Africa, US, EU among target markets for expanding Jordanian exports

AMMAN — The government's efforts focus on expanding exports to non-traditional markets on the US, the EU and Africa, as well as overcoming challenges to the flow of products, mainly to Africa, Industry and Trade Minister Yarub Qudah said on Tuesday. 

During a panel discussion at the Jordanian Businessmen Association, Qudah announced the upcoming visit of a delegation headed by the Kenyan trade minister to discuss signing a free trade agreement between Jordan and Kenya, the Jordan News Agency, Petra, reported on Wednesday. 

The minister highlighted Jordan's challenging economic conditions due to the regional situation, noting that exports declined, especially towards the Iraqi market, from JD900 million in 2014 to around JD320 million in 2016. 

There are also the challenges of the budget deficit, the increasing ratio of debt to gross domestic product, low economic growth rates, and the increase in unemployment to 16 per cent in 2016, Qudah said, adding that such conditions require the collaboration of the public and private sectors. 

He highlighted the government's efforts to simplify measures for registering companies, issuing licences and renewing professional permits to improve the business environment and attract investors.

He also noted that the Tureibil/Karameh border crossing between Jordan and Iraq is expected to reopen in the next three months, especially following the recent signing by the Iraqi authorities of an agreement with a specialised company to secure and protect the international road from the border to Baghdad. 

During recent meetings held in Baghdad, the government and the Iraqi authorities agreed to exempt Jordanian products from customs fees and to provide the Iraqi side with production capacity for factories at the beginning of May, in addition to committing to the agricultural calendar in Iraq, Qudah said, urging local factories willing to export to Iraq to provide the ministry with their production capacity in order to send them to Iraqi authorities who will exempt them from customs fees. 

The oil pipe project from Iraq to the Aqaba Port is one strategic project set to contribute to supplying the Kingdom with its oil needs and make the Aqaba Port a key exporting hub for Iraqi oil, which could also create jobs for individuals, companies and the contractors' sector, according to Qudah. 

Work has also started to increase the share of Jordanian products reaching the Palestinian market, the minister said, adding that the 1994 Paris protocol would be rexamined with international help. 

The protocol limited the growth capacity of the Palestinian economy as it only allowed trading with the Israeli occupation, Qudah said, noting that the government requested suspending the quota listed in the protocol for two years in order to increase the share of its national exports allowed into the Palestinian market.