Damascus: The reciprocal trade agreement signed between Jordan and the United States is expected to reinforce the 2001 Free Trade Agreement and support the Kingdom's export sector following recent changes to U.S. tariff rates, according to Chairman of the Eastern Amman Investors Industrial Association (EAIIA) Iyad Abu Haltam.
According to Jordan News Agency, Abu Haltam said the agreement restores the tariff on Jordanian exports to 10 percent after it had previously been raised to 20 percent and later reduced to 15 percent. He said the arrangement provides Jordanian exports with preferential treatment and simpler procedures, helping improve their competitiveness in the U.S. market.
He noted that the United States is Jordan's largest export destination, accounting for more than 24 percent of the Kingdom's total exports. He said the agreement is expected to benefit several export-oriented industries, including chemicals, food products, engineering industries, electrical equipment, garments, and textiles.
Abu Haltam said the agreement could also encourage industrial investment in Jordan, particularly from East Asian countries seeking to access the U.S. market. He attributed this to Jordan's tariff advantages, competitive manufacturing costs, and shipping links through the Port of Aqaba, where transit to the U.S. East Coast takes about 21 days.
He added that the agreement supports intellectual property protection and labor rights while giving Jordanian exports a competitive advantage through one of the lowest tariff rates applied to goods entering the U.S. market.
Abu Haltam said Jordan's trade balance with the United States remains in the Kingdom's favor, with exports exceeding imports. He noted that Jordan's exports have diversified beyond garments and textiles to include food products, chemicals, engineering goods, and jewelry, broadening the range of sectors that stand to benefit from the agreement.
He also said Jordanian products' compliance with international standards, competitive production costs, and delivery times strengthen their position in the U.S. market. He also said the agreement is expected to support additional industrial investment, particularly in the garment and engineering sectors, and contribute to greater diversification of exports to the United States.
According to Abu Haltam, the agreement marks an important development in Jordan-U.S. trade relations and is expected to support national exports, attract foreign direct investment, and contribute to economic growth.