Title
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN THE HASHEMITE KINGDOM OF JORDAN AND THE UNITED ARAB EMIRATES
Preamble
Preamble
The Governments of the United Arab Emirates and the Hashemite Kingdom of Jordan, individually referred to as "the Party" and collectively referred to as "the Parties",
Recognizing the strong and distinguished economic and political relations between the United Arab Emirates and the Hashemite Kingdom of Jordan and desiring to strengthen these ties through the establishment of a free trade zone, thereby establishing close and lasting relations,
Determined to build on their relevant rights and obligations under the Marrakesh Agreement establishing the World Trade Organization; and
Affirming their membership in the Greater Arab Free Trade Area (GAFTA),
Convinced that the Comprehensive Economic Partnership Agreement will provide both parties with the opportunity to improve the trade framework established through the Greater Arab Free Trade Area (GAFTA),
Based on the Arab Framework Agreement for the Liberalization of Trade in Services,
Recognizing the dynamic and rapidly changing global environment brought about by glabalization and technological advances, which present different economic and strategic challenges and opportunities for both sides,
Determined to develop and strengthen their economic and trade relations by liberalizing and expanding trade in goods and services for their mutual benefit and advantage,
Aiming to promote technology transfer and trade expansion,
Convinced that the establishment of a free trade area will provide a more favorable climate for the promotion and development of economic and trade relations between the two parties,
With the aim of facilitating trade by promoting efficient and transparent customs procedures that minimize costs and ensure predictability for importers and exporters,
Desiring to support the growth and development of micro, small and medium enterprises (MSMEs} by enhancing their ability to participate and benefit from the advantages offered by this Agreement; and
With the aim of establishing a clear, transparent and predictable legal and commercial framework for business planning that supports further expansion of trade and investment,
Recognizing their inherent right to regulate and intending to preserve the flexibility of the Parties to set legislative and regulatory priorities, and to protect legitimate public welfare objectives, such as health, safety, environmental protection, conservation of depleted living or non-living natural resources, safety and stability of the financial system, and public morals, in accordance with the rights and obligations set forth in this Agreement,
In order to achieve the above, they have agreed to enter into the following Agreement (hereinafter referred toas the "Agreement'),
Body
Chapter I. Preliminary Provisions and General Definitions
Article 1.1. Objectives
Based on the Greater Arab Free Trade Area Agreement and the Arab Framework Agreement for Services Trade, this agreement aims to liberalize and facilitate trade and investment between the two parties, enhance market access opportunities, liberalize trade in goods and services, develop the digital economy and deepen economic cooperation between the two parties in accordance with its provisions,
Article 1.2. Establishment of a Free Trade Zone
The Parties hereby establish a free trade area consistent with Article 24 of the General Agreement on Tariffs and Trade 1994 (GATT) and Article V of the General Agreement on Trade in Services 1994 (GATS).
Article 1.3. General Definitions
For the purposes of this Agreement:
Agreement means the Comprehensive Economic Partnership Agreement between the Government of the Hashemite Kingdom of Jordan and the Government of the United Arab Emirates,
Agriculture Agreement means the Agreement on Agriculture contained in Annex 1A of the World Trade Organization Agreement,
Anti-Dumping Agreement means the Agreement for the Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 contained in Annex 14 of the World Trade Organization Agreement,
Customs Valuation Agreement means the Agreement on the Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 in Annex 1A of the WTO Agreement,
Days means calendar days, including weekends and public holidays,
Dispute Settlement MOU means the Memorandum of Understanding on Rules and Procedures Governing the Settlement of Disputes contained in Annex 2 of the WIO Agreement.
