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Jordan Bilateral Investment Treaty
Signed July 2, 1997; Entered into Force June 13, 2003
106TH CONGRESS 2d Session
SENATE
TREATY DOC. 106-30
INVESTMENT TREATY WITH JORDAN
MESSAGE FROM
THE PRESIDENT OF THE UNITED STATES
TRANSMITTING
TREATY BETWEEN THE GOVERNMENT OF THE UNITED ST ATES OF AMERICA AND THE
GOVERNMENT OF THE HASHEMITE KING DOM OF JORDAN CONCERNING THE
ENCOURAGEMENT AND RECIPROCAL PROTECTI ON OF INVESTMENT, WITH ANNEX AND
PROTOCOL, SIGNED AT AMMAN ON JULY 2, 1997
MAY 23, 2000 – Treaty was read the first time , and together with the accompanying papers,
referred to the Committee on Foreign Relations and ordered to be printed for the use of the
Senate
U. S. GOVERNMENT PRINTING OFFICE WASHINGTON : 2000
(III) LETTER OF TRANSMITTAL
THE WHITE HOUSE,
May 23, 2000.
To the Senate of the United States:
With a view to receiving the advice and consent of the Senate to ratification, I transmit herewith
the Treaty Between the Government of the United States of America and the Government of the
Hashemite Kingdom of Jordan Concerning the Enc ouragement and Reciprocal Protection of
Investment, with Annex and Protocol, signed at Amman on July 2, 1997, I transmit also, for the
information of the Senate, the re port of the Department of State with respect to this Treaty.
The bilateral investment treaty (BIT) with Jordan was the second such treaty between the United
States and a country in the Middle East. The Tr eaty will protect U. S. investment and assist
Jordan in its efforts to develop its economy by creat ing conditions more favorable for U. S. private
investment and thus strengthen the development of its private sector.
The Treaty is fully consistent with U. S. polic y toward international and domestic investment. A
specific tenet of U. S. policy, re flected in this Treaty, is that U. S. investment abroad and foreign
investment in the United States should receive na tional treatment. Under this Treaty, the Parties
also agree to customary international law st andards for expropriation. The Treaty includes

detailed provisions regarding the computation and payment of prompt, adequate, and effective
compensation for expropriation; free transfer of funds related to investments; freedom of
investments from specified performance require ments; fair, equitable, and most-favored-nation
treatment; and the investor’s freedom to choose to resolve disputes with the host government
through international arbitration.
In recommend that the Senate consider this Tr eaty as soon as possible, and give its advice and
consent to ratification of the Treaty at an early date.
WILLIAM J. CLINTON.
LETTER OF SUBMITTAL
DEPARTMENT OF STATE,
Washington, May 1, 2000.
THE PRESIDENT: I have the honor to submit to y ou the Treaty Between the Government of the
United States of America and the Government of the Hashemite Kingdom of Jordan Concerning
the Encouragement and Reciprocal Protection of Investment, with Annex and Protocol, signed at
Amman on July 2, 1997. I recommend that this Tr eaty, with Annex and Protocol, be transmitted to
the Senate for its advice and consent to ratification.
The bilateral investment treaty (BIT) with Jo rdan is the second such treaty signed between the
United States and a country in the Middle East. The Treaty is based on the view that an open
investment policy contributes to economic growth. Th is Treaty will assist Jordan in its efforts to
develop its economy by creating conditions more favorable for U. S. private investment and
thereby strengthening the development of its private sector. It is U. S. policy, however, to advise
potential treaty partners during BIT negotiations that conclusion of such a treaty does not
necessarily result in in creases in private U. S. investment flows.
To date, 31 BITs are in force for the United States – with Albania, Argentina, Armenia,
Bangladesh, Bulgaria, Cameroon, the Republic of the Congo, the Democratic Republic of the
Congo (formerly Zaire), the Czech Republic, Ec uador, Egypt, Estonia, Georgia, Grenada,
Jamaica, Kazakhstan, Kyrgyzstan, Latvia, Moldova, Mongolia, Morocco, Panama, Poland,
Romania, Senegal, Slovakia, Sri Lanka, Trinidad & Tobago, Tunisia, Turkey, and Ukraine. In
addition to the Treaty with Jordan, the United Stat es has signed, but not yet brought into force,
BITs with Azerbaijan, Bahrain, Belarus, Bo livia, Croatia, El Salvador, Honduras, Lithuania,
Mozambique, Nicaragua, Russia, and Uzbekist an. The Office of the United States Trade
Representative and the Department of State jointly led this BIT negotiation, with assistance from
the Departments of Commerce, Treasury, and Energy.
THE U. S.-JORDAN TREATY
The Treaty with Jordan is based on the 1994 U. S. prototype BIT and satisfies the U. S. principal
objectives in bilateral investment treaty negotiations:
– All forms of U. S. investment in t he territory of Jordan are covered.
– Covered investments receive the better of nat ional treatment or most-favored-nation (MFN)
treatment both while they are being establish ed and thereafter, subject to certain specified
exceptions.

– Specified performance requirements may not be imposed upon or enforced against covered
investments.
– Expropriation is permitted only in accordance with customary international law standards.
– Parties are obligated to permit the transfer, in a freely usable currency, of all funds related to a
covered investment, subject to exc eptions for specified purposes.
– Investment disputes with the host government ma y be brought by investors, or by their covered
investments, to binding international arbitrat ion as an alternative to domestic courts.
These elements are further described in the following article-by-article analysis of the provisions
of the Treaty:
Title and Preamble
The Title and Preamble state the goals of the Treaty. Foremost in the encouragement and
protection of investment. Other goals include economic cooperation on investment issues; the
stimulation of economic development; higher living standards; promotion of respect for
internationally-recognized worker rights; and maintenance of health, safety, and environmental
measures. While the Preamble does not impose binding obligations, its statement of goals may
assist in interpreting the Treaty and in defining t he scope of Party-to-Party consultations pursuant
to Article VIII.
Article I (Definitions)
Article I defines terms used throughout the Treaty.
Company, Company of a Contracting Party
The definition of “company” is broad, covering all types of legal entities constituted or organized
under applicable law, and includes corporations, trusts, partnerships, sole proprietorships,
branches, joint ventures, and associations. The defi nition explicitly covers not-for-profit entities,
as well as entities that are owned or controlled by the state. ” Company of a Contracting Party” is
defined as a company constituted or organized under the laws of that Contracting party
(hereinafter, ” Party.”)
National
The Treaty defines “national” as a natural person who is a national of a Party under its own laws.
Under U. S. law, the term ” national” is broader than the term “citizen.” For example, a native of
American Samoa is a national of the United States, but not a citizen.
Investment, Covered Investment
The Treaty’s definition of investment is broad, recognizing that investment can take a wide variety
of forms. Every kind of investment is specifically incorporated in the definition; moreover, it is
explicitly noted that investment may consist or take the form of any of a number of interests,
claims, and rights. The Treaty provides that any change in the form of an investment does not
affect its character as an investment.
The Treaty provides an illustrative list of the forms an investment may take. Establishing a
subsidiary is a common way of making an investment. Other forms that an investment might take

