Flow of commodities on the Iraqi-Jordanian borders on the upswing

By Tareq Delwani, IOL Amman Correspondent

AMMAN, May 23 (IslamOnline.net) - Trade exchange between Iraq and Jordan boomed 40 days into the U.S. forces capture of Baghdad and the fall of the Saddam regime.

Marked with chaos and lawlessness, the border between the two countries are held wide open with no customs duties paid on goods entering Iraq where there is no central government.

Eager to cash in on the unique situation and make huge profits, Iraqi traders trucked varied equipment and modern cars in large numbers to ship them back home across the custom-free borders.

“The prices of cars in Jordan dipped by half after the ouster of Saddam and the cancellation of customs duties,” one Iraqi trader told IslamOnline.net.

He added that the phenomenon spurred a burst into Jordanian markets after suffering a recession in recent times because of the U.S.-led invasion and its repercussions.

The purchase frenzy also infected Iraqi citizens who are residing in Jordan but plan to return home.

“I have no more cars in the showroom, and I will import new ones soon,” Mohamed el-Gitari, an auto agent in the free-trade zone in al-Zarqaa area told IOL.

Another Jordanian trader said all goods in his warehouse, including U.S.-made computers and printers, ran out after the buying spree by Iraqi traders.

“I bought 120 vehicles with no problems, and my profit will be estimated at 500-1000 dollars each,” said Haider Mohamed, an Iraqi car trader.

The volume of Jordanian exports to Iraq hit 4.5 million dollars for the last month, according to official accounts.

More flow of goods is expected to cross borders within coming months, observers expect.

Interestingly, Iraqis requested in large numbers computers and satellite dishes, things earlier banned under the reign of Saddam Hussein.

Iraq suffered 13 years of crippling sanctions that only allowed the country to export oil in return for urgently needed food and medicine under the U.N-supervised oil-for-food program. No other commodities were allowed in.

After weeks of internal wrangling, the United Nations Security Council Thursday, May 22, voted to lift the sanctions and put Iraqi economy under the broad control of the U.S.-led occupying forces.

Facilities

Jordanian Minister of Economy Samer al-Tayel, said on Monday, May 19, that Iraqi businessmen and traders are allowed into the country “without restrictions” in an effort to further improve relations with a neighboring country which owns the world’s largest second oil reserves.

Before the fall of Saddam, Iraq was the main trade partner for Jordan and absorbed 20 percent of the kingdom’s exports.