Examination of Potential Expansion with Current Trade Partners

 Value in Exports: $US 2,261,519,000 61:Articles of apparel and clothing accessories, knitted or crocheted 62:Articles of apparel and clothing accessories, not knitted or crocheted  Total Export Value of 62 in 2007: $313,413,000  Total Export Value of 61 in 2007: $712,211,000

 Free Trade Agreement in 2001  Textile Hub  Qualified Industrial Zones  Currently, Apparel accounts for 45% of total exports from Jordan

The JUS FTA required elimination on tariffs on textiles from Jordan within 10 years of the signing in Most tariffs were eliminated on all goods in the first year of the FTA; however textiles were on Schedule D. Prediction by American Chamber of Commerce in Jordan on tariff implementation,

HS: 61 FROM 2000 TO 2001HS: 62 FROM 2000 TO 2001 Value Increase: $79,634,000Value Increase: $31,169,000

HS: 61 FROM 2001 TO 2003HS: 62 FROM 2001 TO 2003 Value Increase: $199,307,000Value Increase: $97,342,000

HS 61: ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNITTED OR CROCHETED HS 62: ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED OR CROCHETED

EUROPEAN COMMUNITIESJAPAN  2 nd Largest Importer in the World of Harmonized Standard Commodity 61 and 62  In the Process of Eliminating Tariffs by 2014 HS 61 and 62 have 0% tariffs as of 2002  3 rd Largest Importer in the World of Harmonized Standard Commodity 61 and 62  Tariff Rate for WTO countries 61: 10.9% 62: 9.1% for ½ and 12.8% for other ½ = Average of 10.9%

HS 61: JORDANIAN IMPORTSHS 62: JORDANIAN IMPORTS

 Multiple HS codes of Textiles and Apparel: HS 61 and 62  PED of Apparel: (-)3.77  Qualified Industrial Zones and Exports All Textiles  Quantity and Price Demanded from 2007 are unchanged

Commodity6162 Quantity imported806,00079,000 Price Per unit$9.38$14.01 Tariff10.9% Tariff Elimination Price9.38-(9.38*.109)= $ (14.01*.109)= $12.48 Commodity6162 Percentage Change In Price (tariff) % PED-3.77 Percentage Change in Quantity 41.2% New Quantity Demanded 1,138,072111,548

NEW IMPORTS OF 61NEW IMPORTS OF 62 $9.38 $8.36 $14.01 $ ,000 1,138,072 79,000111,548 D D

Commodity6162 New Revenue$9,514,282$1,392,119 Old Revenue$7,560,280$1,106,790 Increase in Revenue$1,954,002$285,329

JAPANESE FREE TRADE AGREEMENTS  ASEAN (Economic Partnership Agreement) Brunei Indonesia Malaysia Philippines Singapore Thailand Viet Nam  Australia  Chile  India  Mexico  Republic of Korea  Switzerland FREE TARIFFS !

 Convince Japan to Eliminate Tariffs on Apparel  Re-evaluate the Qualified Industrial Zones  Re-gain European Community Market for Apparel

 Global Trade Atlas Navigator, “Jordanian Export Statistics,”  Ministry of Politics, Hashemite Kingdom of Jordan, “Jordan-EU Free Trade Agreement,”  European Communities Official Website, “Tariff Schedules for Chapter 61 and 62,”  Japanese Customs Official Website, “Tariff Schedules for Chapter 61 and 62,”  Japanese Ministry of Foreign Affairs, “ Free Trade Agreements and Economic Partnership Agreements,”  Al Khalidi, Sulieman, “Jordan Industrial Park Attracts Multi-Nationals,” Jordan Embassy  U.S. Congressional Budget Office,” Protecting the Textile and Apparel Industries,” Staff Working Paper, September,  American Chamber of Commerce in Jordan, “Tariff Elimination Schedule of US- Jordan Free Trade Agreement,”