Examination of Potential Expansion with Current Trade Partners

Value in Exports: $US 2,261,519,000• 61:Articles of apparel and clothing accessories, knitted or

crocheted• 62:Articles of apparel and clothing accessories, not knitted

or crocheted

Total Export Value of 62 in 2007: $313,413,000

Total Export Value of 61 in 2007: $712,211,000

Free Trade Agreement in 2001 Textile Hub Qualified Industrial Zones Currently, Apparel accounts for 45%

of total exports from Jordan

The JUS FTA required elimination on tariffs on textiles from Jordan within 10 years of the signing in 2001.

Most tariffs were eliminated on all goods in the first year of the FTA; however textiles were on Schedule D.

Prediction by American Chamber of Commerce in Jordan on tariff implementation, http://www.jaba.org.jo/update/04.FTA__Fact_Sheet.pdf

HS: 61 FROM 2000 TO 2001 HS: 62 FROM 2000 TO 2001

Value Increase: $79,634,000

Value Increase: $31,169,000

HS: 61 FROM 2001 TO 2003 HS: 62 FROM 2001 TO 2003

Value Increase: $199,307,000

Value Increase: $97,342,000

HS 61: ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNITTED OR

CROCHETED

HS 62: ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED

OR CROCHETED

EUROPEAN COMMUNITIES JAPAN

2nd Largest Importer in the World of Harmonized Standard Commodity 61 and 62

In the Process of Eliminating Tariffs by 2014• HS 61 and 62 have 0%

tariffs as of 2002

3rd Largest Importer in the World of Harmonized Standard Commodity 61 and 62

Tariff Rate for WTO countries• 61: 10.9% • 62: 9.1% for ½ and

12.8% for other ½ = Average of 10.9%

HS 61: JORDANIAN IMPORTS HS 62: JORDANIAN IMPORTS

Multiple HS codes of Textiles and Apparel:• HS 61 and 62

PED of Apparel: (-)3.77 Qualified Industrial Zones and

Exports• All Textiles

Quantity and Price Demanded from 2007 are unchanged

Commodity 61 62

Quantity imported 806,000 79,000

Price Per unit $9.38 $14.01

Tariff 10.9% 10.9%

Tariff Elimination Price

9.38-(9.38*.109)= $8.36

14.01-(14.01*.109)=$12.48

Commodity 61 62

Percentage Change In Price (tariff)

-11.53% -11.53%

PED -3.77 -3.77

Percentage Change in Quantity

41.2% 41.2%

New Quantity Demanded 1,138,072 111,548

NEW IMPORTS OF 61 NEW IMPORTS OF 62

$9.38

$8.36

$14.01

$12.48

806,000 1,138,072

79,000 111,548

DD

Commodity 61 62New Revenue $9,514,282 $1,392,119Old Revenue $7,560,280 $1,106,790Increase in Revenue $1,954,002 $285,329

JAPANESE FREE TRADE AGREEMENTS

ASEAN (Economic Partnership Agreement)• Brunei• Indonesia• Malaysia• Philippines• Singapore• Thailand• Viet Nam

Australia Chile India Mexico Republic of Korea Switzerland

FREE TARIFF

S!

FREE TARIFF

S!

Convince Japan to Eliminate Tariffs on Apparel

Re-evaluate the Qualified Industrial Zones

Re-gain European Community Market for Apparel

Global Trade Atlas Navigator, “Jordanian Export Statistics,” http://www.gtis.com/gta/login.cfm

Ministry of Politics, Hashemite Kingdom of Jordan, “Jordan-EU Free Trade Agreement,” http://www.mop.gov.jo/pages.php?menu_id=228

European Communities Official Website, “Tariff Schedules for Chapter 61 and 62,” http://ec.europa.eu/taxation_customs/dds/tarhome_en.htm

Japanese Customs Official Website, “Tariff Schedules for Chapter 61 and 62,” http://www.customs.go.jp/english/tariff/2007_4/index.htm

Japanese Ministry of Foreign Affairs, “ Free Trade Agreements and Economic Partnership Agreements,” http://www.mofa.go.jp/policy/economy/fta/index.html

Al Khalidi, Sulieman, “Jordan Industrial Park Attracts Multi-Nationals,” Jordan Embassy http://www.jordanembassyus.org/050998006.htm

U.S. Congressional Budget Office,” Protecting the Textile and Apparel Industries,” Staff Working Paper, September, 1985. http://www.cbo.gov/ftpdocs/94xx/doc9425/85doc05b.pdf

American Chamber of Commerce in Jordan, “Tariff Elimination Schedule of US- Jordan Free Trade Agreement,” http://www.jaba.org.jo/update/04.FTA__Fact_Sheet.pdf