Executive Summary

New Trade Agreement in Agricultural Products between Jordan and the EU

In view of achieving further liberalization of trade in agricultural and processed agricultural products, Jordan and the EU have announced the new agreement for trade in agricultural products. This agreement comes in line with the objective set out in the Association Agreement and the European Neighborhood Policy that implies the creation of a free trade area among the euro-med partners by the year 2010. It is hoped that the trade volume between Jordan and the EU will increase as a consequence of this new agreement.

The agreement completely opens the EU market for all Jordanian agricultural products except seven products that will be subject to duty-free quotas. These duty-free quotas are very favorable and will allow Jordan to export far larger quantities than presently produced in the kingdom. The seven products benefiting from duty-free quotas are: fresh cut flowers, new potatoes, garlic, cucumbers and gherkins, citrus fruit, strawberries and virgin olive oil. The quotas will increase on a yearly basis till the year 2010, except for garlic. Starting 1 January 2010, all the above-mentioned specific products will finally be allowed to enter the EU market duty-free, except cut-flowers and virgin olive oil. These two products will still however benefit from very generous duty-free quotas of 12, 000 ton.

On the other hand, customs duties for the agricultural products originating in the Community (i.e. imported into Jordan) shall gradually be phased out over equal annual stages according to the category to which the product belongs.

With regards to processed agricultural products, all our exports to the European Community of such products will be exempted from customs duties, with the exception of three products: Sugar confectionery, Chocolate and other food preparations containing cocoa, and certain biscuits products. On the other hand, customs duties on our imports of processed agricultural products from the European Community will gradually be phased out in accordance with an agreed time framework.

The agreement came into forces as of 1 January 2006.


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