include equity and debt interests in a company; contractual rights; tangible, intangible, and
intellectual property; and rights conferred pursuant to law, such as licenses and permits.
Investments as defined by the Treaty generally excludes claims arising solely from trade
transactions, such as a sale of goods across a border that does not otherwise involve an
investment.
The Treaty defines “covered investment” as an invest ment of a national or company of a Party in
the territory of the other Party. An investment of a national or company is one that the national or
company owns or controls, either directly or indirectly. Indirect owners hip or control could be
through other, intermediate companies or persons, including those of third countries. Control is
not specifically defined in the Treaty; ownership of over 50 percent of the voting stock of a
company would normally convey control, but in many cases the r equirement could be satisfied by
less than that proportion, or by other arrangements.
The broad nature of the definitions of “investmen t,” “company,” and “company of a Contracting
Party” means that investments can be covered by the Treaty even if ultimate control lies with non-
Party nationals. A Party may, however, deny the benefits of the Treaty in the limited
circumstances described in Article XII.
State Enterprise, Investment Aut horization, Investment Agreement
The Treaty defines “state enterprise” as a co mpany owned, or controlled through ownership
interests, by a Party. Purely regulatory contro l over a company does not qualify it as a state
enterprise.
The Treaty defines an “investment authorization” as an authorization granted by the foreign
investment authority of a Party to a covered investment or a national or company of the other
Party.
The Treaty defines an “investment agreement” as a written agreement between the national
authorities of a Party and a covered investment or a national or company of the other Party that
(1) grants rights with respect to natural resour ces or other assets controlled by the national
authorities and (2) the investment, national, or company relies upon in establishing or acquiring a
covered investment. This definition thus excl udes agreements with subnational authorities
(including U. S. States) as well as agreements aris ing from various types of regulatory activities of
the national government, including, in the tax area, rulings, closing agreements, and advance
pricing agreements.
ICSID Convention, Centre, UNCITRAL Arbitration Rules
The “ICSID Convention,” “Centre,” and “UNCITRAL Arbitration Rules” are explicitly defined to
make the text brief and clear.
Article II (Treatment and Protection of Investment)
Article II contains the Treaty’s major obligations with respect to the treatment of covered
investments.
Pargraph 1 generally ensures the better of national or MFN treatment in both the entry and post-
entry phases of investment. It thus prohibits, outside of exceptions listed in the Annex,
“screening” on the basis of nationality during the investment process, as well as nationality-based
post-establishment measures. For purposes of t he Treaty, ” national treatment” means treatment
no less favorable than that which a Party accords, in like situations, to investments in its territory

of its own nationals or companies. For purposes of the Treaty, “MFN treatment” means treatment
no less favorable than that which a Party accords, in like situations, to investments in its territory
of nationals or companies of a third country. The Treaty obliges each Party to provide whichever
of national treatment or MFN treatment is the most favorable. This is defined by the Treaty as
“national and MFN treatment.” Paragraph 1 explicit ly states that the national and MFN treatment
obligation will extend to state enterprises in t heir provision of goods and services to covered
investments.
Paragraph 2 states that each Party may adopt or maintain exceptions to the national and MFN
treatment standard with respect to the sector s or matters specified in the Annex. Further
restrictive measures are permitted in each sector . (The specific exceptions are discussed in the
section entitled “Annex” below.) In the Annex, Part ies may take exceptions only to the obligation
to provide national and MFN treatment; there are no se ctoral exceptions to the rest of the Treaty’s
obligations. Finally, in adopting any exception under this provision, a Party may not require the
divestment of a preexisting covered investment.
Paragraph 2 also states that a Party is not r equired to extend to covered investments national
and MFN treatment with respect to procedures provided for in multilateral agreements concluded
under the auspices of the World Intellectual Property Organization relating to the acquisition or
maintenance of intellectual property rights. This provision clarifies that certain procedural
preferences granted under intellectual property co nventions, such as the Patent Cooperation
Treaty, fall outside the BIT. This exception para llels those in the Uruguay Round’s Agreement on
Trade Related Aspects of Intellectual Property Rights (TRIPS) and the north American Free
Trade Agreement (NAFTA).
Pargraph 3 sets out a minimum standard of tr eatment based on standards found in customary
international law. The obligations to accord ” fair and equitable treatment” and ” full protection and
security” are explicitly cited, as is each Part y’s obligation not to impair, through unreasonable and
discriminatory means, the management, conduct, ope ration, and sale or other disposition of
covered investments. The general reference to international law also implicitly incorporates other
fundamental rules of customary international law regarding the treatment of foreign investment.
However, this provision does not incorporate obligations based on other international
agreements.
Paragraph 4 requires that each Party provide e ffective means of asserting claims and enforcing
rights with respect to covered investments.
Pargraph 5 ensures the transparency of each Pa rty’s regulation of covered investments.
Article III (Expropriation and Compensation Therefor)
Article III incorporates into the Treaty customary international law standards for expropriation.
Article III also includes detail ed provisions regarding the computation and payment of prompt,
adequate, and effective compensation.
Paragraph 1 describes the obligations of the Parties with respect to expropriation and
nationalization of a covered investment. These oblig ations apply to both direct expropriation and
indirect expropriation through measures “tantamount to expropriation or nationalization” and thus
apply to “creeping expropriations” – a series of measures that effectively amounts to an
expropriation of a covered investment without taking title.
Paragraph 1 further bars all expropriations or ra tionalizations except those that are for a public
purposes; carried out in a non-discriminatory manner; in accordance with due process of law; in

