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Jordan

Jordan

The EU's Association Agreement with Jordan signed in November 1997, entered into force on 1 May 2002. The Association Agreement progressively establishes a Free Trade Area between the EU and Jordan over 12 years.

In addition, an agreement on further liberalisation of agricultural products entered into force in 2007. A protocol on Dispute Settlement Mechanisms for trade between the EU and Jordan initialed in December 2009 entered into force on 1 July 2011.

Trade picture

  • After Saudi Arabia, the EU is Jordan's second trade partner – with a total trade amounting to approximately € 3.8 billion in 2012. In 2012, the EU was Jordan's second source of imports and the fifth destination of exports. Jordan is the EU's 63th trade partner.
  • The Jordanian economy is dominated by services (65% of its GDP) and by industry (30%), whereas the agricultural sector represents only a small part of the economy (4.5 %) of Jordan.
  • EU imports of goods from Jordan are dominated by chemicals (29%) and fuel and mining products (37%). EU exports to Jordan consist mainly of machinery and transport equipment (38.7%), chemicals (17.3%) and agricultural products (16.4%).
  • The two largest exporting industries in Jordan are the pharmaceutical industry and the phosphate and potash extraction industries. 75% of Jordan's pharmaceutical production is exported. Jordan's phosphate and potash extraction industry is among the largest in the world.
  • Jordan has an important trade deficit vis-à-vis the EU However Jordanian balance in services is positive and since 2009 continues to improve. Jordan's exports of services are dominated by services in the travel sector, while Jordan's imports of services are dominated by the transport sector.

EU-Jordan "trade in goods" statistics

Trade in goods 2010-2012, € billions
Year EU imports EU exports Balance
2010 0.2 2.8 2.5
2011 0.3 3.3 2.9
2012 0.3 3.4 3.1

More statistics on Jordan

EU and Jordan

As a response to the unprecedented events across the Arab world in 2011, the EU has identifi ed possible avenues to further develop and deepen our trade and investment relations with Southern Mediterranean partners presented in:

On the 14th of December 2011, the Council adopted negotiating directives for Deep and Comprehensive Free Trade Agreements (DCFTAs) with Egypt, Jordan, Morocco and Tunisia.. The DCFTA would aim at improving market access opportunities and the investment climate and at supporting economic reforms undertaken by Jordan. It would extend significantly beyond the scope of the existing Association Agreement to include trade in services, government procurement, competition, intellectual property rights, investment protection. Overall, the future negotiations could lead to a gradual integration of Jordan's economy into the EU single market.

The main objective of the DCFTA would be to bring Jordanian legislation closer to EU legislation in trade-related areas. Negotiations will be launched after the completion of a preparatory process carried by the Commission with Jordan.

A Sustainability Impact Assessment (SIA) in relation to the DCFTA with Jordan will be carried out by an independent contractor in 2014. Further information on SIA available here

Jordan already has a Free Trade Agreement with the EU and will accordingly cease to benefit from preferential access to the EU market under the Generalised System of Preferences (GSP) scheme from January 2014 (for more details on the EU's new GSP scheme, see here)

An Agreement on Conformity Assessment and Acceptance of industrial products (ACAA) would enable Jordanian products of selected sectors to enter the EU market without additional technical controls. Jordan has made good progress in the preparations for such an agreement and has chosen electrical products, toys, gas appliances and pressure equipment as priority sectors, although negotiations have not yet been launched.

More information on the ACAA

Jordan in Euromed

Jordan is one of the partners of the Euro-Mediterranean Partnership (Euromed) that promotes economic integration and democratic reform across 16 neighbours to the EU's south in North Africa and the Middle East. One important part of this work is to achieve mutually satisfactory trading terms for the Euromed region's partners.

The Euro-Mediterranean Partnership is an essential component in the pursuit of greater economic integration in the Mediterranean region. Within the The European Neighbourhood Policy, the EU offers its neighbours a privileged relationship, building upon a mutual commitment to common values (democracy and human rights, rule of law, good governance, market economy principles and sustainable development). The European Neighbourhood and Partnership Instrument is designed to target sustainable development and approximation to EU policies and standards, supporting the agreed priorities in the European Neighbourhood Policy Action Plans and the EU co-operation programme for Jordan 2007 – 2013

In February 2004, Jordan signed the Agadir Agreement with Egypt, Morocco and Tunisia. This committed all parties to removing all tariffs on trade between them and to harmonizing their legislation with regard to standards and customs procedures. The Agadir Agreement entered into force in July 2006 and the implementation is ensured by the Agadir Technical Unit in Amman.

The Agadir Agreement foresees the PanEuroMed cumulation of origin. Jordan was the first Mediterranean partner to ratify the Regional Convention on pan-Euro-Mediterranean preferential rules of origin in August 2013. When applied, this will replace the current network of bilateral protocols, facilitate the revision of existing rules of origin, and thus enhance regional trade and economic integration. The system – which makes it simpler to import products manufactured in more than one country throughout the Mediterranean basin – will generate new opportunities for economic operators and be an important spur for further regional economic integration.

More information on the Euro-Mediterranean Partnership

Trading with Jordan