Under the patronage of H.E. Prime Minister Nader Dahabi, H.E Amer Hadidi, Minister of Industry and Trade and Hon. Stockwell Day, Canadian Minister of International Trade.Canada signed four agreements further deepening the ties existing between the two countries. Following the visit by King Abdullah II to Canada in July 2007, Canada and Jordan countries have made significant progress in strengthening trade and investment. Their combined efforts will help open doors for Canadian and Jordanian business.
The Free Trade Agreement will contribute to increasing bilateral trade in goods between the two countries and will create new export opportunities for Jordanian products in foreign markets through aggregate rules of origin with the countries that have already signed free trade agreements with both Jordan and Canada.
The Agreement ensures that Jordanian products will enter the Canadian market tariff and custom-free from the date of the entry into force of the agreement, while Canadian products will experience a gradual decrease in tariff and custom over a span of three to four years. A limited number of commodities deemed sensitive to both sides will not be exempt from tariffs and customs.
Country of origin rules were set out within the framework of the Agreement under the principle of altering harmonised system codes for the purpose of ensuring the goods’ origin. This method is considered easier than the current rules applied by Jordan under its other agreements as it takes into account the comparative advantage and competitive capabilities of the local industries.
Articles pertaining to environmental protection have been included in this Agreement: both sides have committed to local and international obligations stated in the various international environment agreements they have signed. The separate Agreement on environment contains articles regarding technical cooperation and expertise sharing, which will contribute to developing strategies and plans to protect the Kingdom’s environment. The Agreement on the environment commits both countries to pursuing high levels of environmental protection, to enforcing their domestic environmental laws effectively, and to ensuring trade and investment are not encouraged at the expense of these laws.
This Free Trade Agreement includes articles reaffirming both parties’ obligations to internationally recognised principles and rights of labour as members of the International Labour Organisation, such as the negative alteration of domestic labour law for the purpose of encouraging trade and investment. The labour cooperation Agreement commits both countries to respect the core labour standards set out by the International Labour Organization, such as the elimination of child labour, forced labour and workplace discrimination, as well as respect for freedom of association and the right to bargain collectively.
Concerning custom procedures, articles have been incorporated in the Agreement to simplify procedures in managing the export and import operations for goods between the two sides in an effort to make the process as transparent as can be. The agreements also include requirements for fair competition and safeguarding against monopolies in according to laws and regulations in place.
The two sides have agreed to reassert their obligations to World Trade Organisation procedures to refrain from dumping and subsidies, upholding health and phytosanitary requisites and intellectual property and government purchases.
In general the investment, labour, and environmental cooperation Agreements will greatly benefit the national economy through increasing the size of Canadian investments in the Kingdom, improving labour legislation, and contributing to environmental protection programs. All the agreements will work on supporting sustainable development plans through which the government seeks to achieve ambitious growth rates and eradicate poverty and unemployment while protecting the environment and ensuring the equal distribution of the gains of development throughout the governorates of the Kingdom.