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AMMAN — Jordan and the United States on Tuesday signed a Reciprocal Trade Agreement aimed at strengthening bilateral economic relations, expanding market access and enhancing trade and investment between the two countries.
The agreement builds on the longstanding economic partnership between Jordan and the United States under the Jordan-US Free Trade Agreement, which entered into force on December 17, 2001, following nearly a year of negotiations, according to a Prime Ministry statement.
Under the agreement, the United States will reduce reciprocal customs duties on Jordanian goods to 10 per cent and grant Jordan's garments and textiles sector more preferential access to the US market, the statement said.
The agreement is expected to boost Jordanian exports to the United States, particularly garments and textiles, while facilitating access for US agricultural products and vehicles to the Jordanian market.
Jordan will continue to grant duty-free access to US exports under the 2001 Free Trade Agreement.
The agreement also includes provisions aimed at facilitating bilateral trade through stronger environmental enforcement, better protection of workers' rights, enhanced intellectual property protection and improved customs procedures, according to the statement.
The two sides also agreed to continue discussions on trade in services and investment with the aim of removing barriers and expanding bilateral trade and investment.
The agreement also highlights the importance of maintaining high standards in digital trade to support an open and competitive digital economy.
It also includes commitments on digital trade, with Jordan pledging not to impose taxes or customs duties on digital services and to continue supporting the World Trade Organisation's moratorium on customs duties on electronic transmissions.
Both sides also agreed to strengthen supply chain resilience and innovation through cooperation on policies affecting global trade, investment security, export controls and efforts to combat customs fraud, the statement said.
The agreement reinforces more than two decades of economic cooperation under the Jordan-US Free Trade Agreement, which has strengthened bilateral trade, investment and commercial ties.
The United States remains a key market for Jordanian industrial exports, with exports to the US reaching JD595 million during the first four months of the year, driven by garments and textiles, jewellery, machinery and electrical equipment, and pharmaceuticals.
Officials said the agreement is expected to boost trade, create new opportunities for exporters and investors, and further strengthen the strategic economic partnership between Jordan and the United States.
