The Free Trade Agreement (FTA) with the United States that went into effect in December 2001 will phase out duties on nearly all goods and services by 2010. The agreement also provides for more open markets in communications, construction, finance, health, transportation, and services, as well as strict application of international standards for the protection of intellectual property. In 1996, Jordan and the United States signed a civil aviation agreement that provides for "open skies" between the two countries, and a U.S.-Jordan treaty for the protection and encouragement of bilateral investment entered into force in 2003. Jordan has been a member of the World Trade Organization since 2000. More information on the FTA is available on www.jordanusfta.com .

Jordan is classified by the World Bank as a "lower middle income country." The per capita GDP, as reported by the Government of Jordan, was $2,164 for 2004, and 13.4% of the economically active population was unemployed at the end of 2004. Education and literacy rates and measures of social well-being are relatively high compared to other countries with similar incomes. Jordan's population growth rate is high, but has declined in recent years, to approximately 2.2% currently according to the 2004 census preliminary results. One of the most important factors in the governmentís efforts to improve the well-being of its citizens is the macroeconomic stability that has been achieved since the 1990s. Rates of price inflation are expected to increase (the increase in CPI averaged 3.4% for 2004), and the currency has been stable with an exchange rate fixed to the U.S. dollar since 1995.

While pursuing economic reform and increased trade, Jordan's economy will continue to be vulnerable to external shocks and regional unrest. Without calm in the region, economic growth seems destined to stay below its potential.