General Agreement on Trade in Services (GATS) means the General Agreement on Trade in Services contained in Annex 1B of the World Trade Organization Agreement,
GATT 1994 means the General Agreement on Tariffs and Trade 1994 contained in Annex 1A of the World Trade Organization Agreement,
Harmonized System means the Harmonized Commodity Description and Coding System, including its general rules of interpretation, section notes, chapter notes and subheading notes,
Import Licensing Agreement means the Agreement on Import Licensing Procedures contained in Annex 1A of the WTO Agreement, Joint Committee means the Joint Committee established under Article 1.15 of this Agreement,
Measure means any measure, whether in the form of a law, regulation, rule, procedure, decision, decision, practice, administrative action or any other form,
Agreement on Safeguard Measures means the Agreement on Safeguard Measures contained in Annex 1A of the World Trade Organization Agreement,
Agreement on Subsidies and Countervailing Measures means the Agreement on Subsidies and Countervailing Measures contained in Annex 1A of the WTO Agreement,
Agreement on Sanitary and Phytosanitary Measures means the Agreement on the Application of Sanitary and Phytosanitary Measures contained in Annex 1A of the World Trade Organization Agreement,
Agreement on Technical Barriers to Trade means the Agreement on Technical Barriers to Trade contained in Annex 1A of the World Trade Organization Agreement,
TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual Property Rights contained in Annex 1C of the World Trade Organization Agreement; and
WTO Agreement means the Marrakesh Agreement Establishing the World Trade Organization, concluded at Marrakesh on April 15, 1994 April 15, 1994,
Article 1.4. Geographical Scope
This Agreement applies to:
For the Hashemite Kingdom of Jordan, the Convention applies to its territory and internal waters, including its free zones, its territorial waters, including the seabed and subsoil thereof, and its airspace over such territory and waters, as well as the contiguous zone, continental shelf and exclusive economic Zone over which the Hashemite Kingdom of Jordan has sovereignty, sovereign rights or jurisdiction as defined in its laws, and in accordance with interational law,
For the United Arab Emirates, the Convention applies to its territory and internal waters, including its free zones, its territorial waters, including the seabed amd subsoil thereof, its airspace over such territory and waters, as well as the contiguous zone, continental shelf and exclusive economic zone over which the United Arab Emirates has sovereignty, sovereign rights or jurisdiction as defined in its laws, and in accordance with international law,
Article 1.5. Relationship with other Agreements
1. The Parties affirm their existing rights and obligations with respect to each other under the World Trade Organization Agreement and other agreements to which the Parties are party, including the Greater Arab Free Trade Area Agreement and the Arab Framework Agreement for Trade in Services.
2. In the event of any inconsistency between this Agreement and other agreements to which both parties are parties, the parties shall immediately consult with each other with a view to finding a mutually satisfactory solution.
Article 1.6. Regional and Local Government
1. Each Party shall take such reasonable measures as may be available to it to ensure that the provisions of this Agreement are observed by governments, regional and local authorities and non-governmental bodies exercising governmental powers delegated to them by central, regional and local governments and authorities within their respective territories.
2. This Article shall be interpreted and applied in accordance with the principles set out in Article 24, paragraph 12 of the GATT 1994 and Article I, paragraph 3 of the GATS.
Article 1.7. Transparency
1. Each Party shall publish or make publicly available its laws and regulations, as well as its international agreements that may affect the operation of this Agreement.
2. Without prejudice to Article 8.1 of this Chapter, each Party shall respond within a reasonable period of time to specific questions and provide, upon request, information to each other on the matters referred to in paragraph 1 of this Article.
Article 1.8. Confidential Information
1. Each Party shall, in accordance with its laws and regulations, maintain the confidentiality of information deemed confidential by the other Party.
2. Nothing in this Agreement obligates a Party to disclose confidential information, the disclosure of which may impede that Party's law enforcement, or otherwise be contrary to the public interest, or may harm the legitimate commercial interests of any economic actor.
Article 1.9. General Exceptions
1. For the purposes of Chapters 2 (Trade in Goods), 4 (Technical Barriers to Trade), 5 (Sanitary and Phytosanitary Measures), 6 (Customs Procedures and Trade Facilitation), and 7 (Rules of Origin), Article 20 of the General Agreement on Tariffs and Trade (GATT) 1994 and its Explanatory Note are incorporated mutatis mutandis into this Agreement and form part of it.
2. For the purposes of Chapter 8 (Trade in Services) and Chapter 9 (Digital Trade), Article 14 of the GATS, including its footnotes, is incorporated into and forms part of this Agreement, mutatis mutandis.
Article 1.10. Security Exceptions
Nothing in this Agreement shall be construed to:
1. Require any party to provide any information the disclosure of which would be contrary to its essential security interests; or
2. Prevent any party from taking any action it deems necessary to protect its essential security interests:
(a) with respect to fissionable and fusionable materials or materials derived therefrom; or
(b) with respect to trade in arms, ammunition and implements of war and trade in other goods and materials conducted directly or indirectly for the purpose of supplying a military establishment; and
(c) with respect to the supply of services as carried out directly or indirectly for the purpose of supplying a military establishment; or
(d) taken in time of war or other emergency in international relations.
