The United States and Jordan signed a new Agreement on Reciprocal Trade on July 21, 2026, supplementing the existing U.S.–Jordan Free Trade Agreement that has been in force since 2001. The new agreement is broader in scope, addressing not only tariffs and goods trade but also digital trade, services, customs administration, forced-labor controls, intellectual property, sanctions, export controls, and investment security.

The agreement is not yet operative. It enters into force 60 days after both governments notify each other that their respective internal procedures — legislative approval, executive ratification, or other domestic requirements — have been completed. Importers, exporters, and investors should not apply the new treatment before formal entry into force.

The agreement establishes U.S. tariff treatment for qualifying Jordanian-origin goods under the agreement's tariff annexes. The specific tariff schedules and product-by-product treatment will be set out in the annexes, which will need to be reviewed against each company's product classifications.

Practice note: Importers and exporters should map their products against the tariff annexes as soon as the annexes are publicly available. Origin certification requirements — the documentation needed to claim preferential tariff treatment — should be reviewed and updated in supply chain contracts and customs compliance procedures. Preferential treatment should not be claimed before formal entry into force.

Jordan will recognize qualifying U.S. standards and conformity-assessment procedures, reducing the need for duplicative testing and certification for U.S. products entering the Jordanian market. This provision is particularly relevant for manufacturers of regulated products — medical devices, food products, industrial equipment — that currently face separate Jordanian certification requirements.

The agreement includes a comprehensive digital trade chapter with the following key protections:

• Cross-border data transfers: Prohibition on measures that restrict the free flow of data across borders, subject to legitimate public policy exceptions.
• No discriminatory digital services taxes: Jordan commits not to impose taxes or levies that discriminate against U.S. digital services providers.
• No forced source-code disclosure: Prohibition on requirements that U.S. companies disclose proprietary source code or algorithms as a condition of market access.
• No customs duties on electronic transmissions: Continuation of the moratorium on customs duties applied to digital content transmitted electronically.

Practice note: U.S. technology companies, software providers, and digital services businesses operating in Jordan should review their existing contracts and market-access arrangements against these new protections. The source-code disclosure prohibition is particularly significant for companies that have faced or anticipated demands for algorithm or software disclosure as a condition of government contracts or regulatory approvals.

Jordan commits to align with U.S. export controls, OFAC restrictions, and investment-security measures. This is a significant provision that extends U.S. regulatory frameworks into the bilateral trade relationship:

• Export controls: Jordan agrees to implement controls consistent with U.S. Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR) for goods, technology, and software of U.S. origin or subject to U.S. jurisdiction.
• OFAC alignment: Jordan commits to respect U.S. sanctions administered by the Office of Foreign Assets Control, including restrictions on transactions with sanctioned parties, countries, and entities.
• Investment security: Jordan aligns with U.S. investment-security measures, including restrictions on foreign investment in sensitive sectors.

Practice note: Companies using Jordan as a transit point, distribution hub, or manufacturing location for goods with U.S.-origin content should review their compliance programs against these new commitments. The OFAC alignment provision means that Jordanian counterparties in U.S.-origin transactions will be expected to screen against U.S. sanctions lists — a requirement that should be reflected in contract representations, warranties, and compliance obligations.

The agreement includes stronger anti-transshipment and duty-evasion controls, addressing the risk that goods from third countries — particularly countries subject to U.S. tariffs or trade restrictions — are routed through Jordan to claim preferential treatment.

The agreement also grants authority to tighten rules of origin where benefits accrue substantially to third-country parties. This is a significant provision for companies that have structured supply chains to route production through Jordan: if the agreement's rules of origin are tightened, existing supply chain structures may no longer qualify for preferential treatment.

Practice note: Companies using Jordan as a regional production hub — particularly those with supply chains involving inputs from countries subject to U.S. tariffs — should conduct a rules-of-origin analysis before relying on the agreement's preferential treatment. Contracts should include change-in-law clauses that address the risk of rules-of-origin tightening.

The agreement provides national-treatment protections for U.S. investment in Jordanian critical minerals, energy, power generation, telecommunications, transport, and infrastructure. These protections are backed by potential EXIM Bank and DFC financing support — making U.S. investment in these sectors potentially eligible for U.S. government financing.

Practice note: U.S. companies and investors considering projects in Jordan's energy, infrastructure, or critical minerals sectors should assess eligibility for EXIM Bank and DFC financing under the agreement. Turkish companies with U.S. subsidiaries or U.S.-domiciled investment vehicles may also be able to access these protections and financing mechanisms for Jordan-based projects.

The U.S.–Jordan agreement has several implications for Turkish companies with regional operations or supply chains that involve Jordan:

Jordan as a regional hub. Some Turkish companies have used Jordan as a regional distribution or manufacturing hub for Middle Eastern markets. The agreement's anti-transshipment provisions and rules-of-origin tightening authority mean that supply chains routed through Jordan to access U.S. preferential treatment should be reviewed for compliance.

Export control alignment. The agreement's export control alignment provision means that Jordanian counterparties in transactions involving U.S.-origin goods or technology will be subject to U.S. export control requirements. Turkish companies that supply U.S.-origin goods or technology to Jordanian customers should review their export control compliance programs.

Digital trade. Turkish technology companies with operations in Jordan that serve U.S. customers or partners should review the digital trade provisions, particularly the data transfer and source-code disclosure protections.

Contract review. Existing contracts involving Jordan — supply agreements, distribution agreements, joint ventures, and investment agreements — should be reviewed for origin certification, customs cooperation, sanctions and export-control representations, transshipment restrictions, data-transfer provisions, and tariff adjustment and change-in-law clauses.

ULF New York advises Turkish companies and investors on U.S. trade law, export controls, OFAC compliance, and cross-border commercial transactions.