News

King, U.S. official discuss tariff reductions

7 February 2006

His Majesty King Abdullah on Tuesday urged the U.S. to support Jordan's search for alternative energy resources.

The King made the appeal during a meeting with U.S. Energy Secretary Sam Bodman, during which he discussed that negative impact of increasing fuel prices on Jordan's economy. King Abdullah told Bodman that fuel prince increases on the international market has negatively affected Jordan's per capita income and people's standards of living, with poor and low income groups suffering most from the price increases.

During a meeting with Commerce Secretary Carlos Gutierrez and Trade Representative Rob Portman, King Abdullah discussed means of developing trade relations in a way that serves Jordan's economic growth. The King also urged U.S. officials to accelerate measures to reduce customs fees on Jordanian exports to the U.S., in accordance with the free trade agreement concluded between the two countries six years ago. Under the agreement, 224 Jordanian products enter the U.S. market under a gradual tariff reduction. Those products should be completely tariff-free within ten years of the signing of the FTA.

Portman said added that it might be possible for customs on some Jordanian exports to be reduced or completely exempted immediately, but added that "domestic political reasons" made it difficult to completely exempt Jordanian textile exports to the US in the short-term.

The commerce secretary described economic relations between Jordan and the U.S. as a "success story" that is a model for U.S. economic cooperation with countries of the Middle East. U.S. investment in Jordan achieved marked growth since the signing of the free trade agreement, Portman said. Minister of Trade and Industry Sharif Zu'bi said Jordan's exports to the U.S. have increased tremendously since the signing of the FTA, reaching US$1.3 billion in 2005 compared to $15 million in 1999.

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