Trade Adjustment Assistance in Jordan  

Tariff policies in Jordan have provided high levels of protection to domestic industries
producing products that substitute for imported commodities. Such protectionist policies
provide little basis for long run growth, particularly for economies with small domestic
markets. Sector studies carried out as part of an analysis of the tariff structure in Jordan
demonstrate that the current levels of protection have not, in fact, promoted the development
of competitive industries in Jordan, but instead have encouraged protected firms to focus
almost exclusively on the small domestic market behind high tariffs. This has acted as
disincentive to firms becoming efficient either through capturing scale economies or meeting
the product standards necessary to enter export markets. The sector studies reveal that a
number of these domestic sectors are already in relative decline in terms of market shares.