The protocol signed between the two nations is a non-reciprocal agreement and should be a step towards the creation of a free trade agreement between the two countries. [3] However, negotiations for a free trade agreement between the United States and Egypt have recently been suspended on human rights issues. [1] Certification is generally granted to companies approved by a joint committee established under the QIZ agreement, where both conditions are met. In 1996, the U.S. Congress authorized the designation of Qualified Industrial Zones (QIZs) between Israel and Jordan, as well as Israel and Egypt. QiZ allows Egypt and Jordan to export products to the United States duty-free if the products contain inputs from Israel (8% in the Israeli-Jordanian QIZ agreement, 11.7% in Egypt`s QIZ agreement). The aim of this trade initiative was to promote prosperity and stability in the Middle East by promoting regional economic integration. The agreement was signed in Cairo on 24 December 2004 and came into force in February 2005. After observing the positive economic results of the QIZ agreement between Israel and Jordan and observing the phasing out of textile quotas (WTO Agreement on Textile and Closing Products, ATC), which posed a major threat to the international competitiveness of the textile industry and confidence in Egypt, the Egyptian government decided to address the concerns of Egyptian producers and workers in the sector by negotiating a protocol.

The concept behind a qualified industrial zone is attributed to Omar Salah, a Jordanian businessman. [4] In 1993, pending the Israeli-Jordanian peace treaty, Salah went to Israel to do business with Israeli businessmen. He also looked at commercial enterprises that benefited from the eight-year-old U.S.-Israel free trade agreement that allowed Israeli products to enter U.S. markets duty-free. Following the signing of the contract in 1994, a commercial project was concluded between Salah and Delta Galil, where workers were transferred to Irbid, in northern Jordan, to take advantage of low labour costs, which were 40-70% lower than those in Israel. Mr. Salah had imagined that the Jordanian economy would benefit from the exploitation of Israeli resources such as labour, finance and contacts, and then use it to produce value-added goods. In addition, he assumed that economic cooperation between the two nations would contribute to the promotion of peace in the region. [4] In 1997, an agreement was finally signed at the Middle East and North Africa (MENA) conference in Doha for an IQZ agreement with Jordan.

On 6 March 1998, the Al-Hassan area of Irbid was declared the first QIZ in Jordan. [4] Under the sharing agreements, the Jordanian producer must contribute at least 11.7% of the finished products and the Israeli producer must contribute 8% (7% for high-tech products). Under the Israeli-Egyptian agreement, 11.7% of contributions must be made to Israel. [1] For more information on activities under the QIZ agreement, please contact the Department of the Ministry of Industry, Trade and Labour in the Middle East of the Ministry of Industry, Trade and Labour: Qualified Industrial Zones (QIZ) are industrial parks that operate production plants in Jordan and Egypt. These are specific free trade zones created in cooperation with neighbouring Israel to use free trade agreements between the United States and Israel.