3. Prevents any Party from taking any action in implementation of its obligations under the Charter of the United Nations for the maintenance of intemational peace and security.
Article 1.11. Imposition of Taxes
1. No provision of this Agreement shall apply to any taxation procedure.
2. Nothing in this Agreement shall affect the rights and obligations of any Party under any tax convention. In the event of any inconsistency between this Agreement and any similar tax convention, that tax convention shall prevail to the extent of such inconsistency.
Chapter II. Trade In Goods
Definitions
For the purposes of this Chapter:
Customs Administration means the authority responsible in accordance with each Party's legislation for the administration and enforcement of its customs laws and regulations. For the Hashemite Kingdom of Jordan, the responsible authority: Jordan Customs Department, and for the United Arab Emirates, the Federal Authority for Identity, Nationality, Customs and Port Security and the customs authorities of each Emirate.
Customs duties refers to any duties of any kind imposed in connection with the importation of a product, including any form of additional taxes or surcharges in connection with such importation, but does not include any of the following:
1. Duties equivalent to an internal tax imposed in accordance with Article Ill of the GATT 1994,
2. Anti-dumping or countervailing duties applied in conformity with the provisions of Article VI of the GATT 1994, the Agreement on the Implementation of Article VI of the GATT 1994, and the Agreement on Subsidies and Countervailing Measures contained in Annex 1A of the World Trade Organization Agreement; and safeguard duties applied in conformity with the provisions of Article XIX of the GATT 1994 and the Agreement on Safeguard Measures contained in Annex 1A of the World Trade Organization Agreement,
3. Fees or other import-related expenses commensurate with the cost of the services provided and which do not constitute direct or indirect protection of domestic goods or taxation of imports for fiscal purposes.
Article 2.1. Scope and Coverage
Unless otherwise provided in this Agreement, this Chapter applies to trade in goods between the Parties.
Article 2.2. National Treatment
The Parties shall accord each other's goods national treatment in accordance with Article Ill of the GATT 1994, including its interpretative notes, To this end, Article Ill of the GATT 1994 and its Explanatory Notes are incorporated into and form part of this Agreement, mutatis mutandis.
Article 2.3. Reduction or Elimination of Customs Duties
The Parties shall adopt the same current preferential tarifftreatment applicable under the Greater Arab Free Trade Agreement (GAFTA) with respect to goads of origin exchanged between them, Consequently, all tariffs on all goods of origin exchanged between the Parties will be eliminated from the date of entry into force of this Agreement, However, the provisions of this chapter including the elimination of the said tariff shall not apply to goods whose import, circulation or use is prohibited ineither party for religious, health, security or environmental reasons or due to agricultural and veterinary quarantine rules, The Parties shall exchange lists of tariff lines for such goods.
Article 2.4. Classification of Goods and Modification of Customs Items In the Schedules of Harmonized Tariff Commitments
1. The classification of goods in trade between the Parties shall be that specified in each Party's tariff designations in accordance with the Harmonized System (HS} and its legal notes and amendments,
2. Each Partyshall ensure that the modification of tariff ines in its Schedule of Preferential Tariff Commitments resulting from the adoption by the World Customs Organization of a new version of the Harmonized System Schedule does not result in less favorable treatment for a good of the other Party's origin than that provided for that good in its Schedule in Annex 2a and 2b.
3. A Party may introduce new subdivisions of tariff lines, provided that the preferential tariff applied in the new subdivisions shall not be less favorable than that applied in the original lines.
Article 2.5. Import and Export Restrictions
Except as otherwise provided in this Agreement, neither Party shall adopt or maintain any prohibition or restriction on the import of any good of the other Party or on the export or sale for export of any good destined for the territory of the other Party, except in accordance with Article XI of the GATT 1994 and its Explanatory Notes, which are hereby incorporated into and made part of this Agreement, mutatis mutandis.
Article 2.6. Import Licenses
1. Neither Party may adopt or apply a procedure that is inconsistent with the Import Licensing Agreement, which is hereby incorporated by this Agreement and made part of this Agreement, mutatis mutandis. (1)
2. Before applying any new or amended import license procedure, a Party shall publish it in a manner that enables governments and traders to become familiar with it, including on an official government website, At the request of the other Party, the Party shall exchange information regarding its implementation within a reasonable period of time.
