Jordan Aid Information Management System
(JAIMS)
Trade and Investment

I. Trade

The EU is the major trade partner for Jordan. For 2004, Jordans imports from the EU represented about 22% of the total imports. During the last decade, the ratio of Jordans imports from the EU has been consistent.

Jordans exports to the EU mainly go to Germany, the U.K. and Italy. Major export items include: chemical products, plastics, textiles and clothing, wood pulp, cellulose, paper and packaging materials, metals and metal products, mining products, vegetables, processed foods, beverages, tobacco, precious metals, precious and semi-precious stones, leather products such as saddles, luggage and handbags, arts, antiques and collectors items, in addition to various types of floor covers, carpets and electrical parts and appliances.

Jordans imports from the EU mainly come from Germany, France, the U.K and Italy. Imported items consist of transport machines and equipment, electrical appliances and spare parts, chemicals, plastics, and pharmaceutical industry inputs, manufactured items such as paper, clothes, textiles and shoes, in addition to iron and steel, processed foods and live animals.

Over the period 2000-2004, on average, Jordans annual imports from the EU have exceeded JD 1 billion (Euro 1.17 billion), whereas annual exports to the EU markets were below JD 65 million (Euro 73.3 million).

In 2005, Jordans imports from the EU markets have reached JD 1697.8 million (Euro 2008.3 million), whilst for the same period exports to the EU markets stood only at JD 77.6 million (Euro 91.8 million).

The largest value of Jordanian exports to the EU was registered in 1996, representing 8.3% of total exports. Since 1997, Jordanian exports to the EU registered a decline reaching JD 35.5 million by the end of 2000 and increased slightly to reach JD 62.3 million in 2004 and to reach JD 77.6 million in 2006 representing 3% of the total exports respectively.

In 2005, the exports and imports increased from their values in 2004, leading to an increase in the trade deficit which reached to JD 1233.5 million in 2004 and JD 1620.2 million in 2005.

JD million

Year

Exports to EU

Imports from EU

Trade Balance

Value (JD)

% of Total Exports

Value (JD)

% of Total Imports

1996

86.2

8.3

963.6

31.7

-877.4

1997

77.8

7.3

947.0

32.6

-869.2

1998

69.0

6.6

887.9

32.7

-818.9

1999

60.9

5.8

834.9

31.7

-774.0

2000

35.5

3.3

1,074.2

33.0

-1,038.7

2001

50.0

3.7

1,089.3

31.7

-1,039.3

2002

44.9

2.9

1030.6

30.0

-985.7

2003

55.3

3.3

1049.5

26.5

-994.2

2004

62.5

3%

1296.0

22%

-1233.5

2005

77.6

3%

1697.8

22.9%

-1620.2

2. Investment

During the last several years, EU investments in Jordan were below expectations. Available statistics indicate that the EUs share in total foreign investment flows into Jordan has declined from 54% in 1996 to 6.1% in 2004.

In 1996, the majority of European investments in Jordan were in agriculture. Afterwards, there was a rise in the value of investments in the Jordanian industrial sector.

JD million

Year

Total Investment

Local Investment

Foreign Investment

Foreign Investment as % of Total

EU Investment as % of Foreign Investment

EU

Others

Total

1996

348

272

41

35

76

22%

54%

1997

380

256

16

108

124

33%

21%

1998

482

327

4

151

155

32%

3%

1999

549

365

30

154

184

34%

16%

2000

793

355

34

404

438

55%

8%

2001

881

472

41

368

409

46%

10%

2002

302

170

32

100

132

44%

24%

2003

335.2

177.9

47.5

109.8

157.3

47%

30%

2004

418.3

322.7

5.8

89.9

95.7

22.8%

6.1%

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