VZCZCXYZ0000
RR RUEHWEB

DE RUEHAM #2596/01 3361425
ZNR UUUUU ZZH
R 021425Z DEC 09
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 6383
INFO RUEHGB/AMEMBASSY BAGHDAD 6325
RUEHLB/AMEMBASSY BEIRUT 3132
RUEHEG/AMEMBASSY CAIRO 4198
RUEHDM/AMEMBASSY DAMASCUS 4282
RUEHRH/AMEMBASSY RIYADH 2244
RUEHTV/AMEMBASSY TEL AVIV 1952
RUEHJI/AMCONSUL JEDDAH 0933
RUEHJM/AMCONSUL JERUSALEM 5715
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS AMMAN 002596 
 
UNCLASSIFIED 
SIPDIS 
 
STATE FOR EB/TPP/BTA AND NEA/ELA 
STATE PASS TO USTR FOR GBLUE 
 
E.O. 12958: N/A 
TAGS: ETRD ECON EFIN JO
SUBJECT: Jordan 2010 National Trade Estimate 
 
Ref: State 105978 
 
¶1.  Per reftel, below is the text of Embassy Amman's 2010 National 
Trade Estimate report, also e-mailed as requested to USTR as a 
Microsoft Word document. 
 
¶2.  Begin Text: 
 
TRADE SUMMARY 
 
The U.S. goods trade with Jordan achieved a surplus of $154.5 
million in the first nine months of FY 09 for the first time since 
FY 01. This was mainly due to a 25.2 percent increase in U.S. 
exports to Jordan, reaching $863.9 in FY 09 from $668.3 during the 
same period in FY 08.  This was accompanied by a 17.7 percent 
decrease in U.S. imports from Jordan which stood at $709.5 million 
compared to $861.2 million in the first nine months of FY 08. U.S. 
Exports to Jordan in FY 08 stood at $940.3 million, a 9.8 percent 
increase over FY 07 while imports from Jordan were valued at 
$1,137.5 million representing a 14.4 percent decrease compared to FY 
¶07.  (Note: Data source is USITC. End note.) 
 
The United States-Jordan Free Trade Agreement 
--------------------------------------------- 
 
Under the terms of the United States-Jordan Free Trade Area 
Agreement (FTA) which entered into force on December 17, 2001, the 
United States and Jordan agreed to phased tariff reductions 
culminating in the complete elimination of duties on all products by 
¶2010. 
 
IMPORT POLICIES 
 
Tariffs and other Charges 
-------------------------- 
 
Jordan is a member of the WTO and is in the process of reducing its 
tariffs in compliance with its WTO accession commitments. Currently, 
Jordan's simple average applied tariff is 10.8 percent with a 
maximum rate of 180 percent on certain products.  Most raw materials 
and intermediate goods used in industry have been zero-rated. 
While tariffs between the United States and Jordan are being 
eliminated under the terms of the FTA, nontariff barriers continue 
to affect a certain portion of U.S. agricultural exports. 
 
Jordan's General Sales Tax law allows the government to impose a 
"Special Tax" at the time of importation or local production. 
 
Agriculture 
----------- 
 
U.S. agricultural exports to Jordan were $181 million in 2008.  Top 
U.S. agricultural exports consist of grains (including corn and 
rice), soybean cake, processed and canned food, condiments, 
vegetable oil, almonds, and poultry (both live and carcasses).  The 
U.S. has no market share in wheat and barley due to Jordanian 
government involvement in the purchasing and distribution of these 
two commodities and a strong preference for the lowest bidder. 
Under the terms of the FTA, import duties and other trade barriers 
between Jordan and the United States must be phased out by 2010. 
Tariffs that were less than 5 percent have already been eliminated. 
 
 
Jordan's border inspection authorities selectively impose sanitary 
and phytosanitary measures on meat and poultry, effectively creating 
nontariff barriers on imports of these products.  Import licenses, 
or advance approval to import goods, are required for specific food 
and agricultural goods.  The authorities granting such licenses and 
approvals are the Ministry of Agriculture and the Ministry of 
Health. 
 
