This article examines Jordan's role in the creation of the Arab Cooperation Council (ACC), from its origins to its sudden demise in the turmoil of the 1990-91 Gulf crisis and war. The analysis focuses on three key factors in Jordan's foreign policy, namely, the concern with external security threats, rite pressures of domestic politics, and the economic constraints on the Jordanian regime, This study suggests the need to move beyond standard military-security explanations of inter-state alliance dynamics and take into account die influence of domestic politics and political economy on policy-makers. It also demonstrates the continuing tension between state sovereignty and pan-Arab agendas for greater economic integration.