The Economy of Jordan
Qualifying Industrial Zones and Garments
Duty-free access to the US for goods from special zones, first granted in 1997, made Jordan a garment exporter.
Trade access as strategy.
QIZ
Qualifying Industrial Zones allowed goods with some Israeli input to enter the US duty-free.
FTA
A US-Jordan free trade agreement came into force in 2001.
Garments
Factories, staffed largely by migrant workers, export clothing to the US.
Limits
Reliance on one market and labour conditions.
A shirt for the US
Factories sew garments destined for American stores.
Assuming garment exports guarantee broad growth
They create limited local value.
Key takeaways
- QIZs gave duty-free US access.
- An FTA followed in 2001.
- Garments are exported.
- Dependence on one market is a risk.
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