US-Jordan Reciprocal Trade Agreement Signed — Export Controls and Sanctions Cooperation Expanded

The United States and the Hashemite Kingdom of Jordan have signed a comprehensive reciprocal trade agreement that significantly expands bilateral trade cooperation. The agreement addresses tariff and non-tariff barriers, customs procedures, digital trade facilitation, and — critically — deepens cooperation on export controls, sanctions enforcement, and investment security.

Key Provisions

• Non-tariff barrier reduction: Both parties commit to eliminating technical barriers to trade and streamlining regulatory approval processes.
• Customs alignment: Harmonization of customs procedures, including mutual recognition of trade facilitation programs and authorized economic operator (AEO) status.
• Digital trade rules: Alignment of digital trade frameworks, including cross-border data flows and electronic commerce regulations.
• Export controls cooperation (Article 4.2): Jordan commits to cooperate with the United States on national security-sensitive technologies, including alignment with U.S. unilateral export controls.
• Anti-backfilling provisions: Jordan agrees to prevent the backfilling of controlled technologies — ensuring that items restricted by U.S. export controls are not re-routed through Jordan to circumvent those controls.
• Investment security: Enhanced cooperation on foreign investment screening, particularly for critical infrastructure and sensitive technology sectors.

Compliance Implications

Companies trading with Jordan face new compliance obligations under this agreement. While the agreement reduces many trade barriers, the export controls and anti-backfilling provisions create new due diligence requirements for companies in the technology, defence, and dual-use goods sectors.

Jordan's commitment to align with U.S. unilateral export controls means that companies must now consider Jordan's enhanced cooperation with Washington when structuring re-export transactions and supply chain routing decisions.

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