Canada: Canada Concludes FTA And Related Agreements With Jordan

Copyright 2008, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on International Trade, August 2008

On August 25, 2008, the Government of Canada announced the conclusion of free trade negotiations with the kingdom of Jordan. The Canada–Jordan Free Trade Agreement (FTA) will open up new opportunities for importers, exporters and Canadian businesses seeking to participate in Jordan's growing economy and will permit Canadian businesses to take advantage of the immediate elimination of tariffs on a wide range of products.

Canada–Jordan FTA

Once it comes into effect, the FTA will immediately eliminate all non-agricultural tariffs and most agricultural tariffs. The two countries have also committed to reduce non-tariff barriers to trade.

The highlights of the FTA include:

  • Increased access through the immediate elimination of tariffs on most goods

  • Greater transparency with respect to non-tariff barriers to trade, including regulatory measures affecting trade

  • Commitments to ensure non-discriminatory treatment of imported goods

The FTA will assist in strengthening the relationship between Canada and Jordan which, in 2007, resulted in a two-way merchandise trade valued at C$76-million. Jordan is an important market for Canadian goods, particularly forest products, machinery, agricultural and agri-food products.

The FTA's immediate elimination of tariffs on the majority of Canadian exports to Jordan will result in substantial savings to Canadian exporters. For example, in 2007, the duties paid by Canadians on electrical machinery sent to Jordan was in the range of C$293,000 on exports of C$3-million. Jordan currently charges duties of up to 30% on certain products. The current average tariff rate is 10.4%. Moreover, the FTA will also facilitate access by Canadian businesses not only to Jordan, but also to the markets in other Middle East and North African nations. In this connection, the FTA may assist Canadian businesses to expand the market access available to their goods to other countries with which Jordan has entered into free trade agreements, including the European Union (EU), the European Free Trade Association (EFTA), Libya, Syria, Kuwait, and Bahrain, among others.

The FTA will offer benefits to importers as well, providing more cost efficient access to a wide range of products, including apparel and vegetables, trade that is valued at approximately C$16-million.

It is important to note that the FTA is a goods-only agreement. In this respect, the FTA will not impact any duties currently imposed on services traded between the two nations. Nonetheless, certain reciprocal rights currently exist in relation to investment and air services, contained in agreements that were concluded between Canada and Jordan in the summer of 2007.

Before signing and publicizing the text of the FTA, a formal review will be undertaken by the governments of both Jordan and Canada. In Canada, the FTA will be tabled before the House of Commons for a 21-day sitting period during which the text will be reviewed and debated. Draft legislation to implement the FTA will be introduced following the 21-day period.

Canada–Jordan Agreement on Labour Cooperation

Two related agreements were signed alongside the FTA – one on labour and another on the environment.

The Canada–Jordan Agreement on Labour Cooperation (LCA) will seek to protect core labour standards set out by the International Labour Organization. Its provisions will affirm the rights of freedom of association and the right to bargain collectively. The LCA will also address occupational health and safety, employment standards regarding minimum wages and hours of work, and compensation for workplace injuries. Moreover, the LCA will introduce increased rights for migrant workers and call for the elimination of compulsory labour and workplace discrimination. The LCA also stipulates that the employment and labour laws in both countries are not to be weakened for the purposes of encouraging trade or investment. The objectives of the LCA are to be supported by a number of programs in which the countries will participate jointly.

Included in the LCA will be a mechanism for consultation, if one country considers that the other is in breach of their agreement. If a resolution cannot be achieved by consultation, the LCA provides that an independent review panel may be convened to settle the dispute.

Canada–Jordan Agreement on the Environment

The Canada–Jordan Environment Agreement (EA), signed in tandem with the FTA, represents a commitment by both countries to protect the environment primarily through provisions that will require the effective enforcement of domestic environmental laws. Like the LCA, the EA expressly prohibits the relaxation of environmental laws for the purpose of encouraging trade and investment. Canada and Jordan have also committed to increase public awareness of environmental laws and policies, to ensure that environmental impact assessment processes are established and maintained, and to encourage private enterprises to voluntarily implement best practices in respect of the environment.

Comments

Canadian exporters as well as importers should welcome this new FTA and the opportunities it offers. Canadian traders may wish to review their current sourcing and markets for their products, and study whether the FTA offers opportunities for the reduction of costs or an increase in market access for their goods. Canadian traders should also look to potential opportunities arising from the fact that Jordan has existing free trade agreements with various regions/countries, including the EU, EFTA, Libya, Syria, Kuwait and Bahrain, among others.

The Canada–Jordan Free Trade Agreement is the fourth FTA Canada has concluded this year, following on the heels of FTAs with Peru, Colombia and the European Free Trade Association which is comprised of Iceland, Liechtenstein, Norway and Switzerland. These agreements are part of Canada's Global Commerce Strategy, which seeks to develop Canada's access to foreign markets through aggressive inter-national negotiations. After many years of inactivity on Canada's part, Canada has embraced an international trade policy which focuses on entering into bilateral free trade and other related agreements with countries considered to be of interest to companies based in Canada. This bodes well for Canadian exporting and importing companies, especially in light of the apparent collapse of the negotiations by WTO members towards a new multilateral trade deal.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Events from this Firm
26 Oct 2018, Other, Vancouver, Canada

Cybersecurity, including data privacy and security obligations, has become a critical chapter in every company’s risk management playbook.

30 Oct 2018, Other, Toronto, Canada

Please join us for discussions on recent updates and legal developments in pension and employee benefits as well as employment law issues.

12 Nov 2018, Other, Toronto, Canada

Stories aren’t falsehoods. Stories are the root of all effective human communications: they motivate, animate and clarify. If you aren’t telling stories, you probably aren’t getting your point across.

 
In association with
Related Topics
 
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions