Jordan to re-assess EU association, relaxed rules deals

AMMAN Jordan is planning to conduct a study to assess the economic impact of the EU Association Agreement and the EU deal on relaxed rules of origin to Jordanian industries, an official said Monday.

The Ministry of Industry, Trade and Supply has floated a tender to attract bids for conducting the comprehensive study on the EU Association Agreement with Jordan, which was signed in 1997, a ministrys official told The Jordan Times on Monday.

We want to look into the developments and impact since the agreement was signed to date and how to help achieve economic integration between Jordan and the EU, the official said.

The study will also look into the economic impact of the relaxed rules of origin agreement with the EU, according to the official.

In July 2016, the EU and Jordan signed a deal under which manufacturers in the Kingdom can import up to 70 per cent of the raw materials used in production and still label the finished products as Made in Jordan, qualifying them for trade concessions.

The agreement is valid for 10 years.

Under the deal with the EU, parties designated a total of 18 industrial and developmental zones in Jordan as beneficiaries, while the relaxed rules will also be applied to other industries across the Kingdom as soon as 200,000 jobs are created for Syrian refugees following the issuing of work permits.

In March this year, Jordan renewed its call for the revision of the EU relaxed rules of origin for Jordanian exports to Europe as only three factories have benefited from the deal so far and exported to Europe under the deal.

The association agreement, according to related literature, fosters the development of balanced economic and social relations between the parties through dialogue and cooperation, entails encouraging regional cooperation with a view to the consolidation of peaceful co-existence and economic and political stability and promoting cooperation in other areas that are of reciprocal interest.

The deal also entails cooperation in trade in agricultural and industrial products, rights of establishment and services, payments and capital movements, competition, intellectual property rights, financial cooperation, economic cooperation in the fields of industry, agriculture, investment, standards and measurements, transportation, telecommunications, energy, science and technology, environment, tourism, statistics, and the fight against illegal drugs.