Jordan, Israel sign new trade pact
Jordan and Israel on Sunday inked a trade pact that will ease the importation of components for products earmarked for export to the United States and, perhaps in the near future, to the European Union.
The deal was signed by Mohammad Halaiqah, Deputy Prime Minister and Minister of Trade and Industry of Jordan, and Ehud Olmert, Vice-Prime Minister of Industry, Trade, Labour and Communications of Israel, at the World Economic Forum in Jordan meeting.
The agreement will allow a range of goods to cross the border between the two countries without taxes, duties or customs tariffs. These components will help comprise final products that will be exported under an existing agreement with the United States and under a proposed agreement with the European Union if and when that pact is signed.
The Qualified Industrial Zones (QIZ) Agreement allows goods produced in special industrial parks in Jordan and Israel to be exported duty free to the United States. Jordan has moved most aggressively to establish such zones. It now boasts a dozen QIZs, and they’ve led the way in the expansion of Jordanian exports to the US, which reached US$ 600 million last year.
“We are delighted to sign this agreement under the auspices of the World Economic Forum,” said Olmert. “It will make trade better for both sides.”
“This trade protocol is to help promote exports from the Qualified Industrial Zones,” said Halaiqah. “We are negotiating with the European Union, and we hope that the QIZs will have the same preferential treatment in the EU as in the US.” (menareport.com)
© 2004 Mena Report (www.menareport.com)