Trade for Employment

Project description

Title: Trade For Employment 
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ) Lead Donor, and co-financed by the Kingdom of the Netherlands and the United Kingdom's Department for International Development (DFID).
Country: Jordan
Lead executing agency: Ministry of Industry, Trade and Supply 
Overall term: 2017 to 2021

Context

The Jordanian economy has been experiencing a downward trend since 2011, reflected in a negative trade balance, weak business growth and a rising unemployment rate. Conflicts in neighbouring countries have worsen the situation, leading to the loss of traditional export markets. 

On the other hand, about 30% of the Jordanian population are estimated to live below the poverty line, and the unemployment rate reached about 18% in 2017. 

The imbalance between labour supply and demand is intensified by the high number of refugees. As a result, Jordan needs to offset economic losses and counteract the economic downturn, while at the same time integrating a large number of refugees into its economy. In order to tackle these challenges, the government is setting itself the goal of enhancing the competitiveness of national economy and promoting trade and thereby generating economic growth and jobs as part of Jordan 2025 - A National Vision and Strategy.

Despite the efforts of the Jordanian Government and international donors to facilitate access to the European Single Market under the Jordan Compact, Jordanian companies are still struggling to tap new export markets. The necessary conditions for Jordanian companies to increase their trade performance for employment are not yet in place.

Objective

The conditions for Jordanian companies to increase their trade performance for employment have been improved.

Approach

The project focuses on building capacities and strengthening structures in a sustainable manner to enhance the conditions of Jordanian companies to increase their trade performance for employment.

It assists the private sector with shaping general conditions conducive to trade by developing negotiating capacities of chambers of commerce and trade associations and institutionalizing dialogue with the government.

The project also seeks to improve availability and quality of demand-driven trade related services alongside identifying existing barriers to trade, developing action plans for facilitating export procedures and reducing trade costs, in line with the World Trade Organization's Trade Facilitation Agreement. 

Finally, the project aims to improve recruitment of personnel in trade-oriented businesses, with a particular focus on the placement of Syrian refugees and Jordanian jobseekers.

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