Several chief executives of giant US companies have voiced their intention not to endorse the free trade agreement with Jordan signed in October last year, reported the World Street Journal (WSJ).
The CEOs, known as the Business Roundatable and representing about 180 companies including Boeing Co. and Motorola, refuse to endorse the pact because of a clause calling for Jordan to enforce its own labor standards or face trade sanctions, the paper said.
Those in disagreement with the pact said it went too far and that trade agreements should not deal with elements of social agendas, the paper said.
The Roundtable is endorsing an agreement in which labor issues are discussed but are not necessarily part of the pact, said WSJ.
On October 24th, King Abdullah and US President Bill Clinton signed the trade agreement that commits the two countries to a new schedule of tariff reductions, and includes articles on environment and labor standards.
The agreement is the first trade accord to which the US is a party that includes provisions prohibiting the reduction of domestic environmental and labor regulations to enhance trade. The agreement also represents the first trade deal the US has signed with an Arab state.
In addition to the agreement's environmental and labor provisions, the agreement includes articles covering the trade in goods and services, intellectual property rights, and electronic commerce.
The FTA does not include any specific investment provisions.
According to the Office of the US Trade Representative (USTR), trade between the two countries was valued at just over 300 million dollars in 1999 with US exports to Jordan amounting to only 0.040 percent of total US exported goods. Similarly, Jordanian imports into the US were also very low, amounting to 0.90 percent of total Jordanian exports.
The agreement will likely increase the amount of trade between the two countries, although given the low import-export volumes, other reasons apart from trade concerns probably explain the signing of the agreement -- Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
