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Viewing cable 10TELAVIV386, JORDAN/ISRAEL/QIZ QUARTERLY MEETING LOOKS FOR WAYS TO KEEP

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Reference ID Created Released Classification Origin
10TELAVIV386 2010-02-18 15:12 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Tel Aviv
VZCZCXYZ0000
RR RUEHWEB

DE RUEHTV #0386 0491512
ZNR UUUUU ZZH
R 181512Z FEB 10
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC 5537
RUEHAM/AMEMBASSY AMMAN 7307
INFO RUEHEG/AMEMBASSY CAIRO 0063
RHEHAAA/WHITE HOUSE WASHDC
UNCLAS TEL AVIV 000386 
 
USTR FOR SFRANCESKI, STRICKLER 
STATE FOR KFRELICH,TGOLDBERGER 
AMMAN FOR PISANI/LEJLIC 
 
SIPDIS 
SENSITIVE, NO FOR INTERNET DISTRIBUTION 
 
E.O. 12958: N/A 
TAS: ECON, ETRD, IS, JO 
SUBJECT: JORDAN/ISRAEL/QIZ QUARTERLY MEETING LOOKS FOR WAYS TO KEEP 
QIZ PRGRAM ACTIVE 
 
1. (U) Jordan and Israel held their uarterly Qualified Industrial 
Zones (QIZ) meetin in Jerusalem on February 4th to review the 
secod and third quarter of 2009.  26 companies were aproved to 
continue exporting under the QIZ program.  Six companies did not 
meet the eight percent Israeli content requirement and will have to 
fulfill the content requirement in the first quarter of 2010 in 
order to continue exporting under the QIZ program, a concession that 
has not been made explicit in the past.  Three companies lost their 
privilege of exporting under the QIZ program. 
 
2.  (SBU) The meeting was marked by the surprising absence of 
Secretary General of the Jordanian Ministry of Industry and Trade 
Muntasir Oklah. According to the GOI, the meeting had been 
rescheduled four times to accommodate Oklah's schedule and this is 
the third quarterly meeting that he has missed.  Nevertheless, the 
meeting was a lively exchange of views regarding the future of the 
QIZ, now that Jordan's Free Trade Agreement (FTA) with the United 
States has diminished the free trade benefits to exporting through 
the QIZ.  Both countries agreed informally that meetings would take 
place less frequently (around twice per year). 
 
3.  (SBU) A pleasant surprise was that several companies still 
intend to use the QIZ for their exports, as there is a perceived 
added advantage at expediting QIZ goods through U.S. customs.  Both 
countries agreed that Jordan would draft a letter to its QIZ 
companies, reinforcing that the QIZ program was still functioning. 
Gabi Bar, principle GOI interlocutor for the QIZ, confided in an 
aside to Econoff that Jordanian companies might still need the QIZ, 
as they could face difficulties in meeting the 35 percent Jordanian 
content requirement in the U.S. FTA.  In addition, QIZ products do 
not require Jordanian exporters to carry costs for a significant 
period of time due to geographic proximity. 
 
4.  (SBU) In addition to the QIZ, there was a brief discussion on 
future Israeli investments in Jordan, including a large potential 
investment in solar panels.  The discussion then moved to Jordanian 
exports to the Palestinian Authority (PA).  In a recent meeting with 
the new Israeli Ambassador to Jordan, Oklah delivered a non-paper 
outlining specific difficulties Jordan faces in exporting to the PA, 
including: Jordanian beef; returning Palestinian products imported 
through Israel; working hours at the borders; standards; and 
renegotiating the A1 and A2 lists within the context of the Paris 
Protocol.  The two sides were able to engage in constructive 
dialogue on these issues and agreed on a way forward. 
CUNNINGHAM