Qualifying Industrial Zones in Jordan and Egypt

Qualifying Industrial Zones in Jordan and Egypt
Author:
Publisher:
Total Pages: 0
Release: 2006
Genre:
ISBN:

In 1996, Congress authorized the creation of Qualifying Industrial Zones (QIZs), thereby entitling goods jointly produced by Israel and either Jordan or Egypt to enter the United States duty free. The QIZ creation vehicle was an amendment to the United States-Israel Free Trade Area Implementation Act of 1985 (P.L. 99-47), and its purpose was to promote peace and development between Israel and her Arab neighbors. Although Israeli-Palestinian violence has continued, some observers have praised QIZs for helping to spark Jordan's economic growth. Others note that QIZs, while promoting U.S.-Jordanian trade, have had modest impact on promoting job growth in Jordan. In 2005, Egypt began participating in the QIZ program. This report provides an overview of QIZs in the context of promoting regional development and peace. It will be updated periodically to reflect recent developments. For more information on Jordan, see CRS Issue Brief IB93085, Jordan: U.S. Relations and Bilateral Issues, by Alfred Prados. For more information on Egypt, see CRS Report RL33003, Egypt: Background and U.S. Relations, by Jeremy M. Sharp.

U.S.-Jordan Free Trade Agreement

U.S.-Jordan Free Trade Agreement
Author:
Publisher:
Total Pages: 0
Release: 2001
Genre:
ISBN:

On June 6, 2000, President Bill Clinton and King `Abdullah II announced that the United States and Jordan would begin negotiations for a bilateral free trade agreement (FTA). The two sides signed the FTA on October 24, 2000, and President Clinton submitted the FTA to the 107th Congress on January 6, 2001. Bills to implement the FTA were introduced in the Senate (S. 643) on March 28, 2001, and in the House (H.R. 1484) on April 4, 2001. H.R. 2603 (Thomas) and S. 643 (Baucus) were reported out of the House Ways and Means and Senate Finance Committees on July 26. H.R. 2603 was passed in the House, by a voice vote, on July 31, and in the Senate by a voice vote on September 24. It became law as P.L. 107-43 on September 28, 2001. In the past, Congress has shown an interest in developing free trade relations between the United States and select Middle East countries. In 1985, Congress approved the U.S.-Israel FTA and amended it in 1996 to include the West Bank and Gaza Strip as well as qualifying industrial zones (QIZs) between Israel and Jordan, and Israel and Egypt. Since 1994, when Jordan and Israel signed a peace treaty, Congress and the Clinton Administration also undertook several initiatives designed to assist the Jordanian economy. These initiatives included increased levels of foreign assistance, debt forgiveness, and the QIZ program. In addition to covering traditional reductions in barriers to trade in goods and services, the FTA also deals with other issues that became part of the U.S. trade policy agenda during the Clinton Administration such as intellectual property rights (IPRs), e-commerce, and labor and environmental standards. The inclusion of labor and environmental standards within the text of the FTA has provoked disagreement between those with differing visions of what should be included in future U.S. FTAs. The volume of bilateral trade between the United States and Jordan throughout the 1990s was consistently modest. Many top Jordanian exports to the United States already enter the United States duty-free through various programs, and cereals - the top U.S. export to Jordan - already face low or zero-level tariff rates. Therefore, a free trade agreement is unlikely to have an immediate and dramatic impact on the volume of bilateral trade. However, Jordanian exports of textiles and apparel to the United States, as well as U.S. exports to Jordan of various commodities that face moderately high Jordanian tariffs, could expand under an FTA. In addition to a modest increase in the bilateral trade of goods, a U.S.-Jordan FTA could have several economic and political implications. These include the possibility of increased levels of trade in services, greater foreign direct investment (FDI) to Jordan both from U.S. and foreign-based companies, and reinforced momentum for further economic reform in Jordan. If approved by Congress and the Jordanian parliament, the U.S.-Jordan FTA will also mark the first U.S. free trade agreement with an independent Arab country, thereby reflecting the strength of U.S.Jordanian bilateral relations and the importance that the United States attaches to these relations.

The Fiscal and Economic Impact of Qualifying Industrial Zones

The Fiscal and Economic Impact of Qualifying Industrial Zones
Author: Metri F. Mdanat
Publisher:
Total Pages: 0
Release: 2013
Genre:
ISBN:

This dissertation discusses the fiscal and economic effects of Qualifying Industrial Zones (QIZs) on the Jordanian economy. Unlike other studies this analysis estimates the costs and benefits following the introduction of QIZs in Jordania. In order to clarify the overall effect of QIZs on the host country, fiscal as well as economic problems are investigated. The introduction of QIZs effected employment and poverty development most. QIZs turned out to be ineffective at connecting with local economy. Tax incentives were one of the most important effects of QIZs on local economy. However, these influence hardly any investors and are therefore a waste of resources. On the other hand other factors such as economic and political stability, the export quota rate as well as the opportunity to export customs-free to the US-market play a much more important role. Another achievement of this study constitutes the deviation of political options. The proposed alterations as a whole are going to provide for a beneficial investment climate in Jordania.

Jordan and the United States

Jordan and the United States
Author: Imad El-Anis
Publisher: Bloomsbury Publishing
Total Pages: 339
Release: 2010-11-30
Genre: Political Science
ISBN: 0857719076

Relations between the United States and the Middle East are going through a period of significant change in which the use of force in pursuit of national interests has proved to be increasingly counter-productive. A new policy direction has been adopted which seeks to promote economic integration, development and cooperation. The recent proliferation of US-Middle East free trade agreements is a corner-stone of this new foreign policy approach. Imad El-Anis here offers an analysis of how free trade and economic integration can impact US-Middle East relations by using the Jordan-US relationship as an example. This book is essential reading for those wishing to understand the new direction of US foreign economic policy towards the Middle East and the accompanying reforms taking shape in the Arab world.

The US-Jordan Free Trade Agreement

The US-Jordan Free Trade Agreement
Author: Khaled Khwaileh
Publisher:
Total Pages: 113
Release: 2017
Genre: Jordan
ISBN:

This thesis analyses the effects of the US-Jordan FTA to identify economic changes in Jordan's economy. It examines the economic rationales of the parties for free trade, the economic effects of the FTA on Jordan and the extra-economic considerations that led the parties to sign the FTA.