VZCZCXYZ0000
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DE RUEHAM #2663/01 3431141
ZNR UUUUU ZZH
O 091141Z DEC 09
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6473
INFO RUEHAK/AMEMBASSY ANKARA 0625
RUEHGB/AMEMBASSY BAGHDAD 6331
RUEHEG/AMEMBASSY CAIRO 4213
RUEHDO/AMEMBASSY DOHA 0452
RUEHDM/AMEMBASSY DAMASCUS 4288
RUEHOT/AMEMBASSY OTTAWA 0281
RUEHTV/AMEMBASSY TEL AVIV 1958
RUEHRB/AMEMBASSY RABAT 0442
RUEHRH/AMEMBASSY RIYADH 2250
RUEHJM/AMCONSUL JERUSALEM 5721
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS AMMAN 002663 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ELA AND EEB 
STATE PASS TO USTR (CWILSON, SFRANCESKI) AND USAID 
 
E.O. 12958: N/A 
TAGS: ETRD ECIN ECON ELAB EFIN EAID JO
SUBJECT:  Scenesetter for the U.S. - Jordan FTA Joint Committee 
Meeting on December 15 in Amman 
 
REFS: A) Amman 2597 
B) AMMAN 2572 
C) AMMAN 2459 
D) AMMAN 2408 
E) AMMAN 1177 
 
¶1. (U) This is an action request. See paragraph 9. 
 
¶2. (U) Jordan's Ministry of Industry and Trade (MOIT) will host the 
December 15 U.S.-Jordan Free Trade Area Agreement (FTA) Joint 
Committee (JC) meeting in Amman.  This JC occurs on the eve of the 
FTA coming into full force in January  2010.  The meeting also takes 
place after the recent signing by Jordan of bilateral free trade 
agreements, notably with Canada and earlier this month with Turkey 
(ref A).  Jordan has also signed bi-lateral free trade agreements 
with multiple Arab states and Singapore and has multilateral free 
trade agreements with the European Free Trade Association.  Jordan 
is a member of the Greater Arab Free Trade Area and is a signatory 
of the Agadir Agreement linking Jordan with Egypt, Morocco and 
Tunisia. 
 
Trade As a Response to Crisis 
----------------------------- 
 
¶3. (SBU) GOJ trade policy is currently focused on increasing two-way 
trade with the United States and other trading partners and in 
further increasing its trade ties with neighboring countries, most 
notably with Iraq, Syria and Saudi Arabia, and now regionally, with 
Turkey.  The focus on trade comes in the context of the impact of 
the global financial crisis on Jordan, its growing budget deficit, 
and as Jordan finalizes its 2010 budget in a tough fiscal 
environment (refs B and D).  Jordan's budget deficit is forecast to 
reach $1.6 billion for 2009, or about 7 percent of GDP.  The 2009 
budget has been hit hard by lower than expected growth, a sharp 
decrease in foreign grants (related to the global crisis), and a 
vast increase in capital expenditures begun before the crisis hit. 
Furthermore, the 2010 budget situation is expected to be worse.  GOJ 
ministries and other agencies are being forced to significantly cut 
their 2010 budgets, and will have to eliminate almost all new 
capital expenditures, new hiring, overtime, and much of their travel 
budgets. 
 
Desire to Further Strengthen Ties 
--------------------------------- 
 
¶4. (SBU) Jordan - U.S. trade relations are strong.  The value of 
two-way trade peaked in 2007 at $2.2 billion and trade levels are 
expected to exceed $2 billion for 2009 as well.  While exports from 
QIZ's to the U.S. have decreased since 2006 and have been 
significantly hit by the global financial crisis, some QIZ contacts 
have told EconOffs that orders for the first quarter of 2010 are up 
and that the outlook for the near term is good.  The impact of full 
FTA implementation on the QIZ arrangement is one that will need to 
be monitored as the textile industry adapts in early 2010, but 
EconOffs have heard that while some factories will certainly shift 
their business models toward exporting under the FTA, others have 
indicated that they are satisfied and will stay with the QIZ 
exporting mechanism. 
 
Positive Steps on Customs, IPR, and Labor 
----------------------------------------- 
 
¶5. (SBU) The GOJ of Jordan has made advances in other areas related 
to the FTA, including in customs, intellectual property rights 
(IPR), and labor issues.  Customs contacts have told EmbOffs that 
amendments to Article 41 of the Customs Law, which include "ex 
officio" authority for customs officers to seize and prosecute IPR 
violations, have recently been submitted by the Customs Department 
to the Ministry of Finance for approval.  The National Library and 
Jordan Institution for Standards and Metrology have continued to 
increase their enforcement operations to counter IPR violations, 
even while they face the challenge of lax legal punishments for 
convicted violators.  Also, it is expected that the Ministry of 
 
Labor will sign a labor cooperation agreement with the U.S. 
Department of Labor and announce during the day of the JC, that it 
will make factory participation in Better Work Jordan mandatory. 
Note:  Better Work Jordan is an International Labor Organization and 
International Finance Corporation project funded by the GOJ and 
USAID that supports the efforts of the GOJ to improve labor 
standards.  End note. 
 
