ACC calls for exemption from Egypt’s decision to withhold exports of vital commodities

AMMAN — The Amman Chamber of Commerce (ACC) expressed hopes that the Egyptian government would exempt Jordan from its decision to withhold exports of vital commodities amid the Russian-Ukrainian crisis. 

Due to the rising conflict between Russia and Ukraine, the Egyptian government decided to withhold exports of essential commodities, such as lentils and cooking oil, which Jordan imports, ACC President Khaleel Haj Tawfiq told The Jordan Times. 

“The Egyptian decision was unanticipated and we are hoping for an exception,” Haj Tawfiq said.

Haj stated that the Egyptian government decided to withhold some of their food exports for three months. He noted that this decision will affect Jordanian retailers as they were prepared to receive merchandise from Egypt.

“Jordanian importers have long-term trade agreements with their Egyptian peers,” Haj Tawfiq said. 

Jordan has both long- and short-term supply agreements with Egyptian exporters with parts of the agreements fully paid for in advance or partially paid for, the ACC president said. 

“Demand for food will increase during the holy month of Ramadan,” he noted. 

Haj Tawfiq said that “the commerce chamber is optimistic about an exception from our Egyptian neighbours, especially for the merchandise at the Egyptian borders, which are ready to be shipped”. 

“We are currently reviewing plans to cope with what is going on,” he added.

Despite multiple attempts by The Jordan Times to contact the food representative at the ACC, he was not available for comment. 

“We import cooking oil from multiple countries other than Egypt,” purchasing manager at one of Jordan’s hypermarkets who preferred to remain anonymous, told The Jordan Times. 

He added that “the fear is not from Egypt withholding their exports, but from all the remaining countries as most of the countries worldwide want to ensure that they have sufficient stock of vital commodities for their population before exporting the surplus”. 

He also added that his company’s headquarters asked them to have a strategic reserve for the coming six months, noting that they are expecting a price hike in essential commodities. 

“We have noticed an increased demand for air-fryers as a way to cope with the increase of cooking oil price,” he said.

Economist Khaled Salameh urged the government to look for alternative suppliers for essential commodities, as well as to diversify food suppliers.