Millionday Sunday Morning News

by **Ponee** Sun Dec 07, 2014 11:06 am

MILLIONDAY -

Tariff creates a local industrial base; Iraq and WTO; Iraq Investment Law!!! (HUGE)
in order to boost the economy, investment and development forward for the service in the public interest, the Committee on Economic Affairs of the Council of Ministers has taken many important decisions to address the challenges of the advancement of the reality service and economic

Moatunain.oakdt Committee its sixth meeting, chaired by Deputy Prime Minister Dr. example, has typically Nuri Shaways, in the presence of finance ministers, oil, planning, commerce, and agriculture,
~~~

as well as Chairman of the National Investment Commission, and advisers of the prime minister, where the Commission has decided to cover all imported goods and materials Product those of the Iraqi public and mixed and private companies Tariff No. 22 for the year 2010 Law , for the Iraqi product protection and support of the national industry.

The Council of Ministers may end of last year decided to apply tariffs on luxury materials tariff system with effect from 2.1.2014, gradually to protect national production and supporting the private sector.

expert economic Dr. peace Sumaisem considered this decision is positive and helps Iraqi products to compete with foreign products

As indicated, the “morning” that the Iraqi products is limited, as well as the Iraqi producers complain of the lack of competition, so this resolution will contribute to the reduction of the structural distortion in the national economy and providing material base of industrial services

She explained that the inclusion of imported goods and products tariff would lead to increased prices in the domestic market is what gives the opportunity for local product to emerge on the market square, where the consumer preferred product cheaper,

he Colha.oaqr House of Representatives second session Tariff Act of 2010, and was the most prominent justifications issued put tariffs in line with the reform of the Iraqi economy, where Iraq was applied decision CPA after 2003 would impose a fee of 5 percent on all Moad.kma

Promised Sumaisem this decision a “golden opportunity” to make available state to activate the role of the Iraqi industry and to achieve profits for both sides (of the country and factory),

encourages Iraqi Industrialists to enter the production field and compete with that Alajunba.wakdt that this approach appropriate for the time being, especially with the passage of the country crisis drop in oil prices, the state tries to reduce the rentier economy and reduce dependence on foreign imports ..

so plans to urge sectors productivity to reconsider their policies productivity and contribute to the activation of the economy Albuld.kzlk Committee directed that the import and export instructions be highly flexible away from the red tape that hinders this process in order to serve the Iraqi economic reality .. As the expert said in this regard: (WTO)

The Iraq plans to join the organization global trade and this joining is required country to deal flexibly with the external economy “,

calling at the same time to create a balance and activate production bases in the Iraqi economy while keeping an openness to the world in freedom of import and export.

In addition to these directives, the tariff law takes into account the provisions of facilities granted under the Investment Law No. 13 of 2006, as amended on imported goods exclusively for the purposes of investment projects so come in order to attract the maximum amount of investment companies and businessmen to work in Iraq.

by **Cascadian** Sun Dec 07, 2014 2:58 pm

Putting tariffs on 'luxury' imported goods would theoretically raise the amount of income to the budget. But with the value of the dinar so low in comparison to other currencies, you are just going to reduce the amount of things imported and therefore reduce the amount of income to the national budget.

Yes, theoretically it would create opportunities for local production of 'luxury' goods. But with the dinar so low, it makes it that much more difficult to import the raw materials to actually build those things.

Sure.... arbitrarily inflate the value of the dinar to make this all seem workable. Make it supposedly backed by gold. Right...

The good news is that the cost of Iraqi produced goods is very favorable when compared to the expense of the same goods produced elsewhere. Theoretically, it would influence outside countries to buy from Iraq vs Ecuador or somewhere. That would be a good thing for Iraq and would bring in more and more money as people bought more at the low price.

But what does Iraq produce and export?

Crude Petroleum (99%), Refined Petroleum (0.29%), Gold (0.18%), Tropical Fruits (0.11%), and Alkylbenzenes and Alkylnaphthalenes (0.049%)

Since 99% of the exports is crude oil and that price is affected only by OPEC and the petro dollar, it doesn't matter one bit what the value of the dinar is or isn't. And gold is also a worldwide indexed price, so you might as well throw that out.

So, you have tropical fruits as your biggest non-indexed export. Yay. You think that .1% of the value of your exports being favorable compared to other countries makes a damned bit of difference?

Maybe we should look at the imports

Cars (5.1%), Raw Iron Bars (4.3%), Refined Petroleum (2.9%), Rice (2.6%), and Wheat (2.3%)

Refined Petroleum? Rice? Wheat? Iron bars? Where is the luxury in those items? You aren't going to get very far down the road if you intend to raise stupid money on car imports. 5.1% of the total import amount? Yeah, you might get a couple of dinar for a car, but nothing to write home about.

Maybe you are trying to protect the Iraqi automobile manufacturing sector? (Yeah.... who would buy an Iraqi made car? Really?

Sorry. Tariffs are a legitimate source of income to the national coffers. Tariffs are a legitimate way to protect internal producers of goods and exports.

I believe that dinarland 'common wisdom' is putting a bit too much emphasis on this as some sort of big deal. Realistically, it just isn't.

by **RoyBoy** Sun Dec 07, 2014 3:59 pm

Cascadian---Remember , were talking about Whoop whoop here, she gets excited if she see's a new ant hill forming over there

Millionday Sunday Morning News

Millionday Sunday Morning News

Re: Millionday Sunday Morning News

Re: Millionday Sunday Morning News