Qualifying industrial zone

Qualifying industrial zones (QIZs) are industrial parks that house manufacturing operations in Jordan and Egypt. The QIZ program was introduced in 1996 by the U.S. Congress to stimulate regional economic cooperation.^[1] Goods produced in QIZ-designated areas in Egypt, Jordan and the Palestinian territories can directly access U.S. markets without tariff or quota restrictions, subject to certain conditions. To qualify, goods produced in these zones must contain a small portion of Israeli input. In addition, a minimum 35% value to the goods must be added to the finished product.^[2] The idea was first proposed by Jordanian businessman Omar Salah in 1994.^[3][4]

The first QIZ, Al-Hassan Industrial Estate in Irbid in northern Jordan, was authorized to export Stateside by the U.S. Trade Representative in March 1998. As of August 2015^[update], there are 13 QIZs in Jordan and 15 in Egypt, exporting $1 billion in goods to the United States.^[5] Administratively, QIZs differ from free-trade zones in that free-trade zones operate in one country while QIZs have operations in two countries (Egypt or Jordan jointly with Israel) and are under the jurisdiction of their host countries in addition to U.S. oversight.^[5][2]