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