Jordan-U.S. pact beneficial: Abdullah

Jordan's free trade agreement with the U.S. is evidence of the Middle East country's economic progress, King Abdullah II said during an Internet address to diplomatic gatherings in major cities, including Abu Dhabi, Cairo, London and Washington.

Jordan becomes only the fourth country to have free trade relations with the U.S.

"In October 2000, Jordan and the U.S. signed a free trade agreement. In the past few years, Jordan has made great strides in all that the global economy has to offer. The agreement with the U.S. came into effect last December. In the 21st century, access to economies has proved to be very fruitful. The U.S.-Jordan free trade agreement is of special importance. It will give Jordan the opportunity to enter the world's largest market," said King Abdullah.

"The agreement also sends a strong message about our ties with the U.S. It is a model of achievement and success, and reflects our democracy and freedom. The Jordanian model provides a good opportunity for capital investment," he added.

Speaking via the Internet from Washington, U.S. Trade Repres-entative Robert Zoellick said: "A remarkable relationship has developed between Jordan and the U.S. Both President George W. Bush and King Abdullah believe in the power trade has to change lives. This has resulted in 10,000 jobs in Jordan since 1999. For us, it is an innovative example of how trade can develop a relationship.

"We recognise that Jordan's economic progress sets it apart in the Arab region. The U.S. and Jordan have worked together to achieve economic dynamism, which has led to concrete results.

"Jordan has received more than $100 million in foreign investment. Jordan's exports to the U.S. have increased 213 per cent since 2000. The U.S. is committed to developing its relationship with Jordan," Zoellick said.

He said the U.S. would like to become a trade partner of other Arab states. He referred to initial talks Washington had with Egypt and Bahrain.

Turki Haditha Alkhareesha, Jordanian ambassador to the UAE, explained the advantages of the pact with the U.S.

"The agreement aims to establish a free trade zone between the two countries by gradually lifting tariffs in four stages, that will be completed by 2010. A large increase in Arab and international investment in Jordan is expected as it is an opportunity to make use of the facilities the agreement offers to investors in Jordan. Investors can export their products to the American market without paying tariffs," he said.

Mazin Alhummod, deputy director of Jordan Investment Board, said the pact will increase his county's exports as well as produce more jobs. He said the agreement is a recognition of the progress in Jordan's economic and legal systems.