AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE HASHEMITE KINGDOM OF JORDAN ON RECIPROCAL TRADE
Preamble
The United States of America (“United States”) and the Hashemite Kingdom of Jordan (“Jordan”) (individually a “Party” and collectively “the Parties”),
EMPHASIZING their mutual values, such as democracy, economic freedom, and the rule of law;
ACKNOWLEDGING the deep bonds of friendship and cooperation, particularly in trade and investment;
AIMING to improve reciprocity in their bilateral trade by securing preferential trade arrangements and tackling tariff and non-tariff barriers;
SEEKING to reinforce their commercial ties through greater alignment on national and regional economic security issues; and
DESIRING to enhance their rights and obligations under the Agreement between the United States of America and the Hashemite Kingdom of Jordan on the Establishment of a Free Trade Area, signed in Washington on October 24, 2000 (U.S. – Jordan FTA),
HAVE AGREED as follows:
Section 1. Tariffs and Quotas
Article 1.1: Tariffs
1. Jordan shall apply customs duties on goods originating from the United States as specified in the U.S. – Jordan FTA.
2. The United States shall apply tariff treatment to goods originating from Jordan as detailed in Annex I of this Agreement.
Article 1.2: Quotas
Jordan shall not impose quotas on imports of U.S. originating goods unless mutually agreed by the Parties.
Section 2. Non-Tariff Barriers and Related Matters
Article 2.1: Import Licensing
Jordan shall not use import licensing[1] to restrict the importation of goods originating from the United States. Any non-automatic import licensing applied by Jordan shall be transparent, non-discriminatory, not unduly burdensome, and shall not reduce U.S. competitiveness.
Article 2.2: Technical Regulations, Standards, and Conformity Assessment
1. Jordan shall allow U.S. goods complying with applicable U.S. or international standards, technical regulations, or conformity assessment procedures to enter its territory without additional requirements. In doing so:
(a) Jordan shall provide U.S. conformity assessment bodies treatment no less favorable than its own bodies.
(b) Jordan shall facilitate the acceptance of U.S. compliance procedures for goods not subject to third-party conformity assessment in the U.S. regulatory framework.[2]
2. Jordan shall ensure that technical regulations, standards, and conformity assessment procedures are applied without discrimination and do not act as disguised trade restrictions. Existing technical barriers to trade that undermine reciprocity, including duplicative or unnecessary testing requirements, shall be removed.
Article 2.3: Agriculture
1. The United States shall provide non-discriminatory or preferential market access for Jordanian agricultural goods as outlined in Annex I, while Jordan shall provide similar access for U.S. agricultural goods as per the U.S. – Jordan FTA.
2. Jordan shall ensure that its sanitary and phytosanitary (SPS) measures are science-based and aligned with international standards, guidelines, and recommendations. They must not serve as disguised trade restrictions, and unjustified SPS barriers undermining reciprocity shall be removed.
3. Jordan shall not adopt or maintain non-scientific, discriminatory, or preferential measures that conflict with U.S. or international standards or disadvantage U.S. exports to Jordan, including agreements with third countries.
Article 2.4: Geographical Indications
Jordan shall ensure transparency and fairness in the protection or recognition of geographical indications, including those under international agreements. If a geographical indication lacks a specific quality, reputation, or characteristic attributed to its origin, Jordan shall permit its use for U.S. goods.
Article 2.5: Cheese and Meat Terms
Jordan shall not restrict U.S. market access due to the use of cheese and meat terms listed in Annex II.
Article 2.6: Intellectual Property[3]
Jordan shall provide robust protection for intellectual property.[4] Effective systems for civil, criminal, and border enforcement of intellectual property rights shall be maintained to combat infringement, including online. Jordan shall prioritize enforcement actions against copyright and trademark infringements.
Article 2.7: Services
Jordan shall address existing barriers to services trade that undermine reciprocity and shall refrain from imposing new barriers that disadvantage U.S. service suppliers compared to domestic or third-country suppliers.
Article 2.8: Good Regulatory Practices
Jordan shall adopt and implement good regulatory practices as outlined in Article 1.12 of Annex III to ensure transparency, predictability, and participation throughout the regulatory process.
