What Does A Free Trade Agreement Mean

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The United States (U.S.) and Jordan launched negotiations to get a free trade agreement in 2000. Several reasons explain the U.S. need to negotiate a complimentary trade agreement with Jordan. The failed WTO Ministerial Conference in 1999 led U.S. trade officials to research the possibilities for just a free trade agreement that will include certain provisions which are resisted on the multilateral trading level. Moreover, the U.S. and Jordan had already signed a trade and investment framework in 1999, and that is usually a precursor for just a FTA.

The US-JO FTA features a preamble, nineteen articles, three annexes, joint statements, memorandums of understanding, and side letters. In addition for the interesting articles on labor and environment, the US-JO FTA affords the opportunity for Jordanian nationals to find the U.S. to create investments and take part in trade. Under certain conditions, Jordanian nationals can get into the U.S. to render professional services.

The US-JO FTA permits entry of nationals of merely one party from the territory in the other. From the outset, it is vital to distinguish between migration as well as the ability of Jordanians to enter into the U.S. to generate investments and be involved in trade. Jordanian nationals are certainly not allowed permanent resident status, however they are only due to the opportunity to buy a visa with a temporary basis or “non-immigrant” status. This status necessitates that the visa beneficiary go back to Jordan after his temporary stay expires.

The US-JO FTA allows nationals of Jordan to enter into the U.S. to transport solely “substantial trade”, including trade in services and technology. The yardstick inside the FTA is “substantial trade”. Article 8 doesn’t specify what constitutes “substantial trade”. For example, should a Jordanian trader be major exporter on the U.S to become eligible for entry? Or the U.S is obliged, be subject to its laws on entry, allowing Jordan’s traders entry into its territory for attending a trade fair or partnering with U.S firms.

In effect, the words of article 8 with the US-JO FTA is utilized by the Immigration and Naturalization Service (INS), now often known as Bureau of Citizenship and Immigration Service inside Department of Homeland Security, plus the U.S Department of State regulations. The Department of State regulations define a treaty trader just as one alien, classifiable being a nonimmigrant treaty trader (E-1), who will be inside U.S solely to transport on trade of the “substantial nature” either around the alien’s behalf or being an employee of your foreign person or organization engaged in trade, “principally” between your U.S and also the foreign state that the alien is really a national. This language is identical on the language of article 8.1 in the US-JO FTA. The regulations on the Department of State reads that consideration being given to your conditions from the country ones the alien is usually a national which can affect the alien’s ability to handle on such substantial trade. Moreover, the alien must prove that they intends to depart the U.S following the termination of E-1 status.

Although US-JO FTA isn’t going to define the word “substantial trade”, the Department of State regulations define it as a the quantum of trade “sufficient” to make certain a continuous flow of trade items relating to the U.S plus the treaty country. Continuous flow contemplates numerous exchanges after a while rather than a single transaction, regardless from the monetary value. The U.S regulation considers monetary value for an important factor. However, greater weight is offered to more numerous exchanges of larger value. Therefore, Department of State regulations tend not to specify a defined monetary value of substantial trade, for instance $100,000, being a benchmark that will qualify a Jordanian trader as qualified to apply for E-1 visa.

Rather, Department of State regulations leave it for the U.S Consular Office in Jordan the flexibleness of determining “substantial trade” that may qualify Jordanian nationals of for E-1 visa. This conclusion is based on the fact that the regulations from the Department of State itself read that consideration being given to your conditions inside country ones the alien is really a national that might affect the alien’s ability to hold on such substantial trade. In other words, the U.S Consular Office must take into account the conditions prevalent in Jordan when researching a petition for E-1 visa. Thus, the idea of “substantial trade are going to be evaluated on the case-by-case basis.

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