Ammon News - The Amman Chamber of Commerce (ACC) has proposed a set of actions to strengthen trade relations between Jordan and Egypt, starting with the conclusion of necessary arrangements and agreements to amplify Jordanian exports to the Egyptian market.
A report prepared by the ACC highlighted the importance of ongoing follow-up and execution of the signed agreements and memoranda of understanding (MoU) between the two nations. It also emphasized the need for regular reviews and the establishment of an actionable plan for implementation. Additionally, the report underscored the significance of revisiting the executive program associated with the MoU on mutual recognition of conformity certificates inked in 2008.
The report, a copy of which was obtained by the Jordan News Agency (Petra), pointed to other measures, including the need to design support programs in the realm of technical conformity, and to develop an awareness-raising plan regarding the procedural and technical hurdles faced. Additionally, it suggested organizing and establishing collaborative trade exhibitions, providing the opportunity for direct sales.
The 31st session of the Joint Jordanian-Egyptian Higher Committee will commence on Monday in Amman. The committee will be co-chaired by Prime Minister Bisher Khasawneh and his Egyptian counterpart Mustafa Madbouly.
The meetings' agenda will cover various topics aimed at bolstering bilateral cooperation, with a particular emphasis on the economic sector. The key objective is to maximize available opportunities and improve coordination on shared concerns.
The ongoing meetings of the higher committee reflect the mutual commitment to fostering cooperation across various sectors. This collaboration extends to the tripartite framework, which also compasses Iraq, and the quadripartite partnership involving Jordan, Egypt, the UAE, and Bahrain.
The report emphasized the importance of streamlining customs procedures and reducing administrative expenses to facilitate the smooth flow of goods between the two countries. Additionally, it highlighted the significance of organizing trade exhibitions and shared economic events that unite companies and investors from both nations. These initiatives aim to strengthen communication channels and create prospects for investment and trade.
With the aim of fostering cooperation and making strategic decisions, the report pointed out the significance of promoting the exchange of information and trade data between Jordan and Egypt. It also urged encouraging investors from both countries to collaborate and engage in joint investments in mutually beneficial economic sectors.
Furthermore, the report highlighted the need for training programs and collaborative workshops aimed at developing the skills and competencies required to bolster trade and business ties between the two nations. It also suggested exploring prospects to leverage regional trade agreements that involve both Jordan and Egypt to facilitate trade with other countries.
In terms of trade figures, the report mentioned that Jordan's exports to Egypt stood at approximately JD45 million during the first five months of the current year, while imports from Egypt amounted to around JD407 million. Additionally, it stated that the national exports to Egypt last year reached a record high of JD160 million, the highest value in recent years.
The highest commodity exported from Jordan to Egypt during the past year was carnallite, sylvite, and natural potash salts with a value of 96 million dinars, while anhydrous ammonia top the list of imports at JD21 million, according to the report.
As for Jordan's imports from Egypt, they mainly consist of metal products and food industry items, particularly processed or preserved potatoes, ready-made food preparations, potato flakes, anhydrous ammonium, fresh or dried oranges, articles of stone, plaster, cement or asbestos, and gas cooking ovens.
The Chamber has recorded 511 Egyptian partners in diverse trade and service sectors. Collectively, these partners have a total capital of approximately JD139 million.
Egypt, the report said, ranked sixth among Jordan's most important trading partners in the Greater Arab Free Trade Area during 2021, with its share of Jordan's total national exports reaching 2.1 percent.
According to the national export strategy, the report identified several Jordanian products that are targeted for export to Egypt. These include cosmetics, agricultural pesticides, Dead Sea products, information technology services, chemicals, pharmaceuticals (including veterinary medicines), dates, electrical appliances, calcium carbonate, clothing, textiles, aromatic and medicinal herbs, spices, and tea.
The main challenges facing increasing exports from the Kingdom to Egypt, most notably the effective implementation of the Agreement to Facilitate and Develop Trade Exchange,
The main challenges in increasing exports from Jordan to Egypt, as highlighted in the report, entail the effective implementation of an agreement to facilitate and develop trade exchange, the existence of technical, procedural, and administrative obstacles to accessing the Egyptian market, as well as technical and procedural obstacles to exploring other markets through Egypt, particularly in terms of transit.
The report pointed to other challenges related to obstacles to registration procedures for some products such as medicines, fertilizers, and pesticides, transportation obstacles, and high costs, especially for agricultural products, in addition to weak marketing of export products with a competitive advantage.
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