The EU is Jordan's primary commercial partner in terms of total trade volume. It is also the major source of imports to Jordan.
In the year 2000, the EU welcomed Jordan's membership in the World Trade Organisation (WTO) and the integral reforms Jordan undertook to bring its economic policies and trade regime into compliance with WTO agreements, especially in terms of liberating its service sector, providing market access to foreign investors and reducing customs tariffs to reach 20% in 2010 on all but a limited number of goods.
The EU's ultimate objective through the Association Agreement was to foster the establishment of bilateral free trade with Jordan – the first step towards creating a wider regional Euro-Mediterranean free trade area. The agreement laid the foundation for reciprocal tariff liberalisation of trade in industry and agriculture.
Moreover, Jordan is one of four countries to sign the Agadir Agreement, paving the way for stronger economic cooperation between Jordan and neighbouring countries with the ultimate goal of creating an Arab free trade area.
The “advanced status” partnership further expanded the areas of cooperation between Jordan and the EU. It opens up new opportunities in economic and trade relations via a progressive liberalisation in services, the right of establishment and regulatory convergence. It also aims to facilitate market access, and prepare future trade negotiations. The plan also provides for a reinforced cooperation with certain European agencies and programmes.