Jordan–United States Free Trade Agreement
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Type | Free trade agreement |
Drafted | 24 October 2000 |
Signed | 24 October 2000 |
Location | Washington, D.C., United States |
Effective | 17 December 2001 |
Condition | 2 months after notification of each state that all internal procedures have been completed |
Ratifiers | |
Languages |
The United States–Jordan Free Trade Agreement is the first
As a result of the agreement, Jordan became a "magnet for apparel manufacturing," as U.S. companies such as Walmart, Target, and Hanes established factories so they could cut costs by eliminating tariffs. In 2019, U.S. exports to Jordan were $1.5 billion, while imports were $2.2 billion, about 80 percent of which were apparel and textile goods.[4]
Support in the United States
Pub. L.107–43 (text) (PDF) | |
Legislative history | |
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The
Economic rationale
Unlike many trade agreements, the U.S.–Jordan Free Trade Agreement enjoyed widespread,
Political rationale
More importantly, the U.S. government looked to the political gains to make the FTA worthwhile; economic gains for U.S. businesses, if any, were expected to be small. Ideally, the "economic linkages" generated by the FTA would "normalize strained relationships and offer institutional mechanisms to resolve and prevent political disputes."[3] This, in turn, would act as the "turning point in which hope begins to replace the despair on which violent extremists breed," as Assistant Secretary for the Bureau of Near Eastern Affairs William Burns put it.[7] The assumption was that in the course of jointly controlling and valuating rules of origin, Jordanian and Israeli customs officers would engage in interpersonal interactions resulting in understanding if not friendship.
In other words, the U.S. government has adopted a
Impact
Textile industry
Jordan became a "magnet for
Five years after the FTA came into effect, Jordanian exports to the United States had increased twentyfold; Jordan's apparel exports to the United States in 2005 amounted to $1.2 billion.[9] Most of Jordan's exports to the United States come from one of 114 companies.[10]
Labor conditions
In 2006 the
See also
- Rules of Origin
- Market access
- Free-trade area
- Tariffs
References
- ^ "Jordan has signed a range of free trade agreements". Oxford Business Group. 13 January 2016.
- ^ "Jordan Free Trade Agreement (JOFTA)". United States Customs and Border Protection. United States Department of Homeland Security.
- ^ S2CID 155053491. Archived from the original(PDF) on 11 March 2012. Retrieved 12 June 2012.
- ^ "Jordan". United States Trade Representative.
- ^ "President Signs into Law H.R. 2603". Whitehouse Press Releases. 28 September 2001. Retrieved 12 June 2012.
- ^ "Jordan Free Trade Agreement". Office of the United States Trade Representative. Retrieved 12 June 2012.
- ^ Burns, William (16 May 2003). Democratic Change and American Policy in the Middle East. Fourth Annual Conference on the Study of Islam and Democracy. Washington, D.C.: Centre for the Study of Islam and Democracy.
- JSTOR 2539041. Archived from the originalon 14 April 2012. Retrieved 12 June 2012.
- ^ Greenhouse, Steven; Michael Barbaro (3 May 2006). "An Ugly Side of Free Trade: Sweatshops in Jordan". New York Times. Retrieved 12 June 2012.
- ^ "Jordan shutting abusive factories". Washington Times. 16 June 2006. Retrieved 12 June 2012.
- ^ Bustillo, Miguel (20 June 2011). "Sex Abuse Alleged at Apparel Maker". Wall Street Journal. Retrieved 12 June 2012.