Countries and regions
Under their Association Agreement which entered into force in May 2002, the EU and Jordan established a Free Trade Area (FTA) liberalising two-way trade in goods. They have subsequently developed the FTA further through an agreement on trade in agricultural, agro-food and fisheries products in 2007 and a protocol establishing a bilateral Dispute Settlement Mechanism in 2011.
- The EU is Jordan's largest trading partner, accounting for 16.8% of its trade in 2015. Jordan is the EU’s 62nd trading partner representing 0.1% of the EU’s total trade with the world.
- Total trade in goods between the EU and Jordan in 2015 amounted to €4.4 billion.
- The EU imported €0.4 billion of goods from Jordan in 2015, mostly made up of chemicals (47.2%) and machinery and transport equipment (14.1%).
- The EU's exports to Jordan are dominated by machinery and transport equipment (34.8%), followed by agricultural products (18.9%) and chemicals (15.9%).
- Two-way trade in services amounted to €1.5 billion in 2014 with EU imports of services representing €0.6 billion and exports €0.9 billion.
EU-Jordan: Trade in goods
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EU-Jordan: Trade in services
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EU-Jordan: Foreign direct investment
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EU and Jordan
Supporting Jordan in the context of the Syrian refugee crisis: a joint initiative on rules of origin
In July 2016 the EU and Jordan agreed to simplify the rules of origin that Jordanian exporters use in their trade with the EU under the Association Agreement. This is intended to make it easier for Jordan to export to the EU, encourage investment and create jobs for Jordanians and Syrian refugees.
This targeted and time-limited simplification will apply for 10 years and covers a wide range of manufactured products. The alternative rules of origin made available under this scheme are the same as those applicable to Least-Developed Countries under the EU's Everything But Arms initiative.
For exporters to be able to use these alternative rules of origin, production must:
- take place in 18 industrial areas and development zones in Jordan
- use a minimum proportion of Syrian refugee labour in the production facilities (initially 15% and increasing to 25% in year three)
The EU and Jordan will review the operation of the scheme during 2019-20 and may make changes in the light of experience. They have also agreed that once Jordan achieves its global target of bringing around 200,000 Syrian refugees into the formal labour market they will look at ways to further simplify the initiative.
The Free Trade Area created under the EU-Jordan Association Agreement provides for:
- tariff-free two-way trade of all industrial products together with a selective liberalisation of trade in agricultural, agro-food and fisheries products
- rules and disciplines on non-tariff based trade measures
- a general right to establish businesses and provide services in the other territory
- current payments and capital movements
- common rules on competition and intellectual property
The EU and Jordan concluded an Agreement on further trade liberalisation of agricultural and fisheries products in 2006.
The Council of the European Union adopted negotiating directives for a Deep and Comprehensive Free Trade Area (DCFTA) with Jordan in 2011. This will build on the existing FTA and bring in issues not presently covered such as trade in services and investment. One objective would be to support economic reforms in Jordan and bring Jordanian legislation closer to that of the EU in trade-related areas. Preparations for DCFTA negotiations are ongoing.
A Sustainability Impact Assessment on a DCFTA was carried out by an independent contractor in 2014.
Jordan in Euromed
Jordan is a partner of the Euro-Mediterranean Partnership (Euromed). This initiative includes working towards improvements in trade and investment for the EU's partners in the Euromed region.
The EU's European Neighbourhood Policy offers its neighbours a privileged relationship, building upon a mutual commitment to common values including democracy, human rights, market economy principles and sustainable development.
Pan-Euro-Mediterranean cumulation and the PEM Convention
Jordan adopted the Pan-Euro-Mediterranean system of cumulation of origin in September 2006. This is based on a network of Free Trade Agreements (FTAs) across Europe and the Mediterranean and aims to promote regional integration through a common system of rules of origin.
The European Neighbourhood Policy provides for political and financial assistance to Jordan. Financial assistance is provided under the European Neighbourhood Instrument (ENI), which provides funds for neighbouring countries based on mutually-agreed policy objectives and priorities.
More information on EU support for Jordan is available on the site of the Directorate General for Neighbourhood and Enlargement Negotiations.
Cumulation of origin means a product of one participant can be processed in or added to a product of a second participant and still considered an originating product for the purposes of a trade agreement.
Participants are now negotiating in the Regional Convention on pan-Euro-Mediterranean preferential rules of origin to update the rules of origin used in the PEM zone.
Jordan acceded to the Regional Convention in 2013.
For more information, please see The Pan-Euro-Mediterranean cumulation of origin system
Trading with Jordan
- Importing into the EU from Jordan
- EU trade defence measures on imports from Jordan
- Exporting from the EU to Jordan
- The EU is present on the ground in Jordan.
- Trade relations are part of the EU's overall political and economic relations with Jordan.
- Jordan is a member of the World Trade Organisation.