17 November 2018 01:19 PM

Economic Relations

Thursday، 02 November 2017 - 12:00 AM

Economic relations have witnessed great growth as the two countries inked several bilateral and regional trade agreements. Egypt and Jordan have signed an agreement on Free Trade in December 1998, which entered into force in the same date. The agreement stipulates gradual reduction of customs duties, taxes and other charges having equivalent effect for seven years to reach full cancellation in January 2005. In addition, the two countries have signed the Agreement on development of trade exchange between the Arab countries aiming at full exemption of custom duties in January 2005, as well as the Agreement on the free trade between the Arab Mediterranean countries (the Agadir Agreement), which was signed in February 2004 and entered into force in August 2006.

The total volume of trade exchange between Egypt and Jordan reached $ 587 million in 2016.

In terms of agricultural exchange, Jordan annually imports several Egyptian agricultural products and crops, mainly rice, potatoes, onions, guava and mango. Egypt imports from Jordan some agricultural products such as olive oil. Jordanian investments in Egypt for 2016 reached $586 million whereas The Egyptian investment there reached $310 million.

In 2017, the volume of Egyptian investments in Jordan reached one million dollars. The volume of direct Jordanian investments in Egypt reached two billion dollars in the fields of industry, services, financing, tourism, agriculture and information technology.

On 26/7/2017, the Egyptian-Jordanian ministerial committee started meetings in the Jordanian capital Amman under chairmanship of Investment and International Cooperation Minister Sahar Nasr and Jordanian Minister of Industry, Trade and Supply Yaroub Qudah. This comes within the framework of both countries' keenness on enhancing ties in various fields as the higher committee is considered an important forum for promoting dialogue and bolstering economic and investment relations at the government and private levels to achieve economic development as Nasr underlined. The committee decided to organize an annual exhibition for selling Egyptian products in Jordan and a Jordanian one in Egypt with a total cost of one million dollars for each. She further said that the committee reached many agreements that would contribute to creating a suitable atmosphere for joint investments, adding that the premiers of both countries will witness the inking of these agreements during the higher committee meeting.

On 9/8/2016, Minister of Trade and Industry Tarek Qabil said that the volume of trade relations between the two countries hit $ 237.8 million during the period from January to April 2016, with an increase of 51.5 per cent compared with the same period of the previous year. Egypt's exports to Jordan include medicine, ceramics, house appliances and fruits, with the trade balance surplus reaching $ 155,6 million, tilting in favor of Egypt. The number of Jordanian companies which have established investments in Egypt reached 1,527 with total investments valued at $ 519.27 million operating in the fields of industry, finance, construction, agriculture and communication and information technology. The total value of Egyptian investments in the Jordanian market hit $ 310 million, mostly focused on the foodstuff, construction materials, automobiles, banking and finance.

On 27/5/2015, Prime Minister Ibrahim Mahlab and his Jordanian counterpart Abdullah Ensour attended the signing of 10 cooperation protocols and executive programs, including memorandum of understanding in the field of irrigation and water resources, media and civil services.

Agreements

On 31/8/2016, Egypt and Jordan signed 13 agreements on joint cooperation in several domains.

The agreements cover cooperation in the fields of pharmaceuticals, culture, media, maritime transport, mining, manpower, insurance and social solidarity along with Islamic affairs together with vocational training.

Also, a joint cooperation program was signed between the Jordanian news agency Petra and the Egyptian news agency MENA as part of the agreements.

- The Executive program of the memorandum of understanding in the field of water resources for 2015-2017
-  The technical cooperation protocol in the field of electricity and renewable energy.

-         Mutual cooperation protocol in the field of investment.
-  Agreement on the protection and restoration of stolen cultural heritage and combating illicit trafficking.

Economic Agreements:

- A memorandum of understanding on the establishment and management of the industrial zones.
- A new agreement concerning labor and human resources.
-  A protocol of cooperation in the field of geology and mining.
- An executive program for cooperation between Azhar and ministry of Wakfs in Jordan.
-  An executive program in the field of vocational training for 2017-2018.
-  A memorandum of understanding in the field of public administration.

Egyptian Natural Gas Project in Jordan

The Natural Gas Project signed by Egypt, Syria and Lebanon on 2000, in which the Egyptian natural gas will be transferred along pipes to those countries, is the main beginning for Arab strategic projects, which will contribute to the joint Arab cooperation.

The Egyptian natural gas started to flow to Jordan in its first and experimental stage in 2003, where the gas extracted from the water fields in the Mediterranean Sea and Delta was transported from Arich to Taba through a 265 KM pipeline, then to Jordan via the Gulf of Aqaba via a maritime pipeline. It contributed in providing the Aqaba thermal station with gas, with the capacity of 650 megawatt.

In January 2006 the experimental operation of the second stage began from the city of Aqaba in the south to the Rehab region in the north of Jordan, at the Jordanian Syrian borders. This line is 395 KM long and 36 inches diameter. It includes a station for gas compression and a technically advanced automatic control system. Its capacity is 10 billion m3 annually and cost $300 million.

The second phase of the pipeline, which was implemented by a gathering of companies headed by the Egyptian PetroJet Company, is the largest contracting operation for an Egyptian company abroad. It is expected that the third stage of the Arab natural gas line from the Jordanian Syrian borderlines to Homs with 310 km would end by July 2007. Afterwards, the line will be completed till the Syrian Turkish borders after the signature of natural gas selling contracts between Egypt and Turkey and Egypt and some European countries.

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