The agreement is Canada’s first with an Arab country. Forestry, manufacturing, and agricultural sectors are identified as being able to benefit the most. Jordan and Canada did approximately $92.2 billion of bilateral trade in 2008.
Canada- Jordan Free Trade Agreement Structure
The Free Trade Agreement (FTA) sees Jordanian goods will enter the Canadian market tariff and customs free as of when the agreement’s signed, expected to be later this year. Goods from the agricultural, manufacturing, and forestry sectors are to be granted immediate duty-free access. Products from other sectors will have their duties gradually reduced over the next four years.
Officials from both countries hail the agreement as a positive development. In comments published by the Canadian Press International Trade Minister Stockwell Day said the accord was about the potential to balance the American influence: “Again it’s a matter of potential. Obviously our trading relationship is not as large as it is with let’s say the United States. But there is trade that happens.”
Day’s Jordanian counterpart Industry and Trade Minister Amer Hadidi in remarks published by the Jordan Times said the agreement signified the strong relationship: “The signing is a testimony to excellent relations between the two countries. We finished negotiations on the agreement in record time.”
Parliaments in both countries are expected to ratify the Free Trade Agreement later this year.
CANDU Reactors Play A Role, Environment, Labour Agreements Signed
The troubled AECL (Atomic Energy Canada Limited) may have a role to play with its CANDU reactors. Recently the Harper government revealed plans to restructure the organization, and split the profitable reactor business from the Chalk River research facility.
Jordan gets most of its energy from imports, and many view the CANDU reactors as the ideal way of meeting the country’s energy needs. In remarks published by the Canadian Press, International Trade Minister Stockwell Day revealed he saw a vital role for Jordan in expanding the CANDU business: “That’s why Jordan is so very key, because of their expressed need for nuclear reactors.” The two countries have already signed a nuclear cooperation agreement.
The two countries also signed agreements on labour, and the environment. The labour agreement asks that both countries obey International Labour Organization regulations on ending child labour, workplace discrimination, and forced labour. It will also commit them to providing occupational health and safety standards, and compensation for occupational injuries and illness. The environmental agreement pledges both countries to pursuing higher environmental standards, and ensuring trade was unharmed by environmental laws.
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