accordance with the general principles of treatment provided in Article II( 3); and subject to
“prompt, adequate and effective compensation.”
Paragraphs 2, 3, and 4 more fully describe the meaning of ” prompt, adequate and effective
compensation. ” The guiding principle is that the investor should be made whole.
Article IV (Compensation for Damages Due to War and Similar Events)
Paragraph 1 entitles investments covered by the Treaty to national and MFN treatment with
respect to any measure relating to losses suffer ed in a Party’s territory owing to war or other
armed conflict, civil disturbances, or similar events. Paragraph 2, by contract, creates an
unconditional obligation to pay compensation for such losses when the losses result from
requisitioning or from destruction not requ ired by the necessary of the situation.
Article V (Transfers)
Article V protects investors from certain government exchange controls that limit current and
capital account transfers, as well as limits on in ward transfers made by screening authorities and,
in certain circumstances, limits on returns in kind.
In paragraph 1, each Party agrees to “permit all transfers relating to a covered investment to be
made freely and without delay into and out of its te rritory.” Paragraph 1 also provides a list of
transfers that must be allowed. The list is non-exclusive, and is intended to protect flows to both
affiliated and non-affiliated entities.
Paragraph 2 provides that each Party must per mit transfers to be made in a ‘freely unsable
currency” at the market rate of exchange prevailing on the date of transfer. ” Freely usable” is a
term by the International Monetary Fund; at present there are five ” freely usable” currencies: the
U. S. dollar, Japanese yen, German mark, French franc, and British pound sterling.
In paragraph 3, each Party agrees to permit returns in kind to be made where such returns have
been authorized by an investment authorization or written agreement between a Party and a
covered investment or a national or company of the other Party.
Paragraph 4 recognizes that, notwithstanding the obligations of paragraphs 1 through 3, a Party
may prevent a transfer through the equitable, non-discriminatory, and good faith application of
laws relating to bankruptcy, insolvency, or the protection of the rights of creditors; securities;
criminal or penal offenses; or ensuring complia nce with orders or judgments in adjudicatory
proceedings.
Article VI (Performance Requirements)
Article VI prohibits either Party from mandati ng or enforcing specified performance requirements
as a condition for the establishment, acquisiti on, expansion, management, conduct, or operation
of a covered investment. The list of prohibited requirements is exhaustive and covers domestic
content requirements and domestic purchase preferen ces, the ” balancing” of imports or sales in
relation to exports or foreign exchange earnings, requirements to export products or services,
technology transfer requirements, and requireme nts relating to the conduct of research and
development in the host country. Such requireme nts are major burdens on investors and impair
their competitiveness.
The last sentence of Article VI makes clear that a Party may, however, impose conditions for the
receipt or continued receipt of benefits and incentives.

Article VII (Entry, Sojourn, and Employment of Aliens)
Paragraph 1 requires each Party to allow, subject to its laws relating to the entry, sojourn, and
employment of aliens, the entry into its territory of the other Party’s nationals for certain purposes
related to a covered investment and involving the commitment of a “substantial amount of
capital.” This paragraph serves to render national s of Jordan eligible for treaty-investor visas
under U. S. immigration law. It also affords sim ilar treatment for U. S. nationals entering Jordan.
The requirement to commit a “substantial amount of capital” is intended to prevent abuse of
treaty-investor status; it parallels the re quirements of U. S. immigration law.
The reference to employment laws in paragraph 1( a) was added at the request of Jordan to
confirm the Parties understanding that employment laws of general applicability are not inherently
inconsistent with the Treaty. This change does not modify the Parties obligations under
paragraph 1( b), which prohibits labor certificati on requirements and numerical restrictions on the
entry of treaty-investors.
Paragraph 2 requires that each Party allow covered investments to engage top managerial
personnel of their choice, regardl ess of nationality. This provision does not require that such
personnel be granted entry into a Party’s territory. Such persons must independently qualify for
an appropriate visa for entry into the territory of the other party. Nor does this provision create an
exception to U. S. equal employment opportunity laws.
Article VIII (Consultations)
Article VIII provides for prompt consultation betw een the Parties, at either Party’s request, on any
matter relating to the interpretation or application of the Treaty or to the realization of the Treaty’s
objectives. A Party may thus request consultations for any matter reasonably related to the
encouragement or protection of covered investmen t, whether or not a Party is alleging a violation
of the Treaty.
Article IX (Settlement of Disputes Between One Contracting Party and a National or Company of
the Other Contracting Party)
Article IX sets for the several means by which disputes brought against a Party by an investor
(specifically, a national or company of the other Party) may be resolved.
Article IX procedures apply to an “investment dis pute, ” which is any dispute arising out of or
relating to an investment authorization, an investment agreement, or an alleged breach of rights
conferred, created, or recognized by the Treaty with respect to a covered investment. The Treaty
provides that the parties to the dispute should in itially seek a resolution through consultation and
negotiation.
In the event that an investment dispute cannot be settled amicably, paragraph 2 gives an investor
an exclusive (with the exception in paragraph 3( b) concerning injunctive relief, explained below)
choice among three options to settle the disput e. These three options are: (1) submitting the
dispute to the courts or administrative tribunals of the Party that is a party to the dispute; (2)
invoking dispute-resolution procedures previo usly agreed upon by the national or company and
the host country government; or (3) invoking the dispute-resolution mechanisms identified in
paragraph 3 of Article IX.
Under paragraph 3( a), the investor can submit an investment dispute to binding arbitration 3
months after the dispute arises, provided that the investor has not submitted the claim to a court
or administrative tribunal of the Party or invoked a dispute resolution procedure previously agreed
upon. The investor may choose among the Internat ional Centre for Settlement of Investment

Disputes (ICSID) (Convention Arbitration), the Additional Facility of ICSID (if Convention
Arbitration is not available), ad hoc arbitration using the Arbitration Rules of the United Nations
Commission on International Trade Law (UNCITRAL), or any other arbitral institution or rules
agreed upon by both parties to the dispute.
Before or during such arbitral proceedings, howev er, paragraph 3( b) provides that an investor
may seek, without affecting its right to pursue arbi tration under this Treaty, interim injunctive relief
not involving the payment of damages from local courts or administrative tribunals of the Party
that is a party to the dispute for the preservation of its rights and interests. This paragraph does
not alter the power of the arbitral tribunals to recommend or order interim measures they may
deem appropriate.
Paragraph 4 constitutes each Party’s consent to t he submission of investment disputes to binding
arbitration in accordance with the choice of the investor.
Paragraph 5 provides that any non-ICSID Convention arbitration shall take place in a country that
is a party to the United Nations Convention on the Recognition and Enforcement of Arbitral
Awards. This provision facilitates enforcement of arbitral awards.
In addition, in paragraph 6, each Party commits to enforcing arbitral awards rendered pursuant to
this Article. The Federal Arbitration Act (9 U. S. C. 1 et seq.) satisfies the requirement for the
enforcement of non-ICSID Convention awards in the United States. The Convention on the
Settlement of Investment Disputes Act of 1966 (22 U. S. C. 1650-1650a) provides for the
enforcement of ICSID Convention awards.
Paragraph 7 ensures that a Party may not assert as a defense, or for any other reason, that the
investor involved in the investment dispute has received or will receive reimbursement for the
same damages under an insurance or guarantee contract.
Paragraph 8 provides that, for the purposes of this article, the nationality of a company in the host
country will be determined by ownership or control, rather than by place of incorporation. This
provision allows a company that is a covered in vestment to bring a claim in its own name.
Article X (Settlement of Disputes Between the Contracting Parties)
Article X provides for binding arbitration of di sputes between the United States and Jordan
concerning the interpretation or application of the Treaty that are not resolved through
consultations or other diplomatic channels. The article specifies various procedural aspects of
such arbitration proceedings, including time perio ds, selection of arbitrators, and distribution of
arbitration costs between the Parties. The article constitutes each Party’s prior consent to such
arbitration.
Article XI (Preservation of Legal Rights)
Article XI clarifies that the Treaty does not der ogate from any obligation a Party might have to
provide better treatment to the covered investment than is specified in the Treaty. Thus, the treaty
establishes a floor for the treatment of cove red investments. A covered investment may be
entitled to more favorable treatment through dom estic legislation, other international legal
obligations, or a specific obligation (e. g., to provide a tax holiday) assumed by a Party with
respect to that covered investment.
Article XII (Denial of Benefits)