Import License and Pre-Shipment Inspection 
------------------------------------------ 
 
In addition to the special requirements for certain agricultural 
products, Jordan requires that importers of commercial goods be 
registered traders or commercial entities.  The Ministry of Industry 
and Trade occasionally issues directives requiring import licenses 
for certain goods or categories of goods. 
 
STANDARDS, TESTING, LABELING AND CERTIFICATION 
 
The Jordan Food and Drug Administration (JFDA) assumed in 2009 
authority to decide whether to accept or reject food consignments. 
The Jordan Institution for Standards and Metrology (JISM) maintains 
responsibility for testing and drafting standards.  JISM's current 
product standards generally reflect existing U.S. standards.  JISM 
has worked with European Union agencies to review its standards and 
to consider incorporating new sets of standards.  JISM's director 
has assured the United States that any changes to product standards 
or introduction of new standards resulting from this review would 
not present any bias against U.S. standards. 
 
JISM has already licensed several local labs to test for compliance 
with applicable standards. 
 
GOVERNMENT PROCUREMENT 
 
In 2002, Jordan initiated the process for its accession to the WTO 
Government Procurement Agreement (GPA), with the submission of its 
initial entity offer.  Active discussions continue and the WTO 
Committee on Government Procurement anticipates the completion of 
Jordan's accession to the GPA in 2010. 
 
EXPORT SUBSIDIES 
 
All exporters are granted the following incentives: 
 
-- Net profits generated from most export revenue are fully exempt 
from income tax.  The mining sector is excluded, as are exports 
governed by specific trade protocols and foreign debt repayment 
schemes.  Under the WTO, the tax exemption was initially set to 
expire on January 1, 2008, but upon the request of Jordan, the WTO 
granted an extension through December 2015, subject to an annual 
review by the WTO. 
 
-- Foreign inputs used in the production of exports are exempt from 
customs duties; all additional import fees are assessed on a 
reimbursable basis. 
 
INTELLECTUAL PROPERTY RIGHTS (IPR) PROTECTION 
 
In 2007, Jordan amended its Trademark and Patent Laws to enable 
accession to the Madrid Protocol Concerning the Registration of 
Marks and the Patent Cooperation Treaty.  Jordan has acceded to the 
World Intellectual Property Organization (WIPO) treaties on 
copyrights (WCT) and performances and phonographs (WPPT), and is 
currently revising its Copyright Law to implement these treaties. 
Jordan is also updating its Customs Law to provide additional tools 
to its customs officials to improve IPR enforcement. 
 
Jordan's record on IPR enforcement has improved steadily.  In 2007, 
2008, and 2009 Jordanian courts issued some significant jail 
sentences for convicted IPR offenders.  Jordan's Customs Department 
and the Public Security Department (the national police) have 
created specialized IPR units, and the National Library has stepped 
up its IPR enforcement efforts.  Pending amendments to JISM's 
authorizing law aim to enhance the agency's role in market 
surveillance and in seizing counterfeit products that have entered 
the Jordanian market. 
 
Further improvements are still needed to strengthen Jordan's IPR 
enforcement regime.  Jordanian agencies responsible for IPR 
enforcement lack resources and capacity, and enforcement mechanisms 
and prosecution efforts still need to be strengthened, particularly 
with respect to ex officio authority to bring criminal cases.  A 
sizeable portion of videos and software sold in the marketplace are 
pirated.  The Jordanian government continues to examine means to 
provide more comprehensive protection of IPR, including through more 
stringent enforcement of existing laws, introduction of new 
regulations based on existing laws, and the creation of an 
independent IP body. 
 
Jordan has made several legislative changes to meet its 
international commitments with regard to agriculture-related IPR, 
including adoption of a new Plant Variety Protection (PVP) law in 
2000 and issuance of corresponding PVP regulations in 2002.  The law 
seeks to ensure that reputable seed producers do not export their 
products to countries that do not observe IPR for agricultural 
products.  The law also provided for the establishment of an office 
to register new plant varieties at the Ministry of Agriculture.  The 
cost of registering seeds at Jordan's PVP office is very expensive, 
ranging from $3,000-$5,000 per plant variety.  Not all seed 
importers are interested in PVP registration as most F1 hybrid 
seeds, the first generation offspring of two different plants, have 
their own IPR self-protection.  Jordan further joined in 2004, the 
Union for the Protection of New Varieties of Plants (UPOV), which 
aims to protect intellectual property rights of new plant varieties. 
 
