 
  WORLD TRADE  
ORGANIZATION  WT/REG134/4 
2 March 2004 
 
 (04-0916) 
Committee on Regional Trade Agreements Original:   English 
  
 
FREE TRADE AREA BETWEEN THE UNITED  STATES AND JORDAN 
 
SERVICES ASPECTS
 
 
Communication from the Parties  
 
  The following communication, dated 24 February 2004, is being circulated at the request of 
the Delegation of the United States.  
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I. BACKGROUND INFORMATION ON THE AGREEMENT 
1. Membership And Dates Of Signature, Ratification And Entry Into Force. 
 The Agreement Between the United States of America (United States) and the Hashemite 
Kingdom of Jordan (Jordan) on the Establishment of  a Free  Trade Area (Free Trade Agreement) was 
signed on October 24, 2000 and entered into force on December 17, 2000.    
2. Type Of Agreement 
 Economic Integration Agreement. 
 
3. Scope 
 The agreement has substantial services sector al coverage and provides for the absence or 
elimination of substantially all discrimination.  This is a positive list agreement, meaning that the 
sectors not included in each Member’s Schedule of Specific Commitments are not covered by the agreement.  The Schedules of Commitments encomp ass the same four modes of delivery for services 
which are included in the GATS: cross-border suppl y, consumption abroad, commercial presence, and 
presence of natural persons.    Service sectors covered by Jordan’s Schedul e of Specific Commitments include: horizontal 
commitments which apply to all sectors; professional services, including legal, auditing, accounting 
and bookkeeping, architectural, engineering, urban planning and landscape architectural, medical, 
excluding dental, veterinary, midwives, nurses a nd physiotherapists, and pharmacist services; 
computer-related services; research and development services; real estate services; rental/leasing services; other business services, including advertising, market research, mgmt consulting, packaging, 
public opinion polling, technical testing and analysis, services incidental to agriculture, 
manufacturing, animal husbandry, fishing, energy distribution, placement and supply services of 
personnel, related scientific and technical consu lting, maintenance and repair of equipment, 
photographic, convention, and prin ting and publishing services; courier services; telecommunication 
services; audiovisual services; construction services; distribution services; educational services; WT/REG134/4 
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 environmental services; financial services; health-related and social services; tourism and travel-
related services; recreational, cultural a nd sporting services; and transport services. 
  Service sectors covered by the United States’ Schedule of Specific Commitments include:   horizontal commitments which apply to all sectors;  professional services, including legal, auditing, 
accounting and bookkeeping, architectural, engineeri ng and integrated engineering, urban planning 
and landscape architectural; computer-related servic es; real estate services; rental/leasing services; 
other business services, including advertising, market  research, mgmt consulting, packaging, public 
opinion polling, services incidental to agriculture, h unting, forestry, manufacturing, fishing, energy 
distribution, mining, placement and supply of person nel, investigation and security, related scientific 
and technical consulting, mainte nance and repair of equipment, building-cleaning, photographic, 
convention, and publishing services; courier servi ces; telecommunication services; audiovisual 
services; construction services; distribution services; educational services; environmental services; financial services; health-related and social services;  tourism and travel-related services; recreational, 
cultural and sporting services; and transport services. 
 
4. Trade Data 
 Statistical data on the evolution of trade in services is not available. 
  
II. PROVISIONS AFFECTING TRADE IN SERVICES 
1. Elimination Of Discriminatory Restrictions 
 For Jordan, the following reservations in its Schedule of Specific Commitments were 
scheduled to have been, or will be, eliminated:  
Service Sector Type of Reservation Date of Scheduled 
Elimination 
Telecommunications Limits on the number of services 
suppliers;  requirement for an economic needs test. Dec. 31, 2004 
Distribution Requirement for commercial presence 
for commission agents' services Jan. 1, 2003 
Education Commercial presence is subject to 60% 
foreign equity limitation Jan. 1, 2002 
Health-Related & Social 
Services Commercial presence is subject to 60% 
foreign equity limitation Jan. 1, 2002 
 
  For the United States, the following reservations  in its Schedule of Specific Commitments are 
scheduled to be eliminated:  
Service Sector Type of Reservation Date of Scheduled Elimination 
Road transport, specifically 
interurban regular transport of passengers 
 
 Modes 1 and 3, unbound Mode 1, no limitations after 
January 1, 1997. Mode 3, no limitations after January 1, 2001.  WT/REG134/4 
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 Service Sector Type of Reservation Date of Scheduled Elimination 
Road transport, specifically 
freight transport with an origin 
or destination outside the 
United States Modes 1 and 3, unbound After December 17, 1995, 
unbound except to or from 
California, Arizona, New 
Mexico and Texas through different ports of entry. No limitations after January 1, 2000. 
 