Article 2.9: Labor
1. Jordan acknowledges the importance of eliminating forced or compulsory labor and affirms its obligations as an International Labor Organization (ILO) member. Within five years of this agreement’s entry into force, Jordan shall prohibit the import of goods produced by forced labor and recognize U.S. determinations on entities under Section 307 of the Tariff Act of 1930.
2. Jordan shall protect internationally recognized labor rights,[5] maintain such rights in law and practice, and effectively enforce its labor laws. Appropriate legal sanctions for violations shall be applied. Jordan shall not weaken labor protections to encourage trade or investment and shall address labor rights issues contributing to non-reciprocal trade.[6]
Article 2.10: Environment
Jordan shall uphold environmental protections, enforce environmental laws, establish strong governance structures, and address environment-related issues contributing to non-reciprocal trade.
Article 2.11: Customs Administration and Trade Facilitation
Within five years of this Agreement’s entry into force, Jordan shall implement technology solutions for full pre-arrival processing, paperless trade, and digitalized procedures for U.S. goods crossing its borders.
Section 3. Digital Trade and Technology
Article 3.1: Digital Services Tax
Jordan shall not impose digital services taxes or similar taxes that discriminate against U.S. companies.
Article 3.2: Facilitation of Digital Trade
1. Jordan shall facilitate digital trade with the United States by avoiding measures that discriminate against U.S. digital services or products,[7] ensuring free data transfer across trusted borders, and collaborating on cybersecurity challenges.
2. If Jordan enters a new digital trade agreement[8] with a country that threatens essential U.S. interests, the United States may terminate this Agreement.
3. Jordan shall not require U.S. entities to transfer technology, production processes, source code, or proprietary knowledge, nor mandate specific technology use as a business condition. Regulatory bodies may require source code preservation for investigations, subject to confidentiality safeguards.
Article 3.3: Customs Duties on Electronic Transmissions
Jordan shall not impose customs duties on electronic transmissions, including content sent electronically, and shall support a permanent moratorium on such duties at the WTO.
Section 4. Economic and National Security
Article 4.1: Complementary Actions
1. When the United States imposes import restrictions on goods or services from a third country for economic or national security, it intends to notify Jordan. Upon notification, Jordan shall regulate the importation of such goods or services through appropriate measures, consistent with its law and obligations.
2. After consultations with the United States, Jordan shall implement measures to address unfair practices by companies in Jordan that are based in or controlled by entities in countries jeopardizing U.S. interests. This includes below-market price exports to the United States, increased exports, or reduced U.S. exports to Jordan or third countries.
3. Jordan shall adopt similar measures, equivalent in restrictive effect to those of the United States, to promote shipbuilding and shipping by market economy countries.
Article 4.2: Export Controls, Sanctions, Investment Security, and Related Matters
1. Jordan shall collaborate with the United States in regulating trade of national security-sensitive technologies and goods through multilateral export control regimes and align with U.S. export controls to prevent undermining these controls.
2. Jordan shall work with the United States to restrict transactions with individuals and entities on the U.S. Department of Commerce Bureau of Industry and Security Entity List and the U.S. Department of the Treasury’s sanctions lists.
3. Jordan shall cooperate on investment security, identifying and addressing national security risks related to investment and procurement in sensitive sectors, exploring mechanisms to review inbound investments for security risks.
4. If the United States deems Jordan’s cooperation effective in addressing shared security issues, it may consider this in its export control and investment review processes.
Article 4.3: Other Measures
1. The United States shall work with Jordan to streamline and enhance defense trade.
2. Jordan shall enforce measures against transshipment and practices circumventing U.S. duties.
3. If Jordan enters a new free trade agreement or preferential agreement with a country that threatens U.S. interests, the United States may terminate this Agreement.
4. Jordan shall not agree to new purchases of nuclear reactors, fuel rods, or enriched uranium from countries jeopardizing U.S. interests. The Parties may cooperate to find alternative suppliers.
