U.S. and Jordan Sign New Reciprocal Trade Agreement

Published July 21, 2026

Key Points

• The U.S. and Jordan signed a new reciprocal trade agreement on July 21, 2026, building on the 2000 US-Jordan Free Trade Agreement.
• Within five years, Jordan must ban imports of goods made with forced or compulsory labour and block goods from any company the US. has named under a Section 307 determination.
• Jordan has five years to build full pre-arrival processing and paperless customs systems.
• Jordan can no longer impose digital services taxes that discriminate against US companies, or customs duties on electronic transmissions.

T​​​​​​​​​​he U.S. and Jordan signed a new reciprocal trade agreement on July 21, 2026, building on the 2000 U.S.-Jordan Free Trade Agreement. The new terms cut non-tariff barriers, align customs and digital trade rules, and deepen cooperation on export controls, sanctions, and investment security. Jordan now has five years to ban forced labour from its supply chains and build the infrastructure for full pre-arrival processing and paperless trade.

According to the White House Fact Sheet, Jordan has also made new investment commitments in the U.S., including aircraft purchases by Royal Jordanian Airlines, a $1 billion investment from Hikma Pharmaceuticals, and over $300 million in annual raw material purchases from U.S. suppliers.

Tariffs and Market Access

• Jordan keeps applying duty treatment to U.S. goods under the original 2000 FTA. According to the fact sheet, this means Jordan will continue to provide duty-free market access for almost all U.S. goods.
• The U.S. applies new tariff treatment to Jordanian goods, set out in an annex to this agreement.
• Jordan can’t impose new quotas on U.S. goods unless both countries agree.

Additional Commitments

Import Licensing and Standards

Jordan must keep import licensing transparent and can’t use it to block U.S. goods. It also has to accept goods that already meet U.S. or international standards, without requiring extra conformity testing, and treat U.S. conformity assessment bodies the same as its own.

Agriculture and Geographical Indications

The U.S. will give Jordanian agricultural goods preferential access, and Jordan must keep its sanitary and phytosanitary rules science- and risk-based rather than using them to block trade. Jordan also can’t restrict market access over common cheese and meat terms, and must allow U.S. goods to use geographical indication terms that aren’t tied to a specific region.

Intellectual Property and Services

Jordan has to strengthen civil, criminal, and border enforcement against copyright and trademark infringement, including online. It also has to remove barriers that put U.S. services suppliers at a disadvantage compared to domestic or third-country competitors.

Labour and Environment

Within five years, Jordan must ban imports of goods made with forced or compulsory labour, and recognize U.S. Section 307 determinations against specific companies by blocking their goods. Jordan also has to keep enforcing its labour laws.

Customs Modernization

Jordan has five years to build full pre-arrival processing and paperless, digital customs procedures.

Digital Trade

• No digital services taxes that discriminate against U.S. companies.
• No customs duties on electronic transmissions, and Jordan is expected to back a permanent WTO moratorium on the practice.
• No forced technology transfer or source code disclosure as a condition of doing business, except through defined regulatory or judicial processes with confidentiality safeguards.

Economic and National Security

• Jordan will align with U.S. export controls and work to stop its companies from backfilling restricted trade.
• Jordan will cooperate on sanctions enforcement, including restricting transactions with parties on the US Entity List and OFAC’s SDN and Consolidated Sanctions Lists.
• Jordan will review inbound investment for national security risk in sensitive sectors.
• Jordan must enforce measures against transshipment and other ways of dodging duties.
• If Jordan signs a new trade or digital trade agreement, or buys nuclear materials, from a country that threatens U.S. interests, the US can terminate this agreement.

Commercial Provisions

Jordan must let U.S. companies invest in critical minerals, energy, telecommunications, and infrastructure on terms as favourable as those given to its own investors. Jordan’s state-owned enterprises have to operate on commercial terms and can’t discriminate against US goods and services. Jordan must also drop its special tax on new, unused U.S.-made vehicles that meet the FTA’s rules of origin.

The fact sheet notes several Jordanian commitments:

• Royal Jordanian Airlines purchased six Boeing 787-9 aircraft valued at $1.4 billion and signed leasing agreements for additional aircraft worth $500 million.
• Hikma Pharmaceuticals announced a $1 billion investment in the U.S.
• Jordanian businesses have agreed to purchase over $300 million in U.S. raw materials annually.

Background

The U.S. and Jordan have operated under a Free Trade Area since October 2000. This new agreement adds terms on forced labour, digital trade, customs technology, and national security to that existing framework.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.