Jordan and EU Declare Reciprocal Liberalization

UNCLAS AMMAN 001513

SIPDIS

SIPDIS

DEPT PASS USTR
CAIRO FOR AGCOUNS ACHAUDHRY

E.O. 12958: N/A
TAGS: EAGR ETRD JO
SUBJECT: Jordan and EU Declare Reciprocal Liberalization
Measures on Agriculture



1. Summary: Jordan and the EU declared reciprocal
liberalization measures in agricultural trade on February

28. The change liberalizes some categories of
agricultural products ahead of schedule. However, some
Jordanian producers and exporters report that the
benefits of the agreement will still be limited by
"exaggerated" technical restrictions on Jordan's major
agricultural exports to the EU, i.e., fresh fruits and
vegetables. End Summary.

2. Jordanian-EU agricultural trade falls under the Euro-
Mediterranean Agreement, which established an Association
between the EU Member States and Jordan. The Agreement
with Jordan entered into force 1 May 2002.

3. For the past three years, representatives of Jordan's
agricultural sector, both public and private, have been
engaged in formulating liberalization amendments to the
agricultural trade agreement between Jordan and EU. The
agreement has been seen by some Jordanian producers and
exporters as trade restricting, hampered by permits bounded
by specific time limitations and restricted quantity quotas
available to Jordanian-origin agricultural products. The
new reciprocal liberalization measures and amendments expand
the umbrella of custom duty-free items, ad valorem tariffs,
and leave in place the quantity quotas on most agricultural
products.


4. The products on which restrictions are maintained
include virgin olive oil, fresh cut flowers, cucumbers,
"new" potatoes, garlic, citrus and strawberries. All of
these products will be liberalized by the year 2010, except
for virgin olive oil and fresh cut-flowers which will remain
subject to quantity quotas.


5. Three other products (cookies, chocolate preparations,
and white chocolate) will continue to be subject to ordinary
applied customs tariffs.



6. Newly-appointed Minister of Agriculture Akif Al-Zu'bi
has long pushed for more market access in the EU. Many
Jordanian agri-businessmen and exporters believe that these
new measures will not solve the problem of "exaggerated"
technical restrictions on Jordan's major agricultural
exports to EU -- fresh vegetables and fruits.


7. The EU supports Jordanian agriculture indirectly through
many technical provisions, including laboratories and
capacity building, and through twinning programs between EU
and Jordanian counterpart institutions.


8. Jordan imported US$1.445 billion in agricultural
products in 2005, US$185 million of which came from the
U.S.

HALE