VZCZCXRO6624
RR RUEHBC RUEHDA RUEHDE RUEHDH RUEHIHL RUEHKUK
DE RUEHAM #1579 1950935
ZNR UUUUU ZZH
R 140935Z JUL 09
FM AMEMBASSY AMMAN
TO RUEHC/SECSTATE WASHDC 5514
INFO RUEHGB/AMEMBASSY BAGHDAD 6267
RUCNRAQ/IRAQ COLLECTIVE

UNCLAS AMMAN 001579 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ELA, NEA/I, AND EEB 
 
E.O. 12958: N/A 
TAGS: ECON ETRD PREL PGOV JO IZ
SUBJECT: Jordanian-Iraqi Technical Committee Discusses Ways to 
Advance Trade and Economic Ties 
 
REF: Amman 1493 
 
¶1.  (SBU) Summary:  The Jordanian-Iraqi Joint Technical Committee 
met on June 22 to discuss efforts to advance bilateral trade and 
economic ties.  Jordanian officials viewed the meeting as important 
for building upon growing bilateral trade levels, as evidenced by 
Iraq receiving 20 percent of Jordan's total national exports from 
January-April 2009.  The meeting led to the signature of a Free 
Trade Agreement between the countries, as well as agreements on 
customs cooperation, transportation, animal health, and agriculture. 
 End summary. 
 
¶2.  (SBU) The Jordanian Department of Statistics (DoS) reported that 
Jordanian exports to Iraq from January-April 2009 totaled JD 236.2 
million (USD 333.6 million), up 36.9 percent from JD 172.5 million 
(USD 243.6 million) during the same period in 2008.  This 
represented one-fifth of Jordan's total national exports, making 
Iraq Jordan's top export market among the 100 countries with which 
it has trade ties.  Jordan's major exports to Iraq included 
vegetables, machinery, and transport equipment. 
 
¶3.  (SBU) Aiming to build upon this growing bilateral trade 
relationship, Jordanian Ministry of Industry and Trade (MoIT) 
Secretary General Montaser al-Okla and Central Bank of Iraq Deputy 
Governor Ahmad Salman co-chaired the Jordanian-Iraqi Joint Technical 
(Trade) Committee meeting in Amman on June 22.  Okla informed 
Econoffs that the meeting was successful in helping to pave the way 
for a possible future visit to Iraq by Jordanian Prime Minister 
Nader Al-Dahabi, who has indicated to the Ambassador that economic 
issues are a driving force for the anticipated trip.  Okla further 
commented that conclusion of a bilateral Free Trade Agreement was 
more political than commercial since it referred to the Greater Arab 
Free Trade Agreement for specific trade commitments, such as rules 
of origin.  He also noted that four other agreements were signed 
relating to customs cooperation, transportation, animal health, and 
agriculture. 
 
¶4.  (SBU) Although Jordan had raised some concerns in the Joint 
Technical Committee meetings about private sector financial matters, 
Okla said the Iraqis declined to discuss the financial portfolio -- 
including debt -- noting that a separate committee in Iraq had been 
established to handle those issues.  Okla also reported that the 
Iraqis were pleased with the progress being made to develop a free 
trade zone (FTZ) at Karama-Trebil (the Iraq-Jordan border post), as 
with the new GOJ regulations issued in early 2009 to ease visa and 
residency procedures for Iraqi investors, which Iraq asked to be 
further expanded (reftel). 
 
¶5.  (SBU) Despite the new agriculture agreement between the two 
countries, Okla confirmed that Jordan has blocked the import of 
Iraqi dates, a decision taken by the Jordanian Ministry of Interior 
due to alleged security concerns.  Jordanian exporters have also 
expressed concerns about what they perceive as an unwritten Iraqi 
policy to provide preferential treatment to Iranian agricultural 
products, which are similar and competitive to Jordan's produce, 
thus creating trade barriers that prevent Jordanian agricultural 
goods from being marketed in Iraq.  Most recently, local press 
reported on July 14 that 39 Jordanian trucks loaded with produce had 
been held at the Karama border for days and were eventually diverted 
to Syria due to a ban by the Iraqi government on Jordanian exports 
of fruit, vegetables, and grains. 
 
¶6.  (SBU) Comment:  The Jordanian-Iraqi Technical Committee has been 
meeting periodically for approximately three years.  Press 
announcements following each session are always extremely positive, 
expressing high expectations for the future.  Little has been 
reported, however, on executive plans or tangible progress. 
Discussions regarding the development of a FTZ at the Karama-Trebil 
border, for example, have been on-going for several years, with an 
actual Jordan-Iraq free trade zone seemingly no closer to 
establishment.  Nevertheless, the Jordan-Iraq commercial 
relationship seems to be on an upward trend of increasing trade 
levels, possibly attributed to improved security enabling greater 
business between the private sectors in the two countries. 
 
Visit Amman's Classified Web Site at 
http://www.state.sgov.gov/p/nea/amman 
 
BEECROFT