Article XII( a) preserves the right of each Party to deny the benefits of the Treaty to a company
owned or controlled by nationals of a non-Party country with which the denying Party does not
have normal economic relations, e. g., a country to which it is applying economic sanctions. For
example, at this time the United States does not maintain normal economic relations with, among
other countries, Cuba and Libya.
Article XII( b) permits each Party to deny the benefits of the Treaty to a company of the other
Party if the company is owned or controlled by non-Party nationals and if the company has no
substantial business activities in the Party where it is established. thus, the United States could
deny benefits to a company that is a subsidiary of a shell company organized under the laws of
Jordan if controlled by nationals of a third countr y. However, this provision would not generally
permit the United States to deny benefits to a company of Jordan that maintains its central
administration or principal place of business in the territory of, or has a real and continuous link
with, Jordan.
Article XIII (Taxation)
Article XIII excludes tax matters generally from the coverage of the BIT, on the basis that tax
matters should be dealt with in bilateral tax tr eaties. However, Article XIII does not preclude a
national or company from bringing claims under Article IX that taxation provisions in an
investment agreement or authorization have been violated. In addition, the dispute settlement
provisions of Article IX and X apply to tax matters in relation to alleged violations of the BIT’s
expropriation article.
Under paragraph 2, a national or company that a sserts in a dispute that a tax matter involves
expropriation may submit that dispute to arbitration pursuant to Article IX( 3) only if (1) the
investor has first referred to the competent tax aut horities of both Parties the issue of whether the
tax matter involves an expropriation, and (2) the tax authorities have not both determined, within
9 months from the time of referral, that the matter does not involve an expropriation. The ”
component tax authority” of the United States is the Assistant Secretary of the Treasury for Tax
Policy, who will make such a determination only a fter consultation with the Inter-Agency Staff
Coordinating Group on Expropriations.
Article XIV (Measures Not Precluded by the Treaty)
The first paragraph of Article XIV reserves the right of a Party to take measures for the fulfillment
of its international obligations with respect to maintenance or restoration of international peace or
security, as well as those measures it regards as necessary for the protection of its own essential
security interests.
International obligations with respect to maint enance or restoration of peace or security would
include, for example, obligations arising out of Chapter VII of the United Nations Charter.
Measures permitted by the provis ion on the protection of a Party’s essential security interests
would include security-related actions taken in time of war or national emergency. Actions not
arising from a state of war or national emergency must have a clear and direct relationship to the
essential security interests of the Party involved. Measures to protect a Party’s essential security
interests are self-judging in nature, although each Party would expect the provisions to be applied
by the other in good faith.
The second paragraph permits a Party to prescribe special formalities in connection with covered
investments, provided that these formalities do not impair the substance of any Treaty rights.
Such formalities could include reporting requireme nts for covered investments or for transfers of
funds, or incorporation requirements.

Article XV (Application of the Treaty to Political Subdivisions and State Enterprises of the
Contracting Parties)
Paragraph 1( a) makes clear that the obligation of the Treaty are applicable to all political
subdivisions of the Parties, such as provincial, State, and local governments.
Paragraph 1( b) recognizes that under the U. S. f ederal system, States of the United States may,
in some instances, treat out-of-State residents a nd corporations in a different manner than they
treat in-State residents and corporations. The Treaty provides that the national treatment
commitment, with respect to the States, means treat ment no less favorable than that provided by
a State to U. S. out-of-Stat e residents and corporations.
Paragraph 2 extends a Party’s obligations under the Treaty to its state enterprises in the exercise
of any delegated governmental authority. This paragraph is designed to clarify that the exercise of
governmental authority by a state enterprise must be consistent with a Party’s obligations under
the Treaty.
Article XVI (Entry Into Force, Duration, and Termination)
Paragraph 1 stipulates that the Treaty enters into force 30 days after exchange of instruments of
ratification. The Treaty remains in force for a period of 10 years and continues in force thereafter
unless terminated by either Party as provided in paragraph 2. Paragraph 2 permits a Party to
terminate the Treaty at the end of t he initial 10 year period, or at any later time, by giving 1 year’s
written notice to the other Party. Paragraph 1 al so provides that the Treaty applies to covered
investments existing at the time of entry into fo rce as well as to those established or acquired
thereafter. The Treaty does not state an intention by the Parties to apply the Treaty’s provisions
retroactively. Thus, under customary international law, the Treaty does not apply to disputes with
respect to acts or facts which took place before the Treaty came into force or to any situation
which ceased to exist before the date of entry into force of the Treaty.
Paragraph 3 provides that, if the Treaty is terminated, all investments that qualified as covered
investments on the date of termination (i. e., 1 year after the date of written notice of termination)
continue to be protected under the Treaty fo r 10 years from that date as long as these
investments qualify as covered investments. A Party’s obligations with respect to the
establishment and acquisition of investments would lapse immediately upon the date of
termination of the Treaty.
Paragraph 4 stipulates that the Annex and Protocol shall form an integral part of the Treaty.
Annex
U. S. bilateral investment treaties allow for exceptions to national and MFN treatment, where the
Parties’ domestic regimes do not afford national and MFN treatment, or where treatment in
certain sectors or matters is negotiated in and governed by other agreements. Future derogations
from the national treatment obligations of the Treaty are generally permitted only in the sectors or
matters listed in the Annex, pursuant to Articl e II( 2), and must be made on an MFS basis unless
otherwise specified therein.
Under a number of statutes, many of which have a long historical background, the U. S. federal
government or States may not necessarily treat investments of nationals or companies of Jordan
as they do U. S. investments or investments from a third country. Paragraphs 1 and 2 of the
Annex list the sectors or matters subject to U. S. exceptions.

