Brussels, 22/07/2016 (Agence Europe) - At the 10th meeting of the EU-Jordan association committee in Amman this week, the European Commission announced on Wednesday 21 July that with a view to a strengthened EU-Jordan economic partnership (particularly to support Amman's efforts in the face of the refugee crisis resulting from the conflict in Syria), the EU has decided to simplify the rules of origin scheme for Jordanian exporters.
This new rules of origin scheme will apply to 52 product groups over 10 years. It will cover a wide range of manufactured goods that Jordan currently exports to the EU in small quantities, or that are still not traded with the EU at all.
The new scheme will be accessible to producers in 18 specific industrial areas and development zones which employ a minimum percentage of Syrian refugees (15% at the outset, increasing to 25% in year three).
Joint monitoring of the new scheme is planned and potential adjustments can be considered during a mid-term review. In addition, the EU and Jordan agreed that once Jordan's own global target of bringing around 200,000 Syrian refugees into the formal labour market is achieved, they will look at ways to simplify the initiative further.
This decision, which comes as part of the EU's support to Jordan (especially in order to tackle the repercussions on Jordan of the Syrian refugee crisis) and as part of the future strengthened economic partnership between the two, is aimed at boosting investment and creating jobs both for Jordanians and also for the Syrian refugees being hosted by them, the Commission states.
As a result of the ongoing civil war in neighbouring Syria, Jordan is currently hosting over 657,400 Syrian refugees. This significant economic shock is a source of potential fragility for Jordan. The general situation in the region has furthermore disrupted trade and damaged tourism and incoming investment. The EU supports Jordan in its efforts to tackle this crisis.
The association agreement between the EU and Jordan entered into force on 1 May 2002 and progressively established a free trade area between the two partners over a transitional period of 12 years. In addition, an agreement on the increased liberalisation of agricultural products entered into force in 2007.
Bilateral trade in goods reached €4.4 billion in 2015, including €350 million in exports for Jordan - which essentially comprise textiles and clothing, phosphates and phosphate-based fertilisers, chemicals, machines and transport equipment. (Original version in French by Emmanuel Hagry)