The Jordanian Free Trade Agreement (FTA) was signed on 24 October 2000. It will enter into force as America`s third free trade agreement and the first with an Arab state. The free trade agreement is the cornerstone of growing U.S.-Jordanian cooperation in economic relations, initiated by close bilateral cooperation during Jordan`s accession to the World Trade Organization (WTO), followed by the conclusion of a framework agreement on trade and investment and a bilateral investment agreement. The free trade agreement serves as an example to Jordan`s neighbours for the benefits of peace and economic reforms. Jordan has become a “clothing magnet” as U.S. companies such as Wal-Mart, Target and Hanes have set up factories to reduce costs by eliminating tariffs. In the first year, Jordan increased its exports by 213% and created 30,000 jobs. Until 2002, Jordan had a marginal trade surplus with the United States.  Five years after the free trade agreement came into force, Jordan`s exports to the United States had increased twenty-fold; Jordan`s clothing exports to the United States totaled $1.2 billion in 2005.  Most Jordanian exports to the United States come from one in 114 companies.  The agreement also contains trade-related environmental and labour provisions.
These provisions will not require either country to adopt new labour or environmental laws, and each country reserves the right to set and amend its own labour and environmental standards. As part of the agreement, both countries reaffirm the importance of not renouncing or revoking their labour or environmental laws in order to promote trade and are committed to effectively enforcing their domestic labour and environmental laws. Unlike many trade agreements, the U.S.-Jordan Free Trade Agreement has received broad, bipartisan and multi-sector support. Supporters have referred to the removal of tariffs and other trade barriers as a blessing for exports.  At the last Joint Committee meeting in May 2016, the United States and Jordan discussed labour, agriculture, including current technical barriers to trade, the adoption of the World Trade Organization (WTO) Trade Facilitation Agreement and adherence to the WTO Public Procurement Agreement. The parties opened a dialogue to outline concrete measures to promote bilateral trade and investment, as well as between Jordan and other Middle Eastern countries. Following the meetings, the issue of authorizing the importation of poultry from the United States was resolved to allow the importation of American poultry into Jordan. In 2017, $8 million in poultry imports were exported to Jordan.
The U.S.-Jordan Free Trade Agreement came into force on December 17, 2001. Finally, the free trade agreement will remove tariffs and barriers to bilateral trade in goods and services originating in the United States and Jordan. The free trade agreement contains – for the first time in the text of a trade agreement – provisions on trade and the environment (Article 5), trade and labour (Article 6) and e-commerce (Article 7). Other provisions relate to the protection of intellectual property rights (Article 4), the balance of payments (Article 11), rules of origin (Article 14), safeguards (Article 10) and procedural issues (Articles 16 and 17). Since the United States has already concluded a bilateral investment agreement with Jordan, the free trade agreement does not contain an investment chapter.