Opportunities To Expand Agricultural Trade 
------------------------------------------ 
 
¶6. (SBU) Opportunities exist for increasing trade in agricultural 
and food products.  Currently, the inconsistent implementation of 
trade policies regarding import certificates from the U.S. and 
seemingly arbitrary decisions by GOJ officials create obstacles for 
food and agricultural importers.  These obstacles impact 
animal-origin products and processed foods which are imported in 
relatively low quantities, making the high costs of additional 
GOJ-ordered testing a financial burden for the importer and 
undermining the market for the products.  The USG should continue to 
press the GOJ to adhere to international sanitary and phytosanitary 
standards.  Progress has been achieved on Jordan's concerns 
regarding Pest Risk Assessments for its agricultural exports to the 
U.S., but it is almost certain that GOJ interlocutors will complain 
about the lengthy process and perceived U.S. delays. 
 
Increased Technical Assistance Needs 
------------------------------------ 
 
¶7. (SBU) In addition to stating their goals to increase two-way 
trade levels, Jordanian interlocutors will raise their desire for 
increased technical assistance and cooperation programs with their 
American counterparts.  GOJ officials across the board during the JC 
are likely to request increased levels in training opportunities and 
new avenues of technical assistance.  These requests are likely to 
include the call to examine the possibility of arranging for two-way 
exchanges of trade experts and officials between Jordan and the U.S. 
 The GOJ has informally proposed that officials could be embedded 
for a year or two in partner entities with the aim of exchanging 
expertise, training, and advancing the professional development of 
Jordanian trade officials.  As an example, they suggested that a USG 
trade official work in the MOIT or at the Jordan Investment Board 
for one year. 
 
Agenda and Schedule for the JC 
------------------------------ 
 
¶8. (SBU) The updated draft agenda and schedule for the upcoming JC 
compiled by the MOIT with post and USTR input follows (additional 
schedule details will be provided to the traveling party via 
email): 
 
Tuesday, December 15 
 
0930 - U.S. delegation Arrives at the Ministry of Industry of Trade 
(MOIT) 
 
0930 - Ambassador R. Stephen Beecroft and Assistant U.S. Trade 
Representative (AUSTR) for Europe and the Middle East Christopher 
Wilson will have a brief courtesy call with MOIT Minister Amer 
Hadidi and Secretary General Montasser Oklah. 
 
1000 - Welcoming/opening remarks by Minister Hadidi, Ambassador 
Beecroft and AUSTR Wilson 
 
1030 - 1330 JC morning session 
A) Bilateral Trade Issues 
¶1. Bilateral trade developments with the FTA entering into full 
force in 2010. 
¶2. Investment promotion (twinning project between JIB and its 
counterparts in the U.S.) 
¶3. Labor 
-- a. Labor cooperation mechanism 
 
-- b. Update on labor conditions in the QIZs 
-- c. Status of labor law amendments 
¶4. Agriculture 
-- a. The accreditation of Jordanian agricultural exports 
-- b. Cooperation and technical assistance programs 
¶5. Customs 
-- a. Cooperation and technical assistance programs 
-- b. Petra Engineering Case (delay in security inspection at U.S. 
ports of entry) 
¶6. Standards and Metrology 
-- a. Cooperation and technical assistance programs 
¶7. Environment / Science and Technology 
¶8. E1/E2 Treaty Trade/Investor visas 
 
13:30 - 15:00 Lunch hosted by MOIT 
 
15:00 - 18:00 JC afternoon session 
 
A) Bilateral Trade Issues (continued) 
¶9. IPR 
-- a. 301 Review 
-- b. Copyright update - status of amendments 
-- c. Trademarks - update of legislation 
-- d. Customs - update on legislation 
¶10. TRIDE 
-- a. Funding 2009-2010 budget 
¶11. Other Issues 
-- a. The Jones NY belts' case 
-- b. Technical Assistance programs and capacity building for the 
MOIT 
-- c. FTA Joint Committee's future role 
 
B) Regional and Multi-Lateral Issues 
¶1. WTO-related issues 
-- a. Results of the WTO Ministerial conference 
-- b. Update on the Doha Development Agenda 
-- c. Update on Jordan's Revised Offer to join the WTO Government 
Procurement Agreement 
¶2. Regional Cumulation 
¶3. Qualifying Industrial Zones 
 
C) World Financial Crisis 
¶1. Updates on the latest economic developments in each country 
¶2. Updates on government actions taken to overcome the crisis 
¶3. Areas of cooperation 
 
D) Conclusion:  summary and closing statements 
 
¶9.  (SBU) Action request:  Post requests Department, USTR, and other 
stakeholder feedback, if any, on the above draft agenda for the JC 
before Monday, December 14.  Post point-of-contact for the JC is 
EconOff Ali Lejlic, e-mail: LejlicAE@state.gov. 
 
Visit Amman's Classified Website at 
http://diplopedia.state.sgov.gov/index?title< /a> 
=Embassy_Amman 
 
BEECROFT