Jordan Suspends Free Trade Agreement with Turkey

Jordan Suspends Free Trade Agreement with Turkey

Tuesday, 13 March, 2018 - 12:45
A general view of Amman, Jordan. (Reuters)
Amman – Mohammed al-Daameh
Jordan’s government decided to suspend on Monday the free trade agreement with Turkey, based on a recommendation by the Ministry of Industry, Trade and Supply.

Jordan suspended the free trade agreement with Turkey as the deal negatively affected local industries.

The government said the decision came to avoid further adverse effects on the national industrial sector given "unequal competition" from Turkish government-supported industries, according to state-run news agency Petra.

It also added that the decision was taken in light of the challenges facing the Jordanian industrial sector due to the closure of border crossings with neighboring countries and the decline of traditional export markets to national exports.

The agreement came into force in 2011, however, it did not deliver the desired results and the trade balance favor Turkey. The Turkish side did not make a significant difference in the volume of Turkish investment flows to Jordan.

Representatives of the industrial sector in Jordan have repeatedly complained about the deal and called for revising it, while several others called for revoking it.

According to official figures, the value of Turkish investments that flowed into Jordan during the past years amounted to $283 million, mainly in the sectors of services, information technology, food industries and infrastructure.

The trade exchange between the two countries in 2016 reached about $742 million, of which $664 million comprised Turkish exports to Jordan and $78 million comprised Jordanian exports to Turkey.

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