U.S - Jordanian - Israeli Trilateral Economic Committee
SUMMARY REPORT
Dead Sea Spa Hotel, Jordan, July 20 -21, 1994
The fifth meeting of the U.S. - Jordanian - Israeli Trilateral Economic
Committee was held at the Dead Sea Hotel in Jordan, July 20-21, 1994. The
committee met in plenary, led by Secretary of State Christopher, Foreign
Minister Peres, and Prime Minister Majali. This historic occasion marked
the first public meeting of Israeli and Jordanian officials in the region.
The committee met in plenary and then convened in four groups: Trade,
Finance, and Banking , Jordan Valley Cooperative projects, Civil Aviation
and Tourism. Following is the summary report:
Group I - Trade , Finance, and Banking
With the vision of realizing a new era of common prosperity, Jordan and
Israel have agreed on the importance of establishing a set of common
principles to guide future trade relations between their countries, and
ultimately within the region. The parties exchanged papers which outline
their concerns in this area and provided a first draft of relevant
principles. Discussions resulted in substantial agreement on a number of
principles, which are intended, in the context of a peace treaty, to guide
trade between the two countries. The eventual goal of the two parties is
the achievement of free trade in goods and services between their
countries and within the region.
1. The development of trade and economic relationships should be mutually
beneficial and supportive of the economic development of the two
countries.
2. Trade between Jordan and Israel should be based upon
most-favored-nation treatment. The two countries will eventually enter
into a trade arrangement in accordance with GATT (WTO) rules.
3. Trade liberalization between the two countries should proceed in
phases. The mutual reduction of trade barriers between the two countries
may proceed at differential rates, taking into consideration their
different levels of development and economic structures. The two parties
will negotiate the possible acceleration of beneficial treatment for
Jordanian goods entering Israel beyond Israel's scheduled unilateral trade
liberalization. Israeli goods entering Jordan would be subject to
Jordanian import policies, with the aim of early application of MFN
principles. In the context of a trade arrangement between the two
countries, Israel will refrain from invoking administrative measures to
the extent possible. Negotiations would also address Jordanian concerns
regarding the possible negative impact of Israeli administrative measures,
such as product standards, on Jordanian exports to Israel.
4. In accordance with GATT (WTO), special provision, including
anti-dumping and countervailing duty measures, should be included and
enforced to help ensure fair competition among producers. Restrictions on
grounds of public morality, public security, public health, and similar
public policy reasons will also be allowed, in accordance with GATT (WTO).
Israel asked for the need for special safeguards may be addressed in the
context of a possible trade agreement; Jordan took note.
5. The countries will cooperate in promotional and marketing channels.
They will also cooperate to facilitate the transit and re-export of goods
to third country markets and to ensure the efficient use of trade related
infrastructure in both countries.
6. Opportunities for collaboration will be given special attention,
including possibilities for processing and marketing mineral resources
common to both countries.
7. The two countries will cooperate to ensure the broadest possible
sharing of technology and scientific research. They also agree on the
importance of according international standards of protection of
intellectual property rights.
8. The two countries agree on the desirability of promoting trade with
and the economic expansion of the West Bank and Gaza Strip. Jordan
requested the Israeli delegation to work promptly on expediting Jordanian
access to the West Bank and Gaza Strip. Toward this end, Jordan presented
a list of goods which it would like to be considered for inclusion in List
A of the Cairo protocol to the DOP. Israel took note of this request and
the importance of this issue to Jordan, but indicated that its ability to
make positive statements of its approach was constrained by the nature of
the Cairo protocol, i.e., that requests for changes must originate with
the Palestinians. In recognition of the importance of this issue, the two
countries agreed to invite the Palestinians to participate in trilateral
discussions among Jordan, Israel, and the Palestinians, with their first
meeting intended to take place before August 1, 1994.
9. The two countries will continue their efforts to promote regional
economic cooperation, and eventually the consideration of a regional trade
agreement consistent with GATT (WTO).
Finance and Banking
1. The parties had positive discussions concerning issues raised in
implementing the Jordan-Israel memorandum of understanding (MOU) on
banking. The two countries agreed to amend the MOU to include the opening,
operation and supervision of banking subsidiaries of Jordanian banks in
the West Bank.
They expressed appreciation for the positive experience of the branches of
Jordanian banks which have already reopened. Israel reported the approval
of a new license to open a branch of another Jordanian bank, to be
announced next week.
2. The two countries had useful discussions about sharing information on
the Agricultural Credit Cooperative (ACC) loans.
3. Israel reaffirmed its willingness to keep Jordan informed on
developments concerning introduction of a Palestinian currency.
Group II - Cooperative Projects
A) The Jordan Rift Valley
The subgroup on the Jordan Rift Valley (JRV) agreed to have studies
conducted for the preparation of a master plan for the integrated
development of the JRV including a canal linking the Red Sea to the Dead
Sea.
The two parties agreed that projects to be included are in the sectors
of water and irrigated agriculture, energy, environment, transport,
specialized industries, tourism, communications and human resources
development.
A unified planning document has been produced by the U.S. delegation
based on the position papers forwarded to it by Jordan and Israel. The two
parties agreed that a committee be formed to follow up on the integrated
development of the Jordan Rift Valley, and to hold for it an
intersessional meeting for purposes of:
a- Finalizing the planning document.
b- Finalizing Terms of Reference for consulting services to prepare
the Master Plan.
The intersessional meeting was agreed to take place in Washington D.C.
in August/September 1994.
The two parties also agreed to form subcommittees as needed to follow
up on certain aspects of the JRV development. Examples are subcommittees
on binational parks, and another on water, energy and the environment. The
subcommittees will be entrusted with supporting the planning efforts of
the JRV development committee.
