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Association threatens to cease exporting through GAM if not exemptd from new fees

By Maram Kayed - Mar 10,2019 - Last updated at Mar 10,2019

In this undated photo, a produce shop can be seen in downtown Amman. Members of the Jordan Exporters and Producers Association for Fruit and Vegetables recently said they would stop exporting through the Greater Amman Municipality if they were not exempted from new fees (Photo by Osama Aqarbeh)

AMMAN — Members of the Jordan Exporters and Producers Association for Fruit and Vegetables said they will stop exporting their products through the Greater Amman Municipality (GAM) starting Tuesday if they are not exempted, alongside farmers, from exportation fees.

The president of the association, Saadi Abu Hammad, told The Jordan Times that the sector and the municipality had launched a “fruit and vegetable yard” in December, located in downtown Amman opposite the central market for fruits and vegetables.

The point of the space was to display goods that are exclusively for export purposes, so that foreign buyers can easily and effectively test whether the produce is up to their country’s standards.

“It was a great and innovative idea, one that the whole sector stood behind,” he said.

The space was open to individual farmers, exporters, producers and members of the association. A few weeks ago, the government imposed a JD10 fee on every metric tonne displayed at the space.

The decision upset the sector as other export-related fees were increased at the same time, according to Abu Hammad.

“For every metric tonne, we pay around JD100 for refrigeration and another JD100 or more for customs, transportation, wages, etc. That leaves us with no profit at all!” the president said.

He added that “in other countries, like Lebanon, the fruit and vegetable exporters are given incentives. Our connections there tell us that for every metric tonne they export, the government rewards them with up to $100”.

After weeks of complaints from the sector, the Prime Ministry exempted individual farmers from the fees, excluding farmers who own export or import businesses.

The decision came after the association estimated an 80 per cent drop in exports due to what they called “tense” relationships with neighbouring Syria and Iraq, both of whom used to be Jordan’s top export destinations, Abu Hammad previously told The Jordan Times.

A source at the GAM, who preferred to remain unnamed, said: “The municipality is committed to following the Prime Ministry’s orders. The decision did not mention producers or exporters, so we cannot take action towards them.”

The association’s president reiterated their demands by saying, “We understand our country’s financial situation. We do not want incentives. We just do not want additional fees.” He added that the association’s members will start exporting through alternative channels if their demands are not met by Tuesday.

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