Article 2.7. Customs Valuation
The Parties shall determine the customs value of goods traded between them in accordance with the provisions of Article VII of the GATT 1994 and the Customs Valuation Agreement, mutatis mutandis.
Article 2.8. Export Subsidies
1. Neither Party shall adopt or apply any export subsidy to any good destined for the territory of the other Party in accordance with the Agreement on Subsidies and Countervailing Measures and the Agreement on Agriculture.
2. The Parties reaffirm their commitments undertaken under the WTO Ministerial Conference Decision on Export Competition adopted in Nairobi on December 19, 2015, including the elimination of export subsidy entitlements for agricultural commodities.
Article 2.9. Restrictions on Balance of Payments Protection
1. The Parties shall endeavor to avoid the imposition of any restrictive measures for the purposes of balance of payments protection.
2. Any similar measures taken for trade in goods shall be consistent with Article Xll of the GATT 1994 and the Understanding on Balance of Payments Provisions of the GATT 1994, the provisions of which are incorporated into and form part of this Ageement, mutatis mutandis.
Article 2.10. Fees and Administrative Procedures
1. Each Party shall ensure, in accordance with Article Vill: 1 of the GATT 1994 and its explanatory notes and Article 6 of the World Trade Organization Agreement on Trade Facilitation, that all duties and charges of any kind (other than import and export duties, duties with equivalent effect to internal taxes or other internal charges applied in accordance with Article IlI2. of the GATT 1994, and measures applied in accordance with the provisions of Articles 6 or 19 of the GATT 1994, the Anti-Dumping Agreement, and the Anti-Dumping Agreement: 2 of GATT 1994, measures applied in accordance with the provisions of Articles 6 or 19 of GATT 1994, the Anti-Dumping Agreement, the Agreement on Subsidies and Countervailing Measures, the Agreement on Safeguard Measures, Article 5 of the Agreement on Agriculture or Article 22 of the DSU) imposed on or in connection with the import or export of goods limited in value by the approximate cost of services rendered, shall not be ad valorem, shall not represent indirect protection of domestic goods or taxation of imports or exports for fiscal purposes.
2. Each Party shall promptly publish details and make such information available online with respect to the duties and charges it imposes in connection with import or export-
Article 2.11. Non-Tariff Measures
1. Unless otherwise provided, neither Party shall adopt or apply any non-tariff measures on the import of any good of the other Party or on the export of any good destined for the territory of the other Party, except to the extent consistent with the rights and obligations of the World Trade Organization or this Agreement.
2. Each Party shall ensure that its laws, regulations, procedures and administrative provisions relating to non-tariff measures are not prepared, adopted or applied with a view to creating or influencing unnecessary obstacles to trade with the other Party.
3. If a Party considers that the non-tariff measures of the other Party constitute an unnecessary obstacle to trade, that Party may submit such non- tariff measure for review by the Sub-Committee on Trade in Goods by notifying the other Party at least 30 days prior to the next scheduled meeting of the Sub-Committee on Trade in Goods. The lifting of non-tariff measures for review shall include the reasons for lifting the measure, the extent to which the measure adversely affects trade between the Parties and, if possible, proposed solutions, The Sub-Committee on Trade in Goods shall promptly review the measure with a view to securing a mutually agreed solution to the matter. The review by the Subcommittee on Trade in Goods shall be without prejudice to the rights of the Parties under Chapter 12 (Dispute Settlement).
Article 2.12. Government Trading Enterprises
Nothing in this Agreement shall be construed as preventing any Party from establishing or maintaining a State Trading Enterprise in accordance with Article XVII of the GATT 1994 and the Understanding on the Interpretation of Article XVII of the GATT 1994, mutatis mutandis.
Article 2.13. Sub-Committee on Trade In Goods
1. The Parties hereby establish a Subcommittee on Trade in Goods within the Joint Committee, which shall include representatives of each Party.
2. The Sub-Committee shall meet once a year or whenever the Parties deem it necessary to consider any matter arising under this Chapter.
3. The functions of the Sub-Committee shall include, inter alia, the following:
(a) overseeing the implementation and administration of this Chapter; and
(b) promoting trade in goods between the Parties, including through consultations on the acceleration and expansion of preferential treatment or tariff elimination under this Agreement and other matters as appropriate;
(c) address impediments to trade in goods between the Parties, including those relating to non-tariff measures, including import and export restrictions, which may restrict trade in goods between the Parties and, if appropriate, refer such matters to the Joint Commission for examination.
