AMMAN — Economists
are calling for stronger economic relations between Jordan and Palestine as
common interests and opportunities would help increase the volume of trade for
both countries.
اضافة اعلان
The balance of
trade between Jordan and Palestine amounted to JD179.4 million in 2021;
Jordan’s exports to Palestine stand at JD132.2 million while it imports goods
worth JD47.2 million.
As a result, the
trade balance favors Jordan by JD85 million, according to data the Department
of Statistics made available to the Amman Chamber of Commerce.
Political economy
specialist Zayyan Zawaneh told
Jordan News that stronger relations are in the
interest of both Jordan and Palestine, and are needed as “both are in the same
boat and need each other”.
He added that in
light of the regional alliances and relations, Jordan and Palestine should
coordinate strategies to take advantage of commercial and economic
opportunities.
For example, he
said, the Paris agreement increased the ceiling for trade exchange to $700
million, and he is “hoping that the two sides could achieve it”.
The Paris Agreement
regulates the import of goods needed by the Palestinians and imposes Israeli
conditions on the flow of goods from external countries to the Palestinian
market.
“If the Israelis
did not place further obstacles, the relationship would have expanded,” Zawaneh
said, adding that “the two small markets would become a market that exceeds 14
million consumers, which serves them both.”
He also urged the
private sector to play a role in this area.
Former vice-chairman
of the Amman Chamber of Commerce Musa Saket told
Jordan News that the Paris
agreement is one of the main obstacles in the economic relationship between
Palestine and its Arab neighbors because it limits them.
Proof of that, he
said, is the fact that Palestinian imports from different markets, especially
the Israeli market, reached $6 billion, while the trade exchange between Jordan
and Palestine did not go above $160 million, “which is 2 percent of the
Palestinian imports”.
“This did not improve
or grow even though in 2021 Naftali Bennett, accompanied by Minister of Foreign
Affairs Ayman Safadi, announced that they were working on raising the trade
exchange ceiling to $700 million,” Saket said.
Instead of the
JD700 million ceilings, Saket suggested creating a 10-year plan to increase the
trade exchange by 10 to 15 percent annually. “There should be economic growth
since Palestine has the biggest border with Jordan,” he said.
However, Saket
pointed out that Jordan would still have logistical issues even if trade
exchanges increased beyond JD700 million, since Jordanian trucks arriving at
the border would have all their cargo taken out for inspection and reloaded on
different trucks, which increases the possibility of products getting damaged
and increases shipping costs.
“Since they have
advanced technologies for inspection, they should ease their procedures and
allow Jordanian trucks to enter without such complications. There is a big
potential that we are not using. The Jordanian government should have a role in
this because we have a peace treaty that is not beneficial for us,” Saket
added.
Former minister for
the state of economic affairs Yusuf Mansur told
Jordan News that the economic
relations with Palestine are significant, and that although Jordan has been
trying for a long time to increase trade with Palestine, the Israeli government
maintains many border restrictions and technical barriers which prevent
Jordanian goods from accessing the Palestinian market.
“What happens is
that Israelis say yes, you can bring goods and services to Palestine and the
West Bank, then they say that for security reasons the goods cannot come in
today, or they would say that you have to use Israeli trucks and drivers, so
you have to unload it at the bridge,” Mansur said.
Due to the Israeli
limitations, Mansur said, Jordan has not been able to increase its exports.
“It is in the hands
of the Israelis to improve the situation,” he said, stressing that the
Palestinian market is significant, but Israel does not allow Jordan to access
it because “they benefit from it and treat it as a monopoly”.
“It is a captive
market for the Israelis, so they can close it or open it; they use their goods
and businesses to benefit from this market,” Mansur added.
Economic and Investment
Specialist Wajdi Makhamreh told
Jordan News that Jordan has a strategic
relationship with Palestine at political, economic, and security levels, and
His Majesty King Abdullah gives it a high priority since Palestine is a
neighbor and a significant percentage of citizens and refugees in Jordan have
Palestinian roots.
Jordan wishes to
increase its exports to Palestine, he said, and “this will for sure impact and
reflect on the Jordanian economy”.
“The current volume
of trade is modest; it should be improved and a neighbor should have the
highest priority,” he said, adding that Jordan should reach out to Israel
“since we have relations with them, to improve and ease the procedures with
Palestine”.
Makhamreh believes
that commerce between the countries will increase after the King’s visit.
“I believe that
increasing the volume of trade between the two countries will strengthen the
Jordanian economy and its institutions,” he said, reiterating that Israel
hinders the entry of Jordanian products, but also expressing hope that “now
there is an intention to ease restrictions”.
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