U.S.-Jordan FTA Joint Committee Meets; Seeks Closer Trade

UNCLAS AMMAN 000222 SENSITIVE SIPDIS STATE FOR NEA/ELA AND EEB STATE PASS TO USTR (CWILSON, SFRANCESKI) AND USAID E.O. 12958: N/A TAGS: ETRD ECIN ECON ELAB EFIN EAID PGOV JO SUBJECT: U.S.-Jordan FTA Joint Committee Meets; Seeks Closer Trade and Investment Ties REFS: A) Amman 2663 B) Amman 2597 B) AMMAN 2572 C) AMMAN 2459 D) AMMAN 2408 E) AMMAN 1177 ¶1. (SBU) Summary: Jordan's Ministry of Industry and Trade hosted the fifth U.S.-Jordan Free Trade Area Agreement Joint Committee meeting on December 15 in Amman. The agenda focused on expanding trade and investment ties and stressed the importance of full implementation of not just the trade agreement, but also its environmental and labor aspects. The GOJ sought additional technical assistance and capacity-building support and updated the USG on developments concerning pending legislation impacting labor, trade, intellectual property rights, customs, and environmental issues. The two delegations agreed to formulate an action plan to better coordinate next steps in fully implementing the FTA and in increasing bilateral trade and investment between the U.S. and Jordan. End Summary. FTA JC Meets in Amman -------------- ¶2. (SBU) Jordan's Ministry of Industry and Trade (MOIT) hosted on December 15 the U.S.-Jordan Free Trade Area Agreement (FTA) Joint Committee (JC) meeting in Amman. The JC took place on the eve of the FTA coming into full force in January 2010. The day-long meeting focused on the agenda items described in refs A and C. Ambassador Beecroft opened the JC on the behalf of the U.S. delegation and emphasized in remarks later repeated by the media that U.S.-Jordan trade and commercial ties were key components of the close bilateral relationship and that the FTA provided an opportunity to further increase two-way trade and investment. ¶3. (SBU) Montasser Oklah, MOIT Secretary General, speaking on behalf of the GOJ, welcomed the delegation and commended the successes of Jordan's trade agreements with the U.S. and pledged to seek ways to increase trade levels and diversify Jordanian trade bound for the U.S. Assistant United States Trade Representative for Europe and the Middle East Christopher Wilson added that the U.S. seeks to increase its trade ties with Jordan and noted that the U.S.-Jordan trade agreements yielded an increase in the value of bilateral trade from $306 million in 1999 to at least an expected $2 billion in ¶2009. Note: MOIT Minister Amer Hadidi, reinstated as part of the new cabinet on December 14, was called to an event with the other ministers and was unable to attend the JC meeting. End note. USG Focus on Labor and Environment Aspects -------------- ¶4. (SBU) Both delegations supported increasing bilateral trade and investment and encouraged the further diversification of Jordanian trade with the U.S. USG interlocutors stressed that a focus of the Obama Administration was the implementation of all aspects of the FTA, with added attention placed on the environment and labor sections of the agreement. Jordanian participants were supportive of the specified USG goals and expressed their desire to expand cooperation and technical assistance with their relevant USG counterparts, particularly those focused on trade and investment issues. GOJ Requests for Action on FTA Issues -------------- ¶5. (SBU) The GOJ restated its request that the U.S. expedite the Pest Risk Assessment (PRA) process to allow U.S.-market access to Jordanian agricultural products. MOIT and Ministry of Agriculture representatives restated their desire that the USG advance the PRA process on the five of six remaining agricultural items without any further reprioritization or other new arrangements. The U.S. delegation informed the GOJ that it was not possible to expedite PRAs, as it is a scientific process. However, the USDA representative will inquire as to whether any of the commodities in question are eligible for expedited rule-making. ¶6. (SBU) The GOJ also reiterated the joint Jordanian and Israeli request for the USG to identify ways in which regional cumulation for trade could be accomplished. They acknowledged the USG's points on the difficult legal path to achieving such a goal, but welcomed a thorough consideration of the matter. ¶7. (SBU) Likewise, the GOJ sought an update on the possibility of amending the U.S. visa reciprocity schedule for Jordanian investors (E1/E2 visas),which is being reviewed by the Bureau of Consular Affairs and the Department of Homeland Security. Key Laws to Move Forward as Temporary Legislation -------------- -------------- ¶8. (SBU) The GOJ also updated the JC on the status of several key Jordanian laws, some of them critically important for IPR protection as they provide enforcement authorities with ex officio authority to seize illegal or counterfeit items and bring cases against violators. The amendment to Article 41 of the Customs Law was most likely to be implemented as a temporary law, but final decision by the new cabinet is still pending. The Copyright Law, JISM Law, and Trademark Law are still pending and their fates depend on the new cabinet and whether they will be implemented at temporary laws or held until a new parliament is elected in the last quarter of 2010. The delegations also discussed labor and environmental laws. Post will continue to monitor development on these important laws. WTO - GPA Status -------------- ¶9. (SBU) The JC also discussed Jordan's pursuit of accession to the WTO Government Procurement Agreement (GPA). The GOJ sought a flexible