Jordan Faces Trade Hurdles Gains Under WTO Pact

Jordan, under the WTO Trade Facilitation Agreement, is leveraging the WCO Mercator Programme to advance customs pre-arrival rulings, border management, and other trade facilitation measures. Full implementation of the TFA is crucial for the Jordanian economy. The Mercator Programme supports Jordan in modernizing its customs procedures and aligning them with international standards, ultimately aiming to reduce trade costs and improve efficiency. This will enhance Jordan's competitiveness and contribute to sustainable economic growth.
Jordan Faces Trade Hurdles Gains Under WTO Pact

What enables a landlocked nation to emerge as a vibrant player in global trade? The answer may lie in the World Trade Organization's (WTO) Trade Facilitation Agreement (TFA) . For Jordan, embracing this opportunity could unlock significant economic growth potential. Yet translating the agreement's provisions into concrete action remains a critical challenge.

Jordan Embraces Trade Facilitation: A Historic Milestone

February 2017 marked a watershed moment for Jordan. When the country submitted its TFA acceptance to the WTO, it became the 110th member to ratify the agreement - meeting the threshold for global implementation. This historic achievement propelled worldwide trade facilitation efforts while offering Jordan new opportunities to integrate into global commerce.

To support Jordan's TFA implementation, the World Customs Organization (WCO) conducted a national workshop in Amman from February 19-23, 2017 under the Mercator Programme , funded by China's Customs Cooperation Fund.

WCO Mercator Programme: Elevating Jordan's Trade Efficiency

The workshop provided technical assistance to help Jordan effectively implement TFA provisions through WCO tools and standards. WCO experts detailed TFA developments including notification requirements, ratification processes, and the establishment of National Trade Facilitation Committees (NTFCs). These insights proved vital for Jordanian officials and businesses to understand the agreement's framework.

Key Focus Areas: Advancing Jordan's Trade Modernization

Beyond knowledge sharing, the event created a platform for Jordanian stakeholders to discuss critical trade facilitation measures:

  • Establishing an effective NTFC: The workshop emphasized creating a representative committee to coordinate TFA implementation across government agencies.
  • Implementing customs advance rulings: Pre-arrival decisions on classification, valuation and origin enhance trade predictability while reducing costs.
  • Strengthening coordinated border management: Improved inter-agency cooperation through joint inspections and information sharing can streamline clearance processes.
  • Regulating customs brokers: The workshop addressed quality standards and oversight mechanisms to professionalize brokerage services.
  • Developing an Authorized Economic Operator (AEO) program: Customs privileges for compliant businesses can incentivize stronger internal controls.
  • Enhancing risk management: Leveraging data analytics and AI technologies enables more targeted customs inspections.
  • Implementing post-clearance audits: Post-release verification strengthens compliance while facilitating faster clearance.
  • Conducting Time Release Studies (TRS): Measuring clearance durations helps identify and address procedural bottlenecks.
  • Building a single window system: A unified platform for submitting trade documents to multiple agencies reduces administrative burdens.

Progress and Prospects: Jordan's Trade Facilitation Journey

Jordan has already achieved notable progress in trade modernization. Workshop participants shared reform experiences that could benefit other developing nations. Before concluding, attendees developed action plans for implementing trade facilitation tools under the Mercator Programme framework - demonstrating Jordan's commitment to sustained progress.

Challenges and Opportunities Ahead

Despite advancements, Jordan faces implementation challenges including inter-agency coordination, customs capacity building, and private sector compliance. However, these obstacles present opportunities for deeper reforms. By fully leveraging the TFA framework, Jordan can enhance its trade competitiveness and achieve sustainable economic growth.

Jordan's TFA ratification represents both compliance with international standards and a strategic move to boost economic performance. With support from WCO programs and determined domestic efforts, Jordan is positioned to achieve greater trade facilitation successes that will energize its economic development.