The U. S. exceptions from its national treatment obligation are: atomic energy; customhouse
brokers; licenses for broadcast, common carrier, or aeronautical radio stations; COMSAT;
subsidies or grants, including government-suppo rted loans, guarantees, and insurance; State and
local measures exempt from Article 1102 of t he North American Free Trade Agreement pursuant
to Article 1108 thereof; and landing of submarine cables.
The U. S. exceptions from its national and MF N treatment obligation are: fisheries; air and
maritime transport, and related activities; banking, insurance, securities, and other financial
services; and mineral leases on government land.
Paragraph 3 of the Annex lists Jordan’s exceptions from its national treatment obligation, which
are: air transport; ownership of bus transport co mpanies; ownership of construction contracting
companies, but not including cross-border provis ion of construction services; small scale
commerce with total invested capital of no more than US $50,000 (or its equivalent in national
currency), as adjusted annually for the first five years that the treaty is in force by the annual
percentage change in the GDP deflator of the Un ited States of America; ownership of banks and
insurance companies; ownership of companies engaged in telecommunications systems
operations; but not including activities such as maintenance, equipment production, equipment
and spare parts sales, or other telecommunications related services; extraction concessions for
minerals, including oil, natural gas, and oil shale; farming (not including animal husbandry) on
large tracts of land (greater than 500 acres or it s equivalent in dunums); ownership of agricultural
land; ownership of land in the Jordan valley; and ownership of land for non-business related
purposes.
Paragraph 3 also provides that Jordan will ac cord MFN treatment in the sectors and matters
listed in Paragraph 3 of the Annex. Jordan takes no other exceptions from its national and MFN
treatment obligation.
Paragraph 4 of the Annex ensures that national tr eatment is granted by each Party in all leasing
of pipeline rights-of-way on government lands. In so doing, this provision partially affects the
implementation of the Mineral Lands Leasing Act (MLLA) (30 U. S. C. 181 et seq.) and 10 U. S.
C. 7435, regarding Naval Petroleum Reserves, with respect to nationals and companies of
Jordan. The Treaty provides for resort to binding international arbitration to resolve disputes,
rather than denial of pipeline rights-of-way to investors of the other Party, as is the current
process under the statute. U. S. domestic remedi es, would, however, remains available for use in
conjunction with the Treaty’s provisions.
The MLLA and 10 U. S. C. 7435 direct that a fo reign investor be denied access to leases for
minerals on on-shore federal lands, leases of land within the Naval Petroleum and Oil Shale
Reserves, and rights-of-way for oil or gas pipelin es across on-shore federal lands, if U. S.
investors are denied access to similar or like privileges in the foreign country.
Jordan’s extension of national treatment in pipeli ne rights-of-way will meet the objectives of the
MLLA and 10 U. S. C. 7435 concerning such rights-of-way. Jordan was informed during
negotiations that, were it to include either the leasing of minerals or pipeline rights-of-way on
Government lands in its list of treatment exemptions, the United States would (consistent with the
MLLA and 10 U. S. C. 7435) exclude the corr esponding sector from the national and MFN
treatment obligations of this Treaty. Accordingl y, Jordan’s inclusion in its national treatment
exceptions of mineral leases led the U. S. to exclude mineral leases from its national and MFN
treatment obligations, while Jordan’s decision not to include pipeline rights-of-way led to the
Parties’ agreement to accord national treatment to covered investments in that sector.
The listing of a sector or matter in the Annex doe s not necessarily signify that domestic laws have
entirely reserved it for nationals. And, pursuant to Article II( 2), any additional restrictions or

limitations that a Party may adopt with respect to listed sectors or matters may not compel the
divestiture of existing covered investments.
Finally, listing a sector or matter in the Annex ex empts a Party only from the obligation to accord
national or MFN treatment. Both Parties are obligated to accord to covered investments in all
sectors even those listed in the Annex all other rights conferred by the Treaty.
Protocol
Paragraph 1 of the Protocol confirms the Part ies mutual understanding that either Party may
require approvals or impose formal requirements in connection with a change in the form of an
investment, as contemplated by Article 1( d), prov ided that such approvals or formal requirements
are otherwise consistent with the Treaty. A Party ma y, for example, require the filing of Articles of
Incorporation as a condition of a change of an investment to a corporate form.
Paragraph 2 of the Protocol clarifies that the term ” without delay” as used in Article III( 2) does
not necessarily mean instantaneous . The intent is that the Party diligently and expeditiously carry
out necessary formalities.
The other U. S. Government agencies that parti cipated in negotiating the Treaty join me in
recommending that it be transmitted to the Senate at an early date. Respectfully submitted.
MADELEINE ALBRIGHT.
TREATY BETWEEN THE GOVERNMENT OF THE UNITED ST ATES OF AMERICA AND THE
GOVERNMENT OF THE HASHEMITE KING DOM OF JORDAN CONCERNING THE
ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENT
The Government of the United States of Americ a and the Government of the Hashemite Kingdom
of Jordan (hereinafter the Contracting “Parties”);
Desiring to promote greater economic cooperati on between them, with respect to investment b
nationals and companies of one Contracting Party in the territory of the other Contracting Party;
Recognizing that agreement upon the treatment to be accorded such investment will stimulate the
flow of private capital and the economic development of the Contracting Parties;
Agreeing that a stable framework for investment will maximize effective utilization of economic
resources and improve living standards;
Recognizing that the development of economic and business ties can promote respect for
internationally recognized worker rights;
Agreeing that these objectives can be achieved without relaxing health, safety and environmental
measures of general application; and
Having resolved to conclude a Treaty concerning the encouragement and reciprocal protection of
investment;
Have agreed as follows:
ARTICLE I

DEFINITIONS
For the purpose of this Treaty,
(a) “company” means any entity constituted or organized under applicable law, whether or not for
profit, and whether privately or governmentally ow ned or controlled, and includes a corporation,
trust, partnership, sole proprietorship, branch, join t venture, association, or other organization;
(b) “company of a Contracting Party” means that a company constituted or organized under the
laws of that Contracting Party;
(c) “national” of a Contracting Party means a natural person who is a national of that Contracting
Party under its applicable law;
(d) “investment” of a national or company means every kind of investment owned or controlled
directly or indirectly by that national or company, and includes investment consisting or taking the
form of:
(i) a company;
(ii) shares, stock, and other forms of equity participation and bonds, debentures, and other forms
of debt interests, in a company;
(iii) contractual rights, such as under turnkey, construction or management contracts, production
or revenue-sharing contracts, conces sions, or other similar contracts;
(iv) tangible property, including real property; and intangible property, including rights, such as
leases, mortgages, liens and pledges;
(v) intellectual property, including;
copyrights and related rights,
industrial property rights,
patents,
rights in plant varieties,
utility models,
industrial designs or models,
rights in semiconductor layout design,
indications of origin,
trade secrets, including know-how,
confidential business information,

