Trade Agreements

1- Arab Free Trade Agreement (AFTA)
Jordan, along with ten other Arab countries, signed the Arab Free Trade Agreement and its implementation commenced on March 9, 1998. According to the agreement, all Arab products moving among Arab member states will be afforded the status of national goods in accordance with the principle of gradual liberalization, which took effect January 1, 1998. By way of annual reductions of 10% of customs duties, fees and taxes, goods are scheduled to be moving duty-free among the States through the establishment of the Arab Free Trade Zone by 2008. As a result, Jordan is expected to attract new Arab-based investments, and to enjoy unhindered access to the markets of the Arab world.

Jordan has signed agreements guaranteeing 100% free trade with Bahrain, Kuwait and Libya. Similar agreements are pending with Tunisia, Egypt and Algeria.

2- Euro-Mediterranean Association Agreements with Jordan
The EU-Jordan Association Agreement, sealed in 1997, is awaiting ratification by Belgium. (All other ratifications, including the European and Jordanian parliaments and the legislatures of 14 member states, are completed). With the entry into force of the EU-Jordan Association Agreement, the coming years will likely indicate further advances in the already close bilateral ties. In addition to benefits in the political, social and cultural fields, the partnership agreement promises to play an important role in Jordan’s economic development. The accord will encourage more direct European investments into Jordan, as industrial products manufactured in Jordan and exported to the EU will be exempted from customs taxes and fees. Numerous industrial and agricultural products will enjoy privileged access to the EU markets by means of a range of custom tax and quota exemptions. Further details and updates can be obtained from the following website: www.euromed.net

3- Promotion and Reciprocal Protection of Investment Agreements
In July 1997 Jordan and the USA signed a bilateral agreement on the promotion and reciprocal protection of investment. The agreement emphasizes the promotion of greater economic cooperation, and the free flow of investment between both nations. It grants investors from both sides free movement of capital and financial transfers, and awards US investments in Jordan national or the most favored nation (MFN) status, which is more advantageous.

Similar bilateral agreements have been concluded with major European countries as well as with Malaysia, Indonesia, Tunisia, Egypt, Algeria and Yemen.

4- Qualifying Industrial Zones (QIZ)
Further enhancing Jordan’s leverage over other neighboring countries in the MENA region, Jordan was granted the unprecedented opportunity to establish QIZ’s which provide duty and quota free access to the U.S. market for products manufactured in Jordan’s QIZ.

5- World Trade Organization
Jordan joined the 135 member World Trade Organization (WTO) in December, 1999.

Accession to the World Trade Organization brings new opportunities and challenges to Jordanian businesses. WTO membership assures access to the entire world market for Jordanian manufactured products, but will also expose Jordanian companies to direct competition with international companies. The government has revised its laws, particularly those governing Intellectual Property Rights and Trade Secrets, in order to come into regulatory compliance with WTO standards. Jordan’s accession to the WTO entered into effect in March 2000.

6 - United States–Jordan Free Trade Agreement
On Sept.28, 2001 US President George W. Bush signed a legislation needed to implement the United States-Jordan Free Trade Agreement (FTA). This agreement is a strong and tangible symbol of US support for Jordan’s economic reforms and for the King's leadership. It is the capstone of expanding economic partnership between the two countries.

This agreement is the fourth free trade agreement the United States has signed with another country, after Canada, Mexico and Israel, and the first ever with an Arab country. An FTA with Jordan has been one of the US administration's top foreign and trade policy goals.

The U.S.-Jordan FTA will create jobs and new investment in both countries. The agreement achieves significant liberalization across trade areas including electronic commerce, services, and intellectual property rights. It will eliminate tariffs between the United States and Jordan on virtually all industrial goods and agricultural products within ten years. www.usjoft.com

• State Telephone Company operates on a commercial basis, and is expected to privatize 40% of company in the near future.
• Choice of privately-owned Internet service providers.
• Direct Royal Jordanian flights to 47 Major Cities in Europe, the Middle East, the Far East, North Africa and North America. Served by 26 international airlines.
• Modern highway network
• Major trucking lines ensuring the movement of raw materials to and from the port of Aqaba as well as into and from ports of neighboring countries.
• Jordan's port of Aqaba acts as a strategically located gateway to Jordan, the developing Red Sea region, and the Middle East as a whole.

• Amenities of modern life are readily available and affordable.
• High quality public and private education provided in Arabic, English, and French.
• Health services in Jordan are of international standards at reasonable rates.
• Developed network in community, active local and international business associations and cultural centers.
• Traditional festivals, cultural entertainment events, and a wealth of archeological sites.
• Excellent clubs and restaurants.

Labol law

Maximum working hours are forty-eight during a six day week. The seventh day is a paid weekly holiday. Additional hours will be considered as overtime and qualify for compensation of 25% over the regular wage. Except in the event of an emergency, an increase in daily work hours is subject to approval by the Minister of Labor.

Employees are entitled to an annual fourteen-day fully-paid sick leave that may be extended by an additional fourteen days if the employee was hospitalized. The Law makes provisions for compensation regarding on-the-job injuries. Female employees are allowed ten weeks maternity leave with pay, and employers who employ twenty or more women must provide daycare for all children under the age of four.

The minimum age for child employment under controlled conditions has been raised to sixteen years. The new law places restrictions on the types of jobs minors may hold as well as on the number of hours they are allowed to work.
The new Law regulates labor unions and employer alliances. Workers are free to join unions without objection from their employers. Strikes and close-downs are also regulated by the new Law.