JEBA urges 'stronger' Jordan-EU economic ties to advance trade, investment

AMMAN — The Jordan Europe Business Association (JEBA), on Sunday called for enhancing economic ties between Jordan and the European Union, describing these relations as a "key driver for advancing trade and investment cooperation."

Mohammad Smadi, board member and promotion director of JEBA, highlighted Jordan's strategic position as a gateway for European access to regional markets, noting that this "unique" role offers significant opportunities in vital sectors such as trade, renewable energy and technology, according to the Jordan news Agency, Petra.

He highlighted Jordan's reputation as a stable and secure partner, making it an attractive destination for European investment, particularly in strategic industries. 

Despite regional geopolitical challenges, the Kingdom has maintained its position as a "reliable hub" for foreign investors, he added.

Smadi noted that the European Union is Jordan's second largest trading partner, where trade volume reached JD3.2 billion in 2023, pointing out that Jordan's main exports to Europe include phosphates, fertilisers and pharmaceuticals. 

He also acknowledged that there are still some challenges hindering Jordanian-EU trade, including high transport costs and the "stringent" standards required by European markets. 

Smadi estimated that untapped opportunities under existing agreements, such as the Jordan-EU Partnership Agreement, amount to some $777 million.

To address these challenges, Smadi called for increased efforts to capitalise on these agreements and boost trade. 

He pointed to Jordan's Economic Modernisation Vision, which focuses on increasing exports to Europe by improving product quality, training small and medium-sized enterprises, promoting the green economy and upgrading logistics infrastructure to reduce transport costs.

 In addition, digital transformation is seen as a "key enabler" for Jordanian companies to enter European markets more effectively.

"Jordan is not only a gateway to Europe, but also to regional markets such as the Gulf, Iraq and Syria," said Smadi. 

He added that initiatives such as the Jordanian Railway Project and the Clean Energy Corridor will improve connectivity between Jordan, the region and Europe, creating even greater opportunities for economic cooperation.

To further boost trade ties, Smadi suggested specialised training programmes to help Jordanian companies meet European standards and developing joint digital platforms to streamline trade and reduce customs barriers.

He emphasised the crucial role of SMEs, which make up 95 per cent of Jordan's economy, in the Kingdom's modernisation efforts. 

Smadi noted that JEBA plays a key role in fostering partnerships between the Jordanian and European private sectors by organising investment forums, conferences and providing consultancy services to facilitate market entry.

He also announced JEBA's plans to host the first Jordan-European Forum under the theme "Digital and Green Jordan", urging European countries to increase their investments in the Kingdom's strategic and vital sectors in a bid to enhance the Kingdom's role as a regional and international economic hub.