AMMAN : The Jordan Labour Watch (JLW) on Sunday issued a statement calling for a review of the 2016 EU relaxed rules of origin for Jordanian exports to Europe, stressing that “the current terms of the agreement lack justice and fail to achieve the expected benefits for both Jordanian enterprises and their workers.” In July 2016, the EU and Jordan signed a 10-year deal under which manufacturers in Jordan can import up to 70 per cent of the raw materials used in production and still label the finished products as “Made in Jordan”. Two years have passed since the agreement entered into force, and yet, the benefits that Jordan has obtained from it are very modest,” the statement said.
Previous reports by the EU confirm that Jordanian factories have not benefited much from the deal, stressing that “only two enterprises across the Kingdom have been able to export within the framework of the agreement until now.” An official at the Ministry of Planning and International Cooperation told The Jordan Times that “to date, 11 Jordanian factories have met all the requirements under this joint decision and were granted an authorisation number allowing them to export to the EU,” adding that “from this group, three factories have been successful in exporting under this scheme to four EU countries with a total value of 1.9 million euro, and additional exports are expected in the coming few months”.
Economist Maher Mahrouq told The Jordan Times that “the EU relaxed rules of origin are neither fair nor useful,” adding that “they need to be revised as soon as possible in order to expand the sectors to which they are applied, as well as the period of the agreement itself”.
“It is not feasible for companies to restructure their whole business to start exporting to Europe for a period of 10 years or less,” he added, calling for an extension of the deal period. There are a number of challenges preventing Jordanian companies from benefiting from the simplified rules of origin scheme,” a ministry official said, explaining that “these include the difficulties Jordanian manufacturers face in collecting the necessary market intelligence of the European export market and value chain, the lack of the required EU quality certifications, the limited matchmaking opportunities with European buyers, and the difficulty of finding qualified Syrian workers in order to meet the employment requirements”.
“The agreement is a unique opportunity provided by the EU as an integral component of the support for Jordan in light of the Syrian refugee crisis,” the EU delegation said in a statement to The Jordan Times, noting that “it is complementary to development efforts to improve the investment climate, create vocational education opportunities for Jordanians and Syrians in sectors that add value to the Jordanian economy, support private sector development and generate additional production capacity.”
“On the employment of Syrians, we are very appreciative of the work conducted by the Ministry of Labour to facilitate the provision of free work permits to Syrians,” the statement continued, noting that “we continue to work closely with the authorities to uphold transparency, awareness, and regulatory stability with regards to the rules that apply to Syrians, Jordanians, and migrant workers on the labour market.”
