Brussels, 20/01/2016 (Agence Europe) - On Wednesday 20 January, David Cameron called on the EU to increase trade with Jordan, in an effort to help the country tackle its Syrian refugee crisis. The British Prime Minister was speaking ahead of the conference on Syria on 4 February in London and before he leaves for the World Economic Forum in Davos, where he is seeking to win the support of European leaders to his cause.
In a press release published ahead of the World Economic Forum in Davos, Cameron stated: “The EU has a vital role to play -- coming together to offer genuine support for Syria's neighbours. We should swiftly agree to change the rules so Jordan can increase its exports and create new jobs”. The British Prime Minister argued “This is not just in the interests of Syria and her neighbours. It is in the interests of Europe too. The more we do to enable people to stay in the region, the less likely we are to see them coming to Europe”.
In a press release, the British government press service explained that the Jordanian government has requested rules to be relaxed governing exports from Jordan to the EU and make it easier for Jordanian producers to qualify for duty free access to EU markets, as part of this package. He explained that the US had already adopted a similar provision, facilitating the development of around $1 billion in Jordanian exports.
The United Kingdom put forward this package during the most recent meeting of the EU Foreign Ministers on Monday 18 January and the Commission is committed to presenting a proposal over the next few weeks, explained the British government press service.
Cameron is expected to raise the issue during bilaterals with European leaders this week in Davos, pressing for swift agreement among member states, which could pave the way for the new rules on trade between the EU and Jordan to enter into force this summer.
Trade relations between the EU and Jordan are governed by the association agreement signed in November 1997 and which entered into force on 1 May 2002. This agreement gradually introduced a free trade zone between the two partners over a period of 12 years. An agreement on the liberalisation of the bilateral trade in agricultural products also entered into force in 2007.
In 2014, the rate of bilateral trade stood at €4 billion, including €3.7 billion in exports for the EU. In 2013, the EU was the second biggest source of imports for Jordan (17.6%), after Saudi Arabia (23.6%) and the fifth biggest destination for its exports (4.5%). The Jordanian economy is dominated by services (65% of GDP) and industry (30%). Its two main export sectors are pharmaceutical products and phosphate and potash extraction.
In response to the Arab Spring, the EU sought to boost its trade relations with Jordan (as well as with three other Eastern Mediterranean countries: Egypt, Morocco and Tunisia). Preparatory work for negotiating a free trade agreement is planned in this context, which would extend the scope of the EU/Jordanian association agreement to include services, public procurement, investment protection, competition and intellectual property rights, which remains ongoing.
The British government press service explained that this week in Davos, Cameron and Queen Rania of Jordan would be meeting with political and economic leaders to discuss concrete measures for creating new economic opportunities in Jordan.
In addition to stimulating economic trade with Jordan, Cameron is also proposing to impose a minimum quota of Syrian workers in certain sectors, as well as allowing Syrians to work in refugee camps and facilitating investment through preferential rates granted by the international financial institutions.
According to the United Nations High Commission for Refugees, Jordan has so far taken more than 600,000 of the 4 million Syrians that have had to flee their country since the war began in 2011. The Jordanian government has estimated this number at more than 1.4 million. (Original version in French by Emmanuel Hagry)