AMMAN: Jordan has suspended its free trade agreement (FTA) with Turkey on allegation that the deal harms the national industry by tipping the balance of trade in favour of Turkey’s products, the government announced today.
The government says the 2011 deal has lead to an increase in the imports of Turkish products and causes significant harm to Jordanian businesses, which are unable to compete with Turkish products that receive subsidies from the Turkish authorities. The surprising move comes less than a month after a recent visit by Turkish foreign minister and top officials to Jordan, where they discussed political and economic relations. The government alleges that the FTA with Turkey did not come to the results that it was hoped for, thus putting an end to the accord. But business men said the move will likely lead to an increase in prices of commodities imported from Turkey with local products sold at higher prices in the market. Jordan announced two years ago it was re-studying the FTA with many countries to see their benefit to the local economy.
