Jordan Chamber of Commerce paves the way for reviving trade with Iraq

2017/05/22 (00:01 PM) - Number of readings: 149 - Number (3929)

In 2015, the commercial movement of Jordan, as a center for trade and re-export, was hit by a critical predicament after the foreign trade route with Iraq suffered several intermittent dislocations and eventually closed completely, causing a drop in trade with Iraq.

"We used to export 18 percent of our total exports to Iraq and then to less than 8 percent," said Ziad Homsi, head of the Amman Chamber of Industry. "We have lost more than half because of that."

However, recent political developments in Iraq have raised the hope that the border may soon reopen. In anticipation of this moment, the Jordanian government has made several trips to Baghdad to negotiate trade policy, with a special objective to reduce the proposed tariff.

Late last year, Iraq made a surprise decision to introduce a 30% import tax on all goods, followed by a high-level bilateral meeting, which included both prime ministers of the two countries, as well as the Amman Chamber of Industry, Jordan's largest commercial lobby, representing more than 8,000 companies "A formal promise, with the exception of most of Jordan's exports to Iraq, of the 30 percent tariff was recently received from the Iraqi government.

An inter-governmental committee has been formed, and they are now discussing a table of products that Will be exempted, so it is better to say, the Convention Now under way. "

"Jordan enjoys free trade agreements with the United States, the European Union, Canada and Singapore and with 22 Arab countries exempt from customs duties. Through these deals, investors in Jordan can reach more than 1.6 billion consumers worldwide," Homsi said.

"It is natural for Jordan to participate in the conclusion of this agreement, which will increase the continuity and integration of Iraq with the world trade market," said Hamsi, adding that the business world is currently busy rebuilding Iraq, and Jordan will play a role.

Iraq signed an agreement in 2012 with Jordan, which included the extension of an oil pipeline through the Gulf of Aqaba with a capacity of one million barrels per day along with the extension of a gas pipeline. It also included enhancing cooperation in the field of transport and working on rail links between the two countries.