Amman: Jordan and the United States signed a Reciprocal Trade Agreement Tuesday aimed at bolstering bilateral economic relations and granting exporters in both nations expanded access to each other's markets.
According to Jordan News Agency, the Agreement follows nearly a year of consultations and builds on the long-standing economic partnership between the two countries, including the landmark U.S.-Jordan Free Trade Agreement that entered into force on December 17, 2001. The Agreement was signed in Washington by Jordan's Minister of Industry, Trade, and Supply, Yarub Qudah, and United States Trade Representative Jamieson Greer.
Designed to streamline trade flows, the pact will drive Jordanian exports to the U.S., particularly in ready-made garments and textiles, while easing the entry of American goods into the Jordanian market, including agricultural products and motor vehicles. Under the key provisions signed today, the U.S. commits to capping reciprocal tariffs on Jordanian imports at 10% and granting all segments of Jordan's textile and apparel sector enhanced preferential access to the American market. This is expected to significantly boost Jordanian exports to the U.S., which reached 595 million JOD in the first four months of this year, led by garments, textiles, jewelry, machinery, electrical equipment, and pharmaceuticals.
In return, Jordan will continue to offer duty-free treatment for U.S. exports under the framework of the 2001 Free Trade Agreement. The deal also introduces measures to smooth trade operations through strict enforcement of environmental laws, protection of labor rights, robust intellectual property rights, fair trade practices, and modernized customs procedures, while eliminating non-tariff barriers to expand market access for U.S. goods.
Looking ahead, both sides will continue discussions on services trade and investment to dismantle remaining trade barriers and foster bilateral investment flows. Recognizing the critical role of high standards in the digital age, both nations pledged to support an open, competitive digital economy, with Jordan committing to refrain from imposing taxes or tariffs on digital services and to support the WTO moratorium on customs duties on electronic transmissions. Furthermore, Jordan and the U.S. will reinforce supply chain resilience and drive innovation by coordinating on policies that impact global trade, alongside joint efforts in investment security, export controls, and combating duty evasion.
This Agreement builds on a series of recent commercial deals that underline the deepening economic synergy between both nations. These include Royal Jordanian Airlines' $1.4 billion purchase of six Boeing 787-9 Dreamliners and $500 million long-term lease agreements for additional aircraft, Jordanian pharmaceutical giant Hikma's commitment to invest $1 billion in the U.S. by 2030, and agreements by Jordanian companies to procure over $300 million in U.S. raw materials annually.