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September 9, 2010

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Features - Success Stories
Reaping the Fruits of U.S.-Jordanian Trade Relations
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Since its inception in 1999, the Jordan-U.S. Business Partnership (JUSBP) program has assisted over 500 private sector small and medium enterprises (SMEs), helped with the establishment of 8 new associations, provided support for 170 business service organizations (BSOs), supported the retention or primary creation of over 3,000 permanent new private sector jobs, helped develop 795 international business linkages, and was key to increasing total local sales of client firms by $73.4 million. In addition, the project has trained and placed 150 graduate interns in productive professional positions, provided skills training, workshops, and seminars on business topics, quality management, and industrial development to individual companies, SMEs, and specialists in trade, human resources, and IT marketing.

Export sales to the U.S. under the policy guidance of the Free Trade Agreement between Jordan and the United States (USFTA) since December 2001 have been astounding with 380 new transactions valued over $24 million. Additionally, JUSBP has witnessed an upsurge in its clients exporting to neighboring countries and in the rest of the world. Just recently its clients combined exports under the JUSBP banner exceeded $245 million.

The JUSBP project is a USAID-funded project that assists Jordanian small- and medium-enterprises in improving their management, marketing and production methods in order to increase their competitiveness in the global market. JUSBP particularly emphasizes trade with the U.S., particularly advantages that are available under the U.S. Free Trade Agreement with Jordan.

Following are stories from some of these successes:


Wiping the Export Market


Since Jordan and the USA signed the FTA, Al-Keena Hygienic Paper Mill Co Ltd was very eager to be one of the first companies to enter the U.S .market. A client of JUSBP, Al-Keena, imported raw material from the U.S. and sent two containers of high-quality facial tissue papers worth $50,000 as a trial shipment, which resulted in repeated orders. Al-Keena, which already has a successful export program in more than 4 continents, uses highly sophisticated quality control systems and technology capable of consistently ensuring superior quality end products. Prior to the latest export transaction, JUSBP assisted Al-Keena in product development that resulted in a quantum leap in their export volume.


Dead Sea Products in Bloom


The eagerness and entrepreneurial spirit of Blooms’ General Manager, Ms. Elham Zeadat, coupled with Volunteer Expert (VE) Ruth Churchill’s sound advice and drive successfully paid off. Blooms, a Dead Sea product company, succeeded in exporting commercial quantities of Blooms products to the U.S. -- surpassing, by far, their usual occasional seasonal holiday shipment.

Nine years after its establishment, and 18 products later -- ranging from sunscreen creams to Dead Sea mud soaps -- Ms. Zeadat, together with JUSBP, went to great lengths to improve and maximize all aspects related to Blooms. Foremost on Blooms' list of “must-dos” was implementing the recommendations set forth by packaging and legal editing expert, Ruth Churchill. In order to compete and attract the attention of discerning retailers and end users in the US, Blooms products were in dire need of a ‘face lift.’ In cooperation with the Blooms' U.S. agent, claims, designs and colors were all looked into and either changed drastically or slightly modified. Seemingly innocuous details like the way the lid opens, using brown outer packaging for Mud facials, intensive use of the color blue (referring to the sea) and eliminating transparent labels for salts were among some of the packaging transformations. Six months later, VE Churchill’s input proved to be the ideal launching pad that Blooms needed to enter the U.S. market.

  Ms. Zeadat shows her successful products.  
  Ms. Zeadat shows her successful products.  

Ms. Zeadat’s achievements are many. Blooms has received several internationally recognized awards for outstanding product performance in both quality and services rendered. Currently, 94% of Blooms’ sales are export, 23% of which are exports to the U.S., with Blooms planning to expand its global market share, especially to the U.S. Indications leading to possible future deals to sell Blooms or a new line of Dead Sea products to large U.S. retail chain stores are also in the works.

Dealing with Dead Sea sector clients, JUSBP Project Manager said, “Blooms' success in exporting to the US, confirms JUSBP’s belief in the sectors’ ability to exploit the superior quality of Jordanian products through improved packaging and better marketing.”


Sewing the Seeds of Jobs


With the help of JUSBP and a local consultant, an order to produce children’s suits for the U.S. saved the livelihood of many employees working at the garment manufacturer Hijazi Import Export Co.

The export transaction to the U.S. made possible the re-hiring of about 120 employees who unfortunately had to be let go earlier due to lack of work.

