*EPF206 07/31/01
House Passes Implementing Legislation for Jordan Trade Agreement
(Pact includes labor, environmental provisions) (270)
By Kathryn McConnell
Washington File Staff Writer

Washington -- The House of Representatives July 31 passed implementing legislation for the U.S.-Jordan Free Trade Agreement after debate over the acceptability of labor and environment provisions contained in the agreement, which was negotiated under the Clinton administration.

The agreement would eliminate duties and other barriers to trade in goods and services between the two countries. This is the first U.S. trade pact to include the possibility of economic sanctions to penalize violation of labor and environment standards affecting traded goods or services.

Under the agreement, the two countries agreed not to lower labor or environmental standards to gain competitive advantage. The Bush administration and Jordan recently exchanged letters saying that the two sides would make every effort to resolve any dispute "without recourse to formal dispute-settlement procedures."

The bilateral trade agreement would:
-- eliminate tariffs on almost all U.S.-Jordan trade within 10 years;
-- open Jordan's services market to U.S. companies;
-- incorporate the latest international standards for copyright protection;
-- promote a liberalized trade environment for electronic commerce.

The Senate Finance Committee approved Jordan trade agreement implementing legislation July 26. The full Senate has not yet voted.

U.S.-Jordan trade totaled $287 million in 1999. Main U.S. exports to Jordan that year were wheat, aircraft parts, rice and, maize. Jordan's main exports to the U.S. were jewelry with precious metals and men's and boy's clothing.

(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)
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