U.S. and Jordan Sign Trade Agreement With Supply-Chain Rules

The United States and Jordan signed a reciprocal trade agreement on July 21 that combines market-access provisions with commitments on customs, forced labor, digital trade, export controls, investment security and duty evasion.

The agreement was signed in Washington by U.S. Trade Representative Jamieson Greer and Jordanian Minister of Industry, Trade, and Supply Yarub Qudah. According to the U.S. Trade Representative, the pact is intended to expand bilateral trade while addressing tariff and non-tariff barriers.

Tariff treatment will depend on the schedules

Jordan will continue applying the existing U.S.-Jordan Free Trade Agreement treatment to originating U.S. goods. U.S. treatment of originating Jordanian goods is governed by Annex I and the accompanying tariff schedules.

That distinction matters for companies planning imports or exports. The agreement does not create one universal tariff rate for every Jordanian product. Product treatment depends on the detailed schedules, rules of origin and any scope limitations. The U.S. Trade Representative’s combined tariff schedules provide the product-specific framework businesses will need to review before changing sourcing, pricing or customs assumptions.

The agreement also addresses non-tariff barriers, including import licensing, technical standards, agriculture, intellectual property, services, regulatory practices and customs administration. Its provisions call for cooperation on customs modernization and digital trade, with implementation details to be developed after the agreement enters into force.

Supply-chain rules extend beyond the border

The pact links trade cooperation with economic and national security. Jordan commits to cooperate with the United States on export controls, sanctions lists and sensitive technologies, as well as on investment-security risks in strategically important sectors.

The agreement also includes measures addressing transshipment and other methods used to evade or circumvent U.S. duties. It provides for cooperation on third-country trade practices and shipping, including efforts related to shipping and shipbuilding by market-economy countries.

Labor provisions could also affect supply-chain compliance. Within five years after the agreement enters into force, Jordan is required to prohibit imports of goods made wholly or partly with forced labor and to recognize relevant U.S. government determinations involving companies covered by Section 307 of the Tariff Act.

The agreement is signed but not active

The agreement is not yet operative. Both governments must complete their applicable internal procedures and notify each other in writing. The pact then enters into force 60 days after those notifications are exchanged.

That makes implementation the next key checkpoint for exporters, manufacturers, freight companies and compliance teams. Businesses will need to watch for the notification date, customs guidance, product-specific tariff interpretations and rules explaining how the forced-labor, export-control and anti-evasion commitments will be applied.

The White House fact sheet also highlights announced commercial commitments involving aircraft, pharmaceutical investment and U.S. raw-material purchases. Those statements describe expected or announced business activity, not guaranteed economic outcomes under the agreement.

Sources

• U.S. Trade Representative agreement announcement
• White House agreement text