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Stakeholders agree Jordan the underdog in Turkey FTA, but differ on remedy

By - Nov 14,2017 - Last updated at Nov 14,2017

AMMAN — As some industrialists called for reviewing or cancelling the free trade agreement (FTA) between Jordan and Turkey, others called for giving it a chance and exerting more efforts to make the best out of the deal while taking the interest of national industries into account.

The deal, which Jordan and Turkey signed in 2011, governs free trade between the two countries, calling for transferring Turkish technical know-how to Jordan, assisting Jordanian industries develop and attracting investment to the Kingdom, said the industrialist.

Critics said the deal has resulted in a huge flow of Turkish exports to Jordan and major imbalances in the trade exchange, adding that Jordan has not benefited yet from the technical assistance or investments pouring into the country, while advocates said the deal has enabled Jordanian products to enter the Turkish market and has potential for further cooperation.

“This is a win-lose situation where Jordan is the losing partner… We as industrialists opposed the deal since the very beginning and we expected the serious consequences on our economy and industries,” Nael Husami, general director of Amman Chamber of Industry, told The Jordan Times in a recent interview.

“We want the free trade deal with Turkey to be completely revoked because our losses are increasing because of it,” he said.

Turkey’s exports to Jordan, excluding fuel derivatives and products, rose from $528 million in 2014 to $650 million in 2016.

Turkey’s textile exports to Jordan rose by 125 per cent in 2016 to $72.5 million compared with $23.2 million in 2014.  Furniture exports from Turkey to Jordan rose from $10.6 million in 2014 to $16.9 million in 2016, according to Husami.

Jordan’s exports in 2016 to Turkey stood at about $86 million, of which $62 million was of fertilisers.

Husami added: “We have not seen any know-how transfer to Jordanian industries or investments coming to the country…all that happened after the deal is that Turkey’s exports to Jordan rose sharply and our exports to Turkey are negligible.”

He added that the Turkish government provides many incentives and facilities for investments and industries and they are used to mass production unlike the industries in Jordan.

Husami sounded the alarm that several textile and carpet factories have closed after the deal, expecting the situation to get worse.

The owner and manager of the first carpet factory in Jordan said he was considering the relocation of his factory due to increased losses the company incurred after the signing of the free trade agreement with Turkey.

“I believe in the near future, if the situation continues as is, I will have to relocate before going out of business. The deal with Turkey is disastrous to us,” Anwar Kaluti, owner and manager of Arab Weavers Union Company PLC, told The Jordan Times recently.

The company, which was established in 1988, had employed around 450 and had around 12 manufacturing machines until 2014. After the signing of the deal with Turkey, the company reduced the number of its employees to 125 currently and to four manufacturing machines.

“When the deal went into effect, carpets from Turkey started to sweep the markets and they were sold at prices that are lower than our costs, which resulted in huge decline in sales and revenues,” he said.

Kaluti explained that in Turkey “industries can get loans without interest rates as support from the government and there are many incentives and prices of energy are cheaper and there are tax exemptions. Here, prices of electricity are high, there are many taxes and the situation is becoming increasingly more difficult…our costs are higher than those factories in Turkey,” he said.

“Many factories have closed or relocated to Egypt, Dubai or Turkey in the sector and I am considering to follow suit. This is a bad deal as far as we are concerned,” Kaluti added.

Turkish Ambassador in Amman Murat Karagöz said he was aware of the complaints and said the solution was not to review or cancel the deal but rather make the best out of it and try to make more benefits.

The ambassador said during a recent interview with The Jordan Times that the remedy was not to cancel the free trade agreement or linger on the message that it needs to be reviewed.

“We should rather check how we can make the existing agreement more beneficial through its current form,” he said.

Jordan’s exports to Turkey are limited. There is an imbalance of one to six. Most of it is Turkish exports to Jordan, according to the ambassador.

To increase Jordanian exports to Turkey, the envoy said there was a need for increased participation by Jordanian businesspeople in Turkish trade fairs to promote their industries and businesses.

The Turkish government, he said, was also exerting its utmost efforts to encourage Turkish investors to come to Jordan for businesses.