trade and service marks, and
trade names; and
(vi) rights conferred pursuant to law, such as licenses and permits;
any change in the form of an investment does not affect its character as an investment;
(e) “covered investment” means an investment of a national or company of a Contracting Party in
the territory of the other Contracting Party;
(f) “state enterprise” means an investment of a nat ional or company of a Contracting Party in the
territory of the other Contracting Party;
(g) “investment authorization” means an authorizat ion granted by the foreign investment authority
of a Contracting Party to a covered investment or a national or company of the other Contracting
Party;
(h) “investment agreement” means a written agreement between the national authorities of a
Contracting Party and a covered investment or a national or company of the other Contracting
Party that (i) grants rights with respect to natur al resources or other assets controlled by the
national authorities and (ii) the investment, national or company relies upon in establishing or
acquiring a covered investment;
(i) “ICSID Convention” means the convention on t he Settlement of Investment Disputes between
States and Nationals of Other States, done at Washington, March 18, 1965;
(j) “Centre” means the International Centre for Se ttlement of Investment Disputes Established by
the ICSID Convention; and
(k) “UNCITRAL Arbitration Rules” means the ar bitration rules of the United Nations Commission
on International Trade Law.
ARTICLE II
TREATMENT AND PROTECTION OF INVESTMENT
1. With respect to the establishment, acquisition, expansion, management, conduct, operation
and sale or other disposition of covered inve stments, each Contracting Party shall accord
treatment no less favorable than that it accords, in like situations, to investments in its territory of
its own nationals or companies (hereinafter “national treatment”) or to investments in its territory
of nationals or companies of a third country (hereinafter “most favored nation treatment”),
whichever is most favorable (hereinafter “national and most favored nation treatment”). Each
Contracting Party shall ensure that its state ent erprises, in the provision of their goods or
services, accord national and most favored nation treatment to covered investments.
2. (a) A Contracting Party may adopt or maintain exceptions to the obligations of paragraph 1 in
the sectors or with respect to the matters specif ied in the Annex to this Treaty. In adopting such
an exception, a Contracting Party may not require the divestment, in whole or in part, of covered
investments existing at the time the exception becomes effective.

(b) The obligations of paragraph 1 do not apply to procedures provided in multilateral agreements
concluded under the auspices of the World Intellectual Property Organization relating to the
acquisition or maintenance of intellectual property rights.
3. (a) Each Contracting Party shall at all times accord to covered investments fair and equitable
treatment and full protection and security, and shall in no case accord treatment less favorable
than that required by international law.
(b) Neither Contracting Party shall in any way impair by unreasonable and discriminatory
measures the management, conduct, operation, and sale or other disposition of covered
investments.
4. Each Contracting Party shall provide effectiv e means of asserting claims and enforcing rights
with respect to covered investments.
5. Each Contracting Party shall ensure that it s laws, regulations, administrative practices and
procedures of general application, and adjudicatory decisions, that pertain to or affect covered
investments are promptly published or otherwise made publicly available.
ARTICLE III
EXPROPRIATION AND COMPENSATION THEREFORE
1. Neither Contracting Party shall expropriate or nationalize a covered investment either directly
or indirectly through measures tantamount to expropriation or nationalization (“expropriation”)
except for a public purpose; in a non-discri minatory manner; upon payment of prompt, adequate
and effective compensation; and in accordance with due process of law and the general
principles of treatment provided for in Article II (3).
2. Compensation shall be paid without delay; be equivalent to the fair market value of the
expropriated investment immediately before the expropriatory action was taken (“the date of
expropriation”); and e fully realizable and freely transferable. The fair market value shall not
reflect any change in value occurring because the expropriatory action had become known before
the date of expropriation.
3. If the fair market value is denominated in a freely usable currency, the compensation paid shall
be no less than the fair market value on the date of expropriation, plus interest at a commercially
reasonable rate for that currency, accrued fr om the date of expropriation until the date of
payment.
4. If the fair market value is denominated in a cu rrency that is not freely usable, the compensation
paid — converted into the curren cy of payment at the market rate of exchange prevailing on the
date of payment — shall be no less than:
(a) the fair market value on the date of expropriation, converted into a freely usable currency at
the market rate of exchange pr evailing on that date, plus
(b) interest, at a commercially reasonable rate fo r that freely usable currency, accrued from the
date of expropriation until the date of payment.
ARTICLE IV
COMPENSATION FOR DAMAGES DUE TO WAR AND SIMILAR EVENTS

1. Each Contracting Party shall accord national and most favored nation treatment to covered
investments as regards any measure relating to lo sses that investments suffer in its territory
owing to war or other armed conflict, revolution, state of national emergency, insurrection, civil
disturbance, or similar events.
2. Each Contracting Party shall accord restit ution, or pay compensation in accordance with
paragraphs 2 through 4 of Article III, in the event that covered investments suffer losses in its
territory, owing to war or other armed conflic t, revolution, state of national emergency,
insurrection, civil disturbance, or similar events, that result from:
(a) requisitioning of all or part of such investment s by the Contracting Party’s forces or authorities,
or
(b) destruction of all or part of such investments by the Contracting Party’s forces or authorities
that was not required by the necessity of the situation.
ARTICLE V
TRANSFERS
1. Each Contracting Party shall permit all transfe rs relating to a covered investment to be made
feely and without delay into and out of its territory. Such transfers include:
(a) contributions to capital;
(b) profits, dividends, capital gains, and proceeds from the sale of all or any part of the investment
or from the partial or complete liquidation of the investment;
(c) interest, royalty payments, management fees , and technical assistance and other fees;
(d) payments made under a contract, including a loan agreement;
(e) compensation pursuant to Articles III and IV, and payments arising out of an investment
dispute;
(f) earnings of a national of one Contracting Part y earned in the territory of the other Contracting
Party in earned in the territory of the other Co ntracting Party in connection with a covered
investment of that national; and
(g) other forms of income.
2. Each Contracting Party shall permit returns in kind to be made as authorized or specified in an
investment authorization, investment agreem ent, or other written agreement between the
Contracting Party and a covered investment or a national or company of the other Contracting
Party.
3. Each Contracting Party shall permit returns in kind to be made as authorized or specified in an
investment authorization, investment agreem ent, or other written agreement between the
Contracting Party and a covered investment or a national or company of the other Contracting
Party.

