The Canada-Jordan Free Trade Agreement
Creating valuable opportunities for Canadian businesses like yours
The Canada-Jordan Free Trade Agreement gives Canadian companies preferred access in one of the Middle East’s most moderate and stable economies. It is Canada’s first free trade agreement with an Arab country and offers promising opportunities for Canadian businesses to expand throughout the Arabian Peninsula, with Jordan as the gateway.
The agreement eliminates tariffs on Canadian exports of forestry, agricultural and agri-food products, and machinery.
Learn more about the free trade agreement with Jordan and discover your next market today.
Canada-Jordan Trade Relations
Jordan is a growing market for Canada, with merchandise exports of $70 million in 2011, a 6.2-percent rise over 2010 and more than double the $31 million in 2003. Following the agreement’s entry into force on October 1, 2012, Canadian exports are expected to grow even faster thanks to improved market access for both agricultural and industrial goods.
Opportunities for Canadian Companies in Agriculture and Agri-food
The agreement eliminates or reduces tariffs (which previously ranged up to 40 percent) on Canadian exports of nearly all agricultural and agri-food products. Particularly valuable opportunities exist for Canadian exporters of:
- frozen french fries
- pulses (lentils, chickpeas, beans and peas)
- beef products
- animal feed
- prepared foods
Opportunities for Canadian Companies in Forest Products
The agreement eliminates tariffs (which previously ranged up to 30 percent) on Canadian exports of most forest products. Opportunities are particularly apparent for exporters of doors, frames, roofing shingles and other building materials.
Opportunities for Canadian Companies in Mechanical and Electrical Machinery
The agreement eliminates all tariffs (which previously ranged up to 30 percent) on Canadian exports of mechanical and electrical machinery. Particularly valuable opportunities exist for Canadian exporters of equipment for heavy construction, mining, communications, and filtration and purification, as well as components such as taps and valves.
Canada’s investment-related interests in Jordan are covered in a separate foreign investment promotion and protection agreement (FIPA), which was signed at the same time as the free trade agreement. The FIPA, implemented in December 2009, provides investors with greater predictability, transparency and protection for their investments. It also entitles investors to effective, binding and impartial dispute settlement.
Particularly valuable investment opportunities exist for Canadian investors in the following sectors:
- nuclear energy
- information and communications technologies
- infrastructure (roads, sea ports, airports, urban mass transit)
“There used to be a 20 to 25 percent tax on our product in Jordan,” says Alena Poremsky, International Sales Manager for Evans Consoles for Europe, the Middle East and Africa. “The elimination of tariffs will be a huge benefit for Evans Consoles.” Read the full success story.
For more information about new business opportunities or how the free trade and investment agreements can help your company in Jordan, check out market facts and reports for Jordan on the Trade Commissioner Service website or contact a trade commissioner.
- Background on the Canada-Jordan Free Trade Agreement
- Canada-Jordan Free Trade Agreement—Full text
- Canada-Jordan relations
If you have questions or comments about these free trade and investment agreements, please contact Foreign Affairs, Trade and Development Canada at:
Trade Policy and Negotiations Division I (TPE)
Foreign Affairs, Trade and Development Canada
Lester B. Pearson Building
125 Sussex Drive, Ottawa ON K1A 0G2
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