Identifier
Created
Classification
Origin
10AMMAN222
2010-01-24 09:43:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Amman
Cable title:
U.S.-Jordan FTA Joint Committee Meets; Seeks Closer Trade
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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
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
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