October 26, 2014
On the occasion of 20 years of the peace agreement between Israel and
Jordan, the Export Institute publishes export data to Jordan over the years:
Twenty years ago, a peace agreement between Israel and Jordan was signed,
which settled the relationship, boundaries and division of resources between
Israel and Jordan. Following the peace agreement, the borders between the
countries were opened, and factories under Israeli ownership were
transferred to Jordan, where labor is cheaper.
In 1997, the QIZ Agreement was signed by Israel, Jordan and the US, in order
to encourage business collaborations and thus promote the peace process. The
agreement contributed to strengthening the political relationship and the
trade relations between Israel and Jordan such that in 1998, Israeli exports
to Jordan amounted to about USD 25 million, compared to USD 133 million in
2004, an aggregate increase exceeding 400%.
In 2005, free trade agreements were signed between Jordan and the United
States. The Jordanian exporters moved from the QIZ framework to the
framework of this agreement, while the Israeli exporters were required to
face the Jordanian market with equal terms with local and foreign suppliers,
without the advantage of the QIZ Agreement. As a result, exports from Israel
to Jordan decreased by about 13% from USD 133 million in 2004 to about USD
116 million in 2005.
Based on the data of the Export Institute, the scope of trade (import and
export) of Israel with Jordan in 2013 amounted to about USD 366 million, an
increase of about 2% compared to the same period the previous year. That
year, Jordan was ranked as Israel’s 39th trade partner.
The export of goods from Israel to Jordan amounted in 2013 to about USD 99
million, a decrease of about 36% compared to the same period the previous
year. The main decrease occurred in jewelry industry exports. In the first
half of 2014, there was an increase of about 16% in the scope of exports,
amounting to about USD 56 million. In 2013, Jordan was ranked as the 51st
destination for the export of Israeli goods.
Changes in the export in prominent industries during the first half of 2014:
In the vehicle industry, aircraft and boating vessels experienced an
increase of about 29%, and amounts to about USD 15 million, constituting
about 27% of the export.
In the agricultural industry, a decrease of about 53% to about USD 6.5
million, constituting about 12% of the export.
In the machines and equipment industry, a decrease of about 4% to about USD
4.5 million, constituting about 8% of the export;
In the chemicals and refined petroleum industry, an increase of about 13% to
about USD 4 million, constituting about 7% of the export.
The import of goods from Israel to Jordan increased in 2013 by about 30% and
amounted to about USD 267 million. Jordan constitutes the 30th overall
source for the import of goods of Israel. In the first half of the year, the
import amounted to about USD 200.3 million, an increase of about 53%.
Changes in the import in prominent industries during the first half of 2014:
In the plastic and rubber industry, an increase of about 243% to about USD
77 million and constituting about 38% of the import.
In the machines and mechanical devices industry, an increase of about 46% to
about USD 47.5 million and constituting about 24% of the import.
In the animal and animal products industry, an increase of 430% to about USD
47 million and constituting about 24% of the import;