A Free Trade Agreement between Canada and Jordan is set to come into effect on 1 October.

From the beginning of October, producers and exporters across Canada will benefit from reduced or eliminated tariffs on nearly all of the country's current exports to Jordan, the Canadian foreign affairs office said.

The Canadian Apparel Federation (CAF) welcomed the move, emphasising that the agreement contains "commercially viable" rules of origin for apparel. The agreement contains a "cut and sew" rule for apparel, which means that it qualifies under agreement if it is cut and sewn, or knit to shape, in either Jordan or Canada from raw materials sourced from anywhere in the world.

"Our industry wants to see rules of origin in trade agreements that are practical given the circumstances of our trading partners, and this agreement does so," CAF executive director Bob Kirke said. 

The federation emphasised that in previous agreements, a so-called "yarn forward" rule of origin for apparel has "severely limited the benefits of various trade deals Canada has signed in previous years".

The CAF also called on the Canadian government to move forward with other agreements of importance to the sector, including the Canada-Europe Comprehensive Economic and Trade Agreement (CETA) and the Trans Pacific Partnership (TPP) which Canada is likely to join later this autumn.