Amman, Oct. 25 (Petra) - Driven by a clear Royal vision for a more competitive and open economy, Jordan is actively charting a new phase of global commercial and production engagement. Amid rising national exports, the country’s private and public sectors are aggressively leveraging an extensive network of free trade agreements (FTAs) to transform regional challenges into global economic opportunities.

National exports rose by a robust 8 percent through the end of August, according to the latest monthly figures from the Department of Statistics. This growth trajectory reflects a deliberate strategy by Amman to diversify both product lines and export markets, utilizing its unique status as a trading hub with preferential access to major global economic blocs.

Experts speaking to the Jordan News Agency (Petra) underscored the strategic imperative of a calculated geographic expansion, advocating for an increased presence from China to Africa and across various Arab and Asian markets. This push is underpinned by confidence in the quality and competitive edge of Jordanian-made products.

The official trade data revealed that the value of total exports (including re-exports) climbed by 7.7 percent year-over-year through August. The value of national exports alone grew by 8 percent, while re-exports saw a 4.8 percent increase. Significantly, the export-to-import coverage ratio improved by one percentage point, reaching 51 percent for the period, up from 50 percent in the previous year. Total imports during this period stood at 13.156 billion dinars.

Senator Ahmad Al Khudari, President of the Jordanian Exporters Association, confirmed that increasing and diversifying the national export basket is a top governmental priority, aimed at maximizing Jordan’s footprint in global markets. He highlighted the Kingdom’s extensive FTA network, which includes the United States, Canada, Singapore, and the European Union through simplified rules of origin protocols, alongside the Greater Arab Free Trade Area (GAFTA).

Al Khudari specifically pointed to the vast potential of the Chinese market one of the world's largest which he described as a "virgin market" particularly receptive to Jordanian food products. He urged for the signing of a formal protocol to facilitate organized and legal entry for these products, especially given occasional Chinese regulatory restrictions on certain foodstuffs.

Furthermore, he confirmed serious efforts to penetrate African markets despite Jordan’s non-membership in the Common Market for Eastern and Southern Africa (COMESA) or the African Union. He stressed the importance of these emerging markets as promising avenues for growth, adding that the Ministry of Industry, Trade, and Supply is fully aware of the necessity to maintain multiple market alternatives against potential future closures.

Al Khudari also called for intensified trade missions and the expansion of the FTA network, particularly with China even if initially limited to a few dozen commodity lines with tariff exceptions to help address the significant trade imbalance currently favoring Beijing. He noted growing Chinese demand for Arabic cuisine, citing the boom in regional food outlets as evidence of a genuine market opportunity for Jordanian food exports.

Tamim Al Qasrawi, Deputy Chairman of the Amman Chamber of Industry, identified three primary structural hurdles facing Jordanian exports: product concentration, market concentration, and a limited base of exporting companies.

Al Qasrawi noted that approximately 21 products account for about 78 percent of total exports, illustrating a high product concentration risk. Moreover, about 80 percent of all exports are directed toward a limited number of countries, increasing the sector’s vulnerability to volatility in targeted markets.

He asserted that overcoming these challenges requires diversifying the export base by identifying high-growth commodities, especially those with high value-added or technology components, and launching specialized programs to enhance corporate export readiness covering aspects like correct pricing and technical certification requirements. He underscored that traditional reliance on Arab states, the U.S., Canada, and Singapore is no longer sufficient, necessitating a decisive pivot toward promising African and other emerging markets.

Businesswoman and industrialist Lina Hindileh called for a range of policy actions to sharpen Jordan's competitive edge. Her recommendations included enhancing the role of Jordanian embassies and commercial attachés abroad in market promotion, streamlining bureaucratic procedures, and most importantly, reducing export-related costs such as transportation, taxes, and various fees. She also stressed the need for stable legislative and economic policies to provide a secure environment for exporters, alongside efforts to promote high value-added industries and bolster innovation and R&D.

Economist Mohammad Al Bashir echoed concerns over the cost of production, urging the government and Parliament to implement comprehensive legislative amendments regarding taxation, particularly the sales tax, which he argued directly raises production costs. He highlighted high energy costs and elevated interest rates as significant burdens eroding the competitiveness of Jordanian industry abroad.

Al Bashir acknowledged that the 8 percent export growth achieved despite current regional geopolitical turbulence, global inflation in commodity prices, and the economic fallout from the Gaza conflict is a significant accomplishment. He credited this performance to the resilience and adaptability of Jordanian industry, maintaining that sustained economic reforms and further cost alleviation for the production sector are crucial to boosting growth and export competitiveness in the period ahead.

//Petra// AA