Israeli exports to Jordan in 2004 up 55%

Israeli-Jordanian Chamber of Commerce issued last week a report, prepared by economist Mr.Yitzhak Gal, indicating that Israeli exports to Jordan grew in 2004 by 55%. Total bilateral trade with Jordan grew from US$40 million in 1998-1999 to US$130 million in 2003 and US$185 million in 2004.
 
The report noted that much of the increase could be attributed to the QIZ, however, the increase in exports in 2004, over and above 25-35%, reflects exports which were unrelated to the QIZ, as well as indirect exports to Iraq and Gulf states. In its in - depth analysis of trends in the bilateral relations, the report noted three economic events, in early 2005, that were changing the business environment of the Jordanian textile and clothing industry, and of exports to the QIZ in Jordan.
 
The general cancellation of US textile import quotas, which eliminates one of the two main advantages of the QIZ.
 
The implementation of another stage in the US-Jordan free trade agreement, Israel’s signing of Egyptian QIZ agreement, in competition with the Jordanian QIZ agreement. Jordanian exports to the US, in 2004, rose by 58% to $1 billion, mostly clothing from the QIZ in Jordan.
 
The elimination of all US textile import quotas is bringing to an end the rapid growth of Jordanian clothing exports to the US. It is, however, predicted that Jordanian exports will remain at their present level or fall slightly during 2005, then afterwards exports will remain stable at US$1.15 billion per annum.
 
The short term decline in Israeli-Jordanian trade should be replaced by an upward trend due to further cuts in customs duties in the new bilateral trade agreement and a forthcoming agreement between Israel, Jordan, and the European Union, similar to the QIZ agreement which will be signed during the second half of 2005.