The head of the Jordanian Businessmen Association, Hamdi al-Tabaa, confirmed that the Jordanian-British partnership agreement, which entered into force, would allow the two countries to improve and develop their trade and investment relations and establish bilateral projects for export.
Al-Tabaa said in a press statement today, Tuesday, that Jordan has strong relations with Britain from the commercial and economic side, but the UK’s exit from the European Union had a negative impact on the Jordanian importer through the high import costs.
He pointed out that goods that were previously exempt from customs duties in the framework of the Jordanian-European Partnership Agreement have become more expensive and more expensive, as a result of the re-imposition of customs duties on them and the importers incurred additional losses that did not exist previously.
He pointed out that the basis for trade exchange between Jordan and Britain was previously through Jordan’s agreement with the European Union, which raised many questions about the extent of this impact on the volume of trade exchange and investment relations between the two countries.
Al-Tabaa pointed out that finding an alternative agreement between Jordan and Britain is an appropriate decision, especially in light of the economic repercussions of the Coronavirus pandemic and its negative effects on international trade.
He explained that the trend towards increasing trade openness to the countries of the world through the establishment of new trade agreements will contribute positively to revitalizing the economy and achieving the required prosperity and motivating investors to invest in economic sectors of common interest and increase the access and access of Jordanian products to global markets.
Al-Tabbaa emphasized that the basis for the success of the agreement is its achievement of mutual benefits for both parties, represented by lower costs compared to what it used to be, and the provision of the appropriate legislative and legal framework to preserve this agreement and for its positive effects to be reflected on the trade balance.
And he indicated that the New Partnership Agreement grants preferential treatment by exempting from customs duties for goods exchanged between the two countries in a manner equivalent to the treatment in force in the framework of the Jordanian-European Partnership Agreement, this will allow for compensation for the additional losses and costs that accompanied Britain’s exit from the European Union.
Tabaa pointed out that the volume of trade and investment exchange between the two countries is less than ambitions and does not reflect the real capabilities they have, indicating that Jordanian exports to Britain during the past year amounted to 17 million dinars compared to 154 million dinars of imports.
The Association President indicated that British investments in the Amman Stock Exchange during the past year ranked third in terms of foreign investors, with a value of about 803 million dinars.
He explained that the agreement is of great importance to the private sector, especially industrial activities, and provides the right to export to the British market, as well as strengthening investment ties, and supporting the royal aspirations for reform and long-term sustainable growth.
He stressed that the association has made many efforts to enhance investment and economic relations between the two countries and to attract joint investments by promoting investment to Jordan and introducing the most important investment opportunities in various international forums through joint business councils and receiving commercial delegations.
Al-Tabaa pointed out that the association links it with the Middle East Trade Committee (COMET) with a Jordanian-British Business Council agreement signed in 1995.