Section 5. Commercial Considerations and Opportunities
Article 5.1: Investment
1. Jordan shall facilitate U.S. investment in its territory for critical minerals, energy resources, and infrastructure services, granting terms no less favorable than those given to its own investors. Investments shall be regulated according to international law standards.
2. The United States shall consider supporting investment financing in critical sectors in Jordan through institutions like the Export-Import Bank of the United States and the U.S. International Development Finance Corporation, in collaboration with U.S. private sector partners.
Article 5.2: Commercial Considerations
1. Jordan shall ensure that its state-owned enterprises (SOEs), and SOEs from third countries, act based on commercial considerations and do not discriminate against U.S. goods or services. Jordan shall avoid subsidizing its goods-producing SOEs in a way that significantly impacts U.S. trade.
2. Upon request, Jordan shall provide information on subsidies to manufacturing enterprises and address their distortive impacts on trade and investment with the United States.
3. Jordan shall enhance cooperation and information exchange with the United States on antidumping and countervailing duty proceedings, including circumvention inquiries.
4. Jordan shall eliminate the special tax on newly manufactured, unused U.S.-produced motor vehicles meeting the U.S. – Jordan FTA rules of origin and exported directly from the United States.
5. The United States should encourage its firms to invest in Jordan, leveraging its favorable business climate and skilled workforce to expand export capabilities and enhance global competitiveness and supply chain efficiency.
Section 6. Implementation and Enforcement
Article 6.1: Annexes, Appendices, and Footnotes
The annexes, appendices, schedules, general notes, and footnotes are integral to this Agreement.
Article 6.2: Modifications and Amendments
1. Either Party may request reasonable modifications to any provision, which the other Party shall consider in good faith. Amendments may be agreed upon in writing.
2. The Parties recognize the purpose of this Agreement to deepen the bilateral trade relationship based on mutual trust and a commitment to fair trade. Consultations may occur to consider necessary changes ensuring mutual benefits.
Article 6.3: Rules of Origin
The Parties intend for the benefits of this Agreement to accrue primarily to them and their nationals. If benefits are accruing substantially to third countries, appropriate rules of origin may be established.
Article 6.4: Enforcement and Implementation
1. If a Party believes the other has not complied with this Agreement, it may review the terms and take action according to its law, seeking consultations when practicable.
2. Nothing in this Agreement shall prevent a Party from imposing additional tariffs to remedy unfair trade practices, address import surges, or protect economic or national security.
Article 6.5: Termination
Either Party may terminate this Agreement by providing written notice. Termination takes effect six months after notification.
Article 6.6: Entry into Force
1. No term of this Agreement shall be operative until its entry into force.
2. This Agreement shall enter into force 60 days after the Parties have notified each other of the completion of their internal procedures required for entry into force.
[1] For greater certainty, “import licensing”, “automatic import licensing”, and “non-automatic import licensing” have the same meanings as provided in the World Trade Organization (WTO) Agreement on Import Licensing Procedures.
[2] This paragraph does not apply to Jordan’s requirements regarding voltage or compliance with domestic requirements implementing Sharia law.
[3] For purposes of this Agreement, “intellectual property” refers to all categories of intellectual property that are the subject of Sections 1 through 7 of Part II of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights.
[4] For purposes of this Agreement, the protection of intellectual property includes matters related to technological protection measures and rights management information.
[5] For purposes of this Agreement, internationally recognized labor rights include those in the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-Up (1998), as amended in 2022; a prohibition on the worst forms of child labor; and acceptable conditions of work with respect to minimum wages and hours of work.
[6] For greater certainty, this paragraph covers special economic zones, including export processing zones, or sector-specific laws or regulations that have lesser labor protections than the overall economy.
[7] For purposes of this Agreement, digital product means a computer program, text, video, image, sound recording, or other product that is digitally encoded, produced for commercial sale or distribution, and that can be transmitted electronically. For greater certainty, digital product does not include a digitized representation of a financial instrument, including money. This definition should not be understood to reflect a Party’s view that digital products are a good or are a service.
[8] For greater certainty, for purposes of this paragraph a “digital trade agreement” does not include government procurement contracts.
Annex I
Annex II
Annex III
Schedule 1
