Trade between Jordan, Palestine faces obstacles

Economy

Published: 2018-10-14 15:01

Last Updated: 2018-10-14 16:12


Trade between Jordan, Palestine faces obstacles
Trade between Jordan, Palestine faces obstacles
Roya News Source

The trade cooperation between Jordan and Palestine has been facing obstacles imposed by the Israeli occupation authorities in an attempt to take further control of the Palestinian market.

According to a Petra News Agency’s article published on October 14, 2018, the trade volume in Palestine is of five billion US dollars per year, while the foreign trade (exports only) with Jordan does not exceed 90 million US dollars a year.

Israel applies a tariff system that prevents the transport of many goods, especially Jordanian ones that may compete with Israeli products. Israel also uses security excuses to prevent exporting many raw materials that are used in primary production or manufacturing.

The 1994 Paris Protocol, which is a protocol on economic relations, has restricted the economic growth of Palestinian, which trade-potential is almost limited to Israel.

Jordan, which is facing economic challenges and a decline in its exports to neighboring markets, hopes to export more than 700 million US dollars to the Palestinian market per year, benefiting from its geographical proximity and deep-rooted ties.

The total trade between Jordan and Palestine last year reached 266 million US dollars, while it reached 96 million US dollars in the first half of 2018.

Jordan exports to the Palestinian market include food, metal, chemical materials, plastic, wood paste, machinery, industrial material as well as various other products.

The Kingdom imports many good from the Palestine as well, including metal, plant products, food, stones, metal and chemical raw material for industries.

During a recent meeting between Palestinian Prime Minister, Rami Hamdallah and Jordanian Prime Minister, Omar Razzaz, the two discussed ways of strengthening trade between the two countries.

Razzaz affirmed that the Palestinian economy is being heavily controlled by the Israeli authorities, something that the Jordanian government is working towards finding a solution for. Razzaz referred to his Cabinet's governmental decision, which facilitates the transfer of Palestinian goods by allowing their entry - through the King Hussein Bridge - to Jordan and to other neighboring countries.

However, the volume of Palestinian imports and exports is still facing many restrictions, something that once resolved will result in flourishing the investment opportunities for both the Jordanian and Palestinian markets alike.