Trading Partner Portal: Jordan

Overview

Trade Overview

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Jordan is a small country in the Middle East between Israel and Iraq. The capitol of Jordan is Amman. Jordan has a population of 7.59 million people and gross domestic product (GDP) of $37.5 billion. Though the World Bank classifies Jordan as an upper-middle income country, it has one of the smallest economies in the Middle East. Therefore, Jordan has retained a heavy reliance on foreign trade and assistance for resources and economic stability. For example, the United States had approximate $228 million of foreign direct investment flow into Jordan in 2015. World Bank, CIA

California Exports to JordonIn the early 2000’s, King Abdullah II of Jordan expanded foreign trade relationships to bolster Jordan’s economy. He began trade deal discussions and privatized state owned companies to attract investment. The United States and Jordan established a free trade agreement and it was put in full effect in 2010. The United States is one of Jordan’s top trading partners, being Jordan’s top export destination. The United States imported $1.5 billion worth of goods from Jordan in 2016. The largest category of imported goods from Jordan into the United States is apparel manufacturing products, which in 2016 composed 80.9% of imports. The US is also one of the largest exporters to Jordan. The United States exported $1.49 billion of products to Jordan; 30.5% of those exports were transportation equipment. Other major exports to Jordan were used or second hand merchandise, food manufactures and agricultural products. US Department of Commerce

Jordan- California Trade

In the US, California is the largest exporter to Jordan. In 2016, California exported $239 million worth of products to Jordan; this is a slight increase from the previous year. Food manufactures were the largest exported good, making up 33.9% of the and totaling approximately $81 million. Another key export from California was agricultural products, which had a value of around $56.9 million and comprised roughly 23.8% of California’s exports to Jordan. US Department of Commerce

California imported around $129 million worth of goods from Jordan in 2016. The majority of those imports were apparel manufacturing products, which made up 77.5% of the total accounting for approximately $100 million. Other major imports from Jordan to California were miscellaneous manufactured goods, and beverages and tobacco products. US Department of Commerce

Trade Agreements

Trade Agreements and Issues

The United States- Jordan Free Trade Agreement

The United States and Jordan have sustained a mutually beneficial trade relationship with the United States- Jordan Free Trade Agreement with its initial enactment in 2002 and full implementation by 2010. This agreement coincides with the Qualifying Industrial Zones established in 1996. Jordan, along with some other countries in the Middle East, are able to export products that were manufactured in their country into the US duty-free. The US-Jordan Free Trade Agreement has established intellectual property protection for both countries, reduced trade barriers for services, effective production protections for labor and the environment, and has made regulation more transparent across borders. Since the implementation, there has been major economic progression for the US and Jordan. For the US, the automobile exports to Jordan have risen by 1500%, corn exports have increased by 2300%, and TV and radio transmitters have increased by 500%.

US Middle East Free Trade Initiative 

USTR Jordan Free Trade Agreement