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Israel-Jordan Relations: 20-Year Statistics

(February 2015)

Twenty years ago, a peace agreement between Israel and Jordan was signed, which settled the relationship, boundaries and division of resources between the two countries. Following the peace agreement, the borders between the countries were opened, and factories under Israeli ownership were transferred to Jordan, where labor is cheaper.

In 1997, the QIZ Agreement was signed by Israel, Jordan and the US, in order to encourage business collaborations and thus promote the peace process. The agreement contributed to strengthening the political relationship and the trade relations between Israel and Jordan such that in 1998, Israeli exports to Jordan amounted to about USD $25 million, compared to USD $133 million in 2004, an aggregate increase exceeding 400%.

In 2005, free trade agreements were signed between Jordan and the United States. The Jordanian exporters moved from the QIZ framework to the framework of this agreement, while the Israeli exporters were required to face the Jordanian market with equal terms with local and foreign suppliers, without the advantage of the QIZ Agreement. As a result, exports from Israel to Jordan decreased by about 13% from USD $133 million in 2004 to about USD $116 million in 2005.

Based on the data of the Export Institute, the scope of trade (import and export) of Israel with Jordan in 2013 amounted to about USD $366 million, an increase of about 2% compared to the same period the previous year. That year, Jordan was ranked as Israel’s 39th trade partner.

The export of goods from Israel to Jordan amounted in 2013 to about USD $99 million, a decrease of about 36% compared to the same period the previous year. The main decrease occurred in jewelry industry exports. In the first half of 2014, there was an increase of about 16% in the scope of exports, amounting to about USD $56 million. In 2013, Jordan was ranked as the 51st destination for the export of Israeli goods.

Changes in the export in prominent industries during the first half of 2014:

  • In the vehicle industry, aircraft and boating vessels experienced an increase of about 29%, and amounts to about USD $15 million, constituting about 27% of the export.
  • In the agricultural industry, a decrease of about 53% to about USD $6.5 million, constituting about 12% of the export.
  • In the machines and equipment industry, a decrease of about 4% to about USD $4.5 million, constituting about 8% of the export.
  • In the chemicals and refined petroleum industry, an increase of about 13% to about USD $4 million, constituting about 7% of the export.

The import of goods from Israel to Jordan increased in 2013 by about 30% and amounted to about USD $267 million. Jordan constitutes the 30th overall source for the import of goods of Israel. In the first half of the year, the import amounted to about USD $200.3 million, an increase of about 53%.

Changes in the import in prominent industries during the first half of 2014:

  • In the plastic and rubber industry, an increase of about 243% to about USD $77 million and constituting about 38% of the import.
  • In the machines and mechanical devices industry, an increase of about 46% to about USD $47.5 million and constituting about 24% of the import.
  • In the animal and animal products industry, an increase of 430% to about USD $47 million and constituting about 24% of the import.

Source: “Export Institute publishes export data to Jordan over the years,” IMRA (February 25, 2016)