We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Jordan-USA free trade agreement - Essay Example

Comments (0) Cite this document
Jordan-USA Free Trade Agreement Jude Bataneh 260402086 Econ 314 According to Hassanien (2010) reported that on the 24th of October 2000 the USA-Jordan Free Trade Agreement (FTA) was signed making it the first FTA to be signed between the Unites States of America and an Arab nation…
Download full paper
Jordan-USA free trade agreement
Read TextPreview

Extract of sample
"Jordan-USA free trade agreement"

Download file to see previous pages Moreover, its location amongst other developing nations further restricts its potential for growth (Chomo, 2006). These factors increase the need to sign trade agreements with more developed countries. Trade agreements may involve two countries reducing tariffs on each other’s goods or reducing bureaucracy by simplifying the procedures on import and exports (Miller, 2004). Relatively speaking, Jordan is small for a country that has undergone considerable processes aiming towards opening up the economy. This makes a good example of developing nations that have employed successful economic strategies. An example of a major process undergone by Jordan would be significantly lowering its trade barriers to entry by signing the Free trade Agreements (FTAs) with countries such the United States and the European Union (EU). This was also accomplished by its concurrence to the World Trade Organization (WTO) (Busse & Groning, 2012). Ultimately, the trade barriers are expected to result in an increase in trade flow as both production and consumption improve in efficiency. The benefits of signing the FTA with the U.S. does not stop at increasing trade flow, but it also attracts investment in the export sectors by improving domestic competition and productivity which could only result in substantial economic development. By a developing nation signing a trade agreement with an economy that is industrialized, it gains improved access to markets for those products that match the developing nation’s relative factor-abundance compared with the industrialized trading partner (Maria,2000). Supposedly, a small developing country should not loose its industrial base by signing a FTA with a nation that is industrialized. Both the U.S.-Jordan FTA and the North American Free Trade Agreement (NAFTA) gave concessions to developing country members like Mexico and Jordan. Chomo (2006) found out that it caused the developing nations to become reliant on the custom duties as the major source of tax revenue. The U.S.-Jordan FTA addressed the aforementioned issue by allowing special concession on the Jordanian tariffs on automobiles. Indeed, Jordan’s imports and exports have considerably increased since the commencement of the liberalization process. The expansion of the imported goods has been larger in as compared to the rise in exports leading to substantial increase in its trade deficits. According to Busse and Groning (2012) are of the opinion that whilst in 2007 Jordan has small deficits in its account of US $68 million, it had a surplus of US $ 2,779 in its current transfers and US $835 million in its income account. In 2007, the nation faced a deficit of US $2,776 in its current account. Irrespective of the growing importance of services, almost all of Jordan’s accession to the U.S.-Jordan FTA has majorly focused on trade liberalization in goods only. Jordan adopted the Investment Promotion Law in 1995 which offered non-discriminatory treatment to the foreign investors (Chomo, 2006). Additionally, certain locations such as the Aqaba Special Economic Zones were designated for investment. In 1997, it revived the 1981 Agreement for Facilitation and Promotion of Trade which was signed by the members of the Arab league which Jordan is member (Malkawi, 2008). When the agreement went into full force in 1998, it foresaw a yearly reduction in tariffs of 10 % thereafter in 2008 reducing the tariffs to zero. Moreover, this agreement allowed for Jordan to cooperate with the neighboring on both ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Jordan-USA free trade agreement Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1404231-economic-development
(Jordan-USA Free Trade Agreement Essay Example | Topics and Well Written Essays - 2500 Words)
“Jordan-USA Free Trade Agreement Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/macro-microeconomics/1404231-economic-development.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Regional Integration: Canada, North-American Free Trade Agreement
The purpose for countries entering into this agreement can be political, economic, or social, etc. The association of states is based on their geographical location. There are many effects for members of these organizations. Some encounter advantages, while others take their chances, and end up having negative consequences.
3 Pages(750 words)Essay
North American Free Trade Agreement (NAFTA)
Under t NAFTA, various non-tariff barriers to agricultural trade were eliminated between the United States and Mexico. Besides, various tariffs were eliminated immediately, with others being phased out within the period of 5 to 15 years. This paved way for an orderly adjustment to free trade with Mexico following the inception of NAFTA in the beginning of January 1, 2008.
8 Pages(2000 words)Essay
Free Trade Agreement
Rules of origin are implemented within a free trade area to prevent re exportation to other countries. A free trade area is formed by free trade agreements. It reduces trade barriers and ensures easy exchange of goods. It is believed that a free trade area increases income and wealth.
8 Pages(2000 words)Essay
North American Free Trade Agreement
("The Columbia Electronic Encyclopedia," n.d.) With these in mind, there are various reasons that justify my full support for the implementation of the NAFTA. First, it entails the removal of as many tariffs and duties as possible ("Investopedia," 2005).
2 Pages(500 words)Essay
Cessation of Multi-Fibre Agreement Impact on Free Trade
There are also arguments that the quantitative restrictions were the one single factor that has diffused the development of the industry in most of the developing countries in the recent past. The regulation of the quantitative restrictions was institutionalized through the entering of a Multi-Fibre Agreement (MFA) during the 1970s and the agreement continued to control the international trading in textile & clothing industry for almost 25 years.
8 Pages(2000 words)Essay
The North American Free Trade Agreement
This paper focuses on the benefits derived from and downside of the NAFTA for economic participants in the US. The positive effect of NAFTA can be illustrated citing the bilateral agricultural trade between the US and Mexico for select products. For instance, the US is able to substitute the production of corn and nut at the exchange ratio of .
2 Pages(500 words)Essay
Taking a Closer Look at Thailands Free Trade Agreement
The implications of FTAs are inevitably vital for Thailand, in terms of trade increase, GDP and welfare improvement, structural changes related to specific FTAs and sectoral impacts (Chirathivat & Mallikamas, 2004 p. 37). The new dimension of policy framework via the FTA compels Thailand to delve into this matter deeply, as much as economic opportunities are in store for the country's interest of being 'globally competitive".
4 Pages(1000 words)Essay
Free Trade Agreement (FTAs) in China
Currently, China is analyzing, negotiating, or applying Free Trade Agreements or FTA with over 20 nations and regions. This significant progress in China’s
14 Pages(3500 words)Essay
Free Trade Agreement
I am particular concerned with the potential implications of the FTA for the automobile and other manufacturing industries. I am aware FTA is a bilateral agreement that reduces the tariffs for the purpose of promoting trade between two countries, however,
1 Pages(250 words)Essay
Should the United States pursue free-trade agreement
Despite the World Trade Organization and prospects of global trade liberalization, the United States should continue to negotiate free-trade agreements as the best approach to achieving its trade
3 Pages(750 words)Essay
Let us find you another Essay on topic Jordan-USA free trade agreement for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us