PAI

Economic Agreement with Jordan

To proof national ties and to support Arab brotherhood ties that unite the two brotherly countries. And believing in the common arab destiny, the desire to strengthen & develop existing economic, commercial, and technical cooperation relations between them and in line with the charter of the League of Arab States. The governments of State of Kuwait and Hashemite Kingdom of Jordan, hereinafter referred to as “the Contracting Parties” have agreed on the following:

Article (1)

The two parties shall use all methods & capabilities to strength, reinforce commercial and economic ties between them. Including the expansion of work areas in various commercial and economic activities for legal & natural persons in their countries in line with development requirements for each of them.

Article (2)

The two contracting parties shall take all actions to that would increase and diversify the volume of commercial exchange between them, remove all obstacles that prevent this In accordance to the enforceable laws & regulations conducted in both countries.

Article (3)

A- Full exception from customs tariff fees and import fees for agricultural, animal products and natural resources originating from one of the contracting parties.
B- Industrial products originating from one of the contracting parties and imported by the other contracting party shall be exempted from customs duties and other fees, except products listed in the schedules agreed upon by the two contracting parties.
C- Products mentioned in tables in paragraph (b) shall be gradually exempted at a rate of 20% annually, within a maximum period of five years from the date of enforcing this agreement.

Article (4)

For the purpose of this agreement, every industrial product whose cost of raw materials of Arab origin, local labor and other local production costs involved in its manufacturing shall not be less than (40%) of its total production costs, will be considered an industrial product of Kuwaiti origin or Jordanian origin and any exported products between the two contracted parties should be accompanied with certificate of origin issued by the competent authorities in the exporting country.

Article (5)

The two contracting parties shall encourage holding of permanent, temporary, and specialized exhibitions in each of the two countries, to increase defining their products. As well as encouraging the exchange of official and non-official delegations and the exchange of information related to foreign trade, as well as strengthening the role of commercial centers and the importance of establishing them in accordance to the enforceable laws and regulations conducted in both countries

Article (6)

Each contracting party shall encourage the investments of the other contracting party in its own country and accepts such investments in permitted fields according to enforceable laws and regulations conducted in each of the two contracting parties. The two contracting parties shall work to encourage the establishment of joint projects through public and private sectors in various fields of economic activity in a manner that serves common interests of each contracting parties.

Article (7)

A. Investments and investments' returns made by either contracting parties or its natural and/or legal persons in the country of the other contracting party shall be granted a favorable treatment no less than that granted to investments and investments’ returns made by any third state, in accordance with the enforceable laws conducted in each of the two countries. These investments shall also benefit from encouragement and protection advantages for incoming capital in accordance with the investment promotion laws enforced in each of the two countries and investment agreements of Arab capital concluded within the framework of the League of Arab States and ratified by each of the contracting parties.
B. Appropriate facilities, incentives and other forms of encouragement are being provided for these investments including tax exemptions in accordance to limits and conditions adopted from time to time by agreement of the contracting parties.
C. Each contracting party shall allow the transfer of profits, interest and other income accrued from investments mentioned above and the re-transfer of the capital and money received for the purpose of those investments in case of total or partial liquidation of such investments, in same currency of capital used or in any other convertible currency without restriction or delay

Article (8)

It is not permissible to nationalize, expropriate, or subject the investments of one of the contracting parties or the natural/legal persons affiliated with either of them to procedures equivalent to nationalization or expropriation within the borders of the other contracting party, except for the public interest purpose of that contracting party and in return for a fair and timely compensation. The value of the compensation is estimated at same value of investments at the time of expropriation, and to be transferred in the same currency in which it was received for investment purposes or in any other convertible currency.

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