Washington and Amman Finalise Reciprocal Trade Pact Amid Security Alignment
The Hashemite Kingdom of Jordan and the United States have signed a new reciprocal trade agreement, introducing binding commitments on forced labour prohibitions, intellectual property enforcement, and alignment with US national security export controls.
The United States and the Hashemite Kingdom of Jordan have formalised a new agreement on reciprocal trade, designed to deepen bilateral commercial relations by addressing persistent tariff and non-tariff barriers. The deal supplements the existing Agreement between the United States of America and the Hashemite Kingdom of Jordan on the Establishment of a Free Trade Area, signed in Washington on 24 October 2000.
Under the terms of the new arrangement, Jordan has committed to prohibiting the importation of goods produced by forced or compulsory labour within five years of the agreement’s entry into force. This obligation includes presumptive prohibitions on goods from entities identified under Section 307 of the US Tariff Act of 1930. As a member of the International Labour Organization, Jordan affirmed its obligations under relevant instruments to eliminate all forms of forced labour and protect internationally recognized labour rights.
The agreement mandates significant adjustments to Jordan’s regulatory framework regarding digital trade and intellectual property. Jordan must provide non-discriminatory treatment for US digital services and prohibit customs duties on electronic transmissions, supporting a permanent moratorium on such duties at the World Trade Organization. Additionally, the Hashemite Kingdom is required to establish effective civil, criminal, and border enforcement systems to combat intellectual property infringements, particularly in online environments.
Economic security and export controls form a core pillar of the pact. Jordan must align with US unilateral export controls and cooperate in regulating trade in national security-sensitive technologies, ensuring its companies do not undermine these measures. The parties agreed to cooperate on economic and national security matters, with provisions allowing the US to notify Jordan of import restrictions on third-country goods deemed relevant to US economic or national security.
Specific commercial concessions include the elimination of special taxes on newly manufactured, unused US-produced motor vehicles that meet the rules of origin established in the 2000 Free Trade Area. The agreement also prohibits Jordan from imposing digital services taxes that discriminate against US companies and requires the removal of unjustified sanitary and phytosanitary barriers.
Either party retains the right to terminate the agreement by providing six months’ written notice. The pact enters into force 60 days after both nations notify each other of the completion of their respective internal procedures, marking a structured evolution of the bilateral relationship grounded in shared values of democracy, economic freedom, and the rule of law.
