Directorate-General for Trade

Jordan

The EU is Jordan's main source of imports, ahead of neighbouring Saudi Arabia and of China. EU imports to Jordan totalled €2.6 billion in 2008. At the same time the EU is only Jordan's 7th main export destination. The Jordanian economy has considerable potential in pharmaceuticals, Dead Sea products, processed agricultural products especially for its region, and engineering products.

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 2008: €2.6 billion
• EU goods imports from Jordan 2008: €0.3 billion

EU exports to consist mainly of machinery (31,5%), transport equipment (21,3%) and chemical products (13%). The EU imports from Jordan focus on chemicals (34,9%), machinery (7%) and transport equipment (7%).

Trade in services

Jordan'thats economy is dominated by services, which represent around 75% of GDP. Jordan's leading export services sectors are travel and transportation.

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

Foreign Direct Investment

Jordan continues to benefit from increasing FDI flows (real estate, banking, mining, telecommunications and tourism) in recent years, suggesting confidence in the economy and a favourable view of prevailing competitiveness conditions. FDI inflow in 2007 totalled $2,7 billion, representing an increase of 458% compared to 2003).

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 Neighbourhood policy 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 - will be 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 will be one of the main priority objectives for cooperation. More particularly, the EU will provide 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. 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. It entered into force in July 2006. The effective implementation started in April 2007 with the creation of the Agadir Technical Unit in Amman. Jordan is also negotiating a FTA with Turkey.

WTO

Jordan has been a WTO member since 11 April 2000.