European Commission Directorate-General for Trade

Jordan

The EU was for many years Jordan's leading trade partner and main source of imports, since 2008 it has become Jordan's second trade partner, behind Saudi Arabia (covering 15.7% of total trade and 21.3% of Jordanian imports) with a total trade amounting to approximately €2.8 billion in 2009.

The Jordanian economy is dominated by services (around two thirds of its GDP). Manufacturing is the second important sector (about one fifth of GDP); agriculture contributes around 3% to GDP. The largest exporting industries in Jordan are the pharmaceutical industry with 75% of production being exported and phosphate and potash extraction industries, which figure among the largest in the world.

The EU's Association Agreement with Jordan was signed on 24 November 1997. It entered into force on 1 May 2002, replacing the Co-operation Agreement of 1977. The agreement will progressively establish a free trade area between the EU and Jordan over 12 years, in conformity with WTO rules.

The EU is Jordan's main partner in terms of total trade, while Jordan is the EU's 69th trading partner

Trade in goods

• EU good exports to Jordan 2009: €2.6 billion
• EU goods imports from Jordan 2009: €0.2 billion

EU-Jordan trade volume in 2008 increased significantly by 26% (imports by 35% and exports by 10.7%). However in 2009 bilateral trade has, with a view of the global economic downturn, contracted by almost 15%. EU imports from Jordan fell in 2009 by 40% while EU exports decreased by 12% over the same period. EU imports from Jordan focus on machinery and transport equipment (22.6%), chemicals (17.1%), as well as mining products (13.2%). EU exports to Jordan consist mainly of machinery (25.1%) and transport equipment (18.1%) that together amount at 44.9% of all exports, and of chemical products (16.2%). 

Trade in services

Jordan's exports of services to the World amount at €2.9 billion in 2008, consisting mainly of travel (68.8%) while Jordan's imports of services from the World amount at €2.6 billion consisting mainly of transportation (57%). EU export of services to Jordan amount at €657 millions in 2008 and EU import of services from Jordan amount at €629 millions.

Services sectors reforms in Jordan are well advanced and generally in line with international best practices.

Foreign Direct Investment

FDI inflows into Jordan increased strongly between 2000 and 2006 from €882 millions to €2.4 billion, dropping to €1.3 bn in 2008. Foreign Direct Investments inward stocks in 2008 amount at €12.9 billion, representing an annual growth for 2007-2008 of 18.6%. EU share in FDI inflow into Jordan from 2003 to 2007 is as low as 5%, compared to 76.75% from the Gulf region.

More statistics on Jordan

The European neighbourhood policy and financial assistance

EU-Jordan co-operation is an important part of the European Neighbourhood Policy. The current ENP Action Plan was adopted in 2005 and discussions on a new Action Plan are underway.

The European Neighbourhood Policy (ENP) supports political and economic cooperation between Jordan and the EU and is the framework for financial assistance from the EU to Jordan. The European Neighbourhood Policy Instrument - ENPI - has been endowed with €11.9 billion for 2007-2013. A total amount of €265 million has been allocated under the ENPI to Jordan's National Indicative Programme. The EU and Jordan have agreed that trade and investment development are one of the main priority objectives for cooperation. More particularly, the EU is providing support for the modernisation of the services sector, to enterprise and export development, and to trade facilitation measures.

South-South integration

On 25 February 2004, Jordan signed the Agadir Agreement with Egypt, Morocco and Tunisia. Tunisia. This committed all parties to removing substantially all tariffs on trade between them and to harmonising their legislation with regard to standards and customs procedures. The Agreement foresees the PanEuroMed cumulation of origin. It entered into force in July 2006. The effective implementation started in April 2007 with the creation of the Agadir Technical Unit in Amman.

WTO

Jordan has been a WTO member since 11 April 2000.