American University Washington College of Law Digital Commons @ American University Washington College of Law SJD Dissertation Abstracts Student Works 1-1-2006 Jordan and the World Trading System: A Case Study for Arab Countries Bashar Hikmet Malkawi The American University Washington College of Law Follow this and additional works at: http://digitalcommons.wcl.american.edu/stu_sjd_abstracts Part of the Economics Commons, and the Law Commons Recommended Citation Malkawi B. Jordan and the World Trading System: A Case Study for Arab Countries [S.J.D. dissertation]. United States -- District of Columbia: The American University; 2006. Available from: Dissertations & Theses @ American University - WRLC. Accessed [date], Publication Number: AAT 3351149. [AMA] This is brought to you for free and open access by the Student Works at Digital Commons @ American University Washington College of Law. It has been accepted for inclusion in SJD Dissertation Abstracts by an authorized administrator of Digital Commons @ American University Washington College of Law. For more information, please contact [email protected]. JORDAN AND THE WORLD TRADING SYSTEM A CASE STUDY FOR ARAB COUNTRIES By Bashar Hikmet Malkawi Submitted to the Faculty of the Washington College of Law of American University in Partial Fulfillment of the Requirements for the Degree of Doctor of Juric] Dean of the Washington College of Law Date / 2005 American University 2 AMERICAN UNIVERSITY LIBRARY UMI Number: 3351149 INFORMATION TO USERS The quality of this reproduction is dependent upon the quality of the copy submitted. Broken or indistinct print, colored or poor quality illustrations and photographs, print bleed-through, substandard margins, and improper alignment can adversely affect reproduction. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if unauthorized copyright material had to be removed, a note will indicate the deletion. UMI UMI Microform 3351149 Copyright 2009 by ProQuest LLC All rights reserved. This microform edition is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 © COPYRIGHT by Bashar Hikmet Malkawi 2005 ALL RIGHTS RESERVED To my mother, my father, and my sister. All my joy and love JORDAN AND THE WORLD TRADING SYSTEM A CASE STUDY FOR ARAB COUNTRIES BY Bashar Hikmet Malkawi ABSTRACT Arab countries are attempting to broaden their engagement in the multilateral trading system in a manner that has many implications. Not only have some Arab countries either acceded or are in the pipeline of acceding to the World Trade Organization (WTO), but their new commitments coincides with reorientations in their economic strategies. The purpose of this dissertation is to examine the implications on Arab countries. Given Jordan's accession to the WTO and its free trade agreement with the United States (U.S.), the country serves as an ideal candidate for other Arab countries. Jordan applied for WTO membership in 1994. After a lengthy and costly process of negotiations, Jordan became a WTO member in 2000. Furthermore, in 2000, the U.S. and Jordan concluded a bilateral trade agreement. My thesis is that acceding to the WTO and signing a bilateral trade agreement with the U.S. is like choosing between Scylla and Charybdis, because onerous trade liberalization commitments ensue from such actions. The WTO system as an institution may not be perfect. There are deficiencies in the system. However, membership in the WTO could afford better chances compared with bilateral trade agreements like the one ii between the U.S. and Jordan. Membership in the WTO could help Jordan, in cooperation with other Arab countries, preserve its rights. In current bilateral trade agreements, economic hegemonies such as the U.S. dictate the rules and weave them to their advantage. In sum, I make the case that the alternative to the WTO system is bilateral trade agreements with the U.S., and they are trade agreements in which Arab countries are bound to be disadvantaged. The dissertation analyzes Islamic law and economics and their relevance to international trade. It studies some of the obstacles Arab countries face in acceding to the WTO. The dissertation also examines the commitments Jordan undertook in its accession to the WTO as a case study for other Arab countries. Finally, the dissertation scrutinizes the United States-Jordan Free Trade Agreement. m ACKNOWLEDGEMENTS This work would not have been achieved without Allah's guidance to give me the will and health to pursue this endeavor. Although I believe in "the Bicycle Theory" of international trade, meaning the trading system should move forward without stopping as trade negotiations proceed, otherwise, risk standstill and falling; I would like to thank some people where the bicycle that I ride