Jordan and the World Trading System

Table of Contents

CHAPTER I. ISLAMIC LAW AND INTERNATIONAL TRADE

I. Links to the Past

A. Sources of Law in Islam

II. The Role of Islamic State

A. The Administration of Tariffs in the Early Islamic State

B. Market Agents and Forces in Islam

III. Limitations on Free Trade in Islamic Law

IV. Ibn Khaldun and the Theory of Commercial Policy

Conclusion

CHAPTER II. ARAB COUNTRIES AND THE WORLD TRADING ORGANIZATION

I. History of International Trade in Arab Countries

II. Lebanon and Syria in GATT 1947

III. Arab Countries and UNCTAD and WTO

IV. The Uruguay Round

V. The League of Arab States and the Boycott to Israel

VI. Arab countries Accession to the WTO: Playground of Politics

VII. WTO Technical Assistance and Arab Countries

VIII. The Venue of the Fourth WTO Ministerial Conference: Qatar (2001)

IX. Trade Patterns of Arab Countries

X. The Impact of the International Trading System on Arab Countries

A. Agriculture

B. State-Owned Enterprises

C. International Trade in Oil

XI. Data on the Application of Arab countries of Selected WTO Provisions

XII. Representations in the WTO and Delegations of Arab Countries

XIII. Arab Public Opinion and the WTO

XIV. Arab Countries Regional Trade Initiatives

Conclusion

CHAPTER III. JORDAN BID FOR ACCESSION TO THE WTO

I. General Background

II. Characteristics of the Jordanian Economy

III. Economic Reform

IV. International Trade Regulation in Jordan

Conclusion

V. Jordan: The Process of Accession to the WTO

VI. Protocol of Accession and WTO Commitments

A. Market Access in Goods

1. Tariff Reduction

2. Agriculture

3. Trade Remedy Laws

4. Customs Law

4.1 Tariff Classification and Valuation

4.2 The Harmonized Tariff Schedule of Jordan

5. Pre-Shipment Inspection

B. Market Access in Services

C. Protection of Intellectual Property in Jordan

1. Copyright Law

1.1 Exclusive Rights

1.2 Moral Rights

1.3 Exceptions

1.4 Copyright Term

1.5 Remedies

2. Trademarks

2.1 Well Known Marks

2.2 Parallel Importation

3. Patents

3.1 Compulsory Licensing

3.2 The Jordanian Pharmaceutical Industry and the TRIPs Agreement

4. Enforcement of Intellectual Property Rights

D. Commitments of Jordan in Relation to Transparency

E. Other Selected Commitments

Conclusion

CHAPTER IV. The U.S.-Jordan Free Trade Agreement

I. The US-JO FTA: Introduction

II. The Terms of the US-JO FTA

A. Trade in Goods

B. Trade in Services

C. TRIPs-Plus commitments in the US-JO FTA

1. Trademarks and Geographical Indications

2. Copyright and Related Rights

3. Patents

4. Data Exclusivity and Pharmaceuticals

5. Enforcement of Intellectual Property Rights

6. General observations

D. Balance of Payments

E. The US-JO FTA and Electronic Commerce

F. Visa Obligations in the US-JO FTA

G. Government Procurement

H. Trade Remedy Measures of the US-JO FTA

I. Rules of Origin in the US-JO FTA

J. Consultations and Dispute Settlement Mechanism

1. The Joint Committee of the FTA

2. Consultations

3. Standard of Review

4. Establishment of a Panel and its Procedures

K. General and Security Exceptions under the US-JO FTA

L. Miscellaneous Articles of the US-JO FTA

III. Implementations and Expectations

Conclusion

IV. The Social Clause of the U.S.-Jordan Free Trade Agreement

A. Environmental Protection and the US-JO FTA

B. Labor Protection and the US-JO FTA

Conclusion

Research Objective and Core Topics

This dissertation examines the implications of the international trading system for Arab countries, utilizing Jordan’s accession to the WTO and its bilateral Free Trade Agreement (FTA) with the United States as a primary case study. The work seeks to determine whether multilateral engagement via the WTO or bilateral agreements with economic powers offer a more favorable path for Arab nations to preserve their rights and promote their economic development, arguing that Arab countries are often disadvantaged in bilateral deals.

