FTA Sparks Strengthened Environmental Protection in Jordan

UNCLAS SECTION 01 OF 04 AMMAN 007831

SIPDIS

SENSITIVE
SIPDIS

State for NEA/ELA, NEA/RA, OES
State Pass USTR/Prescott
EPA for International/Prather, Medearis

E.O. 12958: N/A
TAGS: SENV ETRD PREL EAID KMPI KTIA JO
SUBJECT: FTA Sparks Strengthened Environmental Protection in Jordan

Ref: Amman 7064


1. (U) Summary: During the environment session of the September 17
Free Trade Agreement (FTA) Joint Committee meeting, Jordanian
Minister of Environment Khaled Irani noted that Jordan has made
major strides in strengthening environmental protection since the
U.S.-Jordan FTA was ratified in 2001. He warmly praised U.S.-Jordan
environmental cooperation under the FTA as practical and productive.
Public diplomacy efforts to highlight USG contributions to Jordan's
environmental protection efforts should be strengthened. Future
areas of environmental cooperation should focus on the Qualifying
Industrial Zones (QIZs) and on enforcement. Specific projects could
include support to Jordan's new "environmental rangers" and its
Environmental Fund. End summary.

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Environment Minister Addresses FTA Joint Committee
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2. (U) During the environmental session of the September 17 FTA
Joint Committee meeting, GOJ Minister of Environment Khaled Irani
spoke in warm terms of the many contributions by the USG to
protecting Jordan's environment. USG attendees included AUSTR Shaun
Donnelly, USTR delegation, Charge, and embassy officers.

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Environment Ministry Developing Fast Now
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3. (U) Irani opened by talking about the development of his young
ministry since the passage of the FTA. He noted the several
meetings that had taken place on environmental cooperation under the
FTA, including most recently a video conference in April 2006 and
his own series of meetings in Washington in March 2006. He said
that the Ministry of Environment had been created only in 2003 after
languishing for years as an orphan bureau in the Ministry of Health,
and then as a stand-alone department.


4. (U) Since 2003, the pace has picked up, Irani continued. In
2006, the Ministry completed a complete reorganization that will
strengthen environmental enforcement and outreach. Parliament
passed a permanent environmental law only days before the FTA Joint
Committee meeting. Irani said that passage institutionalized the
Ministry's role and gave it new enforcement and compliance tools by
creating an environmental rangers corps and an environmental fund.
The role of the ministry as a regulator, not as an implementer, is
now clear, said Irani. He added later that environmental protection
is not a choice any more; "we're not asking (industry) 'please.'"

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Minister Thanks USG for Assistance on Environment
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5. (U) Minister Irani went on to warmly thank the USG for its role
in strengthening environmental protection in Jordan. He singled out
EPA's work, through the Embassy Science Fellows program, on the "hot
spots" of the Al-Ekeder waste disposal site and the Russeifa
landfill near Zarqa. He complimented USAID's work on wastewater
reuse, and their involvement in the feasibility study and design for
setting up an industrial wastewater treatment plant for "blue water"
from the QIZ industrial zones (ref A). He also noted USG assistance
(through USAID contractor CDM) with reviewing the manifest system to
track solid and liquid waste. The manifest system is an important
new tool in strengthening environmental enforcement, he said.

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Newest Priorities: Enforcement, Incentives
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6. (U) Irani finished his opening remarks by calling attention to
the new "environmental rangers," and asking for USG support to
develop an enforcement curriculum for the rangers. He also noted
the creation by Parliament of an "Environmental Fund," and the GOJ's
desire for assistance to develop capacity in economic incentives to
take full advantage of the fund.

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Jordan Debunks Myth of "Race to the Bottom"
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7. (U) U.S. delegation head AUSTR Shaun Donnelly noted that the
Free Trade Agreement with Jordan was the first U.S. FTA to include
references to environmental protection. He said that the GOJ has
been strong in environmental protection, which helps to debunk the
myth that free trade hurts environmental protection. In fact,
Donnelly said, Jordan is a clear case where an FTA has led directly

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to stronger environmental protection. The USG wants to continue to
strengthen that protection.


