A Decade of Peace between Israel and Jordan
Israel Ministry of Foreign Affairs

On 26 October 2004, it will be a decade since the
signing of the peace agreement between Israel and Jordan. Israel views its
relations with Jordan as strategically important and accordingly is working
to promote their bilateral relations in a number of fields: the economy,
commerce, agriculture, water, the environment, etc.

An ongoing dialogue also exists between the two
states on political issues, at the highest levels. Israel views Jordan as an
island of stability in the region and a significant partner in the efforts
to achieve peace with its Middle East neighbors.

Following is a review of Israeli-Jordanian
relations.

Economy and Commerce

Commercial ties are particularly important in
promoting the relations between the two states and are a major factor in
their success and expansion. Israeli-Jordanian bilateral relations have
undergone an impressive and constant development since the signing of the
peace treaty: mutual commerce has grown from $13 million in 1996 to at least
$130 million in 2003 ($130 million according to figures released by the
Israeli government, and $240 million according to the Jordanian government
data).

Furthermore, Israel is the sixth largest importer of
Jordanian goods. Jordanian exports to Israel in the first seven months of
2004 reached $130 million, an increase of 15% compared to a similar period
last year, and have been constantly on the rise since the signing of the
peace treaty, totaling $260 million since the beginning of commercial
exchanges between the two states. Israeli exports to Jordan have enjoyed a
similar success. In the first seven months of 2004, Israeli exports to
Jordan jumped 40%, to about $78 million. Total Israeli exports to Jordan
since the signing of the peace treaty stands at about $400 million.

One of the most prominent examples of the "fruits of
peace" with Israel is the dramatic rise in Jordanian exports to the United
States, which has become in recent years the Kingdom's No. 1 market
(constituting about 30% of total Jordanian exports). This is a direct result
of the Qualified Industrial Zones (QIZ) Agreement of 1996, which established
industrial parks as part of the cooperation between Israel and Jordan and
with the active support of the American government and Congress. The QIZ
initiative enables Jordanian products with Israeli added value to be
imported into the American market duty free. Another important benefit of
QIZ is the employment provided by its factories to nearly 30 thousand
people, most of them Jordanians. As a result of QIZ, Jordanian exports to
the US increased from $13 million in 1999 to $660 million in 2003, and will
approach $1 billion in 2004.

Another significant, positive development in the
commercial relations between Israel and Jordan is the signing (in May 2004)
of a new trade agreement. The new agreement is expected to result in an
increase of bilateral trade and to prepare the ground for a joint
Israeli-Jordanian-European agreement that will enable Jordanian products to
be exported duty free into the European market as well.

Water

Israel and Jordan continue to adhere to their mutual
commitments, in accordance with the peace treaty. This year, progress was
also made towards an agreement between the two sides concerning the Red
Sea-Dead Sea Peace Conduit, a project which should provide a solution to
Jordan's chronic water problems, as well as preserving the Dead Sea basin.

Tourism

Israeli tourism to Jordan has been at a stable level
since the signing of the peace treaty. One hundred and fifty thousand
tourists cross the Israel-Jordan border every year, in both directions.

Cultural and Scientific Ties

In March 2004, Israel and Jordan laid the
cornerstone for the Bridging the Rift (BTR) project. The initiative involves
building a joint academic center on the Israel-Jordan border in the Arava
Desert, and is sponsored by two prestigious American universities, Stanford
and Cornell, with the participation of leading research centers in Israel
and Jordan, specializing in life sciences.

Many Jordanians continue to participate in the
diverse courses offered by the Israeli Foreign Ministry's Center for
International Cooperation (MASHAV) in fields such as agriculture, education,
economics, health, environment, rural development, etc. MASHAV initiated
three important projects in Jordan: a sheep farm and dairy in southern
Jordan, an apiary in the North, and an advanced intensive care unit in a
major hospital in Amman.