AMMAN —
Sixty-three years of Jordanian-German relations are bound to be further
bolstered by His Majesty
King Abdullah’s visit to Berlin to discuss with German
President Frank-Walter Steinmeier and German Chancellor Olaf Scholz cooperation
in all fields, as well as the latest regional and international developments.
اضافة اعلان
The volume of trade exchange between the two
countries amounted to some JD535.7 million in 2020. It is a skewed balance,
however; Jordan’s imports from Germany totaled JD522.9 million, while exports
amounted to JD12.8 million, making the deficit in the trade balance JD510.1
million, according to Jordan Chamber of Commerce data.
Economic and
investment specialist
Wajdi Makhamreh told Jordan News that Jordan’s
political and economic cooperation with Germany is significant. Germany is the
second-largest supporter of Jordan after the US.
According to
Minister of Planning and International Cooperation figures, Germany pledged 483
million euros to new development assistance to Jordan in 2021, with a focus on
education, water, sanitation, and vocational training.
“Germany and
Europe proved their commitment in supporting Jordan in various fields through
Kreditanstalt für Wiederaufbau (KFW) bank and others, especially in
infrastructure projects,” Makhamreh said.
Jordan’s imports
from
Germany outweigh its exports to it, he reiterated, adding that imports are
“mainly of machinery, services, and cars”.
Economic analyst
Mazen Irsheid thinks that cooperation in the energy sector should be enhanced,
“especially since energy costs are high in Jordan and they will further
increase in light of the
Russian-Ukrainian crisis”.
Jordan has a 94
percent dependency rate on foreign energy imports. International circumstances
are bound to increase the energy bills this year, and that will also increase
the budget deficit, economists say.
“Jordan’s energy
security is at risk nowadays,” Irsheid said, adding: “Germany has major
capabilities and technologies in the renewable energy sector. With the EU
trying to reduce its reliance on Russian fuel and gas, Germany is bound to
further develop its technologies in the field.”
If cooperation
in renewable energy is to grow and enable Jordan to be self-sufficient, German
investors should be given incentives, such as exemptions from paying customs
fees and taxes on their investments, said Irsheid.
According to
Amman Chamber of Commerce data, the commodities most imported from Germany in
2021 were vehicles, mechanical parts, and accessories, worth JD196.1 million.
The highest exports to Germany in 2020 were various
foodstuffs, worth JD4.7 million.
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