The agreement, signed Sunday in Jordan's capital, Amman, will give the Mideast country preferential trade conditions, including full exemption from customs duties for Jordanian goods.

In return, Jordan will reduce customs duties on Canadian products over a transitional period of four years. Forestry, manufacturing, agriculture and agri-food are expected to benefit from immediate duty-free access.

The deal is expected to be ratified by both parliaments later this year.

Bilateral trade stood at about US$80 million in 2008, according to the Canadian Embassy in Amman, which announced the new agreement.