The Hashemite Kingdom of Jordan is a small country with few natural resources, but it has played a pivotal role in the struggle for power in the Middle East.
Jordan’s significance results partly from its strategic location at the crossroads of what Christians, Jews and Muslims call the Holy Land.
A brief on Jordan Textile Sector!
Jordan is the first Arab country to have signed a FTA with the United States, a reflection of the openness of the Jordanian economy and the level of market access available to U.S. companies. It all started back with peace treaty signed between Jordan – Israel – USA and Egypt back in 1994. With QIZ (Qualified Industrial Zone) agreement in place in 1996, it started the economical activities in Jordan. The U.S.-Jordan FTA, which was fully implemented in 2010, creates significant advantages for U.S. exporters. U.S. suppliers are now able to sell products at more attractive prices, as nearly all tariff barriers on goods traded between the United States and Jordan have been eliminated. Following the entry into force of the FTA, bilateral trade surged ten-fold over the past 14 years.
With a semi-arid climate and historic sites such as the Dead Sea, Petra, and Wadi Rum, Jordan remains a prominent tourist destination in the Middle East. The development of Jordan’s port city of Aqaba holds significant promise for tourism-related infrastructure projects, including hotel construction and management, as well as other commercial opportunities. The port expansion project and relocation of the main port to south of the city center also affords opportunities in infrastructure development.
Jordan is a haven of stability for business interests and continues to serve as a commercial hub in the region. Jordan has strong, cooperative relations with its neighbors and the international business community.
The acrimony and dust surrounding inhumane conditions under which garment workers of underdeveloped nations work, has begun to settle. Jordan is becoming a fancied destination for luxury apparel.
Jordan, a Middle Eastern country, has evolved into a textile hub. It is home to more than 20 international brands. Textile and apparel factories produce a vast range including fleeces, Sherpa’s, t-shirts, knits bottoms, jackets, woven shirts & bottoms and fast fashion snits products.
Jordan has earned a reputable name worldwide in textile outsourcing. Made in Jordan tags are making a wave in the United States of America.
After the QIZ and later FTA, the country has easy access to markets of Europe, Arab world, Singapore and the United States of America. Skilled workforce is another factor that goes in favor of the Jordanian textile industry. The Jordanian labor force has proved its versatility in the production of active wear, leisure wear and denim. The market has shown its adaptability to demand.
The skilled South Asian work force is the key to success. With this skilled labor force, needle work for any kind of construction, be it Active wear, Woven, Special work wear, or fast fashion sweater knit, these people are trained to handle any kind of garment construction.
Duty Free Advantage:
Jordan’s liberalized economy, dynamic sectors, and growing market provide many opportunities for international exporters.
Below are the highlight categories for FTA advantage based on US import tariffs.
- 32% on 100% Polyester Knit Tops / Jackets etc…
- 28.2% on 100% Polyester Bottoms
- 19.7% on 100% Cotton Polo
- 16.5% on 100% Cotton Tee’s / Singlet etc…
Keeping in view above advantage, Jordanian textile industry shifted its focus from natural fiber to man-made fiber so that it could face international trade liberalization and survive competition from global textile industries that export to the United States of America.
Jordan has policy of open trade links and has signed a number of Free Trade Agreements. The agreements are with:
- Jordan has one of the world’s unique FTA in Jordan. This FTA does not have any kind of restriction in terms of raw material, nor any CAP on turn over or Yarn forward rules.
- It is the only FTA in the world which has NO EXPIRY DATE!!!
- The only FTA country that is using expat labour work force. Which is key to success for dependable production, quality, planning and delivery.
- For high material value, Jordan is perfect solution to serve products with 32 % and 28 % duty rate.
- More Free Trade agreements with different countries including US, EU, CANADA, GAFTA, SINGAPORE.
- Strategically positioned to access Middle East & Europe.
- Politically Stable and Secure (9th safest country globally and 2nd at the level of the Arab world according to Gallup 2017 law and order study).
- Land and sea shipping lines available for Import and Export. Other than Aqaba options are Israel and Land routes via Saudi Arabia and Dubai.
- Numerous banks provide services such as loans, credit facilities, production and export finance
- Fastest Import Transit time from Turkey (8-16/days) and Taiwan (30-35/days).
- Fast sailing to east coast (Within 14 days)
- With combination of Turkey and Far-East fabric, market can execute both shorter and longer lead time orders.