• Analysis of the relationship between Islamic law, economics, and international trade principles.
• Evaluation of the obstacles and political dynamics facing Arab countries in their WTO accession process.
• A detailed critique of the commitments Jordan undertook for WTO membership and the subsequent legal and administrative adjustments required.
• A comprehensive assessment of the U.S.-Jordan Free Trade Agreement, focusing on TRIPs-Plus provisions, labor, and environmental clauses.
• Recommendations for Arab countries to better leverage multilateral trading systems and improve their negotiation and representation capabilities.

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Summary of Chapters

CHAPTER I. ISLAMIC LAW AND INTERNATIONAL TRADE: This chapter analyzes the historical and religious foundations of trade within Islamic law, arguing that while Islam is fundamentally inclined toward free trade, it maintains specific ethical and religious boundaries.

CHAPTER II. ARAB COUNTRIES AND THE WORLD TRADING ORGANIZATION: This chapter explores the engagement of Arab nations with the WTO, highlighting challenges in integration, the impact of regional politics, and the relative lack of active participation in multilateral trade negotiations.

CHAPTER III. JORDAN BID FOR ACCESSION TO THE WTO: This chapter provides a detailed case study of Jordan’s process for joining the WTO, analyzing the legislative and regulatory commitments required, the domestic institutional framework, and the implications of its accession for the national economy.

CHAPTER IV. The U.S.-Jordan Free Trade Agreement: This chapter scrutinizes the U.S.-Jordan FTA, assessing its terms, its impact on different sectors, and its role as a potential model or cautionary tale for other Arab countries pursuing similar bilateral trade deals.

Keywords

World Trade Organization, WTO, Arab Countries, Jordan, Free Trade Agreement, Islamic Law, Shari’a, International Trade, Intellectual Property, TRIPs, Globalization, Trade Policy, U.S.-Jordan FTA, Economic Development, Market Access

Frequently Asked Questions

What is the core focus of this dissertation?

The work focuses on the integration of Arab countries into the international trading system, specifically comparing the merits of multilateral engagement through the WTO against the trade-offs involved in bilateral free trade agreements, with Jordan serving as the central case study.

Which countries are primary subjects of this study?

While the study aims to offer insights for all Arab countries, it uses Jordan as a detailed case study, while also providing analysis on Egypt, Saudi Arabia, Syria, and Libya regarding their WTO accession efforts or trade relations.

What is the author's primary thesis regarding WTO accession?

The author argues that while the WTO system is not perfect, it generally offers Arab countries better opportunities to protect their rights and interests compared to bilateral trade agreements with global economic powers like the U.S., where asymmetrical power dynamics often lead to unfavorable terms for developing nations.

What methodology is employed to analyze these trade issues?

The research adopts an interdisciplinary approach, drawing from religion, "naked economics," and domestic and international law to provide a comprehensive legal-economic analysis of international trade in the Arab region.

What issues does the author highlight regarding the U.S.-Jordan Free Trade Agreement?

The author criticizes the agreement as a "cut and paste" contract that favors U.S. laws, arguing that Jordan acted as a "rule-taker" rather than a "rule-maker" and that the FTA imposes onerous commitments in areas like intellectual property and services.

How is the relationship between Islamic law and free trade defined in the work?

The author suggests that Islamic law is fundamentally inclined toward free trade, emphasizing mutual consent and fair dealing, but it imposes moral and religious limitations on certain types of trade, such as usury (riba) and the sale of forbidden goods.

How does the author characterize the impact of "TRIPs-Plus" provisions?

The author views "TRIPs-Plus" provisions in the U.S.-Jordan FTA as an "Americanization" of Jordan's intellectual property regime, which effectively extends monopoly rights for pharmaceutical originators and creates potential barriers for access to affordable generic medicines.

What is the author's assessment of Jordan's legal capacity to handle WTO commitments?

The author notes that Jordan's institutions, including the Customs Department and ministries, have undergone significant overhauls to align with WTO rules, but warns that Jordan faces continued challenges regarding human resource constraints, high costs of compliance, and a lack of depth in local legal expertise regarding trade law.

Why does the author advocate for an "Inter-Arab Academy for International Trade Law"?

The author proposes this institution to address the current dearth of specialized expertise within Arab nations, aiming to build local human capital so that Arab delegations can effectively defend their interests in WTO proceedings and negotiations without sole reliance on costly foreign legal services.