Direct Turkish investments in Jordan stand at about $300 million, which is “not enough”, the diplomat said.

“We also need Jordan to promote itself more to show [potential investors] why they should come and invest here. Jordan should not stand still. It takes two to tango,” said the ambassador.

The diplomat added that Turkey was willing to increase technical assistance to Jordan “but we need guidance on which areas, is it SMEs, tourism, any other field?”

Other industrialists were optimistic and said in spite of the challenges there was a need for giving the deal a chance for the benefits of the ties between the two countries.

“Let us be honest and realistic. In any free trade agreement, there is always one side that benefits more than the other… I am not with cancelling or revisiting the FTA with Turkey. I believe the best solution is to work on activating the current articles and terms in the agreement and optimally utilising it to the maximum rather than complaining about it,” Jordan Chamber of Industry General Manager Maher Mahrouq told The Jordan Times recently.

“It is true that the trade balance is heavily in favour of Turkey, but we should focus on the other aspects of the agreement that are related to attracting investments and benefiting from technical assistance and know-how from Turkey,” he added.

“The FTA gave our industries the opportunity to enter the Turkish markets and we should work harder to attract investors to start joint projects and co-produce some commodities which will help us enter new markets whether in the Arab world, Africa or even Europe,” he added.

He called for a practical and realistic solution and stressed on the need to offer incentives and facilities to attract investments into Jordan.

“We also need to be very specific and certain about which technical assistance we seek to get from the Turkish side to support our industries as they [Turkey] are ready” Al Mahrouq added.

Fathallah Emrani president of the General Trade Union of Workers in Textile, Garment and Clothing Industries, said in spite of some of its negative consequences, the solution was not to revoke the deal.

“I am with giving it a chance and finding solutions in its current format. We are keen on the ties with Turkey and we need to find a solution for the benefit of the two countries,” Emrani said.

“I believe the problem is that we were not consulted about it at all. The government needs also to be keen on protecting the national industries… There are many factories that closed, such as small factories of textile and carpets,” he said.

“Owners of factories became merchants, as it is more profitable for them to import and sell rather than manufacture,” Emrani said, confirming that dozens of employees have been laid off.

In spite of several attempts by The Jordan Times, the Ministry of Industry, Trade and Supply was not available for comment.

However, in a statement recently carried by the Jordan News Agency, Petra, Yousef Shamali, secretary general of the Ministry of Industry, Trade and Supply, said although the deal was a significant achievement to enhance economic ties between the two countries, it has not resulted in positive impacts on Jordan.

The government, he said, was planning to relook into the deal with Turkey if it does not lead to increasing Jordanian exports or attracting Turkish investments into the Kingdom. 

Archaeologists find Greco-Roman mummy in Egypt

By - Nov 14,2017 - Last updated at Nov 14,2017

CAIRO — A Russian archaeological team has discovered a well-preserved mummy from the Greco-Roman period in a wooden coffin south of Cairo, Egypt's antiquities ministry said Tuesday.

The discovery was made near New Fayoum city, about 80 kilometres south of the Egyptian capital, the ministry said in a statement.

The team "found inside the coffin a well-preserved mummy, wrapped in linen, with its face covered by a human mask with drawings in blue and gold", it said.

While mummification is mostly associated with ancient Egypt, the practice continued into the Greco-Roman era.

The Russian team made its discovery near a monastery in the village of Qalamshah.

"The expedition carried out an initial restoration of the coffin and the mummy, as the coffin was found in a bad condition," the ministry said, citing the minister's assistant Mohamed Abdel Lateef.

The statement did not say when the discovery was made.

"The cover is broken and the base has several cracks, and it doesn't have an inscription on it," it added, citing Abdel Lateef.

The Russian mission has been operating for seven years in the area, which has Islamic and Coptic monuments as well as others from the Greco-Roman period (330 BC-670 AD).

Jordan, Japan coordinate positions on region

By - Nov 14,2017 - Last updated at Nov 15,2017

AMMAN — His Majesty King Abdullah on Tuesday received Japanese prime minister’s National Security Adviser Kintaro Sonora, who is currently visiting Jordan as part of coordination and consultations between the two countries on various issues.

