The US Jordanian relations strengthened after Jordan's peace treaty with Israel in 1994. This treaty was the culmination of US diplomatic efforts for many years as means of bringing the conflict between the two countries to an end, thus paving the way forward for economic and security co-operation between Israel and Jordan. The peace agreement between Israel and Jordan was also advantageous to the US, as it brought together two pro-US governments, thus creating more opportunities for US influence in the Middle East region.
The Jordanian government has seen the benefits of its relationship with the US in the following spheres:
• Qualified Industrial Zones (QIZ) - The US has agreed to the establishment of Qualified Industrial Zones (QIZ) in Jordan where goods from Jordan produced in the QIZs can be exported to the US tariff and quota free (as long as they have 8% Israeli input). This has lead to a surge in Jordanian exports to the US (expected to total USD $800 million for year 2004).
• Free Trade Agreement - Jordan is the 4th country in the history of the United States which has been awarded an FTA by the US government. This agreement allows the Jordanian government and private businesses to boost their export of goods to the US market. The FTA will also create more opportunities for investment for Jordanian and American companies.
• Aid - The Jordanian government has been the recipient of economic aid from the US government. This aid has been especially helpful after the loss of the Iraqi market due to the US invasion.
• Military Assistance - The Jordanian government has been the recipient of US military hardware, especially fighter Jets, under the auspices of US aid to the country.
• Political support - The US government has provided its support to Jordan a number of times. One example includes the supply of free oil from the Gulf countries as form of assistance to the Jordanian government. This has assisted the Jordanian government greatly in times of high oil prices and economic vulnerabilities. According to recent reports, the Jordanian government has asked for US assistance in its request for the extension of the free oil supply from the Gulf countries beyond the termination date of April 2005.
• Security Assistance - According to a BBC documentary, in September 1970 (Black September) Syria invaded Jordanian territory as means of supporting the Palestinian fighters who were being attacked by Jordanian forces. According to the documentary, upon realising that the Syrian forces have invaded his country, King Hussein contacted the US administration to ask for assistance. The White House noted that it had no forces near the area. Therefore it asked its closest ally in the region (Israel) to assist. As a result the Israeli Air Force sent its Phantom jets over the advancing Syrian Tanks, and subsequent to a number of dummy bombing dives by the Israeli Jets (warning signal) the Syrian Tanks halted their advance and returned to Syria.
The US government has also enjoyed several advantages from its close relationship with Jordan:
• War on Terror - Jordanian support during the recent war against Iraq was crucial to US plans. This is because Jordan shares a common border with Iraq. Jordan had also been the centre of Iraqi exile community's activities outside Iraq. This allowed the US to establish contacts with them and their allies inside Iraq prior to the invasion.
• Support of a legitimate Arab regime in the Middle East - The support of an Arab regime in the Middle East has been a positive factor for US policies in the region. This is because currently the US image in the Arab street is one of being Anti-Arab (owing to its support for Israel).
• Access to Arab Market - The FTA agreement between Jordan and US has created the opportunity for US companies to increase the export of their goods to the Arab world. This is due to the fact that Jordan has trade agreements with a number of countries in the Mediterranean region as well as growing trade with Saudi Arabia and Turkey.
Trade Volumes
US exports to Jordan for the year 2003 totaled USD $492 million Dollars.
Jordan's exports to the US for the same period totaled USD $673 million Dollars.
By: Meir Javedanfar- www.meepas.com
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