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Viewing cable 08AMMAN2715, Jordanian Business Associations Revive Tijara Coalition to

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Reference ID Created Released Classification Origin
08AMMAN2715 2008-09-22 13:33 2011-08-26 00:00 UNCLASSIFIED Embassy Amman
VZCZCXYZ0008
RR RUEHWEB

DE RUEHAM #2715/01 2661333
ZNR UUUUU ZZH
R 221333Z SEP 08
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 3569
RUEHEG/AMEMBASSY CAIRO 3796
RUEHDO/AMEMBASSY DOHA 0420
RUEHMK/AMEMBASSY MANAMA 0693
RUEHRB/AMEMBASSY RABAT 0421
RUEHTV/AMEMBASSY TEL AVIV 1338
RUEHJM/AMCONSUL JERUSALEM 5174
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
UNCLAS AMMAN 002715 
 
SIPDIS 
 
STATE PLEASE PASS TO USTR (SFRANCESKI) 
STATE FOR EEB AND NEA/ELA 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EAGR JO
SUBJECT: Jordanian Business Associations Revive Tijara Coalition to 
Promote U.S.-Jordan Trade 
 
Ref: Amman 2654 
 
1.  Summary:  The Tijara coalition of 16 Jordanian business 
associations has begun to implement a new one-year strategy to 
promote U.S.-Jordan trade through policy forums and trade 
capacity-building workshops funded by USAID.  In a September 17 
policy forum with the Ambassador and Government of Jordan (GOJ) 
representatives, Tijara members highlighted challenges to two-way 
trade, including the need for assistance with market research and 
distribution in the U.S., designation of satellite garment factories 
as Qualifying Industrial Zones (QIZs), access to finance, amendments 
to the labor law, accession to the WTO Government Procurement 
Agreement, technology transfer, and diversification of exports.  End 
Summary. 
 
More Focused Tijara Mission 
--------------------------- 
 
2.  Established in 2001, "Tijara" is a coalition of key Jordanian 
business associations and government agencies dedicated to promoting 
bilateral trade and the U.S.-Jordan Free Trade Agreement (FTA).  The 
group's effectiveness had suffered from an ambitious mission, lack 
of resources, and too many members with different interests.  After 
its 2004-2007 strategy ended, members decided to revamp Tijara to 
narrow participation and give it a more focused agenda. 
 
3.  Over the next year, Tijara plans to hold three to four policy 
dialogue sessions between the public and private sectors to raise 
trade issues, such as transport and shipping, access to export 
finance, and Jordan customs procedures.  Members will also organize 
three to four USAID-funded, practical workshops to enhance the 
capabilities of exporters to enter the U.S. market, such as how to 
conduct market intelligence research and how to comply with U.S. 
food safety regulations. 
 
Identifying Challenges to Bilateral Trade 
----------------------------------------- 
 
4.  The Ambassador helped launch the revived Tijara through a 
September 17 policy forum on challenges to increasing two-way trade, 
noting that input from the private sector would be useful for the 
upcoming FTA Joint Committee meeting.  Although total bilateral 
trade has continued to grow largely due to an increase in U.S. 
imports, the Ambassador reaffirmed that the goal was to see figures 
on both sides of the trade ledger increase (reftel).  The drop in 
Jordanian exports to the U.S. during the first half of 2008, he 
added, highlighted the need for diversification of exports.  He also 
welcomed ideas for maximizing use of the FTA, and urged the GOJ to 
conclude negotiations on joining the WTO Government Procurement 
Agreement. 
 
5.  In addition to GOJ officials, participants included senior 
management from: the American Chamber of Commerce in Jordan; 
Jordanian Chamber of Industry; Jordanian Chamber of Commerce; 
USAID-supported Business Development Center; Jordan Exporters' 
Association; Information Technology Association of Jordan (Int@j); 
Jordan Association of Pharmaceutical Manufacturers; Jordan Exporters 
and Producers of Fruits and Vegetables; Jordan Garments, Accessories 
and Textiles Exporters' Association (JGATE); Jordan Stone and Tile 
Exporters Association; Jewelers' Syndicate; Furniture Association; 
Jordan Businessmen Association; Business and Professional Women 
Amman; and Jordan Forum for Business and Professional Women. 
 
6.  Tijara members raised the following issues: 
 
-- Need for Jordanian companies to better market goods in the U.S. 
and become more aware of distribution channels. 
-- Importance of designating satellite factories as QIZs to increase 
the local labor force in the garment industry and help overcome high 
transportation costs. 
-- Need by the GOJ to upgrade labor laws and correct any isolated 
incidents of labor violations. 
-- Need for Jordan to join the WTO Government Procurement Agreement. 
 Dr. Loay Sehwail, Director of the Industrial Development Department 
at the Ministry of Industry and Trade, responded that the Jordanian 
government was still in the process of internal consultation on this 
issue. 
-- Desire to reinstate assistance programs to import commodities 
such as machinery from the U.S. 
-- Request to facilitate financing, particularly for small and 
medium enterprises, perhaps through the U.S. Export-Import Bank, and 
 
 
to better inform private sector of such opportunities. 
-- Need to diversify exports, noting promising sectors such as 
pharmaceuticals and medical supplies. 
-- Importance of identifying niche markets.  The Furniture 
Association noted that Jordan cannot compete with China in 
traditional furniture exports, but it might have a competitive edge 
in exporting components of furniture, particularly due to Jordan's 
flexibility and customization skills. 
-- Need for assistance with technology transfer, particularly given 
the high IPR standards that have been followed in the pharmaceutical 
sector. 
-- Desire for technical assistance to comply with the U.S. Food and 
Drug Administration regulations, especially for pharmaceuticals. 
-- Request for assistance in customizing jewelry designs. 
-- Urgent need for USDA to conclude Pest Risk Analysis for Jordan's 
fruits and vegetables, starting with strawberries and green beans. 
 
Visit Amman's Classified Web Site at 
http://www.state.gov.sgov.gov/p/nea/amman/ 
 
BEECROFT