The Japanese official delivered a letter to His Majesty from Japanese Prime Minister Shinzo Abe, which addressed the latest regional and international developments, according to a Royal Court statement.

The talks, which were attended by the Japanese Ambassador to Jordan Shuichi Sakurai and the delegation accompanying Sonora, also covered efforts aimed at pushing forward the peace process and the war on terrorism.

Also on Tuesday, Foreign Minister Ayman Safadi met with Sonora and highlighted the “strong ties of friendship and partnership” between Jordan and Japan, which “witness continuous developments in various domains”, the Jordan News Agency, Petra, reported.

During the meeting, Safadi stressed the importance of Japan’s role in the region, as well as Jordan’s support to this positive role, especially with regards to the Middle East peace process.

Safadi highlighted the importance of the “Corridor for Peace and Prosperity” initiative, which aims at supporting peace efforts in the region and improving the Palestinian economy. 

The Corridor for Peace and Prosperity initiative was launched by Japan 10 years ago. 

The concept of the corridor, according to related literature, is to “work collaboratively to materialise projects that promote regional cooperation for the prosperity of the region, such as establishing an agro-industrial park in the West Bank and facilitating the transportation of goods”. 

In this regard, Safadi reaffirmed Jordan’s support for this initiative, along with all political efforts exerted to reach a just and permanent solution to the Palestinian-Israeli conflict on the basis of the two-state solution, international legitimacy resolutions and the Arab Peace Initiative.

The foreign minister praised cooperation between Jordan and Japan in the economic, military and security fields, stressing the need to continue cooperation and coordination between the two countries, mainly in the war against terrorism.

For his part, the Japanese official praised His Majesty’s role in restoring security and stability in the region, as well as the level of cooperation and coordination between Amman and Tokyo, voicing his country’s willingness to further enhance cooperation with the Kingdom, Petra said. 

Jordan, Guinea discuss ways to step up cooperation

His Majesty, President Condé hold talks that also cover anti-terror drive

By - Nov 14,2017 - Last updated at Nov 14,2017

His Majesty King Abdullah meets with President of Guinea Alpha Condé in Amman on Monday (Photo courtesy of Royal Court)

AMMAN — His Majesty King Abdullah on Monday discussed with President of Guinea Alpha Condé bilateral relations between the two countries and international and regional developments, a Royal Court statement said.

Speaking at an expanded meeting held after bilateral talks, King Abdullah welcomed President Condé, noting that his visit marks an opportunity to strengthen relations between Jordan and Guinea.

“In our brief talks, we realised how much we have in common and what we could do to strengthen our relationship,” His Majesty said.

Noting current challenges, the King said that whether it is Daesh, Al Shabaab, or Boko Haram, the threat is a global one, which requires joint action to counter it.

His Majesty highlighted potential opportunities to advance cooperation between Jordan and Guinea in economic, trade, military, and security areas, voicing hope that President Condé’s visit will be the start of many visits between the two nations.

For his part, the president thanked His Majesty and the Jordanian people for the invitation and the warm reception.

He said he was delighted with what he saw during his visit to King Hussein Medical City and King Abdullah II Special Operations Training Centre, and congratulated Jordan on these achievements.

President Condé said that he met on Sunday with a number of businesspeople and discussed means to enhance trade and investment cooperation, adding that his country was interested in having a Jordanian embassy to facilitate cooperation, and serve as Jordan’s gateway to Guinea and West Africa.

Condé said that the two sides also discussed the prospect of setting up a joint ministerial committee to meet and decide on domains of cooperation.

The panel would be concerned with economic affairs, and it will handle agreements related to investment and economic cooperation between the two countries.

The president added that he welcomes Jordanian businesspeople to prepare for a Jordanian-Guinean business forum soon.

King Abdullah and Condé, who chairs the African Union, also discussed the Arab-African relations and how to boost them.

