Identifier
Created
Classification
Origin
09AMMAN1955
2009-08-30 04:15:00
UNCLASSIFIED
Embassy Amman
Cable title:
Exports to Iraq a Rare Bright Spot for Jordanian Trade
how-toVZCZCXRO4330 RR RUEHBC RUEHDE RUEHDH RUEHKUK RUEHROV DE RUEHAM #1955 2420415 ZNR UUUUU ZZH R 300415Z AUG 09 FM AMEMBASSY AMMAN TO RUEHC/SECSTATE WASHDC 5832 INFO RUEHEE/ARAB LEAGUE COLLECTIVE RUCPDOC/DEPT OF COMMERCE WASHDC RUEHRC/DEPT OF AGRICULTURE WASHDC RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS AMMAN 001955
SIPDIS
STATE FOR EEB AND NEA/ELA
STATE PLEASE PASS TO USTR (SFRANCESKI)
E.O. 12958: N/A
TAGS: ETRD ECON EAGR WTRO JO
SUBJECT: Exports to Iraq a Rare Bright Spot for Jordanian Trade
During the First Half of 2009
Refs: A) Amman 1892
B) Amman 1646
C) Amman 1378
D) Amman 1177
E) Amman 1053
F) Amman 672
UNCLAS AMMAN 001955
SIPDIS
STATE FOR EEB AND NEA/ELA
STATE PLEASE PASS TO USTR (SFRANCESKI)
E.O. 12958: N/A
TAGS: ETRD ECON EAGR WTRO JO
SUBJECT: Exports to Iraq a Rare Bright Spot for Jordanian Trade
During the First Half of 2009
Refs: A) Amman 1892
B) Amman 1646
C) Amman 1378
D) Amman 1177
E) Amman 1053
F) Amman 672
1. (U) Summary: Jordan's Department of Statistics reported that
during the first six months of 2009 exports were down almost 12% and
imports fell 23% over the previous year. Jordan's trade deficit,
currently at $3.35 billion, has decreased almost a third compared to
2008. Despite the gloomy overall picture, exports to Iraq are up
over 20% and exports to the Greater Arab Free Trade Area (GAFTA)
fell less than 1%, much less than the rate of exports overall. In
addition, U.S. imports to Jordan have increased 15%. End Summary.
Exports and Imports Fall
--------------
2. (U) The global economic slump continues to take a toll on
Jordanian trade. According to Jordan's Department of Statistics,
total exports fell 11.7% from about $3.70 billion to $3.26 billion
in the first half of 2009 compared to the same period in 2008. All
of Jordan's major exports were down including apparel, vegetables,
potash, and phosphates.
3. (U) Imports fell even more dramatically: 23% or nearly $2
billion. The drop in the value of imports is primarily a result of
lower oil prices (ref C). The value, not volume, of Jordanian crude
oil imports (mostly from Saudi Arabia) fell more than 60% from $1.5
billion in the first half of 2008 to $583 million in 2009. The drop
in global energy prices has had a positive impact on Jordan's trade
deficit, which now stands at $3.35 billion for the first half of
2009, a 31.6% decrease from the $4.9 billion trade deficit during
the first six months of 2008.
4. (U) While Jordan's national exports are down 11.7% in 2009,
exports to Iraq are a bright spot, increasing 22.6% over the first
half of 2009 from $367 million to $450 million (ref A).
Historically, Iraq has been one of Jordan's largest trading partners
and the largest in the GAFTA export market. The initial bump in
exports was attributed to re-exports, but recent agreements have led
to slightly increased trade between the two countries (refs A and
E). Regionally, Jordan's exports to GAFTA countries (the 17 nations
of the MENA region) were essentially flat with a net decrease of
less than 1% although there were modest increases in exports to
Saudi Arabia, Lebanon, Libya, and Tunisia.
U.S. Imports Higher
--------------
5. (U) In terms of U.S. trade, Department of Statistics figures show
that imports from the U.S. increased more than 15% during the first
half of 2009, up to $456 million, over the first six months of 2008.
Contributing to this increase were imports of vehicles and
construction equipment. Exports to the U.S., primarily apparel,
however, remain down, dropping 13.4% from $479 million to $415
million (ref D).
Visit Amman's Classified Web Site at
http://www.state.sgov.gov/p/nea/amman
BEECROFT
SIPDIS
STATE FOR EEB AND NEA/ELA
STATE PLEASE PASS TO USTR (SFRANCESKI)
E.O. 12958: N/A
TAGS: ETRD ECON EAGR WTRO JO
SUBJECT: Exports to Iraq a Rare Bright Spot for Jordanian Trade
During the First Half of 2009
Refs: A) Amman 1892
B) Amman 1646
C) Amman 1378
D) Amman 1177
E) Amman 1053
F) Amman 672
1. (U) Summary: Jordan's Department of Statistics reported that
during the first six months of 2009 exports were down almost 12% and
imports fell 23% over the previous year. Jordan's trade deficit,
currently at $3.35 billion, has decreased almost a third compared to
2008. Despite the gloomy overall picture, exports to Iraq are up
over 20% and exports to the Greater Arab Free Trade Area (GAFTA)
fell less than 1%, much less than the rate of exports overall. In
addition, U.S. imports to Jordan have increased 15%. End Summary.
Exports and Imports Fall
--------------
2. (U) The global economic slump continues to take a toll on
Jordanian trade. According to Jordan's Department of Statistics,
total exports fell 11.7% from about $3.70 billion to $3.26 billion
in the first half of 2009 compared to the same period in 2008. All
of Jordan's major exports were down including apparel, vegetables,
potash, and phosphates.
3. (U) Imports fell even more dramatically: 23% or nearly $2
billion. The drop in the value of imports is primarily a result of
lower oil prices (ref C). The value, not volume, of Jordanian crude
oil imports (mostly from Saudi Arabia) fell more than 60% from $1.5
billion in the first half of 2008 to $583 million in 2009. The drop
in global energy prices has had a positive impact on Jordan's trade
deficit, which now stands at $3.35 billion for the first half of
2009, a 31.6% decrease from the $4.9 billion trade deficit during
the first six months of 2008.
4. (U) While Jordan's national exports are down 11.7% in 2009,
exports to Iraq are a bright spot, increasing 22.6% over the first
half of 2009 from $367 million to $450 million (ref A).
Historically, Iraq has been one of Jordan's largest trading partners
and the largest in the GAFTA export market. The initial bump in
exports was attributed to re-exports, but recent agreements have led
to slightly increased trade between the two countries (refs A and
E). Regionally, Jordan's exports to GAFTA countries (the 17 nations
of the MENA region) were essentially flat with a net decrease of
less than 1% although there were modest increases in exports to
Saudi Arabia, Lebanon, Libya, and Tunisia.
U.S. Imports Higher
--------------
5. (U) In terms of U.S. trade, Department of Statistics figures show
that imports from the U.S. increased more than 15% during the first
half of 2009, up to $456 million, over the first six months of 2008.
Contributing to this increase were imports of vehicles and
construction equipment. Exports to the U.S., primarily apparel,
however, remain down, dropping 13.4% from $479 million to $415
million (ref D).
Visit Amman's Classified Web Site at
http://www.state.sgov.gov/p/nea/amman
BEECROFT