Amman, Aug. 10 (Petra) -- Continued government funding for the Better Work program is expected to support the competitiveness of Jordan’s garment industry, a major export sector with annual overseas sales exceeding $2.4 billion and a workforce of around 96,000.
Jordan Chamber of Industry (JCI) Leather and Garment Industries Sector Representative Ihab Qadri said the Cabinet’s decision to extend support for the program comes at an important time for the industry, particularly as labor standards, transparency and sustainability increasingly influence the sourcing and investment decisions of international buyers.
The Cabinet on Sunday approved government funding for the Better Work program for another three years and raised its allocation to JD5 million from JD1.1 million, tasking the Ministry of Labor with completing the necessary procedures for the program’s approval.
Operating since 2008 through a partnership between the Ministry of Labor, the International Labour Organization (ILO) and the International Finance Corporation (IFC), the program seeks to improve working conditions while strengthening the competitiveness of Jordan’s garment industry.
It also aims to support exports, encourage investment and contribute to the expansion of satellite production units employing Jordanians.
Qadri told the Jordan News Agency (Petra) that the leather and garment industries comprise more than 1,000 establishments and provide around 96,000 jobs, while annual exports exceed $2.4 billion.
Of that total, around $2.2 billion in exports are destined for the United States, making it the industry’s largest and most important overseas market.
He said Jordanian garment manufacturers have built long-term relationships with major international buyers and global brands, for which labor standards, workers’ rights, transparency and sustainability have become key considerations in purchasing and investment decisions.
Maintaining the Better Work program, he added, would help reinforce confidence in Jordanian manufacturing, preserve the industry’s standing among international buyers, reduce risks for investors and strengthen its ability to attract new investment and customers.
Qadri said the program has taken on added importance following recent developments in trade relations with the United States, including a reduction in additional tariffs on Jordanian products from 15 percent to 10 percent and the exemption of a broad range of leather and garment products from the additional duties.
The exemptions allow qualifying Jordanian products that comply with rules of origin under the Jordan-U.S. Free Trade Agreement to continue entering the U.S. market without additional customs duties, providing the industry with an important competitive advantage in its largest export market.
Qadri said preferential access to the U.S. market, combined with a strong framework for compliance, sustainability and confidence, could provide a platform for maintaining existing garment exports while attracting new buyers and investment.
It could also support deeper local value chains and expansion into other segments of the sector, including furnishings, textiles, carpets, rugs and bags, he added.
The Economic Modernization Vision sets targets for expanding the sector’s production and export base, raising exports to around $5.5 billion, attracting JD3.1 billion in new investment and increasing employment to 149,000 jobs over the Vision’s implementation period.
Qadri said the next phase should focus on translating preferential market access and government support into higher investment, production, exports and domestic value added, while strengthening links with local industries and creating additional employment opportunities for Jordanians.
//Petra// RZ
