US embassy cable - 04AMMAN3645

UNCLAS AMMAN 003645 
 
SIPDIS 
 
PASS TO USTR - E. SAUMS 
 
E.O. 12958: N/A 
TAGS: ETRD, ECON, JO 
SUBJECT: JORDAN'S EXPORTS THRIVE;  U.S. IS NUMBER ONE TRADE 
PARTNER 
 
 
1.  Jordan's exports continued to surge ahead in the first 
quarter of 2004, totaling 615.1 million Jordanian Dinars (JD) 
or about USD 860 million, according to a Ministry of Finance 
publication confirmed by the Department of Statistics (DOS). 
Of the total, about USD 140 million was in re-exports (almost 
finished goods for which the value added in Jordan was at 
least 40 percent, typically including consumer goods such as 
cigarettes and alcohol packaged here).  Exports grew 29 
percent, compared to the first quarter last year. 
 
2.  Jordan's exports to the United States totaled USD 208 
million in the first quarter, a strong showing pointing to 
another record-breaking year.  These were largely garments 
(over 90 percent) and jewelry (about 7 percent).  Exports to 
the U.S. accounted for 29 percent of all Jordanian exports, 
making the U.S. Jordan's number one trading partner. 
 
3.  First-quarter imports from the U.S. were pegged at USD 
123 million according to the DOS, the strongest showing in 
the last five years, and a quantum leap compared to last year 
when pre-war jitters were believed to slow imports, to about 
USD 77 million.  Imports from the U.S., which accounted for 
about 7 percent of all imports into Jordan for the period, 
included items such as electric/electronic equipment, 
machinery, aircraft parts, and agricultural products, 
particularly cereals and fats/oils. 
 
4.  Jordan posted a trade balance deficit of over USD 700 
million in the first quarter, a 36 percent increase over the 
same period last year, according to the Ministry of Finance. 
(COMMENT:  So far, there has been no indication of official 
worries about this figure.  Nonetheless, since most 
manufacturing equipment and raw inputs for exports that are 
brought into the country are not considered "imports", this 
figure bears watching over the course of the year.) 
GNEHM