‘Gov’t keen on ensuring sustainability of int’l retail brand market’

AMMAN — The Industry, Trade and Supply Ministry on Monday said it will look into the challenges facing retailers of popular brand products that have prompted them to consider leaving the market.

In a meeting with traders and sector representatives, Trade Minister Maha Ali highlighted the government’s keenness on enhancing the competitiveness and sustainability of businesses in all sectors, the Jordan News Agency, Petra, reported.  

Calling on traders to provide a “detailed” study on the operational costs of their businesses, she said the ministry will study their demands.

Meanwhile, Garment Traders Association President Sultan Allan said two major companies that represent eight international brands in the Kingdom have considered leaving the market or restructuring their businesses. 

He attributed the move to the 20 per cent customs duty and the 8 per cent sales tax, in addition to high operational costs, citing a decrease in consumers’ purchasing power as another challenge.

After Monday’s meeting, traders decided to wait and see what the ministry can do to meet their demands, Allan told The Jordan Times over the phone.

“It is healthy that traders voice the challenges facing them and discuss the issue with the authorities to try to find solutions,” he said, expecting “positive” results from the deliberations that would convince traders to stay in the market.

Allan called for providing international brand representatives with partial exemptions on duties and taxes, also stressing the need to schedule sales seasons twice a year to enhance competitiveness.

Furthermore, he said official permits for retail businesses must be in harmony with the population growth so that the markets do not witness an excessive number of new businesses.  

Allan said the association will compile the required information on operational costs and provide it to the ministry within “three to four days”, noting that such retailers look for more competitive markets with lower costs and more incentives.

He cited countries in the region that impose a 5 per cent customs duty, in comparison with 20 per cent in Jordan, noting that revenue-seeking businesses will always look for less expensive venues to do business.

Allan said the international brand product retailers in question promised not to lay off Jordanian workers, estimating their total number at 800 employees.