September 26, 2000
News Release 00-122
Inv. No. 332-418
A U.S.-JORDAN FREE TRADE AGREEMENT WOULD HAVE NO MEASURABLE
IMPACT ON U.S. PRODUCTION OR U.S. EMPLOYMENT, SAYS ITC
A U.S.-Jordan Free Trade Agreement (FTA) would have no measurable impacts on total U.S.
exports, total U.S. imports, U.S. production, or U.S. employment, reports the U.S.
International Trade Commission (ITC) in its publication Economic Impact on the United States
of a U.S.-Jordan Free Trade Agreement.
The ITC, an independent, nonpartisan, factfinding federal agency, recently completed the
report for the U.S. Trade Representative. As requested, the ITC provided an overview of the
Jordanian economy; data on Jordan's trade patterns with the United States and other major
trade partners; a description of the tariff and investment relationship between the United States
and Jordan; and an analysis of any sector for which there are significant economic impacts
from a U.S.-Jordan FTA. Following are highlights of the report:
Economic Impact on the United States of a U.S.-Jordan Free Trade Agreement (Inv. No. 332-
418, USITC Publication 3340, September 2000) will be available on the ITC's Internet site at
www.usitc.gov. A printed copy may be requested by calling 202-205-1809 or by writing the
Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington,
DC 20436. Requests may be faxed to 202-205-2104.
- The United States had total merchandise exports of $642 billion in 1999, compared
with $270 million merchandise exports to Jordan. Major U.S. exports to Jordan in
1999 were cereals (primarily wheat, rice, and corn) and machinery. The United States
had total merchandise imports of $1 trillion in 1999, compared with $31 million
merchandise imports from Jordan. Major U.S. imports from Jordan in 1999 were
jewelry, carpets, apparel, and antiques.
- Jordan's two major import sectors in 1999 were machinery and transportation
equipment and food and live animals. Iraq and the United States were the top suppliers
of Jordan's imports in 1999. Jordan's major export sectors were chemicals
(medicaments, fertilizer) and crude materials (phosphates, potash). India, Saudi
Arabia, Iraq, and the United Arab Emirates were Jordan's top export markets in 1999.
- The ITC selected the following 16 sectors for qualitative analysis: animal and vegetable
fats and oils; cereals (wheat, rice, corn); citrus fruit and juices; crude petroleum;
electronics; fertilizers; iron and steel mill products; jewelry; live animals; machinery
and transportation equipment; nuts; pharmaceuticals; phosphates; potash; textiles and
apparel; and vegetables. Services were not included in the sector analysis because the
volume of U.S.-Jordan trade in services is too small to be reflected in published data.
- An FTA with Jordan is not expected to have a measurable impact on U.S. imports from
Jordan for 15 of the 16 sectors reviewed by qualitative analysis. For one sector,
textiles and apparel, a likely rise in U.S. imports of apparel products from Jordan is
expected to have a negligible effect on total U.S. imports. Some of the expected
increase in U.S. apparel product imports from Jordan would be apparel products that
are currently assembled in Jordan from fabric cut to shape in Israel and exported from
Israel to the United States free of duty as a product of Israel under 1996 amendments to
the U.S.-Israel FTA.
- Any sectoral increases in U.S. exports to Jordan or U.S. imports from Jordan from
tariff elimination would be insignificant relative to the total volume of U.S. exports and
U.S. imports. Thus, there are no measurable impacts on total U.S. exports, total U.S.
imports, U.S. production, or U.S. employment from a U.S.-Jordan FTA.
ITC general factfinding investigations, such as this one, cover matters related to tariffs or trade
and are generally conducted at the request of the U.S. Trade Representative, the Senate
Committee on Finance, or the House Committee on Ways and Means. The resulting reports
convey the Commission's objective findings and independent analyses on the subjects
investigated. The Commission makes no recommendations on policy or other matters in its
general factfinding reports. Upon completion of each investigation, the ITC submits its
findings and analyses to the requester. General factfinding investigation reports are
subsequently released to the public, unless they are classified by the requester for national
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