A new trade deal between Jordan and the United Kingdom will serve to further strengthen the relationship between the two countries, according to Joe Hepworth, director, OCO Middle East, and founder of the British Centres for Business (BCB).
The Jordan-UK Association Agreement, which was signed in November 2019, was subsequently ratified by both governments and came into force on May 1 this year.
The deal is expected to expand on the total trade of goods and services between the UK and Jordan, which was worth GBP561 million ($776m) in 2020.
Hepworth told Arabian Business: “For historical reasons, Jordan has always been a key UK ally in the region so this trade deal is an important affirmation of the bilateral relationship.
“The 2019 London Initiative sought to redefine Anglo-Jordanian relations in the years ahead with a focus on economic development in Jordan and the trade agreement is a further step in the right direction here to remove barriers and friction between the countries.”
Previous trade agreements and partnerships between the two countries have been secured across a number of sectors including education, aviation, retail, biometrics and technology.
A statement on the UK Government website said the priority was to promote investments, growth and jobs for Jordan.
Joe Hepworth, director, OCO Middle East, and founder of the British Centres for Business (BCB)
“We are working with the Jordanian government to overcome some of the structural issues that prevent greater FDI into Jordan. We are supporting and promoting Jordan’s Public-Private Partnership Unit’s work and the National Infrastructure Projects that were prioritised by the Government of Jordan,” it read.
Major items exported to Jordan from the UK include: general industrial machinery, mechanical power generators, vehicles, medicinal and pharmaceutical products. While UK imports from Jordan include mechanical power generators, vegetables, metal ores, clothing and general industrial machinery.
The implementation of the agreement comes as the UK looks to forge closer ties with countries in the Middle East in its post-Brexit world, with experts predicting a number of free-trade agreements (FTAs) could be signed by the end of the year.
UK Trade Secretary Liz Truss, who is leading Britain’s global FTA programme, was in the UAE and Saudi Arabia last month to work on the UK-GCC Joint Trade and Investment Review.
Simon Penney, Her Majesty’s Trade Commissioner for the Middle East and Her Majesty’s Consul General Dubai
“The UK has a strong ambition for a trade deal and is working with the GCC and its member states on key opportunities and challenges,” Simon Penney, Her Majesty’s Trade Commissioner for the Middle East and Her Majesty’s Consul General Dubai told Arabian Business.
“Having left the EU this year, the UK now has independence over its trade policy: We have the freedom to determine terms on which we do business around the world. We have launched an ambitious FTA programme and see the GCC as a critically important partner,” he said.
The UK would be concluding its Joint Trade and Investment Review with the GCC in June this year, Penney revealed.
Lord Edward Lister, co-chair of the UAE-UK Business Council, told an online forum last week that the UK has started “formal steps” for a free-trade agreement with the Gulf countries.
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