Trying to boost Jordan's economy, Israel and its supporters in Washington are working in Congress to expedite approval of a free trade agreement between the US and the Hashemite Kingdom, according to Haaretz newspaper
The agreement, signed four months ago by the US and Jordan, would gradually reduce restrictions and quotas on trade between the two states, and is expected to blow life in the Arab country’s ailing economy.
The Clinton administration sent the agreement to Congress, but its ratification has been delayed due to wrangling about various trade issues not related to the Jordan initiative, said Haaretz.
According to the report, Israeli Prime Minister-elect Ariel Sharon met late last week with a delegation of US Senators, led by Appropriations Committee Chair Ted Stevens. Sharon told the group: "Jordan is a very influential stabilizing power in the region, and the only state which has decided to solve the refugee problem. It's important to strengthen Jordan, and protect the alliance with it."
Also in this meeting, said the paper, Sharon unveiled his plan to attain a long-term interim agreement with the Palestinians. He reiterated his demand that violence in the territories, and anti-Israel incitement, must end prior to the resumption of talks with the PA.
The US-Jordan FTA has been rejected by some Americans for technical reasons.
Several chief executives of giant US companies have voiced their intention not to endorse the free trade agreement with Jordan signed in October last year, according to a report by the World Street Journal (WSJ) earlier in February.
The CEOs, known as the Business Roundatable and representing about 180 companies including Boeing Co. and Motorola, refuse to endorse the pact because of a clause calling for Jordan to enforce its own labor standards or face trade sanctions, the paper said.
Those in disagreement with the pact said it went too far and that trade agreements should not deal with elements of social agendas, the paper said.
The Roundtable is endorsing an agreement in which labor issues are discussed but are not necessarily part of the pact, said WSJ.
The trade agreement commits the two countries to a new schedule of tariff reductions, and includes articles on environment and labor standards.
The agreement is the first trade accord to which the US is a party that includes provisions prohibiting the reduction of domestic environmental and labor regulations to enhance trade. The agreement also represents the first trade deal the US has signed with an Arab state.
In addition to the agreement's environmental and labor provisions, the agreement includes articles covering the trade in goods and services, intellectual property rights, and electronic commerce.
The FTA does not include any specific investment provisions.
According to the Office of the US Trade Representative (USTR), trade between the two countries was valued at just over 300 million dollars in 1999 with US exports to Jordan amounting to only 0.040 percent of total US exported goods. Similarly, Jordanian imports into the US were also very low, amounting to 0.90 percent of total Jordanian exports – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