4. Notwithstanding paragraphs 1 through 3, a Contracting Party may prevent a transfer through
the equitable, non-discriminatory and good faith application of its laws relating to:
(a) bankruptcy, insolvency or the protection of the rights of creditors;
(b) issuing, trading or dealing in securities;
(c) criminal or penal offenses; or
(d) ensuring compliance with orders or judgments in adjudicatory proceedings.
ARTICLE VI
PERFORMANCE REQUIREMENTS
Neither Contracting Party shall mandate or enf orce, as a condition for the establishment,
acquisition, expansion, management, conduct or operation of a covered investment, any
requirement (including any commitment or undertaking in connection with the receipt of a
governmental permission or authorization):
(a) to achieve a particular level or percentage of local content, or to purchase, use or otherwise
give a preference to products or services of domestic origin or from any domestic source;
(b) to limit imports by the investment of products or services in relation to a particular volume or
value of production, exports or foreign exchange earnings;
(c) to export a particular type, level or percentage of products or services, either generally or to a
specific market region;
(d) to limit sales by the investment of products or services in t he Contracting Party’s territory in
relation to a particular value or value of pr oduction, exports or foreign exchange earnings;
(e) to transfer technology, a production process or other proprietary knowledge to a national or
company in the Contracting Party’s territory, except pursuant to an order, commitment or
undertaking that is enforced by a court, administrat ive tribunal or competition authority to remedy
an alleged or adjudicated violation of competition laws; or
(f) to carry out a particular type, level or percentage of research and development in the
Contracting Party’s territory.
Such requirements do not include conditions for t he receipt or continued receipt of an advantage.
ARTICLE VII
ENTRY, SOJOURN AND EMPLOYMENT OF ALIENS
1. (a) Subject to its laws relating to the entry, sojourn and employment of aliens, each Contracting
Party shall permit to enter and to remain in its te rritory nationals of the other Contracting Party for
the purpose of establishing, developing, admin istering or advising on the operation of an
investment to which they, or a company of the other Contracting Party that employs them, have
committed or are in the process of committing a su bstantial amount of capital or other resources.

(b) Neither Contracting Party shall, in granting entry under pa ragraph 1(a), require a labor
certification test or other pr ocedures of similar effect, or apply any numerical restriction.
2. Each Contracting Party shall permit cover ed investments to engage top managerial personnel
of their choice regardless of nationality.
ARTICLE VIII
CONSULTATIONS
The Contracting Parties agree to consult prompt ly, on the request of either, to resolve any
disputes in connection with the Treaty, or to discuss any matter relating to the interpretation or
application of the Treaty or to the realiz ation of the objectives of the Treaty.
ARTICLE IX
SETTLEMENT OF DISPUTES BETWEEN ONE CO NTRACTING PARTY AND A NATIONAL OR
COMPANY OF THE OTHER CONTRACTING PARTY
1. For purposes of this Treaty, an investment dispute is a dispute between a Contracting Party
and a national or company of the other Contracting Party arising out of or relating to an
investment authorization, an investment agreement or an alleged breach of any right conferred,
created or recognized by this Treaty with respec t to a covered investment. In the event of an
investment dispute, the parties to the dis pute should initially seek a resolution through
consultation and negotiation.
2. A national or company that is a party to an investment dispute may submit the dispute of
resolution under one of the following alternatives:
(a) to the courts or administrative tribunals of the Party that is a party to the dispute; or
(b) in accordance with any applicable, previously agreed dispute-settlement procedures; or
(c) in accordance with the terms of paragraph 3.
3. (a) Provided that the national or company concerned has not submitted the dispute for
resolution under paragraph 2 (a) or (b), and that three months have elapsed from the date on
which the dispute arouse, the national or co mpany concerned may submit the dispute for
settlement by binding arbitration:
(i) to the Centre, if the Centre is available; or
(ii) to the Additional Facility of the Cent re, if the Centre is not available; or
(iii) in accordance with the UNCITRAL Arbitration Rules; or
(iv) if agreed by both parties to the dispute, to any other arbitration institution or in accordance
with any other arbitration rules.
(b) a national or company, notwithstanding that it may have submitted a dispute to binding
arbitration under paragraph 3 (a), may seek interi m injunctive relief, not involving the payment of
damages, before the judicial or administrative tribunals of the Contracting Party that is a party to

the dispute, prior to the institution of the arbitral proceeding or during the proceeding, for the
preservation of its rights and interests.
4. Each Contracting Party hereby consents to the submission of any investment dispute for
settlement by binding arbitration in accordance wi th the choice of the national or company under
paragraph 3 (a) (i), (ii), and (iii) or the mutual agreement of both parties to the dispute under
paragraph 3 (a) (iv). This consent and the submis sion of the dispute by a national or company
under paragraph 3 (a) shall satisfy the requirements of:
(a) Chapter II of the ICSID Convention (Jurisdict ion of the Centre) and the Additional Facility
Rules for written consent of the parties to the dispute; and
(b) Article II of the United Nations Convention on the Recognition and Enforcement of Foreign
Arbitral Awards, done at New York, June 10, 1958, for an “agreement in writing.”
5. Any arbitration under paragraph 3 (a) (ii), (iii) or (i v) shall be held in a state that is a party to the
United Nations Convention on the Recognition and En forcement of Foreign Arbitral Awards, done
at New York, June 10, 1958.
6. Any arbitral award rendered pursuant to this Ar ticle shall be final and binding on the parties to
the dispute. Each Contracting Party shall carry out without delay the provisions of any such award
and provide in its territory for t he enforcement of such award.
7. In any proceeding involving an investment disp ute, a Contracting Party shall not assert, as a
defense, counterclaim, right of set-off or for any other reason, that indemnification or other
compensation for all or part of the alleged damages has been received or will be received
pursuant to an insurance or guarantee contract.
8. For purposes of Article 2(2) (b) of the ICSID Convention and this Article, a company of a
Contracting Party that, immediately before the occu rrence of the event or events giving rise to an
investment dispute, was a covered investmen t, shall be treated as a company of the other
Contracting Party.
ARTICLE X
SETTLEMENT OF DISPUTES BETWEEN THE CONTRACTING PARTIES
1. Any dispute between the Contracting Parties concerning the interpretation or application of the
Treaty, that is not resolved through consultations or other diplomatic channels, shall be submitted
upon the request of either Contracting Party to an arbitral tribunal for binding decision in
accordance with the applicable rules of internatio nal law. In the absence of an agreement by the
Contracting Parties to the contrary, the UNCITRAL Arbitration Rules shall govern, except to the
extent these rules are (a) modifi ed by the Contracting Parties or (b) modified by the arbitrators
unless either Contracting Party objects to the proposed modification.
2. Within two months of receipt of a request, each Contracting Party shall appoint an arbitrator.
The two arbitrators shall select a third arbitrator as chairman, who shall be a national of a third
state. The UNCITRAL Arbitration Rules applicable to appointing members of three-member
panels shall apply
mutatis mutandis to the appointment of the arbitral panel except that the
appointing authority referenced in those rules s hall be the Secretary General of the Centre.
3. Unless otherwise agreed, all submissions shall be made and all hearings shall be completed
within six months of the date of selection of the third arbitrator, and the arbitral panel shall render