King sends letter on ties to Dubai ruler

Mulki briefs Sheikh Mohammad on challenges facing Jordan, attends airshow

By - Nov 14,2017 - Last updated at Nov 14,2017

AMMAN — Prime Minister Hani Mulki on Monday presented a written letter from His Majesty King Abdullah to His Highness Sheikh Mohammad Bin Rashid Al Maktoum, the UAE vice president, prime minister and ruler of Dubai.

The letter addressed bilateral relations between Jordan and the UAE and means to enhance cooperation in various fields, the Jordan News Agency, Petra, reported.

Mulki underscored the "deep-rooted" relations between the two countries and keenness on boosting them to serve the interests of both countries and their peoples.

He expressed Jordan's appreciation for the UAE’s support, which, he said, contributed to several development projects and efforts to overcome economic challenges.

The prime minister praised the progress achieved by the UAE, especially Dubai.

In the aftermath of the Arab summit that was held in Jordan last March, ICT Minister Majd Shweikeh paid a visit to the UAE to review Dubai's advanced expertise in the field of e-government, the premier noted, adding that the success of the e-government enterprise, would reduce contact between service providers and citizens, which would lead to reducing corruption and promoting justice.

He commended the outcomes of the Jordan-UAE joint committee's meetings that were held in Abu Dhabi last month.

Mulki briefed Sheikh Mohammad on the economic challenges that face the Kingdom and fiscal and economic reforms implemented by the government to achieve self-reliance as a strategic objective.  

The prime minister pointed out the security, economic and social repercussions of the Syrian crisis on Jordan, stressed that the Jordan Armed Forces-Arab Army and the security agencies have worked vigorously for the past seven years to protect the Kingdom’s borders from terrorists and smugglers, activities that have been funded from the Treasury, which exacerbated budgetary challenges.

For his part, Sheikh Mohammad sent his greetings to the King and voiced his keenness on more cooperation.

He commended the advanced levels that the Jordan-UAE relations have reached.

Also on Monday, upon an invitation from Sheik Mohammad, Mulki, who is also the defence minister, attended Dubai Airshow 2017.

The prime minister toured the five-day exhibition and had a first-hand look at the products showcased by participating companies.

The exhibition saw the participation of 1,200 civil and military companies from the several countries.

Mulki was briefed on the event’s functions, including airshows, models of pilotless planes, specialised exhibitions and conferences.

The prime minister visited the pavilion of the Jordan Airmotive, which is a company specialised in maintaining aircraft engines.

Jordan supports UNRWA appeal for aid

By - Nov 14,2017 - Last updated at Nov 14,2017

AMMAN — Foreign Minister Ayman Safadi on Monday stressed the importance of supporting UNRWA by the international community and providing the required funds needed to continue the provision of its services to the Palestinian refugees in the Kingdom.

During a meeting with UNRWA Commissioner General Pierre Krahenbuhl, Safadi stressed the importance of addressing the recurring annual deficit in UNRWA’s budget to enable the agency to efficiently provide uninterrupted services in the fields of education, health and relief, in accordance with its mandate, which stipulates the continuation of helping the refugees until a solution for their issue is reached.

Safadi noted the importance of the organisation’s Advisory Commission’s meeting at the Dead Sea held on Monday, in which donor countries and Arab countries that host Palestinian refugees
took part.

He expressed hope that the meeting would result in donor action to cover the deficit in the budget, which amounts to $77 million this year, according to the Jordan News Agency, Petra.

For his part, Krahenbuhl expressed UNRWA’s appreciation for Jordan’s support, noting the importance of the Kingdom’s efforts during the meeting that has been recently held in New York in cooperation with Sweden to overcome the budget’s deficit.

He highlighted the importance of partnership and cooperation relations between Jordan and UNRWA to serve the Palestinian refugees issue.

UNRWA makes $77 million appeal to sustain its services

‘UN agency is safe and is here to stay’

By - Nov 14,2017 - Last updated at Nov 14,2017

UNRWA Commissioner General Pierre Krahenbuhl addresses stakeholders at the Dead Sea on Monday (Photo courtesy of UNRWA)

DEAD SEA — United Nations Relief and Works Agency (UNRWA) Commissioner General Pierre Krahenbuhl on Monday urged governments, donors and stakeholders to “keep on supporting UNRWA in completing its mission”, highlighting that the agency is still lacking $77 million to complete its activities planned for this year. 

