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U.S., Jordan link trade and peace with new agreement. "CNN"

king
Clinton is joined by His Majesty King Abdullah at the White House on Tuesday during the signing ceremony for the free-trade agreement  

October 24, 2000


In this story:

Precedent-setting deal

Important boost for Jordan

Unions, environmentalists praise deal

'Greenest ... deal in years'


 

WASHINGTON -- Though they gathered to celebrate a trade agreement, U.S. President Bill Clinton and His Majesty King Abdullah were talking Tuesday about violence in the Mideast and the need for Israel and Palestinians to "find a way out of confrontation."

"As hard as it may be, there must be an end of the violence, and the Israelis and Palestinians must find a way out of confrontation, back to the path of peaceful dialogue, and they must do it sooner rather than later," Clinton said.

"For in the Middle East, as we have all learned, time does not heal wounds, it simply rubs more salt in them. The issues do not change, they just get harder to resolve."

His Majesty, The youthful King Abdullah, quoting his father, the late King Hussein, echoed that thought: "We have no right to dictate, through irresponsible action or narrow-mindedness, the future of our children, and our children's children. There has been enough destruction, enough death, enough waste."

Clinton said free trade contributes to peace, and that the agreement between the two countries "will be good for the United States, good for Jordan, good for the long-term prospects for peace in the Middle East."

  • Precedent-setting deal

The United States and Jordan reached agreement Tuesday on the free-trade deal, a precedent-setting plan that for the first time would protect labor rights and environmental standards, long a goal of two major Democratic constituencies.

signing
Halaykah signs the agreement with Barshefsky as His Majesty King Abdullah and Clinton look on  

"It is a good and important agreement," Clinton said.

The agreement will remove all trade barriers between the two nations over the next 10 years. It is only the fourth such pact the United States has with other countries. The others are with Canada, Mexico and Israel.

U.S. Trade Representative Charlene Barshefsky and Jordan's Deputy Prime Minister Mohammad Halaykah signed the pact.

Congress must approve the agreement before it takes effect, but its fate is uncertain given Republican opposition to linking trade with labor and the environment. The Clinton administration said the pact will not be sent to Congress for approval until next year.

The negotiations, which began only this year, were completed in record time for such significant issues because of the personal interests of both Clinton and His Majesty King Abdullah.

  • Important boost for Jordan

Speaking in the East Room at the White House, His Majesty the king said: "I am proud to be here to represent the men and women of Jordan, who have chosen partnership, commitment and determination as the way forward to realize their dreams and to fulfill the vision of their future."

The agreement to eliminate all barriers to trade between the two nations was seen as having little economic impact in the United States because the volume of trade is so small. But it could give an important boost to Jordan's struggling economy by encouraging investment from firms seeking export opportunities to the United States.

The United States imported just $31 million from Jordan last year, mainly shipments of jewelry, men's coats and works of art and antiquities.

The United States exported $275.6 million to Jordan in 1999, the largest sales being for aircraft, followed by farm goods such as wheat, vegetable oils, rice, tobacco and maize.

Abdullah has made reform of Jordan's economy a main goal since he took over leadership after the February 1999 death of his father.

"The establishment of a free trade area between our two countries contributes to the strengthening of the economy of Jordan, thus enhancing the prospects of regional stability," he said. "We shall continue to pursue our cherished goal of peace in our region. For us, it is the only future."

  • Unions, environmentalists praise deal

Labor unions and environmental groups praised the labor and environmental safeguards in the Jordan deal as a small but important first step.

Anti-globalization forces have charged that by ignoring those considerations, trade agreements encourage a race to the bottom in which poor countries follow lax standards as a way to attract manufacturing jobs away from the United States and other developed countries.

AFL-CIO President John Sweeney called the U.S.-Jordan agreement "a small step toward our ultimate goal of making workers' rights and environmental protections an integral part of universally applied trade rules."

  • 'Greenest ... deal in years'

"This is the greenest trade deal in years," said David Schorr, an official with the World Wildlife Fund.

Many GOP lawmakers and their supporters in business, however, see inclusion of labor and environmental provisions in trade deals as a diversion from the primary goal of tearing down trade barriers to boost economic growth.

Franklin Vargo, a vice president at the National Association of Manufacturers, said trade deals should be used "to expand trade. When other provisions are put in, that gives us cause for concern."

 

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