Post Viva Amendments

AN ASSESSMENT OF THE POLITICAL ECONOMY OF TRADE BETWEEN JORDAN AND THE UNITED STATES OF AMERICA IMAD H. EL-ANIS A thesis submitted in partial fulfilment of the requirements of The Nottingham Trent University for the degree of Doctor of Philosophy June 2008 Abstract This thesis considers the political economy of trade between Jordan and the United States. In so doing a number of questions are asked regarding the national interests which have led to the facilitation of bilateral trade, the nature of contemporary trade and market integration as well as the impacts of these on inter-state cooperation. Throughout this thesis the role of Jordanian and US engagement in international institutions is considered and conclusions formed regarding the utility of these in trade relations and inter-state cooperation. It is found that the Jordanian government’s key interests over the past decade or so have been the pursuit of economic growth and stability. It is also found that these interests have been pursued through economic reform at the domestic level and trade liberalisation through international institutions at the international level. It is also concluded that the United States is pursuing a number of key policy goals in the Middle East and North Africa. These are, securing sustainable access to the region’s resources, gaining greater access to the region’s markets and achieving inter-state cooperation with MENA states. It is demonstrated that the United States is pursuing these goals by encouraging states in the region to engage in international institutions and liberalise trade with each other and with the United States to increase economic integration and inter-state cooperation. The convergence of the two states’ policy directions has led to inter-state cooperation in the facilitation of trade between Jordan and the United States. In order to assess the current nature of contemporary trade between Jordan and the United States and what the impacts of inter-state cooperation have been, trade in three economic sectors has been studied. It is demonstrated that trade in textiles and clothing, a low value-added manufacturing sector, has significantly increased since the process of trade liberalisation began in 1997. However, this form of trade almost exclusively consists of exports from Jordan to the United States. Trade in pharmaceutical products is also studied. It is found here that, while bilateral trade in these goods does exist, this form of economic activity is quite limited and has not greatly increased in the post-liberalisation era. Thus 2 economic integration has been limited in these high-value added goods. The study is taken further when trade in financial services is considered. The conclusion here is that this form of trade is extremely limited and has not been impacted upon in any significant way by inter-state cooperation and engagement with international institutions. The overall conclusions are that Jordan and the United States as state actors have engaged with international institutions and liberalised bilateral trade in the hope of pursuing national policy goals. The impact, however, of international institutions and trade liberalisation on economic growth, economic integration, interdependence and inter-state cooperation has been limited. Some significant growth in trade has occurred, but only in certain sectors, and some economic growth in Jordan has been witnessed as a result. However, wide-ranging integration between the two markets has not occurred because non-state actors are largely not engaging with trade and economic activity between the markets. Furthermore, inter-state cooperation has been restricted to specific economic issue areas. It is found that the utility of international institutions and trade liberalisation in this case is restricted by the agency of non-state actors and their roles in trade and market integration. The originality of this thesis lies in both what is studied and how it is studied. In short, this study attempts to address a gap in IPE literature which, broadly speaking, discusses Jordan and US-Jordan trade relations. Furthermore, this study acknowledges the Trans-Atlantic divide in IPE and the related contemporary debates but remains free from advocating one or the other camp. Instead a reflective approach is adopted in the use of critical liberal institutionalist theory which remains free from these constraints and develops a non-western-centric approach. 