By Mohammad Ghazal

AMMAN - Jordan and Canada signed a free trade agreement (FTA) on Sunday, Canada’s first with an Arab country.

Under the FTA, Jordanian products will enter the Canadian market tariff and customs free as of the date the agreement goes into effect, expected to be the end of 2009.

Canadian products will benefit from a gradual decrease in tariffs and customs over a span of three to four years.

His Majesty King Abdullah on Sunday met with Canada’s International Trade Minister Stockwell Day, following the signing of the agreement, underlining the importance of the deal and stating that it will help increase the volume of commercial exchange and expand economic cooperation between the two countries, according to Jordan News Agency, Petra.

The King also expressed appreciation for Canada’s support for Jordan in implementing development programmes, especially in the field of education, expressing hope that the two countries will further cooperate in the fields of alternative energy, water and nuclear programmes.

The just-signed FTA is the fruit of the King’s efforts and his visit to Canada in July 2007, when the two countries announced the beginning of negotiations in this regard.

“The signing is a testimony to the excellent relations between the two countries. We finished negotiations on the agreement in record time,” Industry and Trade Minister Amer Hadidi told reporters after signing the deal with the Canadian minister.

The FTA will contribute to increasing bilateral trade ties and create new export opportunities for Jordanian products in foreign markets through aggregate rules of origin with the countries that have already signed free trade agreements with both Jordan and Canada, a statement by the ministry read yesterday.

Prime Minister Nader Dahabi, who was present at the signing ceremony, said in a meeting with the Canadian official that the agreements are important to activate inter-trade and develop partnerships, especially since Canada enjoys expertise in economic and technological development, said the Jordan News Agency, Petra.

At a press conference, Hadidi said the FTA will help boost bilateral trade, which, according to the Canadian embassy in Amman, stood at 92 million Canadian dollars (JD57 million) in 2008.

The Canadian minister said the deal will be beneficial to Jordanian industries, especially in light of the global economic downturn.

“This FTA is a model agreement that other countries would like to have. The deal opens doors for products from both countries,” said the Canadian official, adding that the environment created by the FTA encourages Canadian companies to open manufacturing facilities in Jordan.

According to Hadidi, the garment and agricultural sectors, food industries and pharmaceuticals are some of the areas in the Kingdom that can benefit from the FTA.

The two countries also signed agreements on environment protection, investment protection and labour.

The agreements are bound to benefit the economy by increasing the size of Canadian investments in the Kingdom, improving labour legislation and contributing to environmental protection programmes, the ministry statement said.

All these deals will work towards supporting sustainable development plans through which the government seeks to achieve ambitious growth rates, and eradicate poverty and unemployment, while protecting the environment and ensuring an equal distribution of the gains throughout the Kingdom governorates, said the statement.

Meanwhile, Planning and International Cooperation Minister Suhair Al-Ali met Day, discussing with him cooperation in the nuclear field.