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Canada-Jordan Free Trade Agreement

On November 17, 2009, the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food, on behalf of the Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, tabled legislation to implement the Canada-Jordan free trade agreement (FTA) and related agreements on labour cooperation and the environment (See News Release and Backgrounder - November 17, 2009).

It is anticipated that the FTA and related Agreements on the Environment and Labour Cooperation could be brought into force in early 2010.

Minister Day signed the three new Agreements and a Foreign Investment Protection and Promotion Agreement (FIPA) at a ceremony with his counterpart, Jordan’s Minister of Trade Amer Hadidi on June 28, 2009 (See News Release - June 28, 2009).

Once implemented, the FTA will expand Canada-Jordan trade and help further strengthen our bilateral relationship. An FTA with Jordan also demonstrates the importance that Canada places on further developing relations with Jordan, especially given its role as a moderate Arab state that promotes peace and security in the Middle East

Benefits for Canadians

The immediate elimination of tariffs on the vast majority of current Canadian exports to Jordan will benefit Canadian exporters. Key Canadian sectors that will benefit from immediate duty-free access include forest products, manufacturing and agriculture and agri-food. These are sectors where Canadian companies are global leaders.

The Canada-Jordan FTA will similarly contribute to Jordan’s economic development by creating new market opportunities for exports of Jordanian goods.

Once implemented, the FTA with Jordan will stimulate the growth of our commercial relationship and help level the playing field for Canadian business vis-à-vis competitors who have or are seeking preferential market access in Jordan.

Fact Sheets

Background

On September 15, 2009 the Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway tabled in the House of Commons the texts of the Canada-Jordan Free Trade Agreement (FTA) and related Agreements on Labour Cooperation and the Environment for 21 sitting days for review under the Treaties in Parliament policy (News Release and Backgrounder - September 15, 2009). A Foreign Investment Promotion and Protection Agreement (FIPA) signed between Canada and Jordan was also tabled in Parliament at the same time (Canada-Jordan FIPA).

Canada and Jordan concluded FTA negotiations, as well as negotiations for an Agreement on the Environment and a Labour Cooperation Agreement on August 26, 2008 (News Release and Backgrounder).

Canada and Jordan already enjoy good economic and trade relations. In addition to the the above agreements, Canada has a bilateral Air Services Agreement and a Nuclear Cooperation Agreement, as well as the FIPA, which was signed at the same time as the FTA.

Canadian merchandise exports to Jordan nearly doubled between 2000 and 2004, increasing to $42 million. These exports then jumped to $123 million in 2005 (due mainly to the sale of jet aircraft) before settling back to $56 million in 2006, followed by 60.4 in 2007 and $77 million in 2008. Top exports include paper and paperboard, copper products, pulse crops, machinery and woodpulp. Imports from Jordan totalled $15 million in 2008, led by apparel, fertilizer and agricultural products.

Under Canada’s Global Commerce Strategy, the government is working to advance Canada’s trade interests by opening up new opportunities for Canadian exporters, investors and innovators. The strategy includes an aggressive trade negotiation agenda, aimed at securing competitive terms of access in markets that offer significant potential for our products and expertise. An FTA with Jordan was undertaken as part of the Government’s broader strategy to strengthen the competitiveness of Canadian companies in global markets.

Contact point

If you have questions or comments about this initiative we would like to hear from you. Please contact Foreign Affairs and International Trade Canada at:

Regional Trade Policy Division (TBB)
Department of Foreign Affairs & International Trade
Lester B. Pearson Building
125 promenade Sussex Drive
Ottawa, Ontario, K1A 0G2
Fax: 613-944-3489

E-mail : consultations@international.gc.ca

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