Amman, Aug. 10 (Petra) — Continued government funding for the Better
Work program is expected to support the competitiveness of Jordan’s
garment industry, a major export sector with annual overseas sales
exceeding $2.4 billion and a workforce of around 96,000.

Jordan Chamber of Industry (JCI) Leather and Garment Industries
Sector Representative Ihab Qadri said the Cabinet’s decision to
extend support for the program comes at an important time for the
industry, particularly as labor standards, transparency and
sustainability increasingly influence the sourcing and investment
decisions of international buyers.

The Cabinet on Sunday approved government funding for the Better Work
program for another three years and raised its allocation to JD5
million from JD1.1 million, tasking the Ministry of Labor with
completing the necessary procedures for the program’s approval.

Operating since 2008 through a partnership between the Ministry of
Labor, the International Labour Organization (ILO) and the
International Finance Corporation (IFC), the program seeks to improve
working conditions while strengthening the competitiveness of
Jordan’s garment industry.

It also aims to support exports, encourage investment and contribute
to the expansion of satellite production units employing Jordanians.

Qadri told the Jordan News Agency (Petra) that the leather and
garment industries comprise more than 1,000 establishments and
provide around 96,000 jobs, while annual exports exceed $2.4 billion.

Of that total, around $2.2 billion in exports are destined for the
United States, making it the industry’s largest and most important
overseas market.

He said Jordanian garment manufacturers have built long-term
relationships with major international buyers and global brands, for
which labor standards, workers’ rights, transparency and
sustainability have become key considerations in purchasing and
investment decisions.

Maintaining the Better Work program, he added, would help reinforce
confidence in Jordanian manufacturing, preserve the industry’s
standing among international buyers, reduce risks for investors and
strengthen its ability to attract new investment and customers.

Qadri said the program has taken on added importance following recent
developments in trade relations with the United States, including a
reduction in additional tariffs on Jordanian products from 15 percent
to 10 percent and the exemption of a broad range of leather and
garment products from the additional duties.

The exemptions allow qualifying Jordanian products that comply with
rules of origin under the Jordan-U.S. Free Trade Agreement to
continue entering the U.S. market without additional customs duties,
providing the industry with an important competitive advantage in its
largest export market.

Qadri said preferential access to the U.S. market, combined with a
strong framework for compliance, sustainability and confidence, could
provide a platform for maintaining existing garment exports while
attracting new buyers and investment.

It could also support deeper local value chains and expansion into
other segments of the sector, including furnishings, textiles,
carpets, rugs and bags, he added.

The Economic Modernization Vision sets targets for expanding the
sector’s production and export base, raising exports to around $5.5
billion, attracting JD3.1 billion in new investment and increasing
employment to 149,000 jobs over the Vision’s implementation period.

Qadri said the next phase should focus on translating preferential
market access and government support into higher investment,
production, exports and domestic value added, while strengthening
links with local industries and creating additional employment
opportunities for Jordanians.

//Petra// RZ