JORDAN FORMALLY ASKS FOR TAX TREATY

UNCLAS AMMAN 006754

SIPDIS

NSC FOR GARY EDSON/JOHN CLOUD
STATE PASS USTR FOR NED SAUMS
TREASURY FOR PATRICIA BROWN AND MARSHALL MILLS

E.O. 12958: N/A
TAGS: EFIN ETRD JO
SUBJECT: JORDAN FORMALLY ASKS FOR TAX TREATY

REF: Goldberger-Brown e-mail of 11/18 and previous

THIS IS AN ACTION REQUEST; SEE PARA 3.


1. (u) Embassy received on November 17 a diplomatic note
from the GOJ that included a formal request to begin
negotiating a bilateral tax treaty. Text of diplomatic
note below:


2. (u) Begin text:

Number:WM/US/1/2533
Date:13 Nov 2002

(complimentary opening) the Jordanian delegation to the
Joint Commission meetings that will be held in Washington
between 11-13 December 2002 in accordance with the Free
Trade Agreement wishes to start negotiations with the
American side with the aim of reaching an agreement to
o
avoid double taxation, as a mechanism to implementing the
Free Trade Agreement.

The Foreign Ministry respectfully asks the Embassy to
inform the concerned American authorities of the
Jordanian's side desire to negotiate about the above
mentioned agreement within the framework of the
preparations for the Joint Commission meetings
(complimentary closing).

End text.


3. Action request: A bilateral tax treaty would provide a
third "pillar" of support to Jordan's burgeoning economy,
complementing our BIT and FTA. Taken together, these
agreements will further promote investment and growth in
Jordan, which will in turn promote social and political
stability for a key regional ally. The GOJ has requested
that the tax treaty be approached as a "deliverable" for
the December 11 FTA Joint Commission meeting - if not a
signing ceremony, at least an announcement that the two
sides have agreed to begin negotiations. We would
appreciate Washington guidance regarding the USG's
willingness to conclude such a treaty, and an outline of
the steps necessary to get there.
Gnehm