The remarks came during a press briefing held on the sidelines of the agency’s Advisory Commission’s meeting at the Dead Sea, to which the official referred as a “great opportunity to discuss our financial situation, where we stand now, and what are the actions that we can take”.

“After this meeting, I expect our members to come forward with additional support, as it is vital to continue improving the situation of the Palestinian refugees, and we cannot accomplish our mission without them,” Krahenbuhl stated. 

“I have spoken to the refugees, and they all told me the same thing. They complain that this is not enough, that the situation is not improving — I do acknowledge that, and thus I want to take the opportunity here to remind everyone that the refugees shall not be forgotten, and it is our responsibility to stand together to ensure their well-being,” expressed the official. 

Furthermore, Krahenbuhl reminded the attendees that a total of 167 countries voted last year in favour of extending UNWRA’s mandate to the next three years, stressing the “strong political message that these countries delivered with their vote”.

“Refugees can rest assured that our mandate is safe and is here to stay, and we are determined to improve the quality and quantity of our services despite the many challenges,” continued the official. 

Krahenbuhl took the opportunity to praise Jordan’s efforts on the refugee crisis, expressing that “UNWRA’s partnership with Jordan is one of the most important throughout the whole Arab region, and it would not have been the same without their support”.

A member of the audience raised the issue of UNWRA’s staff complains about the working conditions, to which the official replied that the agency is “prepared to sit down with them, listen to their concerns and find solutions”, adding that “the dialogue with the staff is a very important part of UNWRA’s work”.

Regarding the neutrality issue, Krahenbuhl clarified that “absolutely all members of UNRWA — including myself — sign a contract [which prohibits]involvement in political activities, due to our commitment to maintaining good relationships with all UN member countries and our need to keep our work inside the humanitarian field”.

Jordan is the largest host of Palestinian refugees, where more than 2 million registered refugees live, according to UNRWA data, out of 5 million who are eligible for the agency’s services in five countries in the region. 

Most Palestine refugees in Jordan enjoy full citizenship. There are 10 recognised Palestine refugee camps throughout the country, which accommodate nearly 370,000 Palestine refugees, or 18 per cent of the country total.

King condoles Iran, Iraq leaders

By - Nov 14,2017 - Last updated at Nov 14,2017

AMMAN — His Majesty King Abdullah on Monday sent cables of condolences to Iraqi President Fuad Masoum and Iranian President Hassan Rouhani for the loss of life in the earthquake that hit on Sunday northeastern Iraq and several regions in Iran, according to a Royal Court statement. 

The earthquake killed many people and injured others. In his message, King Abdullah expressed his deepest sympathies and condolences to the families of the victims.

Jordan remembers King Hussein

By - Nov 13,2017 - Last updated at Nov 13,2017

AMMAN — Jordan today marks the 82nd anniversary of the birth of His Majesty the late King Hussein.

King Hussein died at the age of 63 on February 7, 1999, following a battle with cancer.

At the time of his death, King Hussein was the longest serving executive head of state in the world.

A direct descendant of Prophet Mohammad, King Hussein was born on November 14, 1935, as the eldest son of King Talal and Queen Zein Al Sharaf.

He studied at the Islamic Scientific College and then enrolled in Victoria College in Alexandria. In 1951, he entered Harrow College in England before receiving his military education at the Royal Military Academy Sandhurst in England, from which he graduated in 1953.

Hussein was proclaimed King of Jordan on August 11, 1952, and a Regency Council was appointed until his formal ascension to the Throne on May 2, 1953, when he assumed his constitutional powers after reaching the age of 18, according to the Islamic calendar.

Throughout his five-decade rule, he worked to raise the living standards of his people, and during his reign the literacy rate rose dramatically.

He also sought to promote peace in the Middle East.

