Intra-regional trade between neighboring countries is one of the most important elements for the advancement of the economy and the prosperity of its industrial, commercial and other sectors. For this reason, for years Iraq has been the first country to increase the volume of that trade with it.

In February 2019, the former Jordanian Prime Minister Omar Al-Razzaz and his Iraqi counterpart, Adel Abdul-Mahdi, held a session of talks in the presence of ministers and officials from both sides, in the border area between Al-Karama and Trebil, where the two parties agreed to start a new phase of joint cooperation and to introduce a set of agreements that It was previously signed for a group of vital sectors into effective implementation.

From these discussions, the agreement emerged to work on what is known as the “door to door” system between Iraq and Jordan, which requires the entry of Jordanian trucks into Iraqi cities, as well as for Iraqi trucks, as an alternative to the previous mechanism imposed by the security situation in Iraq. During the past years, under which truckloads were unloaded at the borders and transported with trucks from the other country, which exposed many materials to damage in addition to the additional cost borne by the exporting merchant.

Al-Hussami confirmed the continuation of the "door to door" system and determined its importance to the Jordanian economy (Al-Jazeera)

Trade activation

In this context, the Director General of the Jordan Chamber of Industry, Dr. Nael Al-Husami, confirms that the "door to door" mechanism is working normally to transport goods and oil.

In an interview with Al-Jazeera Net, he said that the loaded Iraqi trucks have the right to enter the Kingdom, as well as Jordanian trucks upon entering Iraq.

On the importance of this mechanism for the Jordanian economy, Al-Husami stressed that it contributes to activating the movement of land transport between the two countries, reducing the cost of transportation and avoiding damage to imported and exported goods. He revealed Jordan's aspiration to increase and develop work between the two countries at all commercial and economic levels.

Al-Jawahiri raises questions about the "door to door" system, including that some goods imported to Iraq are not Jordanian (Al-Jazeera)

Economic Connection Gate

Industry experts from Iraq praised the new step that will contribute to increasing inter-investment with neighboring countries through the tripartite move between Iraq, Jordan and Egypt, in addition to the renewed move with Saudi Arabia and Iran to make the country the gateway to economic linkage between East and West.

The consultant in industrial development and investment, Amer Al-Jawahiri, told Al-Jazeera Net that the "door to door" mechanism reduces the burden on the consumer, additional burdens that came from unloading and reloading goods, and reduces the damages that affect merchants on both sides.

But this agreement at the same time increases the flow of goods coming from Jordan to Iraq, including more than 390 Jordanian goods that have received customs exemptions, and indicated that this increases the difficulties for Iraqi producers or potential investors in Iraq to establish their projects due to the lack of competitiveness in advance. And he considered that customs exemptions are an obstacle to industrial development in Iraq.

Despite the importance of this mechanism, Al-Jawahiri puts some question marks, as many of the goods that will cross the borders may be among the types of materials covered by the exemption, even if they are not of Jordanian production, and may cross the borders to include customs exemption, because the Kingdom cannot produce all What Iraq needs and called for taking the necessary measures to avoid it.

There is another sign that Al-Jawahiri spoke of, which is the transportation of Iraqi oil through trucks through the mechanism, wondering whether the trucks are Iraqi or Jordanian?

Supporting that it be Iraqi to encourage the carriers fully or equally between the two parties to benefit everyone from the transportation fees.

Al-Ali: The contribution of the industrial sector to the Iraqi GDP does not exceed 2% (Al-Jazeera)

Iraqi export

For his part, the economic researcher, Nabil Jabbar Al-Ali, stresses the need for Iraq to build a strategy to increase Iraqi industrialization and industry in order to enhance exports, and he said in an interview with Al-Jazeera Net that "this strategy should focus on specific industries that have a comparative advantage, such as the oil industries, the refining industry and refining." oil, natural gas and petrochemical industries.

Al-Ali added that the mining of phosphates and sulfur and the interest in industries related to these two elements, especially fertilizers and pesticides, put Iraq on the map of competition in global markets, noting that the contribution rates of the industrial sector to the gross domestic product are very low, and do not exceed 2% during the current year, unlike the sector Oil, which has the largest share, which may reach nearly 50% of the Iraqi GDP for this year 2022.