AMMAN - Low demand and strong competition from neighbouring countries were the main reasons for the 20 per cent decline in the Kingdom's exports in 2009, according to a senior government official.
In a meeting with media representatives on Sunday, Minister of Industry and Trade Amer Hadidi said Jordan lacks the financial and natural resources of other countries in the region, adding that these countries provide direct cash support to their industrial sectors.
Highlighting the ministry's plans for the coming few months, Hadidi said it will focus on addressing challenges facing specific sectors and finding tools to motivate their growth in the short, medium and long terms.
"We are currently focusing our efforts on penetrating new markets such as Algeria, Libya, Yemen, Sudan and Iraq. The ministry will implement a campaign to promote Jordanian products in these targeted countries," the minister said, noting that the Arab Free Trade Agreement (AFTA), which was signed five years ago, exempted all intra-Arab trade from customs.
He underlined that around 45 per cent of the Kingdom's foreign trade is with Arab states, adding that Jordan is fully committed to the terms of the AFTA, which calls for promoting intra-Arab trade.
Regarding the Jordan-Canada FTA, the minister expected the deal to come into effect as of the beginning of next April, noting that the agreement is complementary to the agreement signed with the US because US buyers of Jordanian products reexport to Canada.
Hadidi also announced that the service sector will soon benefit from a 15-million-euro agreement signed previously with the EU, in addition to another 15-million-euro agreement expected to be signed within the coming few days, which will be used to provide technical support to the industrial sector.
The minister said the government has prepared programmes to address all obstacles facing industrial sector exports, especially the pharmaceutical sector, which has been suffering as other countries have adopted protectionist economic policies, and added that the garments sector is one of the key elements in the economy.
Jordan Enterprise Development Corporation CEO Yarub Qudah highlighted the institution's work methodology with regards to the development and stimulation of start-up companies, adding that it is based on encouraging young and creative Jordanians to translate their ideas into viable and successful projects.
Qudah added that the corporation is also focusing on the implementation of a funding mechanism designed to facilitate access of small- and medium-sized ventures to financing through a JD25 million venture capital fund.
By Hani Hazaimeh
© Jordan Times 2010
