Prime Minister Stephen Harper and Jordan's King Abdullah met on Friday, coming to agreement on several issues including air transport and foreign investment, and deciding to pursue a free trade agreement between the two nations.

After their meeting, Harper thanked the leader for whom he said he has a great respect.

"Our meeting reaffirmed the strong partnership that exists between Canada and Jordan, and served as a clear reminder of the King's steadfast leadership, both in his own country and in the Middle East more broadly," he said.

Earlier on in the day, Harper told reporters the two leaders would continue to work together to develop relations between the two countries.

"On bilateral matters I'm pleased to announce that Canada and Jordan have concluded an air transport agreement and a foreign investment protection and promotion agreement," Harper said.

"We will also be commencing a study into the feasibility of a free trade agreement with a view to beginning negotiations next year."

Harper said Canada will also be providing further assistance to support:

  •  literacy;
  •  landmine clearance;
  •  women's participation in development;
  •  and local election capacity in Jordan.

"These new agreements and our agenda for the future are clear signs that the relationship between our two countries is moving in the right direction," said Harper.

"What we have begun here today shows that Canada is ready to show practical and political support for that leadership."

He pointed out that Jordan will launch its first mortgage loan insurance company on Saturday -- a project that was made possible in part by the cooperation of the Canada Mortgage and Housing Corporation.

On Thursday, Jordan's ambassador to Canada said his country was not happy with the current level of trade and at Friday's news conference, Abdullah said there is room for improvement. He noted that Jordan has a free trade agreement with the U.S. that has proven beneficial to both nations.

"Jordan looks forward to enhancing its relationship with Canada through the free trade agreement that can be the cornerstone of mutually beneficial economic and trade ties, and encourage cooperation between our countries' private sector," Abdullah said.

Peace process on the horizon

The two leaders also discussed issues in the region, such as governance and human rights. Mideast peace was the topic at the top of the agenda.

"We share a common commitment to promote peace in the region," Harper said, noting that the nations are friends and partners of both Israel and Palestinian President Mahmoud Abbas and his government.

Abdullah, 45, asked Harper to consider a role for Canada as a broker in the Palestinian-Israeli conflict, but the leaders divulged few details about those talks.

"The prime minister and I agreed that failing to resolve the conflict -- the core issue in the Middle East -- poses a great threat to the region and has global repercussions," Abdullah said.

"Canada and Jordan share the belief the only way to resolve this conflict is through negotiations that lead to a two-state solution. Jordan welcomes an active Canadian role in helping bringing about a resolution to this conflict."

Jordan is one of only a few Arab states that recognizes Israel and has been actively trying to get the peace process going again.

Two major initiatives are currently underway in the region to help move peace talks along between Israel and the Palestinian Authority. Foreign ministers from Jordan and Egypt are expected in Israel on July 25 as part of the Arab League's Arab Peace Initiative.

Meanwhile, a United Nations committee, represented by former British prime minister Tony Blair, are meeting to discuss a plan of action.

Harper commended the King on his leadership in advancing peace in the Middle East, and for his efforts to promote a vision of peace and pluralism both within the Islamic community and between Islam and other faiths.

"Peace in the Middle East will flow from principled nations. From those who take a stand for what is right," said Harper. "By repeatedly taking risks for peace, Jordan stands as an example for the region and the world."

Bartolo said the Harper government's more pro-Israeli stance has not been perceived as an obstacle to Canada's participation in the process, Bartolo said.

"The Canadian government is very strong in its commitments to both sides, the Israeli side and the Palestinian side,'' he said.

Harper has been outspoken in his support for Israel since taking office. He took an especially strong stand last summer, defending Israel's military campaign during the war in Lebanon. The Conservative government was also the first in the world to cut off aid to the Palestinian Authority after Hamas -- viewed by many countries as a terrorist organization -- won legislative elections a year-and-a-half ago.

Harper said Canada would consider lifting its moratorium on assistance if there would be assurances that corruption would be swiftly dealt with.

"It's our strong view that the Palestinian people do not support extremism -- they voted against the problems of governance, and those have to be addressed if we want to work with and encourage our friends in the Palestinian Authority,'' Harper said.

Abdullah said he was pleased with Canada's approach to the Middle East.

"I'm actually very happy with Canada's role and the prime minister's vision for working as part of a team to try and get us to move forward," he said.

MacKay's absence

After the Jordanian king touched down on the tarmac on Thursday, eyebrows were raised in Ottawa over who was there to greet him -- Environment Minister John Baird -- and who wasn't.

"Not only was Peter MacKay, the foreign affairs minister, not there to greet the king," said CTV's Ottawa bureau chief Robert Fife on Friday. "He's not going to be at any of the meetings today or at a major speech the king is giving at the foreign affairs department where Peter MacKay actually works."

The department explained that this is a heads of government meeting so there is nothing unusual about another minister greeting Abdullah in lieu of MacKay, who was in Halifax yesterday and is in Calgary today.

"But the fact of the matter is that he's been punted aside," said Fife. "Mr. MacKay has travelled to the Middle East. He spoke to Tony Blair just recently last week, and yet he's not involved in these talks at all.

"Clearly when it comes to big issues, the foreign affairs minister is the prime minister."

With files from The Canadian Press