Jordan, United States Sign Reciprocal Trade Agreement to Strengthen Bilateral Economic Ties

Washington | EcoPulse24

Jordan and the United States have signed a new Reciprocal Trade Agreement aimed at strengthening bilateral economic relations, expanding trade cooperation, and updating key aspects of the commercial framework between the two countries.

The agreement was signed in Washington by Jordan's Minister of Industry, Trade and Supply, Yarub Qudah, and United States Trade Representative Jamieson Greer, following nearly a year of bilateral consultations, according to Jordan's official news agency Petra.

The agreement builds upon the Jordan – United States Free Trade Agreement, which was signed in 2001 and entered into force on December 17, 2001.

United States Caps Reciprocal Tariffs at 10%

Under the agreement, the United States committed to capping reciprocal tariffs on Jordanian imports at 10%.

The measure provides Jordanian exporters with greater certainty regarding access to the U.S. market while establishing a defined ceiling for reciprocal tariff treatment.

Enhanced Access for Jordan's Garment Sector

The agreement grants Jordan's garments and apparel sector enhanced preferential access to the U.S. market.

The textile and apparel industry remains one of Jordan's largest export sectors and has been a principal beneficiary of the bilateral free trade relationship.

Jordan Maintains Duty-Free Access for U.S. Exports

Jordan will continue to provide full customs duty exemptions for U.S. exports under the framework of the 2001 Free Trade Agreement.

The agreement also provides for facilitated access to the Jordanian market for U.S. agricultural products and motor vehicles, further supporting bilateral trade.

Digital Trade, Intellectual Property and Customs Modernization

The agreement includes commitments covering several modern trade policy areas.

Jordan agreed to:

• Refrain from imposing taxes on digital services.

• Support the continuation of the WTO moratorium on customs duties for electronic transmissions.

• Strengthen intellectual property rights protection.

• Support enforcement of labor rights.

• Support enforcement of environmental laws.

• Modernize customs procedures to facilitate trade.

These provisions expand cooperation beyond traditional merchandise trade into regulatory and digital commerce issues.

Future Negotiations on Services and Investment

The two governments agreed to continue discussions on services and investment, indicating that negotiations will continue beyond the current agreement to deepen bilateral economic cooperation.

Jordanian Exports to the United States

According to official figures, Jordanian exports to the United States reached JOD 595 million during the first four months of 2026, underscoring the importance of the U.S. market for Jordanian manufacturers and exporters.

The United States remains one of Jordan's largest export destinations, particularly for manufactured goods, garments, and pharmaceutical products.

Recent Commercial Transactions Supporting Bilateral Relations

Jordan also highlighted several recent commercial and investment transactions that reinforce economic ties between the two countries, including:

• Royal Jordanian's purchase of six Boeing 787-9 aircraft valued at approximately US$1.4 billion.

• Hikma Pharmaceuticals' plan to invest US$1 billion in the United States by 2030.

• Jordanian companies' intention to purchase more than US$300 million annually in U.S. raw materials.

Officials said these transactions further demonstrate the depth of the economic relationship between Jordan and the United States.

Background

Jordan became the first Arab country to sign a Free Trade Agreement with the United States when the agreement was concluded in 2001 and entered into force on December 17, 2001.

The new Reciprocal Trade Agreement updates elements of the bilateral trade framework while preserving the foundations established under the original Free Trade Agreement.

EcoPulse24 Analysis

The agreement represents an important update to the U.S. – Jordan trade relationship rather than a replacement of the 2001 Free Trade Agreement. By establishing a 10% ceiling on reciprocal tariffs while preserving Jordan's duty-free treatment for U.S. exports, the accord provides greater predictability for bilateral trade. Its inclusion of digital trade, intellectual property, labor, environmental, and customs provisions also reflects the broader evolution of modern trade agreements beyond tariffs alone. For Jordan, enhanced market access for the apparel sector and continued discussions on services and investment could further strengthen its export-oriented industries and long-term economic partnership with the United States.

Key Facts