Mar 13 2018

Jordan suspends free trade agreement with Turkey

The Jordanian government suspended a free trade agreement with Turkey, citing unfair competition, the Jordan Times reported.

The goods sold by Turkish firms in Jordan, which pressure the profits of local producers, receive Turkish government subsidies, the government said, according to the newspaper.

Jordan is also reviewing other agreements with neighbouring countries as markets in the region shrink, the Jordan Times said.

Jordan follows Tunisia in taxing Turkish exports. Tunisia imposed tariffs on Turkish goods in December despite opposition from a coalition political party allied with the government of Turkish President Recep Tayyip Erdoğan. The imports from Turkey have ravaged local industry, the government said at the time.

A statement by the Jordanian government said that the FTA with Turkey had not yielded the expected results, but rather further tilted the trade balance in favour of Turkey, which also failed to ensure the flow of sufficient investments to Jordan, the newspaper said.

Turkey is seeking to expand markets for its exports as it tries to tackle a widening current account deficit that is pressuring the value of the lira as imports surge.