The Jordan-European Union Free Trade Agreement: What it Means for Businesses and Consumers

The Jordan-European Union Free Trade Agreement (JEFTA) is a comprehensive trade agreement between Jordan and the European Union. The agreement was signed in July 2016 and came into force in September 2018. The JEFTA is designed to remove trade barriers and promote free trade between the two parties, making it easier for businesses to trade with each other and enhancing economic growth.

Benefits for Jordan

The JEFTA is expected to bring significant benefits to Jordan. The agreement is expected to boost the Jordanian economy by increasing exports to the EU, attracting more foreign direct investment, creating jobs, and promoting economic growth. Under the agreement, the EU will eliminate tariffs on 96.5% of Jordanian products within ten years, giving Jordanian exporters easier access to the EU market.

Benefits for the EU

The JEFTA is also expected to bring benefits to the EU. The agreement will open up new markets for EU companies, increase export opportunities, and support job creation. The agreement will also protect EU intellectual property rights in Jordan, which will encourage EU companies to invest and trade in the country.

Impact on Businesses

The JEFTA is expected to create significant opportunities for businesses in both Jordan and the EU. As tariffs are eliminated, businesses will be able to trade more freely, reducing costs and increasing competitiveness. The agreement will also provide businesses with greater legal certainty and predictability, reducing the risks associated with cross-border trade.

Impact on Consumers

The JEFTA is expected to benefit consumers by increasing competition, reducing prices, and improving product quality. The agreement will create new opportunities for businesses to offer innovative products and services, leading to greater consumer choice and better value for money.

Conclusion

The Jordan-European Union Free Trade Agreement is a significant trade agreement that will bring benefits to businesses and consumers in both Jordan and the EU. The agreement will remove trade barriers, increase export opportunities, and promote economic growth. As businesses take advantage of the opportunities presented by the agreement, consumers can look forward to greater choice, better quality, and lower prices. The agreement is a win-win for both parties and is expected to strengthen the economic ties between Jordan and the EU in the years ahead.