Textile, Furniture and Modular Housing Trade Mission to Amman, Jordan

MISSION STATEMENT
TEXTILE, FURNITURE, AND MODULAR HOUSING
TRADE MISSION
Amman, Jordan May 23-24, 2004

Mission Description

The Office of Textiles and Apparel (OTEXA), of the International Trade Administration, United States Department of Commerce (USDOC), will sponsor a trade mission to Jordan for technical, industrial, contract and hospitality fabrics, furniture, and modular housing. The mission will include a Commerce staff member from OTEXA, and representatives from U.S. industry interested in selling their products in Jordan and Iraq.

US suppliers are internationally recognized for high quality products in technical, industrial, contract and hospitality fabric, furniture, and modular housing. These highly engineered products will be used in ongoing and planned commercial and industrial projects throughout Jordan and Iraq. Iraqi buyers will be invited to Amman, Jordan for appointments with the mission participants.

In addition there is a need for these products in order for the Iraqi government to build up their hospitality and commercial markets to accelerate infrastructure development, the spin off from the sale of such products provides jobs, training and state of the art material.

Mission participants will meet with private sector developers, specifiers, and buyers of such products.

Commercial Setting

This is an opportunity for U.S. manufacturers and suppliers of technical and industrial fabrics, contract/hospitality fabrics, furniture, and modular housing to increase their sales and expand their customer base in relatively new markets for the United States.

Rapid development throughout the Middle East and the rebuilding of Iraq's basic infrastructure are leading catalysts for a genuine "boom" in the Middle East. Jordan and Iraq are key markets in the Middle East that have seen an increase in commercial infrastructure resulting from improving economies and, in the case of Iraq, the need to rebuild housing, hospitality, institutional government, and other public and private sector projects. However, there are certain risks, which need to be evaluated and considered by each prospective participant. These risks are noted in the following sections.

JORDAN
Under the leadership of King Abdullah II, Jordan has demonstrated its commitment to economic reform, especially in privatization and improving the investment climate. On November 15, 2001, His Majesty King Abdullah II announced on a five-year plan for Social and Economic Transformation (PSET) with the objective to stimulate private investment and strengthen economic growth and employment creation. The six main components of the PSET are: structural reforms, accelerated privatization and a private sector-led investment program, human resource development, rural development improvements in health care, and poverty alleviation.

In April 2000, Jordan acceded to the World Trade Organization (WTO), a process with entailed extensive legislative and regulatory reform. In addition, Jordan and the U.S. signed a Free Trade Agreement (FTA), which entered into force in December 2001. It was the United States' third FTA and their first with an Arab State. The agreement will eliminate virtually all trade barriers between the two countries over a period of ten years and create new business opportunities for U.S. firms seeking to enter the Jordanian market and/or the Middle East Region.

Jordan currently has opportunities for industrial fabrics, contract/hospitality fabrics and furnishings due to the current and anticipated construction products, especially due to increased construction of hotels and resorts.

A direct result of the Peace Treaty signed in 1994 between Jordan and Israel has increased the level of construction due to the increasing number of tourists visiting the country. Currently tourism accounts for12% of Jordan's GDP.

There are over 15 five-star and 4-star hotels underway mainly in the capital Amman, the Dead Sea area and in the Red Sea resort city of Aqaba. Investment in each of these new tourist development projects ranges between $20 million and $350 million.

In addition to hotels and resorts, several hospitals, shopping malls, universities, commercial buildings and private residential buildings are under construction, which may also provide opportunities for U.S. manufacturers and suppliers.

Reforms to the customs, taxation, and investment laws have improved Jordan's business climate.

In 1999-2000, Jordan's intellectual property (IP) laws were upgraded to meet international standards and are now regarded as TRIPS-consistent. As a result, Jordan was removed from the United States Trade Representatives' Special 301 "Watch List". However, effective enforcement mechanisms and legal procedures have not been fully established. As a result, U.S. companies continue to lose sales to unauthorized reproductions of copy righted and patented products.

IRAQ

While most United Nations and U.S. economic sanctions against Iraq were lifted in May 2003, the Iraqi legal and regulatory system as well as an inadequate infrastructure and an unstable security situation pose numerous obstacles to doing business in Iraq. The potential participants are encouraged to refer to the Department's Business Guide for Iraq available on-line at: http://export.gov/Iraq

Mission Goals

The Mission will seek to promote exports of U.S. technical fabrics, contract/hospitality fabrics, furniture, and furnishings to Jordan, Iraq and other countries in the region, and to secure representation agreements for mission members with pre-screened agents and distributors.* This unique opportunity will also give mission participants the opportunity to conduct market research, and evaluate market opportunities in this region.

*Due to the security condition in Iraq the Department of Commerce cannot guarantee the attendance of the invited participants from Iraq.

Mission Scenario and Cost

Ten companies are expected to participate in this mission. The Department of Commerce reserves the right to adjust this number due to market or logistical constraints.

Matchmaking appointments will take place in Amman, Jordan. Mission participants will meet individually by appointment with pre-screened buyers, agents, and distributors. The Department will make every effort to schedule appropriate appointments with each mission participant. There will be a mission briefing for participants on local market conditions and selling opportunities.

We anticipate that the mission cost will be approximately $2,900 per company, excluding travel, hotel accommodation, ground transportation and meals.

Timetable

The Mission is scheduled to occur May 23-24, 2004.

Participants are scheduled to arrive in Amman, Jordan on May 22, 2004. On Sunday, May 23, 2004 following set-up and a briefing, appointments will be scheduled from 9:00 am-6:00 pm. On the Sunday evening, May 22, 2004 a reception is tentatively scheduled from 7:00-9:00 pm at the mission site. On Monday, May 24, 2004 appointments will be scheduled from 9:00-6:00 pm. On Monday, May 24, 2004 following the last appointment the Mission will conclude.

Members will depart individually from the mission on Thursday, May 25, 2004.

Recruitment will begin immediately and will conclude on May 14, 2004. For logistical and security reasons, applications received after the deadline will not be considered.

Criteria for Participant Selection