The Jordanian Free Trade Agreement (FTA) was signed on 24 October 2000. It will enter into force as America`s third free trade agreement and the first with an Arab state. The free trade agreement is the cornerstone of growing U.S.-Jordanian cooperation in economic relations, initiated by close bilateral cooperation during Jordan`s accession to the World Trade Organization (WTO), followed by the conclusion of a framework agreement on trade and investment and a bilateral investment agreement. The free trade agreement serves as an example to Jordan`s neighbours for the benefits of peace and economic reforms. Text by Jordan FTA: The full text of the agreement. The free trade agreement with Jordan is a significant and comprehensive liberalisation on a wide range of trade issues. It will remove all tariff and non-tariff barriers to bilateral trade in virtually all industrial and agricultural products within ten years. Unlike many trade agreements, the U.S.-Jordan Free Trade Agreement has received broad, bipartisan and multi-sector support. Supporters have referred to the removal of tariffs and other trade barriers as a blessing for exports.  In order to benefit from the benefits to U.S. products under this agreement, exporters must understand how they can establish that their products originate or that they can receive preferential tariff treatment in accordance with Jordan`s free trade rules. Jordan has become a “clothing magnet” as U.S. companies such as Wal-Mart, Target and Hanes have set up factories to reduce costs by eliminating tariffs.
In the first year, Jordan increased its exports by 213% and created 30,000 jobs. Until 2002, Jordan had a marginal trade surplus with the United States.  Five years after the free trade agreement came into force, Jordan`s exports to the United States had increased twenty-fold; Jordan`s clothing exports to the United States totaled $1.2 billion in 2005.  Most Jordanian exports to the United States come from one in 114 companies.  The Free Trade Agreement is the first trade agreement to contain substantial provisions on e-commerce, a step that should help promote a global free trade agenda in a critical sector for U.S. high-tech and multimedia companies. The two countries agreed to seek to avoid tariffs on electronic transmissions, impose unnecessary barriers to market access for digitized products, and impede the ability to provide services electronically. These provisions are also part of service commitments, which together aim to encourage investment in new technologies and encourage the innovative use of networks for the provision of products and services.