I. Overview of Commercial Environment

Jordan is one of the more promising emerging markets in the Middle East.  A
population growth of approximately 18 percent since 1990 has created an
increased demand for imports;  Wholesalers have indicated that the domestic
market has grown by 11 percent since 1991.  The small size of the Jordanian
market limits opportunities for American business, although changing political
conditions in the region could help Jordan reestablish itself as a supplier of
goods and services to the West Bank, Iraq and the Gulf.

The potential commercial importance of Jordan is reflected by its strategic
geographic position at the confluence of three continents.  The government has
signed bilateral trade agreements with a large number of Arab, European and
Asian countries, giving Jordan-made products favorable tariff treatment.
Although U.S. government export financing programs have been limited as
compared to other trading partners, U.S. products enjoy a wide reputation in
Jordan for their high quality.  These factors should encourage American
businesses interested in selling their products or investing in Jordan


Major Business Opportunities

The agro-chemical, environmental, computer and information technology sectors
provide promising opportunities for U.S. export sales.  Major opportunities
for government-managed projects exist in the water and energy sectors.  Market
openings for U.S. manufacturers and suppliers can also be found in industrial
franchising and licensing, technology-related and engineering consulting
services, automation and electronics products and computer peripherals and
equipment.


Major Roadblocks to doing Business

Non-competitive prices for consumer products and high sea freight charges from
the U.S. to Jordan are among the major barriers to exporting to Jordan.
Obstacles to doing business in Jordan include:  A) weak government enforcement
of regulations to protect foreign intellectual property rights;  B) unclear
policies regarding the implementation of the secondary and tertiary boycotts
against Israel;  C) restrictions on foreign capital ownership in local
businesses and general restrictions on foreign business ventures;  And D)
time-consuming and arbitrary customs clearance procedures and lack of
coordination between the Ministry of Industry and Trade and the Ministry of
Finance/Customs.


Nature of Local and Third Country Competition

Jordanian businessmen operate in a very competitive market that is deluged by
products from around the world.  Generous and flexible export terms and direct
support to local business are the most common factors in establishing a
successful presence in Jordan.  Importers buy more products from countries
that give their sales staff access to training and product orientation.  The
establishment of industrial and business joint ventures is more effective in
the Jordanian market than direct exporting.