B) Binational Parks
Within the context of the integrated development of the Jordan Rift
Valley, the parties agreed to:
1- Form a technical trilateral subcommittee to follow up the preparations
for the establishment of a binational park in the Jordan Rift Valley, and
the requirements for its development and operations.
2- The binational park is to balance the requirements of environmental
protection, tourism and other beneficial uses.
3- The subcommittee may also consider other areas of cooperation along
the common frontiers to promote tourism and environmental protection, such
areas as attractive natural and man made assets. including the Marine park
and Reserve Unit in the vicinity of Aqaba/ Eilat integrated development
scheme.
4- Accept the invitation of the United States to host within the context
of the subcommittee members for a late August - early September study tour
of select U.S. National Parks and prepare their report for the Action Plan
prior to September 30, 1994 for further transfrontier and Binational parks
collaboration.
C) Tourism
The parties agreed to facilitate the passage of tourists who are third
country nationals across borders in both directions . With this in view,
the parties agreed to move to open a crossing point in the Eilat-Aqaba
area for tourists who are third country nationals as soon as possible. The
parties agreed that this initiative will be undertaken in conjunction with
mutual efforts to assure that both countries benefit through
longer-duration tourism. These joint efforts will include cooperation in
marketing and managing package tours combining multiple sites in Israel
and Jordan. The parties agreed:
- On the need to preserve the natural and historic environment as a
heritage for future generations, in particular, sites which may be
threatened by excessive tourism traffic.
- To focus due attention to the development of historic, cultural,
religious and nature sites.
- To joint planning/promotion of tourism at therapeutic and
recreational sites including the Dead Sea and the Red Sea.
- On the need for cooperation in developing tourism infrastructure.
- On the value of joint marketing efforts, including joint
"familiarization visit" invitations to travel agencies, tour operators and
the media.
- To examine the U.S. - Israel tourism agreement with the possibility
of including Jordan at a future time.
The U.S. provided a draft Jordan - Israel Tourism agreement to be
reviewed by both parties.
To advance these and other objectives, the parties agreed to establish
a Tourism Committee (TC) to guide and review the work of four
Jordan-Israel working groups as follows:
1- A working group to develop a regional tourism master plan.
2- A working group to facilitate the free movement of third country
tourists.
3- A working group for marketing and promotion.
4- A working group to develop plans for the Red Sea Riviera in
conjunction with discussions already underway between Israel and
Egypt.
The parties agreed that the TC and the working groups will include
private sector representatives and that each working group will meet at
least once before November, 1994.
The parties agreed that tourism considerations are an important
dimension in the development of regional parks such as the proposed
underwater park in the Red Sea and a "lowest point on earth" park in the
Dead Sea Area.
The parties agreed to establish a Trilateral Tourism Commission (TTC)
to follow up on a temporary basis the activities of the TC and its working
groups, providing guidance as necessary. The first meeting of the
Trilateral Tourism Commission will take place in late November.
The parties agreed to study the potential for cooperation in tourism
with the Palestinian Authority.
D) The Road Project
1. In the context of the Jordan Valley Regional master plan, the parties
agree to initiate a feasibility study for the proposed road linking
Jordan and Israel at the Rift Valley in the general vicinity of Aqaba
and Eilat. The study will address the following:
1.1. Validate the proposed road function as stated in the meeting
summary of the Trilateral meeting held in Washington, D.C., on
June 6-7, 1994.
1.2. Local community and area master plans.
1.3. The study should address how the proposed road will be made as a
part of the Rift Valley Social, Economic and Environmental Master
Plan.
1.4. The study shall take into consideration the national and regional
transportation plans.
1.5. The study shall propose options on how the road should be
financed.
2. Before the construction of the road, both parties will consider the
next operative steps in accordance with the agreements between them,
including the subject of the borders and any other issues.
3. The parties agree to establish a working group to define the technical
parameters of the project. The group shall:
3.1. Define the terms of reference for the feasibility study.
3.2. Conduct visits and technical meetings.
3.3. Develop an agreement for defining the responsibilities for
execution of the project design and construction.
3.4. The working group will establish a time table for all phases of
the project.
4. The working group shall meet August/September, 1994, to mutually
approve terms of reference for the feasibility study.
4.1. The feasibility study will be completed before the end of 1994.
5. The parties agree to seek financial assistance for the road project
from the United States Government.
6. The target date for the start of construction shall be in the year
1995.
Group III - Civil Aviation
The parties agree to establish a working group for the purpose of
deciding the actions necessary to develop and implement a cooperative
civil aviation arrangement on a reciprocal basis between the two parties.
Action to establish the working group will be taken immediately.
Agreement on the following issues is necessary to determine the
actions required for implementation. Discussions will begin immediately
and agreement will be reached by 20 Oct. 94.
1. Flyover Rights.
2. Airspace Utilization Methods, such as Air Corridors.
3. Air Traffic Services.
4. Communications.
5. Civil Aviation Security Requirements.
The following items will be discussed by the group in the normal
evolution of cooperation between the two parties.
1. FIR Boundaries.
2. UIR Configuration and Operation.
3. Flight Corridors.
4. Coordination/Modernization and Operations of Navigation /
Communications / Landing Facilities.
5. Meteorological Services.
6. Search and Rescue.
7. Eilat and Aqaba Airport Complex.
8. Special, Non-Commercial Flights.
9. Implementation of GNSS, CNS/ATM.
10. Third Country Participation.
The Parties will consider the possibilities of a Bilateral Agreement
in due time.