On July 21, 2026, the United States and Jordan signed the Agreement on Reciprocal Trade. The Agreement supplements, rather than replaces, the 2001 U.S.–Jordan Free Trade Agreement. It addresses preferential tariff treatment, customs procedures, digital trade, labor and environmental commitments (including a five-year timeline for Jordan to prohibit importation of goods produced by forced or compulsory labor), and related commercial matters.
From our experience with cross-border commercial work, agreements of this type appear clean on paper and become more complex in actual contracts. Several points warrant attention.
First, rules of origin and supply-chain documentation remain central. Preferential treatment continues to depend on the existing FTA rules of origin. Companies exporting from Jordan—particularly in garments, textiles, pharmaceuticals, and light manufacturing—should review documentation systems. Incomplete or inconsistent records can create exposure when preferential claims are examined.
Second, the Agreement reinforces reciprocal market access and contains language supportive of investment in areas such as critical minerals and infrastructure. That creates commercial opportunity, but it also heightens the importance of carefully drafted change-of-law, force majeure, compliance, and dispute-resolution provisions in new or renewed contracts.
Third, dispute resolution deserves deliberate drafting. Jordan’s Arbitration Law is modern and influenced by the UNCITRAL Model Law, and Jordan is a New York Convention state. Many sophisticated parties continue to prefer internationally administered proceedings (ICDR, ICC, or ad hoc under UNCITRAL Rules) with a neutral seat. When preparing contracts connected to increased U.S.–Jordan commercial activity, the arbitration clause should not be treated as boilerplate. Seat, institutional rules, language, and interim-relief provisions all carry practical weight.
Practical drafting points we currently consider:
Consider referencing the 2026 Agreement (and the underlying Free Trade Agreement) where relevant in trade-compliance or governing-law sections.
Attention to supply-chain warranty, audit, and certification provisions.
Address forced-labor and origin-compliance obligations with clear contractual flow-downs.
Select an arbitration seat and institution with a proven New York Convention enforcement record such as the International Center for Dispute Resolution.
Consider digital-trade and data-flow issues where the contract involves services or e-commerce.
The commercial relationship between the United States and Jordan continues to develop. Companies that treat the Agreement solely as a tariff adjustment risk missing important contract and dispute-resolution implications.
We are available to discuss specific contract language or dispute scenarios arising under the new framework. Feel free to reach out.
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