position from the USG but conceded that the GPA discussion was difficult internally for GOJ stakeholders. The MOIT committed itself to reengaging with GOJ entities, notably military and security-related institutions, to promote the benefits of the GPA for Jordanian businesses. The GOJ reiterated its commitment to provide a response to the USG in early 2010 and to try to conclude its GPA accession by the end of 2010. The GOJ also asked for the USG to show Jordan "additional flexibility" where possible during GPA discussions. The Way Forward: Developing an Action Plan -------------- ¶10. (SBU) The two delegations agreed on the advantages of having JC meetings in the future and on formulating a written "action plan" to include specific actions, and defined responsibilities and target dates for those actions. USTR and MOIT would consider how to best formulate any such "action plan," which might take the form of an exchange of letters with an agreed attachment of action items. Revitalizing TRIDE -------------- ¶11. (SBU) The GOJ raised the successes of and asserted the need for reinvigorating the Trilateral Industrial Development (TRIDE) program that provides a key mechanism encouraging Jordanian-Israeli-American cooperation, joint research and development. The GOJ told the JC that a joint letter signed by the Jordanian and Israeli Ambassadors in Washington to Secretary Clinton dated November 30, sought a $2 million budget for TRIDE for 2010-2011, with each of the three parties contributing $666,000. The MOIT asserted that TRIDE was a useful tool for privatizing, and therefore deepening, the peace process. GOJ Seeks Assistance -------------- ¶12. (SBU) Another key message shared by the GOJ during the JC was the interest of Jordanian institutions in receiving additional technical assistance from their counterparts in the U.S. The MOIT provided the Embassy with a package of proposed projects and concept papers on December 28, outlining the technical assistance requests raised by GOJ participants (forwarded to USTR and NEA/ELA via e-mail). ¶13. (SBU) The package includes proposals for: --Jordan Investment Board twinning program with Invest in America or other investment agencies; --Trade policy and capacity building programs with the MOIT; --The establishment of a MENA Regional Training Center for Quality Infrastructure between the Jordan Institution for Standards and Metrology and the National Institute of Standards and Technology; and --Capacity building programs for Jordan Customs. Chambers of Commerce and Site Visits Round Out Trip -------------- -------------- ¶14. (SBU) After the JC, the USTR delegation met with the Jordan Chamber of Commerce and the American Chamber of Commerce in Jordan. Both organizations stressed their desire to increase bilateral trade and to further diversify trade. The Jordanian businessmen and women encouraged the USG to work with them to further publicize the benefits and opportunities presented under the FTA and expressed their dissatisfaction with visa inconveniences and perceived poor treatment at ports of entry, two issues which they asserted have a negative impact on trying to increase business and commercial ties between the U.S. and Jordan. Visiting U.S. delegation members also visited Qualifying Industrial Zone garment factories, Ministry of Labor officials, and environment-sector leaders (related reporting septel). During the visit, AUSTR Wilson held successful media interviews and the visit overall received positive press coverage, promoting U.S.-Jordan trade relations as an important part of the overall close bilateral relationship. ¶15. (SBU) Meeting Participants USG Ambassador R. Stephen Beecroft Christopher Wilson - USTR - AUSTR for Europe and the Middle East Gail Strickler - USTR - AUSTR for Textiles Mark Mowrey - USTR - DAUSTR for Europe and the Middle East Mara Burr - USTR - DAUSTR for Environment James Rude - Dept of Labor - Director for the Middle East Naomi Wiegler - Dept of Commerce - Office of Market Access Elizabeth Autry - USDA - FAS Office of Negotiations and Agreements Cynthia Iglesias - USDA - FAS U.S. Embassy Cairo Julie Egan - Dept of State - EEB Natalie E. Brown - Embassy Amman - Economic Counselor Ali E. Lejlic - Embassy Amman - Economic Officer Shereen Al-Uzaizi - Embassy Amman - Economic Specialist Mohammed Khraishy - Embassy Amman - Agriculture Specialist GOJ Montasser Oklah - MOIT - Secretary General Yaseen Khayyat - Director of the Jordan Institution for Standards and Metrology (JISM) Mamoun Talhouni - Director of the National Library Emmad Nosaeir - Director of International Cooperation, Jordan Customs 4AsQ>Q`?DNour Hmoud - Jordan Investment Board Laila Jarrar - Jordan Food and Drug Administration Lejo Sibbel - Advisor, Ministry of Labor Solaiman Rkaibat - Ministry of Agriculture Mohammad Katbeh - Ministry of Agriculture Loay Sehwail - MOIT - Director, Industrial Development Dept Khaled Arabeyyat - MOIT - Director, Industrial Property Protection Yousef Alshamali - MOIT - Foreign Trade Policy Dept Sowsan Alnabulsi - MOIT - Foreign Trade Policy Dept Omar Alfanek - MOIT - Foreign Trade Policy Dept Fawaz Bilbeisi - Economic Counselor, Embassy of Jordan in Washington Note: Other representatives from Jordan's ministries of Environment, Interior, and Labor, as well as from Jordan Customs, and the Jordan Enterprise Development Corporation also attended the JC. End note. ¶16. (SBU) The visiting delegation has not cleared on this message. Visit Amman's Classified Website at http://diplopedia.state.sgov.gov/index?title< /a> =Embassy_Amman BEECROFT