U.S Jordan freetrade agreement

br TITLE : US Jordan free trade agreement Page no : 1

INTRODUCTION

The FTA with Jordan Signed on October 24 , 2000 , the U .S -Jordan FTA was the first such accord with an Arab state and is considered a template for future agreements . It calls for the elimination of all tariff and nontariff barriers to bilateral trade for r virtually all industrial goods and agricultural products within ten years . The agreement has had a significant effect on economic exchange between the two countries : Jordan exports to the United States jumped from 31

million in 1999 to 674 million in 2003 U .S . investments in Jordan were up to more than 80 million by December 2004 and are expected to exceed 180 million next year and American participation in Jordanian qualified industrial zones has encouraged Jordan 's strongest engine of job growth , helping to create an estimated 35 ,000 jobs in these areas since their inception in 1999 . The treaty was held up for some years by a dispute e in the United States about what labor and environmental provisions were appropriate for a FTA the treaty negotiated by the Clinton administration only called on Jordan to enforce its own labor and environmental laws , without requiring any change in those laws unless needed to meet international agreements Jordan had signed

OVERVIEW : TARIFFS

The FTA will eliminate all tariff barriers on virtually all goods traded between the United States and Jordan within ten years . However , not every export of the United States or Jordan will qualify for this duty-free treatment . Under HYPERLINK "http /www .jordanusfta .com /documents /article_2 .pdf " \t "_blank Article 2 of the FTA , the United States and Jordan has agreed to eliminate existing tariffs only on originating goods of the other Party . Goods must qualify under the HYPERLINK "http /www .jordanusfta .com /overview_rules_of_origin_en .asp " Rules of Origin in to take advantage of the FTA . HYPERLINK "http /www .jordanusfta .com /documents /tariff .pdf " \t "_blank " Annex 2 .1 of the FTA defines five general staging categories , A ' through E , which covers the majority of products . Tariff reductions of categories A ' through E ' will occur in four stages

Category Tariffs will be eliminated over

A Two years (50 reduction per year

B Four years (25 reduction per year

C Five years (20 reduction per year

D Ten years (10 reduction per year

E World Trade Organization duty elimination Commitments

The FTA also defines special staging categories , F ' through M which covers a select number of products . Products under special staging categories include certain alcohol and textile products , generalized system of preference (GSP ) exports , agriculture quota-class goods poultry , apples , and cars . Products under the special staging categories will experience either an accelerated reduction of tariffs or a delay in reduction . HYPERLINK "http /www .jordanusfta .com /jor-schedule .asp Jordan 's Tariff Schedule and the HYPERLINK "http /www .jordanusfta .com /us-schedule .asp " United States ' Tariff Schedule , which are incorporated into the FTA , specifically explain the special staging categories

The FTA is now in its second...