Jordan-EU trade agreement off to slow start

A new agreement between Jordan and the European Union designed to boost trade and increase jobs for both Jordanians and Syrian refugees needs to be properly explained to the public if it is to fully succeed, Jordanian officials say.

The EU in July agreed to relax the rules of origin requirements for imported products through 2026. This applies to Jordanian products manufactured in a number of industrial cities and zones and covers tariffs on 52 product groups.

The decision clears the way for a large number of Jordanian products to benefit from customs exemptions under the Euro-Jordanian partnership agreement, and has the potential to increase Jordanian exports to the European market.

The beneficiaries of the agreement include industrial companies in 18 industrial cities and zones and development zones employing Jordanian workers, in addition to a required 15% of the Syrian refugee population.

The agreement is important for supporting the Jordanian economy in light of the difficult regional circumstances, Jordanian officials told Al-Mashareq.

But it faces a challenge in that many Syrian refugees are reluctant to work in factories as they fear they will lose financial aid or that it will impact their refugee status and therefore their ability to emigrate, they said.

This has prevented all parties -- industrial companies, Syrian and Jordanian workers and the kingdom's economy as a whole -- from reaping the maximum benefit from the agreement, they said.

Reassurance for refugees

The key challenge to implementing the agreement is the apprehension many Syrian refugees have about accepting formal employment, said Fathallah al-Omrani, president of the General Trade Union of Workers in Textile, Garment and Clothing Industries.

Many believe they will lose the aid they receive from international organisations if they accept factory jobs, he told Al-Mashareq.

"Refugees receive in-kind and cash aid based on the number of family members, and they fear that if they are issued work permits and they work in factories they would lose the aid," he said.

To assuage these fears, international relief organisations must offer refugees reassurance that they will not lose this support, he said.

"Many Syrian refugees also are afraid of losing their refugee status, as many of them have applied for asylum in Western countries like Canada, and worry that if they obtain work permits they will lose their opportunity to emigrate," he said.

Greater efforts must be made to address these concerns and also to raise awareness about the benefits of the agreement to the industrial sector, he added.

So far, only six Jordanian companies have applied for and have been qualified to export under the agreement, Ministry of Industry and Trade spokesman Yanal Barmawi told Al-Mashareq.

"The government has extended the period of exemption of Syrian workers from paying any fee or cost related to the issuance of work permits for a period of three months, ending in April 2017," he said.

The ministry has held several workshops and seminars to introduce the benefits and importance of the agreement, he added.

Potential to create jobs

In October, Ministry of Industry and Trade secretary-general Yousef al-Shamali called on the industrial sector to take advantage of the decision to simplify the EU’s rules of origin to increase Jordanian exports and stimulate investment.

Jordan is one of the countries most affected by the Syrian crisis, he said during a workshop organised by the ministry, noting that the EU entered into this agreement in response to the difficulties the kingdom is facing in bearing the refugee burden.

The agreement is intended to support Jordanian industries exporting to Europe, economist Husam Ayesh told Al-Mashareq.

"The industrial sector must be stimulated and maximum benefit must be derived from the agreement, because increasing the number of exporting companies would create additional job opportunities for Jordanians and Syrians alike," he said.

Syrian refugee Mohammad Sattouf, a father of four who currently lives in Amman, said he applied for immigration to Canada a few months ago.

"I am a freelance electricity and water maintenance worker now," he told Al-Mashareq. "Of course, I prefer to have a job with a monthly salary, but my goal is to emigrate in search of the best opportunity."

"If I am given reassurances that I would not lose the aid [we receive] and am afforded health insurance and a rewarding salary, I would not mind working in factories for a temporary period of time," he added.