Amman: Jordan and the United States signed a new economic agreement following more than a year of negotiations, Minister of Industry, Trade and Supply Yarub Qudah said on Tuesday, securing preferential tariff terms for Jordanian exports to the American market.
According to Jordan News Agency, the agreement comes in response to additional duties imposed by Washington on imports from most countries globally, Qudah told Al-Mamlaka TV. He emphasized that the deal rests on the strong bilateral ties between Amman and Washington, as well as the cornerstone 2001 U.S.-Jordan Free Trade Agreement (FTA), which remains the main umbrella for all trade relations between both nations.
Since taking effect, the 2001 FTA has enabled Jordanian goods to access the U.S. market, making the United States Jordan's top export destination across various sectors, led predominantly by garments and textiles, the minister noted.
Qudah said the new deal will enhance economic cooperation and boost joint investment opportunities, driving U.S. investment in Jordan as well as Jordanian investment in the United States, alongside expanding bilateral trade volumes.
The agreement provides Jordan with an added competitive edge, Qudah explained. While Jordanian goods remain exempt from original customs duties under the 2001 FTA, Washington's recently imposed global tariffs will affect Jordan at the lowest tier of just 10%. He added that this minimum rate was granted to only a small group of no more than eight or nine countries worldwide, whereas higher rates were levied on others.
This preferential status will particularly benefit the garment and textile sector, which accounts for approximately 70% of Jordan's total exports to the United States. Qudah noted that the advantage is expected to attract fresh investments to Jordan within the sector and generate direct jobs for Jordanian men and women.
The minister added that the 10% tariff applies across most or all sectors, while the garment and textile industry including all its sub-components will receive an even higher preferential advantage, enhancing its competitiveness, driving exports, and creating direct employment opportunities. Full details regarding the specific terms for the textile sector will be announced in the coming days, Qudah said.
Clarifying import terms, Qudah noted that all American products, including U.S.-manufactured vehicles, have been fully exempt from Jordanian customs duties since 2001 under the FTA, meaning there are no new changes regarding duty exemptions for U.S. exports entering the Kingdom.
Instead, the new agreement focuses heavily on dismantling technical barriers and non-tariff obstacles to trade, such as bureaucratic procedures and unaligned technical standards, thereby facilitating the flow of goods in both directions, he said.
Qudah stressed the distinction between the ongoing 2001 FTA and the newly negotiated deal. While the FTA waives base tariffs on Jordanian goods meeting origin rules, the latest negotiations addressed the additional blanket tariffs rolled out by Washington over the past year and early this year, securing Jordan the lowest applicable surcharge.
Countries lacking a free trade agreement with the United States face additional tariffs well above 10% on top of non-exempt standard duties, giving Jordanian goods a distinct edge in the U.S. market, he noted.
The U.S.-Jordan trade balance has favored Jordan over the past decade, with Jordanian exports exceeding imports from the U.S., according to Qudah. He expressed expectations that the new terms will further boost demand for Jordanian products, expand export capacity, and bolster market share in the United States.
The agreement is expected to enter into force early next month, Qudah added.