Importance of the Decision

The decision of the European Union (EU)-Jordan Association committee to simplify rules of origin was signed on 19 July 2016 and entered into force immediately. In December 2018, the decision was amended so that it is extended to all factories regardless of their location if these factories recruit no less than 15% of Syrian labour within the production facility until 31 December 2030 and until the overall target of Syrian employment is reached, which is least 60,000 legal and active job opportunities for Syrian refugees. This arrangement of greatly simplified rules of origin, also called “Jordan Compact”, is expected to create job opportunities for Jordanians due to increased exports towards the EU and investments in export-oriented sectors of the Jordanian economy.

New Arrangement Extended to all Jordanian Factories

To benefit from the simplified scheme of rules of origin two main conditions must be met, regardless of the geographical location of the industrial facility, firstly recruiting Syrian Labour within the specified percentage and secondly the production of the specific industrial products covered by the List rules of this Arrangement.

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