jordan  was  preparing  a  National  Information  and  Communication  Technology  Strategy  for 
2012–2016. The EU supported the development of this strategy. 

With regard to research and innovation, in February, Jordan established a Competitiveness 
and  Innovation  Council  under  the  Prime  Minister’s  chairmanship.  The  EU's  EUR  5  million 
support  to  the  Research  and  Innovation  Programme  (helped  to  develop  Jordan’s  applied 
scientific  research  and  technological  capacity,  and  to  further  integrate  the  country  with  the 
European Research Area (ERA) and the EU’s Seventh Framework Programme for Research 
and Technological Development (FP7). Six Jordanian institutions participated in Marie Curie 
actions and four Jordanian researchers were subsequently recruited. As regards participation 
in the FP7, 24 Jordanian public and private institutions participate in 30 projects involving an 
EU contribution of EUR 55 million of which EUR 4.5 million went to Jordanian participating 
entities.  Jordan participated  actively  in  ERA  WIDE  projects,  which  aim  to  integrate 
neighbours  into  the  ERA.  Among  the  main  areas  of  cooperation  were  environment 
and energy,  health  and ICT.  A  new  platform  to  support  bilateral  cooperation  was  selected 
under the FP7 2012 Work Programme with the objective of promoting bilateral research and 
innovation cooperation in the context of the upcoming EU Horizon 2020 programme. 

7. 

PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH 

The  quality  of  education  was  constrained  by  changes  in  leadership,  shortage  of  classrooms 
especially  in  urban  areas,  large  numbers  of  students  transferring  from  private  to  public 
schools and insufficient emphasis on knowledge-society skills. There was continued progress 
in education reform, with improvements in preschool and special education areas and the roll-
out of a school-based development and improvement programme. The additional EU funding 
for  education  reform  in  2012  (EUR  10  million,  bringing  total  support  to  EUR  33  million) 
sought  to  expand  primary  education  delivery  in  priority  areas.  The  EU's  contribution  to 
UNICEF's  Emergency  Education  Response  for  Displaced  Syrian  Children  and  Host 
Community  in  Jordan  (EUR  10  million)  started  to  provide  education  to  vulnerable  Syrian 
children  along  with  children  in  host  communities.  In  December,  EUR  10.8  million  was 
approved to expand access to educational, mentoring and other services for Syrian children, 
adolescents and youth; EU support also aimed to alleviate tensions in the communities and the 
camp. 

13 

 
 
Reform of the vocational education and training (VET) sector was limited, mainly due to 
funding  and  human  resources  constraints  and  a  lack  of  coordination  among  VET  providers. 
Jordan approved strategies on employment and career guidance. Based on the latter strategy, 
the  Employment-Technical  and  Vocational  Education  Council  prepared  a  VET  awareness- 
raising campaign. 

The  Centre  for  Accreditation  and  Quality  Assurance  (CAQA)  became  fully  operational; 
additional  staff  and  equipment  are  needed.  So  far,  occupational  standards  have  been 
developed in six sectors and have been introduced in curriculum development. With European 
Training  Foundation  support,  the  CAQA  assessed  the  state  of  play  and  future  of  vocational 
qualifications. 

In the field of higher education, Jordan continued to participate actively in Tempus IV. In 
2012,  it  was  involved  in  20  projects,  which  represents  18%  of  all  accepted  projects  in  the 
Southern  Mediterranean  region.  Five  new  projects  were  selected,  thanks  in  part  to  a 
significant  increase  in  budgets  for  the  Southern  Mediterranean  region.  Tempus  contributed 
towards the reform and development of higher education institutions and systems especially 
in the field of curriculum reform. Jordanian universities developed a number of new master’s 
degree  programmes  in  nursing,  archaeological  science,  cultural  heritage,  water  resources 
management and wireless telecommunications. Jordan benefitted from eight new scholarships 
for  Erasmus  Mundus  Doctoral  and  Masters  Courses  and  a  further  188  mobility  grants 
allocated within a university consortium. Three projects involving Jordanian universities were 
also selected in 2012 under Erasmus Mundus (so-called Action 3). Since 2007, six Jordanian 
researchers  have  benefited  from  a  Marie  Curie  Action,  and  six  organisations  located  in 
Jordan participated. 

Jordanian  youth  and  youth  organisations  continued  to  benefit  from  the  Youth  in  Action 
programme.  In  2012,  113  young  people  and  youth  workers  participated  in  the  39  projects 
selected  under  this  Programme.  Under  the  Euromed  Youth  IV  programme,  7  projects 
involving 40 young people were selected. 

With  regard  to  cultural  co-operation,  projects  under  the  Euro-Med  Heritage  Programme 
continued  for  the  management  of  ancient  theatre  complexes,  youth  outreach  and  education 
and  the  promotion  of  cultural  heritage.  Under  the  Athena  project,  the  Department  of 
Antiquities  successfully  reached  out  to  young  people  and  the  wider  public  to  promote  of 
ancient  theatres  for  modern  use.  The  EU,  in  partnership  with  the  Jordan  Enterprise 
Development  Corporation,  promoted  Jordan's  cultural  and  creative  industries  through 
mapping  of  the  existing  industry,  supporting  young  entrepreneurs  through  training  and 
providing European know-how. He Euro-Med Forum on Creative Industries and Society took 
place  on  13-15  May  in  Jordan  with  the  support  of  the  EU  Delegation.    The  European  Film 
Festival  and  the  Europe  Day  in  Motion  Dance  Festival  provided  for  cultural  exchanges. 
Supported  by  the  EU,  Jordanian  young  people  produced  and  screened  films  captured  on 
mobile phones on the topic of 'Transition'. 

Jordan continued implementing its Health Strategic Plan 2008-2012 and is preparing a new 
strategy.  The  lack  of  resources  and  the  need  to  care  for  refugees  put  a  strain  on  the  health 
sector. To implement the Framework Convention for Tobacco Control, from January, Jordan 
began using larger pictorial warnings on cigarette packages. Jordan continued participation in 
the  EU  supported  ‘Episouth  Plus’  project  aimed  at  increasing  health  security  in  the 
Mediterranean region and South East Europe. Jordan participated in a Commission/ European 
Centre  for  Disease  Prevention  and  Control  conference  and  training  course  aiming  to 

14 

 
 
strengthen  capacity  building  for  communicable  diseases  prevention  and  control  in  the 
Mediterranean.  The  aim  is  to  jointly  explore  the  scope  for  developing  a  regional  training 
programme on intervention epidemiology. 

15