The Jordan Free Trade Association (JFTA) has welcomed the Free Trade Agreement (FTA) with the US as opening the door for the duty-free marketing of Jordanian products on the American market. An FTA will also serve as a catalyst for local companies to merge in order to produce high quality products for the US market, according to JFTA director general, Halim Abu Rahmeh.
The agreement is bound to prompt small companies, banks, insurance and pharmaceutical firms to merge in order to rise to the occasion, compete with products from other countries and offer better services and better goods to the American market, according to Abu Rahmeh.
The advantage for Jordan, which is the fourth an country to reach such agreement with the US after Mexico, Canada and Israel, is that it can market 300 of its national products with only slight adjustment to the current Jordanian specifications regulations. In the future, many more products will also find their way to the largest market in the world, said Abu Rahmeh.
The FTA is vital for Jordan's national economy as it is bound to encourage foreign investors to invest in Jordan since their products can enter the US market duty-free, according to Abu Rahmeh.
He said, with skilled and relatively low labor costs, Jordan's national economy will witness a great boost through joint ventures with American investment firms if Jordan acquires expertise and can produce telecommunications-related products and software.
If these ventures prove a success, the American firms might establish regional centers for their products in Jordan since American goods will be sold duty-free in Jordan, according to the agreement, added Abu Rahmeh.
According to the agreement, Abu Rahmeh pointed out, as of the year 2005, and after certain adjustments to the specifications regulations regarding the environment Jordan can enter the stage of steel and machinery production with a competitive edge, largely due to low labor cost. — ( Jordan Times )
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