|
The FTA will eliminate all tariff barriers on
virtually all goods traded between the United States and Jordan within ten
years. However, not every export of the United States or Jordan will qualify for
this duty-free treatment. Under Article 2
of
the FTA, the United States and Jordan has agreed to eliminate existing tariffs
only on “originating goods of the other Party”. Goods must qualify under the
Rules of Origin in order to take advantage of the FTA.
Under the FTA, the United States and Jordan
agreed to stage reduction of tariffs in order to provide their industries time
to adjust to increased competition that may occur due to loss of tariff
protection. Products are grouped into several different staging categories, “A”
through “M”, which will determine the rate at which tariffs will be eliminated.
Annex 2.1 of the FTA defines five general staging categories, “A” through “E”, which
cover the majority of products. Tariff reductions of categories “A” through “E”
will occur in four stages:
| Category |
Tariffs will be eliminated over: |
| A |
Two years (50% reduction per year) |
| B |
Four years (25% reduction per year) |
| C |
Five years (20% reduction per year) |
| D |
Ten years (10% reduction per year) |
| E |
World Trade Organization duty elimination Commitments |
The FTA also defines special staging categories,
“F” through “M”, which cover a select number of products. Products under special
staging categories include certain alcohol and textile products, generalized
system of preference (GSP) exports, agriculture quota-class goods, poultry,
apples, and cars. Products under the special staging categories will experience
either an accelerated reduction of tariffs or a delay in reduction. Jordan’s
Tariff Schedule and the United States’ Tariff Schedule, which are incorporated into
the FTA, specifically explain the special staging categories.
The FTA is now in its second year of tariff
reductions. Year one reductions began on December 17, 2001 and year two
reductions went into effect on January 1, 2002.
|
