Israel and Jordan today signed an updated trade agreement for improving supervision on compliance with rules under the qualified industrial zones (QIZ) treaty. Under the new agreement, the parties will switch to a quarterly review, replacing the current method of supervising the Israeli inputs in good assembled in Jordan and exported duty-free to the US under the original 1997 QIZ treaty.
Under the QIZ treaty, goods assembled in Jordan must have at least 8% Israeli inputs to qualify for duty-free imports to the US. The 1997 treaty has proven its worth to both Israel and Jordan, boosting Israeli exports to Jordan as well as Jordanian exports to the US.
Israeli exports to Jordan totaled $110 million in January-October, 10% more than in the corresponding period of last year. Most exports are raw materials sent to factories in the Jordanian QIZs, which then export finished goods to the US.
The new agreement, signed by Minister of Industry, Trade and Labor Eli Yishai and Jordan Minister of Industry and Trade Salem Khazaaleh, will be sent to the government and Knesset and the Jordanian parliament for ratification. It is due to be come into effect in a few weeks.
Published by Globes [online], Israel business news - www.globes.co.il - on December 19, 2006
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