its decisions within two months of the date of the final submissions or the date of the closing of
the hearings, whichever is later.
4. Expenses incurred by the Chairman and other ar bitrators, and other costs of the proceedings,
shall be paid for equally by the Contracting Partie s. However, the arbitral panel may, at its
discretion, direct that a higher proportion of t he costs be paid by one of the Contracting Parties.
ARTICLE XI
PRESERVATION OF LEGAL RIGHTS
This Treaty shall not derogate from any of the following that entitle covered investments to
treatment more favorable than t hat accorded by this Treaty:
(a) laws and regulations, administrative practices or procedures, or administrative or adjudicatory
decisions of a Contracting Parties;
(b) international legal obligations or
(c) obligations assumed by a Contracting Party, including those contained in an investment
authorization or an investment agreement.
ARTICLE XII
DENIAL OF BENEFITS
Each Contracting Party reserves the right to deny to a company of the other Contracting Party the
benefits of this Treaty if nationals of a thir d country own or control the company and:
(a) the denying Contracting Party does not maintain normal economic relations with the third
country; or
(b) the company has no substantial business activi ties in the territory of the Contracting Party
under whose laws it is constituted or organized.
ARTICLE XIII
TAXATION
1. No provision of this Treaty shall impose obli gations with respect to tax matters, except that:
(a) Articles III, IX and X will apply with respect to expropriation; and
(b) Article IX will apply with respect to an inve stment agreement or an investment authorization.
2. A national or company, that asserts in an in vestment dispute that a tax matter involves an
expropriation, may submit that dispute to arbitration pursuant to Article IX(3) only if:
(a) the national or company concerned has first referred to the competent tax authorities of both
Contracting Parties the issue of whether t he tax matter involves an expropriation; and

(b) the competent tax authorities have not both determined within nine months from the time the
national or company referred t he issue, that the matter does not involve an expropriation.
ARTICLE XIV
MEASURES NOT PRECLUDED BY THIS TREATY
1. This Treaty shall not preclude a Contracting Party from applying measures necessary for the
fulfillment of its obligations with respect to the maintenance or restoration of international peace
or security, or the protection of its own essential security interests.
2. This Treaty shall not preclude a Contracting Party from prescribing special formalities in
connection with covered investments, such as a requirement that such investments be legally
constituted under the laws and regulations of t hat Contracting Party, or a requirement that
transfers of currency or other monetary instruments be reported, proved that such formalities
shall not impair the substance of any of the rights set forth in this Treaty.
ARTICLE XV
APPLICATION OF THIS TREATY TO POLITICA L SUBDIVISIONS AND STATE ENTERPRISES
OF THE CONTRACTING PARTIES
1. (a) The obligations of this Treaty shall apply to the political subdivisions of the Contracting
Parties.
(b) With respect to the treatment accorded by a State, Territory or possession of the United
States of America, national treatment means treatment no less favorable than the treatment
accorded thereby, in like situations, to investments of nationals of the United States of America
resident in, and companies legally constituted under the laws and regulations of, other States,
Territories or possessions of the United States of America.
2. A Contracting Party’s obligations under this Treaty shall apply to a stat enterprise in the
exercise of any regulatory, administrative or othe r governmental authority delegated to it by that
Contracting Party.
ARTICLE XVI
ENTRY INTO FORCE, DURATION AND TERMINATION
1. This Treaty shall enter into forces thirty days after the date of exchange of instruments of
ratification. It shall remain in force for a period of then years and shall continue in force unless
terminated in accordance with paragraph 2. It shall apply to covered investments existing at the
time of entry into force as well as to those established or acquired thereafter.
2. A Contracting Party may terminate this Treaty at the end of the initial ten year period or at any
time thereafter by giving one year’s writte n notice to the other Contracting Party.
3. For ten years from the date of termination, all other Articles shall continue to apply to covered
investments established or acquired prior to the date of termination, except insofar as those
Articles extend to the establishment or acquisition of covered investments.
4. The Annex and Protocol shall form an integral part of the Treaty.

IN WITNESS WHEREOF, the respective plenipotentiaries have signed this Treaty.
DONE in duplicate at _____ this _____, 1997, in the English and Arabic languages, each text
being equally authentic.
FOR THE GOVERNMENT OF THE UNITED
STATES OF AMERICA:
Wesley W. Egan, Jr.
[signature]

FOR THE GOVERNMENT OF THE
HASHEMITE KINGDOM OF JORDAN:
Hani al-Mulki
[signature]

ANNEX
1. The Government of the United States of Am erica may adopt or maintain exceptions to the
obligation to accord national treatment to covered in vestment in the sectors or with respect to the
matters specified below:
atomic energy; customhouse brok ers; licenses for broadcast, common carrier, or aeronautical
radio stations; COMSAT; subsidies or grant s, including governments-supported loans,
guarantees and insurance; state and local measur es exempt from Article 1102 of the North
American Free Trade Agreement pursuant to Article 1108 thereof; and landing of submarine
cables.
Most favored nation treatment shall be accorded in the sectors and matters indicated above.
2. The Government of the United States of Am erica may adopt or maintain exceptions to the
obligations to accord national treatment to covere d investments in the sectors or with respect to
the matters specified below:
fisheries; air and maritime transport, and related activities; banking, insurance, securities, and
other financial services; and minerals leases on government land.
3. The Government of the Hashemite Kingdom of Jordan may adopt or maintain exception to the
obligations to accord national treatment to covere d investments in the sectors and with respect to
the matters specified below:
air transport; ownership of bus transport comp anies; ownership of construction contracting
companies, but not including cross-border provis ion of construction services; small scale
commerce with total invested capital of no more than US $50,000 (or its equivalent in national
currency), as adjusted annually for the first five years that the treaty is in force by the annual
percentage change in the GDP deflator of the Un ited States of America; ownership of banks and
insurance companies; ownership of companies engaged in telecommunications systems
operations, but not including activities such as maintenance, equipment production, equipment
and spare parts sales, or other telecommunications related services; extraction concessions for
minerals, including oil, natural gas and oil shal e; farming (not including animal husbandry) on
large tracts of land (greater than 500 acres or it s equivalent in dunums); ownership of agricultural
land; ownership of land in the Jordan valley and ownership of land for non-business related
purposes.
Most favored nation treatment shall be accorded in the sectors and matters indicated above.
4. Notwithstanding paragraphs 1 and 3, each Party agrees to accord national treatment to
covered investment in the following sectors:

leasing of pipeline rights-of-way on government land.
PROTOCOL
1. With respect to Article I (d), the Contracting Parties confirm with their mutual understanding
that either Contracting Party may require approvals or impose format requirements in connection
with a change in the form of an investment, provided that such approvals or formal requirements
are otherwise consistent with this Treaty.
2. With regard to Article III (2), the term “wit hout delay” does not necessarily mean instantaneous.
The intent is that the Contracting Party diligently and expeditiously carry out necessary
formalities.