Amman - A government's decision to freeze a planned reduction in customs duties for goods in the 25% tariff bracket has been welcomed by industrial leaders as a key measure to protect domestic manufacturers from increased competition posed by imports.
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The move, effective from the start of 2025, is part of a wider effort to safeguard local production amid global market pressures.
The freeze, approved by the Cabinet, halts a January 2022 decision to reduce tariffs on certain imported goods, including food products, engineering materials, and construction supplies.
Industrial representatives argue that the freeze is crucial for protecting the local market from being flooded by cheaper imported goods, especially those that have domestic equivalents.
Eyad Abu Haltam, President of the East Amman Industrial Association, described the freeze as a much-needed protective measure for the national economy.
He pointed out that the policy supports local manufacturers by allowing them to maintain market share and avoid direct competition with foreign imports, particularly those from countries without trade agreements with Jordan.
"This decision reinforces confidence in local industry and will help manufacturers to continue expanding, investing in modern technology, and creating jobs for Jordanians," said Abu Haltam.
He emphasized that the move aligns with the broader objectives of Jordan's Economic Modernisation Vision.
The initial 2022 decision had aimed to reduce the number of tariff categories from 11 to four, with the maximum rate set at 25%. This was intended to streamline the customs regime, but industry players had voiced concerns about the potential for increased import competition.
The freeze delays further reductions that would have seen the maximum tariff fall to 20% in 2025, followed by a further drop to three categories by 2027.
Mohammed Al-Jitan, Deputy Chairman of the Jordan Chamber of Industry and representative of the food industries sector, said that the freeze reflects the government's willingness to work collaboratively with the private sector.
"This decision helps protect local manufacturers, especially in food and beverage production, where we face strong competition from imported goods," he noted.
He also highlighted the role of government support in ensuring that domestic production can compete in global markets.
Ehab Qadri, representative of the leather and garment industries, agreed that the move would help shield local producers from an influx of cheaper goods.
He urged the government to make the freeze permanent, arguing that continued tariff reductions could destabilize key industrial sectors.
The decision comes as part of a broader effort to balance trade policy with industrial strategy, supporting Jordan’s push to increase exports and enhance the competitiveness of local industries.
According to Ahmed Al-Bass, Secretary-General of the Jordan Chamber of Industry and representative of the chemicals and cosmetics sector, the freeze will give local businesses the breathing room they need to adjust to higher input costs and strengthen their market position.
Al-Bass highlighted the strength of Jordanian-made products, particularly in the chemicals sector, where local manufacturers already hold an 80% share of the domestic market.
He expressed confidence that the freeze will encourage more investment in local production and prevent the undercutting of Jordanian goods by international competitors.
The freeze on customs duty reductions is seen as a strategic tool to ensure that Jordanian manufacturers remain competitive in an increasingly challenging global market, while also fostering local job creation and technological innovation.
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