Israeli exports to Jordan grew 55% in 2004. Total trade with Jordan grew from $40 million in 1998-1999 to $130 million in 2003 and $185 million in 2004, according to economist Yitzhak Gal in a report issued by the Israeli-Jordanian Chamber of Commerce.
Jordanian exports to the US rose by 58% to $1 billion in 2004, mostly clothing from the qualifying industrial zone (QIZ) in Jordan.
Three events in early 2005 are changing the business environment of the Jordanian textile and clothing industry, and of exports to the QIZ in Jordan. One is the general cancellation of US textile import quotas, which eliminates one of the two main advantages of the QIZ. Another is the implementation of another stage in the US-Jordan free trade agreement, and Israel’s signing of another QIZ agreement, in competition with the Jordanian QIZ agreement.
The elimination of all US textile import quotas is putting a stop to the rapid growth of Jordanian clothing exports to the US. It is believed that Jordanian exports will remain at their current level or fall slightly, then afterwards remain stable at $1.15 billion per year.
Increase in exports in 2004 beyond 25-35% reflects exports unrelated to the QIZ, and indirect exports to Iraq.
A renewed impetus in Israeli-Jordanian trade is expected this year, both because of the new trade agreement, which cuts customs duties on a series of products, and a tripartite agreement between Israel, Jordan, and the European Union, slated for signing this year. This agreement resembles the QIZ agreement with the US.
Published by Globes [online], Israel business news - www.globes.co.il - on April 5, 2005