.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

12

11

10

9

8

7

6

5

4

3

2

1

 

 

Benefit to Business 

Rules of Origin   

 *Trade Complementarity Index 2020  

Market Growth (2017-2021)

Market Size in terms of Imports (2021)

Other Areas Covered 

 Sectors covered 

Entery into Force 

Signed On

Members

Type

Name of the Agreement

Country / FTA 

 

 

 Largest country import market; Jordan became a magnet for apparel manufacturing

Rules of origin require that goods be composed of a minimum of 35 percent  Jordanian content to be eligible for duty free entry.

40.03

3%

US$ 2.9 T 

Intellectual property rights: Protection and enforecment of copyrights, trademerks and patentes;  Electronic commerce; Labor provisions

Industrial activities and services 

2001; and Fully implemented in 2010

2000

Jordan and USA

Bilateral Free Trade Area

Jordan-United States FTA

USA 

1

 

The EU is the world’s largest single market in terms of population with over 500 million consumers.

Stringent product rules of origin that mostly require Jordanian manufactured products to undergo manufacturing processes as well as high percentages of local content reaching up to 60% such as carpet and air conditions, and in other cases wholly obtained inputs. Measures and agreements have been taken below to ease the restrictive rules of origin.

42.06

8%

US$ 6.3 T  (as a one single market)

 Best endeavors to allow  progressive liberalization in  trade in services; Trade in agricultural, agro-food and fisheries products has been liberalised on a selective and progressive basis

. Trade in Industrial Products. Further liberalization of agricultural products in 2007

2002

1997

Jordan and EU 27; Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

Regional Free Trade Area   

Jordan-EU Association Agreement

EU 

2

 

 The EU relaxation decision (decision No.1/2016) relaxed origin requirements for certain goods produced in selected  zones until 2030.  Products with

relaxed rules of origin are listed in Article 2 of the Decision. The list includes petroleum

 products, fertilisers, some chemical and plastic products, articles of leather, textiles, and apparel.

 The improvement undertaken in 2018 removed the company's location constarint, See the above Agreement on  the Simplifying the EU Rules of Origin.  

-

42.06

8%

US$ 6.3 T

Rules of Origin

Trade in Industrial Products.

2016; but improved in December 2018. 

Jordan and EU 27; Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

Regional Agreement    

Agreement on Simplifying the EU-Jordan Rules of Origin

EU 

3

 

GCC markets are accessible and lucrative. For example, the products with greatest export potential from Jordan to Saudi Arabia are: Live sheep, medicaments containing antibiotics and Monumental/building stone, nes. Jordan has the highest supply capacity in Fluorine; bromine. Medicaments consisting of mixed or unmixed products, for retail sale are the product that faces the strongest demand potential in Saudi Arabia. 

The value added as a result of its production in a party-state shall not be less than 40%

42.52

Ranges between 4% for Morocco; 3% for KSA; to -12% for Lebanon

Ranges between US$ 211 B for UAE  to 1 B for Palestine

Not only includes the removal of tariffs, but also monetary, administrative and quantitative NTBs (i.e. quotas). It also provides for the trade liberalization in agriculture (despite a transition period) as well as a precise set out of rules of origins.

Manufacturing and Agricultural Products

Fully implemented in 2005

1997

Jordan and 17 Arab Countries; Algeria, Bahrain, Egypt, Iraq, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen.

Regional Free Trade Area   

Greater Arab Free Trade Agreement

 GAFTA

4

 

Higher potential for Complementatrity with Iceland. Export Potential: The products with greatest export potential from Jordan to Switzerland are: Jewellery, of precious metal, nes, Jerseys & similar of man-made fibres, knit/crochet and Human & animal blood, blood fractions & immunological products. Jordan has the highest supply capacity in Inorganic acids, n.e.s. Jewellery of precious metal, nes is the product that faces the strongest demand potential in Switzerland.

The rules of origin for industrial goods (Protocol B) concerning the definition of the concept of originating products and the methods for administrative co-operation, are based on the European layout, maintaining the general structure and the substance of the European standard rules.  The specific list rules (Annex II to Protocol B) are also based on the current pan-European model.

Switzerland 39.32;  Norway 36.02;  Iceland 44.4

Switzerland 4%;  Norway 3%,  Iceland -1%

US$ 430 B 

Public Procurement, Intellectual Property, Competition, and State Aid

Trade in industrial products as well as fish and marine products and processed agricultural products.

2002

2001

Jordan and 4 European Countries; Switzerland,  Norway,  Iceland, and Liechtenstein

Regional Free Trade Agreement   

Jordan- EFTA States FTA

EFTA

5

 

Allowance for regional (diagonal) cumulation in  EU rules of origin for EU market access

Economic opportunities for partners Agadir countries through the implementation of the (diagonal) cumulation of Pan-Euro-Med rules of origin, through analysis of areas comparative advantage in each country.

Egypt 33.34; Morocco 34.81; and Tunisia 35.24 (2019)

Egypt -1%; Morocco 4%; and Tunisia -1%

Egypt US$ 74 B; Morocco US$ 59 B; and Tunisia US$ 22 B  

Intellectual property, safeguards, infant industries, subsidies and dumping

Trade in industrial goods, agricultural products and services

2007

2004

Initially 4 Countries; Egypt, Jordan, Morocco and Tunisia. Lebanon and Palestine joined the Agreement in 2020.

