Commercial tension between Iraq and Jordan ... The stalemate is hovering over long-awaited economic agreements

Commercial tension between Iraq and Jordan ... The stalemate is hovering over long-awaited economic agreements



Trabil border crossing with Jordan
 
02/06/2019

Economy News Baghdad:

Tensions have been strained over economic relations between Jordan and Iraq, while only four months have passed since the signing of agreements to stimulate trade and the establishment of an industrial zone on the border between the two countries and the extension of an oil pipeline.

The trade and government parties in the two countries exchanged media statements about causing the deadlock to trade relations and obstructing the implementation of the agreements signed between the two sides.

On February 2, Jordan and Iraq agreed on long-awaited measures to boost economic cooperation, particularly in the area of ​​trade by allowing trucks to enter the territory of each country directly for the transport of goods, as well as exempting Iraq from more than 300 Jordanian goods from customs duties pursuant to the Trade Agreement Bilateral agreement signed between the two countries in 2012.

The two sides also agreed to start practical steps to establish a joint industrial zone on the border between the two countries in order to stimulate investment and enhance economic cooperation, while the Iraqi Oil Ministry confirmed in March that the project to extend an oil pipeline between Iraq and Jordan is in the finalization stage after transmission from Before the Ministry to the Ministerial Council of Energy for study and approval in the Council of Ministers.

In spite of these convergent steps, the two sides soon discovered differences that might impede the implementation of the agreements. Sabah al-Bezouni, head of the Basra Council in southern Iraq, said at the end of May that the ports of the province had been " That the loss of Iraq as a result of this agreement is estimated at about 150 billion Iraqi dinars annually (220 million dollars).

"The Iraqi-Jordanian agreement has harmed the ports of Basra, and the impact of this decision is very negative on the ports of the southern region completely because Iraq does not issue any product and most of what is consumed is imported products only," he said.

He added that "this agreement killed all hopes instead of protecting the national product." He pointed out that "the goods that began to enter Iraq from the port of Trebil is not Jordanian origin, and we have documents proving that most of Chinese origin covered with a Jordanian product mark to be exempt from customs duties."

He said that "the Basra Provincial Council filed a lawsuit to stop the agreement," asserting that "the ports of the Kurdistan region of northern Iraq has not been subject to this decision and the victim of this decision are the ports of the south and Basra specifically."

The statements of the Iraqi official, the government bodies in Jordan responsible for the foreign trade sector, In a statement issued on May 28, the Ministry of Industry, Trade and Supply said that the Jordanian government has taken many measures related to the origin of Jordanian goods exported to the Iraqi market, which did not exceed 1.6% of the volume of Iraqi imports from the world.

The ministry explained that "these measures were to inform the Iraqi technical delegations during the technical visits, the steps taken to issue certificates of origin Jordanian, and the Iraqi side impressed with the advanced level that Jordan has reached in this area."

She added that the Jordanian Customs Department has been advised to confirm its cadres to verify the origin of the consignments destined for the Iraqi market, whether from the Jordanian market or transit, and to inform the Minister of Industry, Trade and Supply of any violations in this regard. The Jordanian Chambers of Industry also stressed that no certificate of origin Except after ensuring that they meet the fully approved terms.

According to the statement of the Jordanian Ministry, the two sides have worked to implement the understandings between them recently for the purpose of upgrading bilateral relations.

Fathi al-Jaghbir, head of the Jordan Chamber of Industry, said the concerns expressed by the Iraqi side over its economic relations with Jordan were unjustified, pointing to the modest volume of Jordanian exports to the Iraqi market.

"The volume of exports to Iraq through the port of Aqaba will be modest and will not affect the ports of Basra at all."

According to official sources in Jordan, despite the decision to exempt and grant goods to Iraq through the port of Aqaba, a 75 percent incentive, but the volume of Iraqi imports through the port of Aqaba did not see a real increase.

Jordan's Minister of Industry, Trade and Supply Tariq Al-Hammouri told the "New Arab" that his country is keen to develop economic cooperation with Iraq and looks forward to benefiting both sides from the opportunities and fields available. He pointed out that the agreements and understandings recently reached by the two countries are in the interest of both parties, For trucks to transport goods directly without the need to unload cargo in the area of ​​exchange on the common border, which contributed to the reduction of freight costs in both directions.

Al-Hamouri added that the Jordanian and Iraqi private sectors have the opportunity to maximize the benefits of these agreements, increase bilateral trade and establish joint investments, adding that he intends to visit Iraq in June to follow up the implementation of what was agreed upon.

However, observers believe that the success of the two countries in this regard seems difficult at this stage for several reasons, the most important of which is the instability of Iraq as required and its close association with Iran and the security threats of the road Land between the two countries.

A Jordanian official told the "New Arab" that Jordan is fully aware of the size of the opposition among Iraqi circles on the development of economic cooperation between the two countries and there are attempts to impede it.

The official added that "the Jordanian government is working hard to ease the objections within Iraq to economic cooperation and communication with some actors from the public and private sectors," adding that a government delegation had planned to visit Basra in April with the participation of the private sector, Because of the lack of time and because of the strong opposition to various activities of the agreements signed between Jordan and Iraq.

According to Jordan's foreign trade data, Jordan's exports to Iraq fell by 3 percent in the first quarter of this year, which did not exceed $ 100 million, despite expectations of a rise following the signing of trade agreements in February.

Source: The New Arab

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