8. (U) DAUSTR for Environment and Natural Resources Jennifer
Prescott then presented a list of environmental accomplishments and
progress in Jordan since the FTA was signed. She said Jordan's case
is "exactly what we had hoped for," and that Jordan's situation
proves that FTA critics are wrong. Jordan has passed new, tougher
environmental laws, and enforcement is improving. Environmental
protection and trade are linked and are mutually supportive,
Prescott said, and FTAs do not trigger a "race to the bottom." In
conclusion, Prescott noted mutual interest in continuing cooperative
activities to strengthen environmental enforcement in Jordan.

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EPA Expects Launch of Regional Enforcement Network
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9. (U) Tiffany Prather from EPA's Office of Trade and Environment
noted EPA's continuing support of the USG's free trade partners.
Prather called attention to the need for economic incentives for
environmental protection. With respect to enforcement, she said
that EPA will present a regional training course in Amman in
February 2007 that will focus on environmental inspections. The
International Network for Environmental Compliance and Enforcement
(INECE) will use this opportunity, she added, to launch a Middle
East network of environmental enforcement officials. Note: INECE
receives MEPI support. End note. She concluded by noting that EPA
sees Jordan as a regional leader in environmental enforcement.

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US and Jordan See Eye to Eye on Importance of QIZs
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10. (U) In concluding remarks, Minister Irani noted his interest in
making the QIZs models of environmental compliance and in partnering
with the USG and NGOs to make that happen. AUSTR Donnelly said the
USG shares Irani's sense of the importance of environmental
protection in the QIZs, and that the USG wants the GOJ to be active
on environment issues in the QIZs. Minister of Industry and Trade
Sharif Zu'bi wrapped up the session by saying that the GOJ was aware
of environmental issues in the QIZs and welcomed any assistance in
upgrading treatment of "blue water" from the QIZs.

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Donnelly to Amcham: Jordan is a Model on Environment
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11. (U) AUSTR Donnelly raised environmental protection during his
September 18 speech to the American Chamber of Commerce. Donnelly
reviewed the linkage of environmental protection to the Free Trade
Agreement, and summarized the positive discussions that had taken
place on environment the previous day at the FTA Joint Committee
meeting. He said there is no inconsistency between trade and
environmental protection, and that Jordan has earned a place as a
model on environmental protection.

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Milestones
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12. (U) Following is a list of recent and upcoming trade-related
activities in environmental protection and enforcement in Jordan.
The list covers both USG-assisted activities and activities done
without USG assistance. These milestones are presented as a
backdrop to the environmental discussions that took place at the FTA
Joint Committee meeting.

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Major Upcoming Milestones
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13. (U) Major upcoming milestones that will directly and
significantly strengthen environmental protection in Jordan,
especially in the QIZs:

-- (ongoing) September 2006 - GOJ begins trial of pilot program of
waste manifest systems based on recommendations from USAID
contractor and from EPA. (Note: USAID has received an official
letter from the Ministry of Environment requesting assistance to
establish a manifest system in 2007. USAID is planning full
implementation over two years.);

-- December 2006 - GOJ and donors to reach agreement on course of
action for funding the upgrading of Al-Ekeder industrial wastewater
disposal site;

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-- February 2007 - EPA to deliver regional training course on
environmental inspections in Amman including a "train the trainers"
segment, perhaps including a QIZ-related case study on industrial
wastewater, among others, and engaging the NGO the Royal Society for
the Conservation of Nature as a partner;

-- February 2007 - MEPI-supported NGO International Network for
Environment Compliance and Enforcement (INECE) to launch Middle East
regional network for environmental enforcement officials

-- March-May 2007 - USAID contractor to complete bid documents of
Al-Hassan QIZ feasibility study and design documents to open bidding
for industrial wastewater treatment plant.