(d) provide advice and recommendations to the Joint Committee on cooperation needs with respect to trade in goods issues;
(e) Review amendments to the Harmonized System (HS) to ensure that they do not alter each Party's obligations under this Agreement, and consult to resolve any inconsistencies between: such amendments to the HS and the Parties' schedules in Annexes 2A and 28;
(f) consult and seek to resolve any disagreement that may arise between the Parties on matters relating to the classification of goods under the HS,
(g) Review data on trade in goods in relation to the implementation of this chapter.
(h) assess matters relating to trade in goods and undertake any additional work that may be assigned by the Jaint Committee: and (i) review and monitor any other matter relating to the implementation of this Chapter.
Article 2.14. Cooperation In the Field of Pharmaceutical Products
The agreed text for bilateral cooperation in the field of pharmaceutical products for Chapter II on trade in goods is contained in Annex C2.
Chapter III. Trade Temedies
Article 3.1. Scope
1. With respect to the Hashemite Kingdom of Jordan, this chapter shall apply to investigations and measures taken under the authority of the Ministry of Industry, Trade and Supply represented by the Directorate for the Protection of National Production or its successor.
2. With respect to the United Arab Emirates, this chapter applies to investigations and measures taken under the authority of the Ministry of Economy or its successor.
Article 3.2. Anti-dumping and Countervailing Measures
1. The Parties reaffirm their rights and obligations under the provisions of Article VI and Article XVI of the GATT 1994; the Agreement on the Implementation of Article VI of the GATT 1994 ( Anti-Dumping Agreement); and the Agreement on Subsidies and Countervailing Measures of Annex 1 to the Agreement Establishing the World Trade Organization.
2. The Parties recognize the right to apply measures consistent with Article VI of the GATT 1994, the Anti-Dumping Agreement and the Agreement on Subsidies and Countervailing Measures, and the importance of promoting transparency in anti-dumping and countervailing actions and ensuring that all interested parties have the opportunity to participate effectively in such actions.
3. Except as provided in this Article, this Agreement does not confer any additional rights or obligations on the Parties with respect to anti-dumping and countervailing actions including the initiation and conduct of anti-dumping and anti-subsidy investigations as well as the application of anti-dumping and/or countervailing measures.
4. When the investigating authority of one Party receives a written request by or on behalf of its domestic sector to initiate an anti-dumping investigation with respect to a good of the other Party, the Party receiving such request shall notify the other Party in writing of the request prior to announcing the initiation of the investigation.
5. As soon as possible after accepting a request for an anti-subsidy investigation, and in any event before initiating an investigation, a Party shall provide written notification of its receipt of the request to the other Party and invite the other Party to consultations with a view to clarifying the position with respect to the matters referred to in the request and reaching a mutually agreed solution.
6. The investigating authority of either Party shall ensure that, before making final determination, all material facts under consideration that form the basis for a decision on the application of final measures are disclosed, This shall be without prejudice to Article 5.6 of the Anti-Dumping Agreementand Article 4.12 of the Agreement on Subsidies and Countervailing Measures. The disclosure must be made in writing and interested parties must be given sufficient time to make their comments, The investigating authority shall give due consideration to the comments submitted by the interested parties.
7. In imposing the measures covered by this Chapter, the Parties agree to give priority, to the greatest extent possible, to measures that cause minimal economic harm and do not create serious obstacles to the implementation of this Agreement,
Article 3.3. Comprehensive Safeguard Measures
1. Each Party reserves its rights and obligations under Article 19 of the GATT 1994 and the Agreement on Safeguards of the World Trade Organization. This Agreement shall not give rise to any additional rights or obligations of the Parties with respect to actions taken under Article 19 of the GATT 1994 and the Agreement on Safeguard Measures.
2. A Party taking a comprehensive safeguard measure shall exclude imports of the good originating in the other Party as long as its share of imports of the product concerned in the importing Party does not exceed 3 percent of total imports of the product concerned, provided thatimports from a group of developing countries whose share of imports is less than 3 percent does not exceed 9 percent of total imports of the product concerned
Article 3.4. Dispute Settlement
No Party shall have recourse to Chapter 12 (Settlement of Disputes) of this Agreement for any matter arising under this Chapter.
Article 3.5. Cooperation In the Field of Trade Remedies
The Parties shall endeavor to encourage cooperation in the field of trade remedies between the competent authorities of each Party with responsibility for trade remedies matters.