EU Statement at the Trade Policy Review of the Hashemite Kingdom of Jordan, 27 September 2023
On behalf of the European Union, I would first like to welcome the Delegation of the Hashemite Kingdom of Jordan, led by H.E. Mr. Yousef Mahmoud Al Shamali (Minister of Industry, Trade, and Supply; Minister of Labour). Our appreciation is extended to the Discussant, Ambassador H.E. Mr Omar Zniber (Morocco) for getting us started today with his remarks and Ambassador H.E. Mr. Walid Obeidat for his role in the WTO.
Mr. Chairman, in a region characterized by chronic instability, Jordan stands out as a stable country which has managed to weather the impacts of regional tensions and the global pandemic.
The regional crisis had severe impacts on Jordan's trade performance leading in particular to the loss of many of its traditional export markets such as Syria and Iraq. The recent rise in trade volume between Syria and Jordan is due to Syrian and Jordanian decisions to adjust border policies and some customs regulations to facilitate trade.
The EU commends Jordan's resilience in this difficult environment and praises, in particular, Jordan's uneasy balancing exercise to respond to the severe exogenous shocks that have disrupted its trade routes and affected inward investments.
Furthermore, the EU acknowledges Jordan’s commitment in embarking on a triple modernisation process: (i) modernising the political system; (ii) the Economic Modernisation Vision and; (iii) reforming the public administration. Jordan’s economic modernisation remains contingent on identifying opportunities to expand the economy’s outward orientation and to implement reforms needed to promote private sector-led growth and job creation.
The EU also welcomes Jordan’s Master Strategy for the Energy Sector 2020-2030, as it shows commitment to sustainable energy, developing renewable energy, promoting opening of energy markets, encouraging investments in energy infrastructure, regional connectivity, as well as improving energy efficiency (maximizing energy consumption/enhancing productivity), thereby contributing to investment incentives in clean energy.
Jordan has carried out a certain number of reforms in recent years aimed at improving the trade and investment climate. In particular, the EU acknowledges the restructuring of the customs tariffs as part of a comprehensive customs reform, which also includes a review of procedures for the purpose of simplifying them. The new Investment Law (2022) and the Investment Promotion Strategy have been launched and are expected to contribute to implement the ambitious new Economic Modernisation Vision. More recently, the National Export Strategy 2023-2025, aiming at increasing Jordanian exports to various markets, has been launched and an industrial policy (2023-2027) has also been recently announced.
The EU notes with appreciation the ratification by Jordan of a series of important international treaties in the area of protection of IPRs as well as the adoption of related legislation. Jordan has also made important efforts in the area of patents.
A word, Mr. Chairman, on our bilateral relationship.
The EU and Jordan have a strong partnership and with a view to further strengthening our solid and multi-faceted relationship, the Partnership Priorities 2021-2027 have been signed to support the implementation of the EU-Jordan Association Agreement.
Trade-for-Development constitutes a key element of the EU-Jordan Partnership Priorities. Job creation, supported by the uptick in exports to the EU under the simplified rules of origin scheme and accompanying measures, will benefit Jordan. The EU and Jordan will jointly identify suitable approaches to enhance bilateral trade and investment relations. Furthermore, the EU and Jordan will work together on SMEs, development, technology and know-how to strengthen bilateral and economic ties.
The EU and Jordan have close trade relationship. The EU is Jordan’s second most important trading partner. According to our statistics, the value of trade in goods between the EU and Jordan increased by over 70% between 2002 - the year the Association Agreement entered into force - and 2022, reaching €4.8 billion at the end of 2022. There has also been a positive development for trade in services which increased by 5% between 2020 and 2021, from € 1.29 billion in 2020 to € 1.36 billion in 2021.
Jordan has been a member of WTO since 11th April 2000. The current rate of implementation notifications of the WTO Trade Facilitation Agreement's commitments stands at 100% with a timeframe spanning from February 2017 to December 2022. However, the category C commitments do not show any progress up to date.
We appreciate Jordan’s membership of the Information Technology Agreement and encourage Jordan to join also the ITA expansion. Jordan currently holds observer status in the Committee on Government Procurement and we invite Jordan to reactivate its accession process to the Agreement on Government Procurement. We also encourage Jordan to consider joining other plurilateral initiatives, including on Investment Facilitation for Development and e-commerce, and ratify the fisheries agreement.
Chairman, a word on two additional issues to be taken forward in support of enhanced trade opportunities.
We invite Jordan to continue raising awareness on the simplified Rules of Origin Scheme, signed with the EU in 2018, and to seize its full potential for growth and job creation.
The EU would also like to take the opportunity to commend the Agadir Agreement member countries, including Jordan, for the positive developments on customs cooperation, trade facilitation and the accession of Lebanon and Palestine. Jordan has also a role to play in the political redirection and technical consolidation of this Agreement.
We would like to thank Jordan for the responses to the questions we have previously submitted in writing.
On behalf of the EU, I look forward to a constructive exchange of views during this review. We wish Jordan delegation the utmost success during its 3rd Trade Policy Review.