3 Acknowledgements This thesis is the product of a demanding four years of research and writing which while difficult in many ways has also been enlightening and fulfilling. For all the challenges and rewards these past four years have presented there has always been someone there to share them. A great many people have in one way or another been involved in this research project. To all I would like to express my sincerest appreciation. Paramount among all who I would like to acknowledge here are my Director of Studies Dr. Chris Farrands and Second Supervisor Dr. Roy Smith, whose teaching, guidance, intellectual support, collegiality, patience and friendship has been irreplaceable. To both I give my sincerest thanks. The immeasurable importance of my family must also be acknowledged at length. I dedicate this thesis to my parents whose support in so many ways allowed me to embark on this project and who helped to keep me determined throughout with their encouragement. My sincerest thanks go to both for being wonderful parents and friends. My brothers and sister-in-laws also deserve my appreciation for keeping me sane, keeping me laughing and for engaging in countless hours of intellectual debate! A special acknowledgement goes to Anne Eck for all her support, patience and compassion, and for reminding me that there is life outside of a PhD thesis! To my friend and colleague Mohammed Al- Khraisha I would like to express my gratitude for his intellectual insights into Jordan-US relations, for reading through much of this thesis and offering his thoughts without hesitation and for his friendship. The support and encouragement of my good friend Dr. Payam Mehrshahi also was invaluable over the past four years and deserves mention. The Nottingham Trent University has been a second home to me for the past four years and there are many people who deserve my appreciation. I would like to thank Professor Lloyd Pettiford, Dr. Cerwyn Moore and Dr. Sagarika Dutt for their academic support and collegiality; and Janet Elkington who is in many ways indispensable. Members of other universities have also helped me in one form or 4 another and so my appreciation also goes to Ms Terry Whsyall who gave me the opportunity to develop many academic skills and whose patient support has been greatly valuable. I would also like to thank Professor Adam Morton, Professor Gerd Nonneman, Dr. Katerina Dalacoura and Dr. Aslaug Asgeirsdottir. This research project would not have been possible without the help and time of many individuals whom I encountered on research trips in the UK, two field research trips to Jordan, one to the United States and one to Geneva, Switzerland. In no order of merit I would like to thank the following: Khowla Al-Badri, the Managing Director of the Jordan Enterprise Development Corporation; Yousef Al-Shamali, the Deputy Director of the Foreign Trade Policy Department of the Ministry of Industry and Trade; Maha Ali, Director of the Foreign Trade Policy Department of the Ministry of Industry and Trade; Halim Abu-Rahmeh, Chief Executive Officer of the Jordan Exporters Association; Sabri Al-Khassib, Head of Research and International Agreements at the Amman Chamber of Commerce; Elias Farraj, Advisor to the Chief Executive Officer of the Jordan Investment Board; Fakhry Hazimeh, Lead Counsellor of the Jordanian Delegation at the World Trade Organisation; Ali Zeud, Head of Public Relations at the Jordanian House of Senate; Taroob Al-Zu’bi, Communication Officer for the Jordanian Executive Privatisation Commission; Samuel Munyaneza, Head of Trade Analysis and Information at the United Nations Conference on Trade and Development; Maire Ni Mhaidin Kiiamov, Information Assistant at the Information and Media Relations Division of the World Trade Organisation; Carl Kress, Regional Director for the Middle East and North Africa at the United States Trade and Development Agency; Jeffrey Schott, Senior Fellow at the Peterson Institute for International Economics; Mohammad Abu-Atmeh, Chief Executive Officer of the Jordan Industrial Estates Corporation; Donna Thiessen, Communications and Policy Advisor at the United States Trade and Development Agency; Jorge Castro, Counsellor at the Legal Affairs Division of the World Trade Organisation, Edward Kwakwa, Legal Counsellor at the World Intellectual Property Organisation; Halim Ghani, Librarian at the Jordanian Association of Banks; Said El-Hachimi, Counsellor at the External Relations Division of the World Trade Organisation; Taraneh Bastani, Evaluations Consultant at the United States Trade and Development Agency; Peg O’Laughlin, Public Affairs Officer at 5 the United States International Trade Commission; Dr. James Zogby, President and Founder of the Arab American Institute; Margaret Hilton, Librarian at the London City Business Library. There are undoubtedly many others who deserve acknowledgment here that through error have not been mentioned above. My sincerest thanks go to all. 6 Contents Page Abstract 2 Acknowledgements 4 Contents Page 7 Introduction 10 Originality and Relevance 18 Twenty-First

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