Enhancing joint Arab coordination was a priority for King Hussein, who believed that resolving outstanding issues and conflicts between Arab countries should be done through upholding the higher Arab interest and believing in the common destiny of the Arab nation.

On the occasion, His Majesty King Abdullah on Monday received several cables from senior civil and military officials. HRH Crown Prince Hussein also received similar cables.

World’s largest solar plant built in a refugee camp launched in Zaatari

12.9-megawatt solar facility will bring free and clean electricity to over 80,000 camp residents

By - Nov 13,2017 - Last updated at Nov 14,2017

The world’s largest solar power plant built in a refugee settlement was inaugurated at Zaatari refugee camp on Monday (Photos by Amjad Ghsoun)

ZAATARI REFUGEE CAMP — After six months of construction that saw the sprawling of some 40,000 solar panels over “the size of 33 football fields” in southern Mafraq, the world’s largest solar power plant built in a refugee settlement was inaugurated on Monday. 

The 12.9-megawatt solar facility will bring free and clean electricity to over 80,000 residents at Zaatari refugee camp, extending their current 8 hours of access to power to 14, thereby allowing children longer hours for homework, better storage for refrigerated foods, and enhanced street lighting for maintaining safety and security.

The news of the extended electricity hours quickly reached the camp’s residents, who said they were “thankful” for having more access to electricity during the day. 

“Right now, we only have electricity from around six in the evening until three in the morning, and there are lots of things we need the power for: using the washing machine, charging our phones and watching TV. With access to electricity during the day, we can keep our kids inside by letting them watch TV; this will keep them from going out under the harsh sun and in sandstorms — getting sick,” said Tahani Husni Al Hajali, a five-year-resident of Zaatari from Daraa, Syria. 

Since the Zaatari’s inception in 2012, access to electricity has been one of the main challenges faced by its residents, making daily lives difficult with intermittent cuts due to lack of power. 

 “Even though we have a fridge, when the power cuts off, anything we’ve put inside goes bad. So I’m forced to throw that out and make something new every day,” Sharifa Al Rifai told The Jordan Times at her housing unit at Zaatari. 

“Sometimes, we have to go to our neighbours’ homes just to charge our phones,” said Nasser Mohammad, who has been living in the camp since 2013. 

The plant with help of UNHCR saves an average of 5 million euros per year in electricity bills, an amount that could be redirected to expand other “critical activities that improve the lives of refugees in Jordan”, said UNHCR’s Representative to Jordan Stefano Severe.

Additionally, the construction of the plant benefitted many refugees economically and professionally. 

Over 75 refugees, including students, worked alongside Jordanians in installing the solar panels, gaining new skills and income for their families, said Severe at the inauguration. 

The 15-million-euro solar project, which has a lifespan of 25 years, was funded by the government of Germany through the German Development Bank (KfW), and later implemented with close cooperation with Jordan’s Ministry of Energy and United Nations High Commissioner for Refugees (UNCHR), said Birgitta Siefker-Eberle, German ambassador to Jordan. 

In terms of its environmental impact, the solar power farm will allow Jordan to be “less-dependent on imported oil, produce pollution-free energy and reduce 15,600 tonnes of CO2 emissions per year”, which is in line with the Kingdom’s energy strategy, said Siefker-Eberle. 

Since the solar facility is connected to the national grid, “it will also help in stabilising the regional distribution network, thereby reducing power shortages for host communities outside the camp,” said Joachim Nagel, an executive member of the KfW Group.

The inauguration of the plant saw the participation of HRH Princess Lara Al Faisal, Minister of Energy and Mineral Resources Saleh Kharabsheh, UNHCR’s Representative to Jordan Stefano Severe, German Ambassador to Jordan Birgitta Siefker-Eberle and Joachim Nagel, an executive member of KfW. 

 

In her concluding statement, the German ambassador highlighted how renewable energy and energy efficiency have great potential for enhancing bilateral relations between Jordan and Germany, and for his part, Minister of Energy and Mineral Resources Saleh Kharabsheh thanked the German government for its “longstanding and strong commitment to Jordan’s development process, in the energy sector in particular…which benefits both the Jordanian host community and Syrian refugees”.

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