Thursday, July 23, 2026

US-Jordan Trade Deal Unlocks Strategic Mining and Energy Investment

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Jordan has opened its mining and energy sectors to expanded American investment under a landmark upgrade of its two-decade-old trade relationship with the United States, alongside commercial commitments exceeding US$3.2 billion that deepen bilateral industrial ties and reinforce Washington’s strategy of securing resilient supply chains for critical minerals and advanced manufacturing.

The new U.S.-Jordan Reciprocal Trade Agreement, signed by U.S. Trade Representative Jamieson Greer and Jordanian Minister of Industry, Trade and Supply Yarub Qudah, modernises one of Washington’s longest-standing trade partnerships in the Middle East by extending cooperation beyond tariff liberalisation into strategic sectors including mining, energy, investment security, export controls and supply-chain resilience. The agreement complements the U.S.-Jordan Free Trade Agreement, which entered into force in 2001 and fully eliminated tariffs by 2010.

Alongside the agreement, the White House highlighted Jordanian commercial commitments benefiting the U.S. economy valued at more than US$3.2 billion. Rather than representing a single investment package, the commitments combine aircraft purchases, pharmaceutical investment, long-term leasing contracts and recurring procurement of American industrial inputs.

The package includes Royal Jordanian Airlines’ purchase of six Boeing 787-9 Dreamliners worth approximately US$1.4 billion, additional long-term aircraft leasing agreements valued at US$500 million, a planned US$1 billion investment by Hikma Pharmaceuticals to expand its U.S. manufacturing footprint, and commitments by Jordanian companies to purchase more than US$300 million annually in American raw materials. Collectively, these commitments represent roughly 5% of Jordan’s annual economic output, underscoring their significance for a country with a nominal GDP of around US$65 billion.

Royal Jordanian’s Boeing order also supports the U.S. aerospace manufacturer as global demand for long-haul aircraft continues to recover, while Hikma’s expansion reinforces its position in the United States, the company’s largest market and a key driver of its global pharmaceuticals business.

Mining and energy at the centre of the partnership

The agreement’s most strategically significant provision is its commitment to facilitate American investment across Jordan’s exploration, extraction, processing, transportation and export of critical minerals and energy resources, alongside electricity infrastructure and related industrial projects.

Washington also intends to support eligible projects through financing from the Export-Import Bank of the United States (EXIM) and the U.S. International Development Finance Corporation (DFC), improving access to long-term project finance for mining, industrial and infrastructure developments.

Jordan has long been recognised as one of the world’s leading producers of phosphate and potash, commodities that remain essential to global fertiliser production. The kingdom has also expanded exploration activities for copper, silica, uranium and rare-earth-related minerals as governments and manufacturers worldwide seek diversified supplies of materials required for batteries, electric vehicles, semiconductors, renewable-energy technologies and advanced defence systems.

According to the U.S. Geological Survey, Jordan ranks among the world’s largest phosphate producers and possesses substantial potash reserves, providing an established mining platform that could support higher-value downstream processing and industrial manufacturing.

A strategic supply-chain partnership

Beyond the immediate commercial benefits, the agreement reflects a broader shift in U.S. economic policy towards developing trusted supply chains with strategic partners rather than relying on concentrated global sources for critical industrial materials.

The United States has increasingly pursued policies encouraging diversified sourcing of critical minerals considered essential for clean-energy technologies, advanced electronics and defence manufacturing. Jordan’s established mining sector, geographic position linking Gulf and Mediterranean markets, and long-standing preferential access to the U.S. market make it a potentially attractive regional partner within these evolving supply chains.

Karen Young, Senior Research Scholar at Columbia University’s Center on Global Energy Policy, has previously argued that Middle Eastern economies seeking to diversify beyond traditional industries are increasingly positioning themselves within emerging industrial and critical-mineral supply chains. The latest U.S.-Jordan agreement reflects that broader strategic direction by combining trade liberalisation with industrial investment and resource development.

Trade expands beyond tariffs

The agreement extends well beyond conventional market-access commitments.

Both governments agreed to strengthen cooperation on investment screening, export controls, customs enforcement, intellectual-property protection, supply-chain security and efforts to address non-market trade practices that distort international commerce.

Jordan will continue providing duty-free market access for virtually all U.S. goods while reducing non-tariff barriers affecting American exports, including agricultural products, motor vehicles and industrial equipment. In return, Jordan retains the preferential access its exporters have enjoyed under the bilateral free trade framework for more than two decades.

Building on an established economic relationship

Jordan became the first Arab country to conclude a free trade agreement with the United States, establishing a relationship that has steadily expanded over the past quarter-century.

According to the Office of the U.S. Trade Representative, U.S. exports to Jordan reached approximately US$2 billion in 2024, representing annual growth of around 31% compared with 2023, while total bilateral goods trade exceeded US$5 billion in 2025.

Jordan’s principal exports to the United States include garments, fertilisers and chemical products, while American exports comprise aircraft, machinery, vehicles, agricultural commodities and industrial equipment.

Market implications

For Jordan, the agreement has the potential to attract increased international investment into mining, energy and industrial infrastructure while improving the bankability of large-scale projects through access to financing from U.S. development institutions. Greater foreign participation could also accelerate downstream mineral processing and manufacturing, supporting the kingdom’s broader economic diversification strategy.

For the United States, the accord expands market opportunities for exporters, supports domestic aerospace and manufacturing industries, and advances Washington’s objective of building resilient supply chains for strategically important minerals and industrial inputs.

More broadly, the agreement illustrates how U.S. trade policy is evolving beyond conventional tariff liberalisation towards integrated economic partnerships that combine investment, industrial policy, strategic resource development and supply-chain security. If successfully implemented, the accord could become a template for future U.S. economic engagement with strategically important partners, strengthening Jordan’s position as a regional destination for international investment while reinforcing America’s long-term industrial and economic security objectives in the Middle East.

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