 
Optional registration of new plant varieties for IPR purposes 
differs from the other compulsory registration of new plant 
varieties for trade.  The latter is more of a sanitary and 
phytosanitary measure aimed to protect the country from any 
hazardous plant material or sowing seed, while the IPR registration 
for a new plant variety is similar to registration of a patent.  In 
order to register for IPR protection, the plant variety must be new, 
distinct or distinguishable from any other variety, uniform in its 
relevant characteristics, and stable, i.e., its relevant 
characteristics remain unchanged after repeated propagation.  To 
date, one Jordanian grape variety and nine American strawberry 
varieties have been registered; ten other varieties, among them 
American, Jordanian, and others, are in the process of registration. 
 
 
The Jordanian public and private sectors agree that a strong IPR 
regime in agriculture can help attract international investors and 
foster research and development in this field.  Such a regime is 
also economically beneficial as there is no real export opportunity 
for produce from unregistered plants. 
 
TBT TRADE CAPACITY BUILDING 
 
Post has been actively engaged with the host government in 
agricultural-related capacity-building programs that aim to ease and 
remove trade barriers, using well known efforts such as the Cochran 
Program to send senior, trade-related and technical staff to the 
U.S. for specialized training.  Other post programs were also used 
for the same purpose:  USPTO has engaged two participants on IPR 
training and the State Department's International Visitor Program 
(IVP) already has one alumni and another candidate about to depart 
for the study tour. 
 
Capacity-building programs are the most effective tools so far in 
recruiting insiders passionate for change and enthusiastic about 
lessening trade barriers to the maximum extent. 
 
SERVICES BARRIERS 
 
As part of its WTO commitments, Jordan agreed to allow unlimited 
market access in telecommunications services no later than January 
1, 2005.  Nevertheless, the now privatized Orange (Jordan Telecom) 
still enjoys a de-facto monopoly of land lines. 
 
INVESTMENT BARRIERS 
 
The government continues to revamp its investment promotion system. 
It is re-examining investment incentives with the consolidation of 
all investment promotion activities under a renewed Jordan 
Investment Board.  These developments will likely lead to expanded 
investment opportunities in Jordan for U.S. investors. 
 
Jordan's investment laws treat foreign and local investors equally, 
with the following exceptions (as per regulation No. 54 of 2000, 
entitled "Non Jordanian Investments Promotion Regulation"): 
 
-- Under the terms of the United States-Jordan FTA, ownership of 
periodical publications is restricted to Jordanian natural persons 
or Jordanian juridical entities wholly owned by Jordanians; 
 
-- Under the same agreement, foreign investors are limited to 60 
percent ownership in printing/publishing and in aircraft or vessel 
maintenance and repair services; and 
 
-- Also under the FTA, foreign investors are limited to 50 percent 
ownership in a specified list of businesses and services. 
In general, foreign investors may not have whole or partial 
ownership of investigation and security services, sports 
clubs(except for health clubs), stone quarrying for construction 
purposes, customs clearance services, and land transportation of 
passengers and cargo using trucks, buses and taxis. 
 
While Jordanian laws set limitations on foreign ownership in certain 
sectors, the laws also allow for the government to grant exceptions 
to these limitations where it deems appropriate. This exception 
policy is viewed as being too selective by some potential U.S. 
investors. 
 
The FTA Annex 3.1 has a complete listing of limitations on 
investments and may be found at http://www.ustr.gov. 
 
ELECTRONIC COMMERCE 
 
Jordan has some legislation regulating electronic commerce, although 
there has yet to emerge a clear body of regulations and tax laws 
covering electronic commerce transactions.  Legislation that allows 
for and regulates electronic signatures is still needed. Jordan does 
not impose tariffs on electronic transactions. 
 
End text. 
 
Visit Amman's Classified Website at: 
http://diplopedia.state.sgov.gov/index.php?ti tle= 
Embassy_Amman 
 
MANDEL