Thank you, Mr. Chairman and members of the committee, for the opportunity to speak today.
My name is Barbara Martin. I am the director general of the Middle East and Maghreb bureau of the Department of Foreign Affairs and International Trade.
Today I'll provide you with some information on Jordan's economy, and on Canada's bilateral and commercial relations with Jordan.
As one of the smallest economies in the Middle East, Jordan is a lower-middle-income country with a young population. It faces certain structural challenges, including limited water, oil, and agricultural land, as well as chronic high rates of poverty, unemployment, inflation, and a large budget deficit. Reducing poverty and increasing employment opportunities will be crucial to Jordan's long-term stability.
The global economic slowdown has depressed Jordan's GDP growth. Although growth rates were in excess of 7.5% from 2006 to 2008, growth fell to 2.3% in 2009, and 3.1% in 2010. Export-oriented sectors such as manufacturing, mining, and the transport of re-exports have been hit the hardest, although Jordan's financial sector has been relatively isolated from the international financial crisis.
Since assuming the throne in 1999, King Abdullah has implemented significant economic reforms, such as opening the trade regime by becoming a WTO member and further opening markets to imported goods and services, privatizing state-owned companies, and eliminating most fuel subsidies.
Over the past few years these reforms have encouraged economic growth by attracting foreign investment and creating some jobs. The government's privatization efforts in the industrial, telecommunications, and transport sectors have opened up industries such as potash, phosphates, and telecoms. Jordan has several free trade agreements in effect with other countries, including the U.S.
Canada and Jordan have enjoyed solid bilateral relations for many decades, based on shared interests and values, and people-to-people links that include approximately 7,000 Canadians with Jordanian ancestry. As a moderate Arab state with a constructive foreign policy, Jordan is a natural partner for Canada and an effective interlocutor on issues of concern to the Arab world.
In the context of the Arab Awakening, Canada commends Jordan’s commitment to peaceful reform and development, and we are encouraging the government to continue implementing the political reforms that respond to the needs of citizens, and economic reforms that will underpin growth and job creation.
For Canada, Jordan presents a small but stable and transparent market. Its rising importance as a regional shipping and transportation hub have made it increasingly interesting to Canadian companies. Jordan is already a key market for numerous Canadian businesses and producers. For example, the Potash Corporation of Saskatchewan is a major investor through its partnership with Arab Potash Company. Canadian companies such as Research in Motion, Bombardier, SNC-Lavalin, Four Seasons Hotels, Second Cup coffee shops and many others are active in Jordan.
Our close relationship with Jordan is also exemplified through strategic assistance provided by the Canadian International Development Agency. Canada has become a leader in international support to Jordan's education and skills for employment sectors, with annual bilateral disbursements averaging $7 million. This bodes well for a more knowledge-based economy and greater potential to do business with Canada.
The Canada-Jordan free trade agreement, along with related agreements on labour cooperation and the environment, was signed in June 2009 by the Honourable Stockwell Day, former Minister of International Trade, and his Jordanian counterpart. The Jordanian government has since announced that they have completed ratification of all these agreements. Once Canadian legislation to implement the agreement is passed and receives royal assent, the Canadian government will work with Jordan to implement the agreements as soon as possible.
The Canada-Jordan FTA is a win-win proposition for workers and businesses in both countries. It's a catalyst for increased business operations and expanded two-way trade, and it will contribute to improving relations with a number of our key partners in the Middle East.
I would like to thank the committee for the opportunity to speak, and I would be pleased to answer questions.