Six companies to export to EU under new ‘rules of origin’

AMMAN — Of nine companies that applied to the Ministry of Industry, Trade and Supply to export to Europe, six have been approved after completing the necessary procedures, a ministry official said on Thursday.

Yanal Barmawi, the ministry’s spokesperson, said these six companies are currently qualified to export to Europe under the Jordan-EU agreement on simplified rules of origin.

Products to be exported by these companies include plastics, cables and metals, according to Barmawi, who added that the ministry is currently reviewing an application by another company to export to Europe. 

“We expect more companies to apply to benefit from this agreement in the coming few months,” he told The Jordan Times.

The Kingdom’s exports to the EU totalled JD144 million in 2002, and rose to JD206 million in 2014, but dropped to JD123 million in 2015. Imports from the EU reached JD3.1 billion in 2015, from JD1 billion in 2002.

In July 2016, the EU relaxed the rules of origin for Jordanian exports to Europe. 

Under the deal, manufacturers in Jordan can import up to 70 per cent of the raw materials used in production, and still label the finished products as “Made in Jordan”, qualifying them for trade concessions. 

The agreement is valid for 10 years.

A total of 18 industrial and development zones are included in this move, while the relaxed rules will also be applied to other industries across the Kingdom, once 200,000 jobs for Syrian refugees are created and when those Syrians are issued work permits.