The imposition of tariffs promotes national production

5/25/2016 0:00

BAGHDAD - Imad emirate
stressed academic d. Sattar Jaber , from the Faculty of Administration and Economy at Al - Mustansiriya University on the need to find a solution that includes resorting to appropriate methods for the protection and promotion of the productive sectors, especially the industrial ones in order to be a measure of fair competition with imported products.

He said Jaber in his «morning» that customs and administrative restrictions Fees , which regulate the importation of goods and crops compete for local production process, has become as a tax on imported products and in order to achieve a range of physical and developmental, health and environmental objectives, and therefore, the actual impact is the rise in prices of these commodities by the tax that ultimately leads to higher commodity producers prices locally also .

he called for the use of means of support, protection and incentives for local production in order to stand up and grows and develops and restores at least its previous level.

he said Jaber, that this matter will enable the local product to continue production despite the production and prices costs, noting that he encourages the exploitation of the productive energies that lead to lower unit costs produced and the price, this is the ultimate goal of the expected protection and benefit, it is the economic justification for the imposition of the tariff, as is one of the mechanisms of many developed countries in the early stages of processing (protectionism means) , such as Germany , the United States and France before they reach the current advanced level.

he pointed out the neighboring countries impose tariffs on imports at rates ranging between 18 to 20 percent of the value of imports while Iraq, in spite of the adoption of the tariff Act No. 22 of 2010 (which was stopped for a long time), still imposes a 5 per cent for many commodities ( imported) which is not a tariff, but the reconstruction of Iraq tax.

he stressed that this measure gives foreign goods entering a comparative advantage or preferential treatment to domestic goods in the Iraqi market , combined with lower prices originally leads to displacement of local products from the market.

he said that the past years have seen the closure of a number of factories and stopped many agricultural products due to their inability to compete in the light of the rise in production, marketing and transportation and high level of wage costs.

Jabir said the Iraqi economic reality in the industrial side indicates that the percentage of its contribution to the gross domestic product has fallen from 7 percent in 1975 to 5.1 percent in 2008, as the public sector has dominated most of the Iraqi industries and 90 percent.

pointing out that the private sector is suffering from weakness as a result of the effects of a severe shortage of funding and knowledge gap and technological , which led to a lack of competitiveness even within the scope of the competitive advantage by Iraq in the region, including the industry and the mobilization dates.