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Other Upcoming Activities in Environmental Protection
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14. (U) Other upcoming activities that will promote environmental
protection in Jordan:

-- (ongoing) - USAID promoting Environmental Management Systems
among selected industries in Jordan;

-- (ongoing) September 2006 - draft Investment Law provides tax
breaks for environmental protection (has not yet passed
Parliament);

-- September 2006 - Support for environment-focused Park Rangers
initiated through USAID and U.S. Forest Service collaboration to
conduct a watershed management course and study tour in the United
States;

-- October 2006 - USAID contractor to complete survey of wastewater
quality and quantities at Al-Hassan QIZ;

-- October 2006 - Al-Hassan QIZ to open bidding for expansion of
domestic wastewater treatment plant;

-- November 2006 - USAID to convene expert panel on valuation of
water;

-- 2007 - State OES Initiative grant to support development of
environmental economics programs in Jordanian universities that
focus on engagement with industry;

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Completed Activities that Have Promoted
Environmental Protection
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15. (U) Completed activities:

-- September 2004 - First U.S.-Jordan Joint Forum on the Environment
organized under the FTA;

-- May 2005 - Jordan hosts and participates in MEPI-sponsored course
from EPA on principles of environmental law and enforcement;

-- December 2005 - Jordan participates in MEPI-sponsored course from
EPA in Muscat on Pollution Prevention and Cleaner Production;

-- March 2006 - Minister of Environment Irani meets State, EPA, and
Interior officials in Washington DC;

-- April 24, 2006 - U.S.-Jordan digital video conference on
environmental cooperation under the FTA;

-- Summer 2006 - Ministry of Environment completes reorganization to
strengthen inspections and enforcement, and to institutionalize
personnel system;

-- August 2006 - Senior Environment Ministry enforcement officials
take USAID-funded study tour to New York and Massachusetts on
environmental enforcement, and one official visits EPA's Denver
Regional Office for enforcement-focused meetings;

-- September 2006 - EPA delivers course (funded by State/OES
Initiative grant) on economic incentives in environmental
decision-making;

-- September 2006 - Parliament passes new Environment Law;

-- September 2006 - EPA provides two boxes of detailed manuals,
papers, regulations, and CDs on environmental enforcement to

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Ministry of Environment;

-- September 2006 - EPA Science Fellow presents Ministry of
Environment with suggestions on manifest (tracking) systems for
liquid and solid waste;

-- September 2006 - EPA Science Fellow presents Ministry of
Environment with report and recommendations on improving industrial
wastewater processing and on upgrading Al-Ekeder wastewater site;

-- September 2006 - Jordan participates in MEPI-sponsored course
from EPA in Muscat on principles of Environmental Impact
Assessments;

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Desired Outcomes From FTA Environment Meetings
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16. (SBU) The following is a notional list of actions that could be
taken to support trade-related environmental protection in Jordan.
These ideas were developed through the FTA Joint Committee
discussions and related meetings.

-- Support for environmental rangers, perhaps through USAID and
involving EPA's National Enforcement Training Institute (NETI);

-- Support for environmental fund, perhaps through USAID;

-- USAID to develop a one-page "fact sheet" on its support for
industrial wastewater treatment;

-- USAID to strengthen environmental capacity in a selected QIZ that
could serve as a platform for public diplomacy events;

-- Strengthened public diplomacy on USG support in Jordan for
environmental protection through public events, press outreach, a
"Washington File" article, and web postings;

-- Environmental law training for Jordanian judges through
specialized courses or International Visitor programs;

-- USG support for regional partnerships (e.g. Morocco-Jordan) on
sector-specific (e.g. garments) environmental enforcement;

-- USTR to provide suggestions and feedback on Jordan's draft list
of environmental goods and services.


17. (SBU) Comment: Environmentally, Jordan is on the right path.
Environmental enforcement is definitely on the GOJ's agenda. The
GOJ has logged major progress in its laws and regulations, and in
engaging a diverse group of stakeholders. Industry is relatively
plugged in, and there are no complaints about a lack of transparency
of which Post is aware. QIZ environmental compliance should be at
the top of our list of priorities. The USG can contribute through
supporting the environmental rangers and the environmental fund, and
we can help ourselves by doing more public diplomacy to promote the
good work and results we are supporting.


18. (U) USTR and EPA cleared this message.

RUBINSTEIN