2. Rules Of Origin 
 The Agreement includes an article on rules of orig in, but the language in the treaty is directed 
to trade in goods, not services.  Rules of origin wh ich relate to specific service sectors are addressed 
in each Party’s Schedule of Specific Commitments, Annex 3.1 of the Agreement. 
 
3. Standards/Recognition 
 The Agreement does not include general la nguage on the recognition of standards or 
qualification of service suppliers.  Recognition of standards related to specific service sectors are 
addressed in each Party’s Schedule of Specific Commitments, Annex 3.1 of the Agreement. 
  
4. Safeguards  
 The Agreement includes an article on safeguard s measures, but the language in the treaty is 
directed to trade in goods, not services.  5. Subsidies And State-Aid 
            Article 3.2(c)(ii) of the Agreement references Article XV:2 of GATS.  Article 3.4(b) of the 
Agreement provides that if the negotiations envi saged under Article XV:1of GATS are successful, the 
Agreement will be amended, as appropriate.  6. Government Procurement 
 The Agreement states only that the parties agr ee to enter into negotiations with regard to 
Jordan’s application to accede to the WTO Agreement on Government Procurement.  There is no 
language on government procurement speci fically related to the service sector. 
 
7. Sector-Specific Provisions 
 As noted in paragraph I.3, the Agreement covers a broad range of service sectors, with 
specific reservations listed for most sectors.  Details  can be found in Annex 3.1, in the Schedules of 
Specific Commitments for Jordan and the United States.   The Agreement, and the annex, are available 
to the public on the USTR website, www.ustr.gov
 . 
 
 WT/REG134/4 
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 III. GENERAL PROVISIONS OF THE AGREEMENT 
1. Exceptions And Reservations 
 Nothing in the Agreement shall be construe d (a) to require any Party to allow access to 
information which it determines would be contrary to its essential security interests; (b) to prevent any 
Party from taking actions necessary to protect its essential security interests in time of war or other 
emergency, specifically related to traffic in m ilitary goods, as well as goods, materials, services, and 
technology which may be used either directly or i ndirectly for supplying a military establishments, or 
related to the non-proliferation of nuclear weapons  or other nuclear explosive devices; or (c) to 
prevent any Party from pursuing its obligations under the U.N. Charter for the maintenance of 
international peace and security. Also, nothing in the agreement shall apply to taxation measures. 
 
 In addition, both Jordan and the United States list extensive service sector-specific reservations within the Schedule of Specific Commitm ents of each country.  Details are available in 
the Schedules, Annex 3.1 of the Agreement.  2. Accession 
 The Agreement does not in clude provisions for the accession of additional parties. 
 
3. Dispute Settlement Procedures 
 The Agreement creates a multi-step, transparent dispute settlement process.  Any dispute that 
cannot be resolved through consultation may be refe rred to a panel of independent experts for a non-
binding opinion.  If a dispute cannot be settled afte r panel proceedings are completed, the Agreement 
authorizes the affected Party to take any “appropriate and commensurate measure,” without specifying the form that this action should take.  Ho wever, the Party taking the action may not act in a 
manner that is inconsistent with its WTO obligations.   
 4. Relation with Other Trade Agreements 
 The Agreement specifies that any market access or national treatment commitments inscribed 
in a Party’s services schedule shall carry the same rights and obligations as it would if inscribed in a Party’s Schedule of Commitments unde r the GATS.  (Article III.2.c.). 
  In the U.S.-Jordan FTA, Jordan confirms that the United States meets the reciprocity 
requirements outlined in the MFN Exemptions of  Jordan’s GATS Schedule of Commitments, as of 
Dec. 2000 (date of entry into force of the FTA).   The parties agree that terms used in both the FTA and the GATS shall be construed as they are in the GATS. 
 
5. Institutional Framework 
 The Agreement establishes a Joint Committe e to oversee the implementation of the 
Agreement and to review the trade relationship betw een the parties.  The Joint Committee shall be 
composed of representatives of the two parties, head ed by the U.S. Trade Representative and Jordan’s 
Minister primarily responsible for international tr ade, or their designees.  The Joint Committee shall 
convene at least once a year, with special meetings convened as deemed necessary.  The Joint 
Committee may also establish and delegate respons ibilities to ad hoc and standing committees or 
working groups, as it deems necessary.     WT/REG134/4 
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   Each Party shall designate an office to serve as contact point with regard to the Agreement.  
That office will receive official correspondence a nd provide administrative assistance to the Joint 
Committee and to dispute settle ment panels as necessary. 
 
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