Jordan and the United States have amended their free trade agreement to grant American firms in vital sectors enhanced access to the kingdom’s extensive mineral resources.
Under the revised terms, Jordan will offer duty-free access for nearly all U.S. goods, encompassing agricultural products and motor vehicles, as outlined in a statement from the White House.
This agreement aims to promote U.S. investment in exploring, mining, processing, and exporting critical minerals and energy resources.
U.S. Support
The collaboration will be supported by the U.S. Export-Import Bank and the International Development Finance Corporation, which will finance initiatives in these sectors within Jordan.
The two nations plan to bolster economic and national security cooperation to enhance supply chain resilience, foster innovation, and work together on issues related to investment security, export controls, and duty evasion.
U.S.-Jordan Bilateral Trade Grows
Initially enacted on 17 December 2001, the U.S.-Jordan free trade agreement saw the elimination of duties on 1 January 2010.
In 2024, US exports to Jordan were estimated at $2B, marking a 31% increase from the previous year, according to the Office of the United States Trade Representative.
Jordan has made substantial commitments to the US economy, including a $1.4B investment from Royal Jordanian Airlines, $1B from Hikma Pharmaceuticals, and over $300M annually in raw material purchases by Jordanian firms.
Security Industrial Partnership
The U.S. maintains a military presence at the Muwaffaq Salti Air Base, located 100km east of Amman. Recent military actions by U.S. forces against Iranian targets have continued for the 11th consecutive night, highlighting the ongoing volatility in the area.
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