made major stops before launching a new stage. For those whose names are not mentioned in these stops, minor or major, I ask your forgiveness for not mentioning yours at this time. In the final stop, my deepest and sincere gratitude goes to Professor Padideh Ala'i, my mentor, in Washington D.C for devoting hours of her time to discuss my work. Many thanks for her critical comments, encouragement, and advice. Believing also in the most- favored-nation rule, meaning any advantage or privilege extended to one party must be extended to other parties, my same deepest and sincere gratitude goes to Professor David A. Gantz in Arizona for giving me the chance to be here from the outset, and for his constructive guidance. My first exposure to the world of international trade law was by his hand that left upon me a lifetime impression. I also thank Professors Jerry Levinson, Christine Farley, and Mohammad Mattar, American University Washington College of Law for their comments. iv I am also indebted to Donna B. Butler of American University Law School and Deborah Beaumont, library specialist at the University of Arizona College of Law for their comments on earlier drafts of this work. I also would like to thank Eleazar Jimenez Esq. of Sonora, Mexico and Cristos Velasco Esq. of Mexico City, Mexico for their input on NAFTA. My thanks also go to Dr. Yasser K. Hamed of Minnesota, and Betty R. Thomas of Michigan for their unforgettable assistance. My appreciation is due to Robert and Martha Ludwig in Colorado, Ronald and Roemae Canfield in UTAH, Charles and Dorothy Sutherland in California, Bill and Kay Trowbridge in Idaho, and the bicycle will keep pedaling. Finally, I would like to acknowledge the Hashemite University for sponsoring my study at American University Law School. v TABLE OF CONTENTS ABSTRACT ii ACKNOWLEDGMENTS iv LIST OF TABLES ix INTRODUCTION 1 CHAPTER I. ISLAMIC LAW AND INTERNATIONAL TRADE I. Links to the Past 6 A. Sources of Law in Islam 9 II. The Role of Islamic State 13 A. The Administration of Tariffs in the Early Islamic State 16 B. Market Agents and Forces in Islam 18 III. Limitations on Free Trade in Islamic Law 21 IV. Ibn Khaldun and the Theory of Commercial Policy 26 Conclusion 31 CHAPTER II. ARAB COUNTRIES AND THE WORLD TRADING ORGANIZATION I. History of International Trade in Arab Countries 34 II. Lebanon and Syria in GATT 1947 43 III. Arab Countries and UNCTAD and WTO 46 IV. The Uruguay Round 50 V. The League of Arab States and the Boycott to Israel 57 VI. Arab countries Accession to the WTO: Playground of Politics 68 VII. WTO Technical Assistance and Arab Countries 81 VIII. The Venue of the Fourth WTO Ministerial Conference: Qatar (2001) .88 IX. Trade Patterns of Arab Countries 93 X. The Impact of the International Trading System on Arab Countries 97 A. Agriculture 98 B. State-Owned Enterprises 103 C. International Trade in Oil 105 XL Data on the Application of Arab countries of Selected WTO Provisions 108 XII. Representations in the WTO and Delegations of Arab Countries 118 XIII. Arab Public Opinion and the WTO 122 XIV. Arab Countries Regional Trade Initiatives 123 Conclusion 126 VI CHAPTER III. JORDAN BID FOR ACCESSION TO THE WTO I. General Background 132 II. Characteristics of the Jordanian Economy 135 III. Economic Reform 138 IV. International Trade Regulation in Jordan 140 Conclusion 152 V. Jordan: The Process of Accession to the WTO 154 VI. Protocol of Accession and WTO Commitments 159 A. Market Access in Goods 159 1. Tariff Reduction 159 2. Agriculture 162 3. Trade Remedy Laws 169 4. Customs Law 175 4.1 Tariff Classification and Valuation 178 4.2 The Harmonized Tariff Schedule of Jordan 182 5. Pre-Shipment Inspection 186 B. Market Access in Services 188 C. Protection of Intellectual Property in Jordan 194 1. Copyright Law 195 1.1 Exclusive Rights 198 1.2 Moral Rights 199 1.3 Exceptions 200 1.4 Copyright Term 202 1.5 Remedies 203 2. Trademarks 204 2.1 Well Known Marks 207 2.2 Parallel Importation 210 3. Patents 214 3.1 Compulsory Licensing 216 3.2 The Jordanian Pharmaceutical Industry and the TRIPs Agreement 218 4. Enforcement of Intellectual Property Rights 221 D. Commitments of Jordan in Relation to Transparency 224 E. Other Selected Commitments 227 Conclusion 231 CHAPTER TV. The U.S.-Jordan Free Trade Agreement I. The US-JO FTA: Introduction 237 II. The Terms of the US-JO FTA 242 vn A. Trade in Goods 242 B. Trade in Services 244 C. TRIPs-Plus commitments in the US-JO FTA 246 1. Trademarks and Geographical Indications 248 2. Copyright and Related Rights 250 3. Patents 253 4. Data Exclusivity and Pharmaceuticals 256 5. Enforcement of Intellectual Property Rights 257 6. General observations 260 D. Balance of Payments 262 E. The US-JO FTA and Electronic Commerce 262 F.