October 26, 2000

President Clinton and King Abdullah II witnessed the signing of a free trade agreement (FTA) between the United States and the Hashemite Kingdom of Jordan which was signed by U.S. Trade Representative Charlene Barshefsky and Jordanian Deputy Prime Minister Mohammad Halaiqah. It is only the fourth free trade agreement the United States has negotiated, after Israel, Canada and Mexico, and the first ever with an Arab state. Agriculture provisions are included.

The U.S.-Jordan FTA includes the elimination of virtually all tariffs on industrial goods and farm products within 10 years; free trade in services, giving American services providers full access to services sectors of key importance, and providing opportunities in financial, education, audio-visual, courier services and other sectors; provisions on environmental principles -- sustainable development, maintaining high levels of protection and improving environmental laws, not relaxing environmental laws to encourage trade, and ensuring effective enforcement of domestic environmental laws -- as well as provisions on technical cooperation on the environment; increased market access for environmental goods, technologies, and services.

Also included are commitments by both countries to make use of transparency and appropriate public participation in the operation of the agreement and maximal use of transparency in dispute settlement procedures with the other, and to encourage such transparency in dispute settlement proceedings in the World Trade Organization.

Two-way trade between Jordan and the United States totaled $287 million in 1999, $276 million in U.S. exports to Jordan and $11 million in U.S. imports from Jordan. An analysis by the U.S. International Trade Commission suggests the potential for growth under the new agreement, showing that if an FTA had been in effect in 1998, U.S. exports of food grains, other than wheat, could have increased by 14%, electric machinery exports doubled, and exports of machinery and transport equipment grown by approximately 39%.