A large delegation of Turkish businessmen is accompanying Gül on his visit to Jordan. During this visit, the two countries are expected to cooperate on abolishing visa requirements and boosting bilateral trade. The Foreign Economic Relations Board (DEİK) is holding a Turkish-Jordanian Business Forum today with the cooperation of the Turkish Union of Chambers and Commodities Exchanges (TOBB) and the Jordanian Businessmen’s Association. During this forum, the Jordan Investment Board will make a presentation on the investment environment and business opportunities in Jordan. Aqaba Special Economic Zone Commission Vice President Dr. Bilal al-Bashir, Jordanian Businessmen’s Association and Jordanian-Turkish Business Council Chairman Hamdi Tabbaa, DEİK Turkish-Jordanian Business Council Chairman Şerif Egeli, Jordan Investment Board CEO Dr. Maen Nsour, TOBB and DEİK President Rifat Hisarcıklıoğlu, Jordanian Prime Minister Nader Al-Dahabi and President Gül will deliver speeches. On Dec. 2, Gül will visit the Al Hassan Qualified Industrial Zone, attend a groundbreaking ceremony for the Disi project, with GAMA Enerji, and appear at a reception with Turkish businessmen and the Turkish community in Jordan. On Dec. 3, he will travel to Aqaba to visit the Aqaba Special Economic Zone.
Jordan became a member of the World Trade Organization (WTO) in December 2000 and has recently become a magnet for foreign investors thanks to its economic reforms to integrate the country’s economy with the external world. Following the US military intervention in Iraq, Jordan’s position has increased in importance for Iraq and nearby countries. Due to the increased number of Iraqis settling in Jordan, demand in the real estate and construction sectors has skyrocketed. A majority of investments in Iraq and relations with Iraq are channeled via Jordan. Many US companies operating in Iraq have chosen Jordan as their bases, and this has positively contributed to the economy of Jordan.
The port of Aqaba has become a hub for products coming from the US and the EU to Iraq. In 2001, Aqaba was designated a special investment zone. Aqaba offers customs tax exemption, lower taxation and other privileges to investors. In December 2001, Jordan signed a Free Trade Agreement (FTA) with the US. Under this agreement, customs duty on many products, particularly textiles and foodstuffs, will be gradually abolished or reduced by 2011. Of the products Jordan exports to the US, 96 percent are duty free. In addition to this agreement, Jordan has also inked a partnership agreement with the EU and an FTA with Singapore. Jordan is also a member of the Greater Arab Free Trade Area (GAFTA), which came into force on Jan. 1, 2005. However, since the country has limited resources and is an oil importer and the US, its major exports market, has not overcome the economic crisis, the country’s economy can be considered fragile.
Turkish negotiations on an FTA with Jordan have been launched to ensure compliance with the Common Trade Policies of the EU within the scope of the customs union between Turkey and the EU. An agreement is expected to be signed during Gül’s visit. Recently, Jordan has implemented many infrastructure projects funded by international financial institutions. In parallel to this development, Turkish construction companies have started to show greater interest in Jordan. Turkish companies undertook 30 projects amounting to $2.2 billion in Jordan between 1983 and 2008. In 2008, Turkey’s exports to Jordan rose from $389.2 million to $460.8 million, an 18 percent increase. The volume of trade between the two countries was $486 million in 2008. Rapid progress in improving relations between Turkey and Jordan can be expected in the aftermath of the rapprochement between Turkey and Syria. Thus, the volume of trade between the two countries can be expected to eventually reach $1 billion, followed by a political and cultural convergence similar to those with Iraq and Syria.
