The U.S. on July 21 announced the signing of an agreement on reciprocal trade with Jordan. The Trump administration has signed similar agreements with Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, Guatemala, Indonesia, Malaysia, and Taiwan.
Tariffs. Jordan will continue to provide duty-free market access for almost all U.S. goods, as provided in the U.S.-Jordan Free Trade Agreement. The U.S. will apply Jordan FTA duty rates to goods that qualify as originating from Jordan, or the most-favored-nation duty rate in effect, as applicable.
The U.S. will also provide preferential tariff treatment for originating goods of Jordan in future tariff actions except antidumping and countervailing duty, Section 232, or Section 201 proceedings. With regard to any future Section 301 tariff action related to forced labor import prohibitions, the U.S. “intends to take into account all information available related to the efforts Jordan has taken or is taking to implement relevant commitments under this Agreement in determining what, if any, action to take.”
Both countries will retain the ability to impose additional tariffs to remedy unfair trade practices, address import surges, protect their economic or national security, or achieve another objective consistent with their domestic law.
Other. Under the agreement Jordan has also made a number of other commitments, including the following.
- within five years, maintaining or implementing technology solutions that allow for full pre-arrival processing, paperless trade, and digitalized procedures for the movement of U.S. goods
- endeavoring to collect and process pre-arrival declaration data electronically for imports of U.S. express shipments and applying risk management systems prior to arrival to facilitate the release of low-risk shipments upon arrival without transfer to a customs bonded warehouse
- accepting electronic bills of lading
- adopting and effectively enforcing provisions to combat transshipment and other practices to evade or circumvent duties and other measures applied by the U.S.
- no quotas on imports from the U.S. except as otherwise agreed
- prohibiting the importation of goods mined, produced, or manufactured wholly or in part by forced or compulsory labor within five years and presumptively prohibiting imports of goods from countries identified by the U.S. under Section 307 of the Tariff Act of 1930
- when the U.S. imposes a customs duty, quota, prohibition, fee, charge, or other import restriction on a good or service of a third country to protect U.S. national or economic security, regulating the importation of that good or service through appropriate measures
- adopting and implementing measures to address unfair practices of companies operating in Jordan that are based in, or are indirectly owned or controlled by a company based in, a country that jeopardizes essential U.S. interests, that result in (1) the export of below-market price goods to the U.S., (2) increased exports of such goods to the U.S., (3) a reduction in U.S. exports to Jordan, or (4) a reduction in U.S. exports to third-country markets.
- aligning with all unilateral export controls in force by the U.S. and ensuring that Jordanian companies do not backfill or undermine these controls
- restricting transactions of Jordanian nationals with individuals and entities included on the Bureau of Industry and Security’s Entity List
- allowing and facilitating U.S. investment in Jordan to explore, mine, extract, refine, process, transport, distribute and export critical minerals and energy resources
- eliminating the special tax on newly-manufactured, unused U.S.-produced motor vehicles that meet the rules of origin established in the U.S.-Jordan FTA and are exported directly from the U.S.
- providing effective systems for civil, criminal, and border enforcement of intellectual property rights, and prioritizing and taking effective criminal and border enforcement actions against copyright and trademark infringements
- facilitating digital trade with the U.S., including by not imposing customs duties on electronic transmissions and refraining from digital services taxes or other measures that discriminate against U.S. digital services or products
- if necessary, establishing rules of origin to ensure the benefits of this agreement do not accrue substantially to third countries or third-country nationals
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