Jordan–United States Free Trade Agreement

The United States–Jordan Free Trade Agreement, signed on 24 October 2000, was the first free trade agreement (FTA) the United States signed with an Arab country (and the fourth FTA overall behind Israel, Canada, and Mexico). Products have to be composed of a minimum of 35% Jordanian content to be eligible for trade benefits.

Furthermore, the Qualifying Industrial Zones (QIZs) established in 1996 under President Bill Clinton allowed products manufactured in Israel, Jordan, Egypt, or the West Bank and Gaza to enter the United States duty-free. Exports need at least 35% of their value added to come from Israel, Jordan (i.e., in the QIZ) and the West Bank or Gaza to qualify as a QIZ beneficiary. Jordanian exports also needed at least 8% of their value added to come from Israel.

The U.S. House of Representatives ratified the FTA on 31 July 2001 and the U.S. Senate ratified it on 7 December 2001; both were by voice vote, an indication of its widespread support. Former President George W. Bush signed the United States–Jordan Free Trade Area Implementation Act into law on 28 September 2001. It was implemented by both countries on 17 December 2001.

Unlike many trade agreements, the U.S.–Jordan Free Trade Agreement enjoyed widespread, bipartisan, and multisectoral support. Proponents pointed to the reduction of customs duties and other trade barriers as a boon for exports.

More importantly, the U.S. government looked to the political gains to make the FTA worthwhile; economic gains for U.S. businesses, if any, were expected to be small. Ideally the "economic linkages" generated by the FTA would "normalize strained relationships and offer institutional mechanisms to resolve and prevent political disputes". This, in turn, would act as the "turning point in which hope begins to replace the despair on which violent extremists breed", as Assistant Secretary for the Bureau of Near Eastern Affairs William Burns put it. The assumption was that in the course of jointly controlling and valuating rules of origin, Jordanian and Israeli customs officers would engage in interpersonal interactions resulting in understanding if not friendship. In other words, the U.S. government has adopted a neoliberal worldview that believes stronger economic relations will bring about peace and stability in the Middle East.

...
Wikipedia