US embassy cable - 02AMMAN6469

UNCLAS AMMAN 006469 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR NEA/ARN AND EB - BOB BOYNTON 
STATE PASS USTR FOR NED SAUMS AND DOUG BELL 
STATE PASS USAID FOR TOM OLIVER 
USDOC FOR 4520/ITA/MAC/ONE/P.THANOS 
 
E.O. 12958: N/A 
TAGS: KTEX, ETRD, EINV, JO 
SUBJECT: TEXTILE DIVERSIFICATION CHALLENGES IN JORDAN 
 
REF: SECSTATE 160692 
 
Sensitive but unclassified; please protect accordingly. 
 
1. (U) Embassy Econ staff and USAID Jordan have maintained 
an extensive and productive dialogue with Jordan's 
government and private sector along the lines of reftel 
recommendations since the inception of the QIZ initiative 
in 1998.  The GOJ in particular is eager to see Jordan's 
industrial base expand and diversify, recognizing that 
tying too great a percentage of the kingdom's growth and 
employment to one sector would be imprudent. 
 
2. (U) The GOJ, in partnership with key players in Jordan's 
private sector and with the support of the Mission, has 
worked particularly hard over the past ten months to 
maximize the potential benefits of the U.S.-Jordan Free 
Trade Agreement.  As highlighted reftel, JUSBP's Export 
Fast Track Action Plan (EFTAP) has already helped develop 
Jordanian export capacity in a wide range of industries 
including marble and stone, air conditioning units, paper 
products, and cosmetics.  JUSBP is also working actively 
with Jordanian companies in specialty foods, olive oil, and 
grain processing.  That said, Jordan maintains a strong 
interest in sustaining its nascent textile sector in a 
competitive global market through bolstering the sector's 
competitiveness. 
 
3. (SBU) One such mechanism to do so is TRIDE (Trilateral 
Industrial Development), a program utilizing U.S., Israeli, 
and Jordanian funds to jointly develop industrial R&D 
projects.  TRIDE could help Jordanian companies explore and 
develop new technologies.  In fact, two TRIDE success 
stories were the development of an Arabic software program 
and a network management solution. 
 
4. (SBU) The GOJ and private sector are aware of TDA and 
OPIC facilities.  TDA has been utilized here with some 
success, including most recently to carry out a feasibility 
study for an independent power project in the kingdom. 
Jordan's experience with OPIC has been unimpressive to 
date, due in large part to a local management team that 
lacks motivation.  OPIC managers from the U.S. are 
reviewing the program here, and we expect the OPIC facility 
to become more robust in the coming months - a development 
that will be welcome to a Jordanian government keen on 
attracting new investment. 
 
GNEHM