Jordan-Iraq trade exchange volume falls short of potential — economists

AMMAN — The total volume of trade exchange between Jordan and Iraq, which reached JD197.1 million over the past four months, remains below potential, according to economists. 

This figure includes JD147.3 million in exports and JD49.8 million in imports, according to the Department of Statistics (DoS). 

Political economist Zayyan Zawaneh noted that these numbers fall short of the economic potential of relations between the two countries, which is reinforced by market proximity and needs.

He told The Jordan Times that a thriving economic relationship between Jordan and Iraq requires a focus on cultivating tight political relations. 

Economist Hosam Ayesh views that current figures show that trade relations haven’t yet recovered from turbulences in previous years, which have been marked by border closures due to security concerns. 

However, recent efforts to strengthen Jordanian-Iraqi relations, including trade agreement and increased visits between the leaders of both countries, hold “great promise” for economic benefits, he told The Jordan Times. 

Measures that could contribute to increasing the trade volume between Jordan and Iraq include facilitating customs procedures, enhancing marketing efforts and providing updated studies to determine the ways in which Jordan can meet the needs of the Iraqi market.

Economist Mohammad Al Basheer said the hindrances to strengthening trade and economic ties include the “extremely high” production costs in Jordan which impact local products' ability to compete globally. 

Addressing this requires serious reforms in taxation policies, he told The Jordan Times, noting that the general sales tax poses a high burden on various economic sectors and accounts for 69.9 per cent of the Kingdom’s tax revenue.