The shipment of suits for 8-15 year olds, proudly carry “Made in Jordan-QIZ” labels and instead of being shipped out of Haifa went through Jordan’s Port of Aqaba. Thanks to the excellent quality of work delivered, Hijazi hopes to conclude more deals for the same buyer (KMART).


Magic Does its Magic


  El Zay factory exports children's and women's wear to the U.S.  
  El Zay factory exports children's and women's wear to the U.S.  

JUSBP assisted ELZAY in participating in the bi-annual U.S. garment trade show, Magic. As a result of this participation, ELZAY was able to finalize a joint venture with a U.S. retailer to produce 1.5 million pieces of children’s and women’s clothing per year, valued at $5 million. To meet the new production demands, a new manufacturing facility, staffed by an additional 400 Jordanian workers was also set up.

Prior to signing the deal with ELZAY, the U.S. retailer paid several visits to Jordan. CEO of ELZAY Ready Wear Manufacturing Co, Mr. Costandi Yaghnam, said, “When people come to Jordan they’re impressed with what they see. Jordan does not always compare favorably with countries like Bangladesh, Vietnam and Sri Lanka as far as labor cost is concerned. Investors, however, find Jordanian people and the environment of doing business here so much more desirable and responsive; that it more than compensates for the cost differential.” Mr. Yaghnam also said, “This joint venture was like the much needed missing piece in the puzzle of ELZAY’s horizontal expansion plans. Adding women’s and children’s wear fits in perfectly with ELZAY’s strategic objective of not limiting its production to only tailored men’s wear.”


Variety is the Spice of Life


Developments in the food sector resulted in a finalized U.S. export transaction of spices, herbal tea and bulgur for JUSBP’s clients Adnan Khudari & Sons and Omar & Adnan Khudari Industries, respectively.

JUSBP’s Project Manager pointed out that, “This is Khudari’s first such export order of bulgur and spices to the U.S., but hopefully this shipment will be part of a series of many more to come.”

The first order to the U.S. was soon followed by a second one for another mixed container of spices, herbal tea and bulgur. The value of both orders is for approximately $29,000.


Petra Engineering Keeps Cool


  Visitors learn about the wide range of Petra Engineering products during the AHR Expo 2004.  
  Visitors learn about the wide range of Petra Engineering products during the AHR Expo 2004.  

With JUSBP’s support, Petra Engineering Industries Co. Ltd., participated in the Air-Conditioning, Heating and Refrigeration Expo - 2002 (AHR), which was held in Atlantic City, USA. While Petra’s result oriented expectations were considerably low due to the political and economic climate, Petra kept its cool when it obtained orders for $330,000. Numerous other orders and inquiries for the purchase of Petra equipment also poured in, which resulted in the total export sales of approximately $1 million.

As a major Jordanian designer and manufacturer of Air-Conditioning, Refrigeration and Ventilation equipment, Petra acquired a reputation as a global establishment providing reliable, durable quality products serving regional and international markets with competitive prices and short delivery times.

Petra’s client list boasts an array of Who’s Who in American institutions such as the Empire State Building, Los Angeles International Airport, University of Rutgers and the University of California at Berkeley. By the end of 2002, Petra had completed 25 export transactions to the U.S. with a value of approximately $2 million.


Marble and Stone Sector (JOSTONE) Pave the Way


  Jordanian marble makes new market inroads.  
  Jordanian marble makes new market inroads.  

The first ever trial shipment of Jordanian Halabat Marble was exported to the U.S. soon after a number of Jordanian Stone and Marble manufacturers returned from participating at the international tile and stone exposition (Coverings) in Florida, USA.

This was the first fruit of two years of JUSBP services that included marketing and technical assistance. Voluntary Experts worked with the manufacturers during this time to build awareness of U.S. market needs and quality standards. In addition, the manufacturers were assisted with promotional material design and preparation.

Since that first engagement, and as a result of the hard work of JOSTONE (Jordan Stone and Tile Exporters Association), the exporters have made many new market inroads. Their participation at the Verona Fair in Italy resulted in purchase orders of $2 million.

The potential Jordan has of becoming one of the leading stone and marble exporter to the U.S. and other international markets, is immense. By 2002, there were 29 export transactions to the U.S. involving the stone and marble sector, with a total value of approximately $1.5 million.

For additional information about the JUSBP project, visit our Economic Opportunities section.

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    Last updated on: September 28, 2004
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