Regional Free Trade Agreement   

Agadir Agreement

Agadir

6

 

One of largest top 20 global markets (Ranked 14 in world imports)

Except as otherwise provided in this Chapter, a good shall originate in the territory of a Party where:

(a) The good is wholly obtained or produced entirely in the territory of one or both of the Parties;

(b) Each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification as set out in Annex 4-1 as a result of production occurring entirely in the territory of one or both of the Parties, or the good otherwise satisfies the applicable requirements of that Annex where no change in tariff classification is required, and the good satisfies all other applicable requirements of this Chapter;

(c) the good is produced entirely in the territory of one or both of the Parties, exclusively from originating materials

For more details, see: Chapter (4) and Annex (4.1) of the Agreement

41.39

1%

US$ 0.5 T 

Trade Facilitation; Sanitary and Phytosanitary Measures; Monopolies and State Enterprises; Environment; and Labour

Goods and Services Trade

2012

2009

Two Countries

Bilateral Free Trade Agreement

Jordan-Canada FTA

Canada 

7

 

One of largest top 20 global markets (Ranked 7 in world imports). Export Potential: The products with greatest export potential from Jordan to United Kingdom are: Jerseys & similar of man-made fibres, knit/crochet, Men's shirts of man-made fibres, knit/crochet and Men's trousers & shorts of synthetic fibres, knit/crochet. Jordan has the highest supply capacity in Derivatives containing only halogen substituents. Medicaments consisting of mixed or unmixed products, for retail sale is the product that faces the strongest demand potential in United Kingdom.

To be considered sufficiently processed your good will need to meet the relevant product specific rule (PSR). The PSRs for this agreement use the 2002 version of the Harmonised System (HS) nomenclature. You should apply the PSR for your good using the code in which it was classified under this nomenclature. In a limited number of cases the code for your good may have changed during HS revisions. 

42.27

1%

US$ 0.7 T 

Intellectual property

Goods, services and capital.

May 1, 2021

2019

Two Countries

Bilateral Free Trade Agreement

Jordan-UK Association Agreement

UK

8

 

One of largest top 20 global markets (Ranked 16  in world imports). Export Potential: The products with greatest export potential from Jordan to Singapore are: Fluorine; bromine, Phosphoric acid; polyphosphoric acids and Jewellery, of precious metal, nes. Jordan has the highest supply capacity in Derivatives containing only halogen substituents. Parts of turbojets or turbo-propellers is the product that faces the strongest demand potential in Singapore.

35% of its content must originate from Jordan/ Singapore

29.66

3%

US$ 407 B 

 Electronic Commerce

Trade in Goods and Services  

2005 and discontinued in 2013

2004

Two Countries

Bilateral Free Trade Agreement

Jordan-Singapore  FTA

Singapore

9

 

High-growth market niches

Substantial transformation of production inputs that requires the value added resulting from the process of production accounts for at least 35 percent of the ex-factory cost of the goods

  Egypt 33.34;   Kenya 34.25;     Libya N.A.

Top Three:              18% for Comoros; 7% for Zimbabwe; 6% for Burundi 

Top Three:              US$ 74 B for Egypt; US$ 20 for Kenya; US$ 16 for Libya

 Tourism, housing, and skills development

Trade 

2007

2007

Egypt, Libya, Kenya, Ethiopia, Zimbabwe, Mauritius, Madagascar, Burundi, Zambia, Comoros, Eswatini, Congo, Djibouti, Uganda, Rwanda, Malawi, Seychelles, and Eritrea. 

Cooperation Scheme

 Jordan-COMESA Cooperation Scheme 

Comesa

10

 

Higher potential for Complementatrity

Requires 40% Rules of Origin value addition criterion

45.96

-4%

US$ 23 B 

Investment, manpower, tourism and transport

Industrial and agricultural products

2005

2001

Two Countries

Bilateral Free Trade Agreement

Jordan-Kuwait  FTA

Kuwait

11

 

Larger Single Arab Market

Requires 40% Rules of Origin value addition criterion

34.33

-2%

US$ 211 B 

Safeguards, subsidies,  dumping,  and intellectual property

All goods of Jordanian and UAE origin

2001

2000

Two Countries

Bilateral Free Trade Agreement

Jordan-UAE  FTA

UAE

12

 

Allowance for regional (diagonal) cumulation in  EU rules of origin for EU market access

Requires 40% Rules of Origin value addition criterion

  35.24 (2019)

-1%

US$ 22 B 

Safeguards, subsidies,  dumping,  Balance of Payments, and intellectual property

Full exemption from duties and other taxes with similar effect with exceptions

1999

1998

Two Countries

Bilateral Free Trade Agreement

Jordan-Tunisia  FTA

Tunisia

13

 

Allowance for regional (diagonal) cumulation in  EU rules of origin for EU market access

Requires 40% Rules of Origin value addition criterion

33.34

-1%

US$ 74 B 

Safeguards, subsidies,  dumping,  Balance of Payments, and intellectual property

Full exemption from customs duties and taxes with similar effect on all traded goods of Jordanian and Egyptian origin, except textiles, garments and rebar products 

1999

1998

Two Countries

Bilateral Free Trade Agreement

Jordan-Egypt  FTA

Egypt

14

 

Allowance for regional (diagonal) cumulation in  EU rules of origin for EU market access

Requires 40% Rules of Origin value addition criterion

34.81

4%

US$ 59 B 

Standards, safeguards, subsidies,  dumping,  Balance of Payments, and intellectual property

 Exemption from customs duties and taxes of similar effect on all goods of Jordanian and Moroccan origin- see the summary above

1999

1998

Two Countries

Bilateral Free Trade Agreement

Jordan-Morocco  FTA

Morocco

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*: The trade compatibility index measures the degree of compatibility between Jordan’s exported products and those products imported by the trade partner country (e.g. Canada). It measures the degree to which the export pattern of Jordan matches the import pattern of the partner FTA country. The higher the index value the better for FTA trade outcome.