Cumulation of origin means that a good originating in one partner country may be processed or added to a product of another partner country and that it remains considered an “originating product” of that second partner country for the purposes of a given trade agreement. The Paneureur-Méditerranée system allows diagonal cumulation (i.e. cumulation between two or more countries) between the EU, the EFTA States, Turkey, the Western Balkans, the Faroe Islands and all the signatory countries of the 1995 Barcelona Declaration. Originally, the system was based on a network of free trade agreements with identical original protocols. The Iraqi market is particularly important for Jordanian exporters. Jordan is a natural gateway for goods destined for Iraq and the kingdom`s port city of Aqaba has historically played an important role in transporting goods to the country. However, recent turbulence in the region has weighed on bilateral trade, increased security risks and transportation costs for truck drivers crossing Iraq`s Anbar province, and disrupted traffic. According to the Ministry of Statistics, Jordan`s exports to Iraq fell 17.5 percent in the first two months of 2015, from $186.57 million to $154 million. In addition, the volume of bilateral trade fell by more than 26% between 2013 and 2014, from JD 1.14 billion ($1.6 billion) to JD 833 million ($1.17 billion). The aim of the DCFTA would be to support economic reforms in Jordan, bring Jordanian legislation in trade-related areas closer to that of the EU and create additional trade and investment opportunities by integrating Jordan more closely into the EU internal market.
While the Jordanian government has tried to redress its image in response to criticism from working and human rights groups, it has also reached agreements with other nations. It has concluded free trade agreements with the EU under the Barcelona Process, EFTA, Palestine and Syria. It signed a free trade agreement with Singapore in 2004 and with Canada in 2008 (which has yet to be ratified). In 2010, it signed a four-way agreement with Syria, Turkey and Lebanon. The free trade agreement covers trade in industrial products, fishery and seafood products and processed agricultural products. In addition, bilateral agricultural agreements have been concluded between the various EFTA countries and Jordan, which are part of the instruments for the creation of the free trade area. .