A leading Jordanian trade negotiator said on Saturday that a proposed free trade agreement with the US could be reached during the next round of negotiations slated to start on Monday in Washington.
Deputy Prime Minister and Minister of Economic Affairs Mohammad Halaiqa added that the five-day talks were designed to alleviate the remaining hurdles before the two states initial a long-awaited blueprint for the FTA.
“We hope to strike a deal in this final round of talks if the intentions are clear,” Halaiqa told the Jordan Times in a telephone interview. “If need be we can extend the talks in order to reach a final agreement.”
On Friday, US officials said, however, that Washington and Amman were unlikely to complete such a pact in next week's talks. They nevertheless conceded that the two countries have narrowed many of their differences over the projected agreement.
A spokesman for US Trade Representative Charlene Barshefsky said several issues remained, from access to the services sector to labor and environmental protection.
“We're making progress. But we don't expect to finish next week,” said spokesman Brendan Daly.
US trade officials said they still expected a free trade agreement to be completed this autumn.
In his remarks on Saturday, Halaiqa said he hoped US internal politics would not jeopardize Jordan's chances for an FTA.
The two countries had postponed the final round of talks, initially scheduled for August, until mid-September. Jordanian officials said then that the US had asked for the delay because of “internal politics” as the heated presidential elections shifted into high gear.
Jordan had hoped that an FTA would have been clinched on time before Congress goes into recess.
Republicans and Democrats do not see eye-to-eye on the requirements for an FTA with foreign states. Unlike the ruling Democrats, the Republicans tend to impose restrictions pertaining to environment and labor.
One of the major hurdles is related to the services sector. The US, according to Halaiqa, demands that the door for investments in service-related enterprises be flung open to American capital.
“They want 100 percent shares in firms of this sensitive sector and the issue is still under discussion,” the minister explained.
The services sector is one of the major economic fields “partially” open to foreign investments.
Other differences have arisen over the application of Intellectual Property Rights (IPR) laws. Despite the fact that Jordan enacted an advanced IPR law, which facilitated its entry into the World Trade Organization, the US still has more demands in this area.
On the other hand, Halaiqa does not envisage any problems with regards to the environment or the labor sector.
“In those fields, its is up to the US negotiators to draft a compromise that is satisfying to both the Republicans and the Democrats,” he said.
An FTA with the US could give the Jordanian economy a much-needed boost by helping the country attract foreign investment, officials here have said.
US officials have stressed that a wide range of sectors and companies would benefit, from agriculture to high-tech firms, but played down the immediate impact because of the relatively small size of the Jordanian economy.
Should the negotiations end in success, Jordan will be the fourth country to strike an FTA deal with the US after Israel, Mexico and Canada.
Two-way trade between Jordan and the United States totaled $287 million in 1999; $276 million in US exports to Jordan and $11 million in US imports from Jordan.
Even if a trade agreement is signed this year it is unlikely that Congress would approve it before 2001 because this year's legislative session will be cut short by the presidential and congressional elections in November. — ( Jordan Times )
By Saad G. Hattar
© 2000 Mena Report (www.menareport.com)
