Relaxed rules of origin with EU

Jordan-EU Relaxed Rules of Origin:
Trade relations between the EU and Jordan are governed by the Association Agreement which entered into force in May 2002. This agreement established a Free Trade Area opening up two-way trade in goods between the EU and Jordan.
Under the Association Agreement, the EU and Jordan have established a Free Trade Area (FTA) under which they agreed:
– To liberalise two-way trade in goods, so that all trade in industrial products takes place free of any import duties while trade in agricultural, agro-food and fisheries products has been liberalised on a selective and progressive basis
–  rules and disciplines on non-tariff based trade measures such as quantitative restrictions and product standards
–  a general right to establish businesses and provide services in the other territory
–  to allow for current payments and capital movements
–  common rules on competition and intellectual property
Simplify Rules of Origin
The EU and Jordan have developed their FTA further through additional agreements on agricultural, agri-food and fisheries products, and on a bilateral Dispute Settlement Mechanism which entered into force in 2007 and 2011 respectively.
In July 2016, the EU and Jordan agreed to simplify the rules of origin that Jordanian exporters use in their trade with the EU. Both sides reviewed and improved this initiative in December 2018. The initiative is part of the EU’s support for Jordan in the ongoing Syrian refugee crisis and intends to make it easier for Jordan to export to the EU, encourage investment and create jobs both for Jordanians and for Syrian refugees.
This targeted and time-limited simplification concerns the rules of origin set out in the EU-Jordan Association Agreement. Jordanian exporters need to follow these rules to benefit from the preferential access to the EU market, which the Association Agreement provides. This initiative is valid until 21 December 2030 and covers a range of manufactured products in 52 chapters of the Harmonised System.
The alternative rules of origin made available under this scheme are the same rules given to least-developed countries under the EU’s Everything But Arms initiative , for exporters to be able to use these alternative rules of origin, production must involve a minimum 15% of Syrian refugee labour in the production facilities.
Following a review in 2018, the EU and Jordan have agreed that once Jordan grants 60,000 active work permits to Syrian refugees, the company-specific minimum employment requirement for Syrian refugees will be lifted. After that, all Jordanian companies which manufacture industrial goods covered by the scheme will be free to benefit from the simplified Rules of Origin.

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