Jordan Times
Friday, September 4, 2009

Jordan, Iraq to set up free trade zone

AMMAN (JT) - Jordan and Iraq signed an agreement on Thursday to set up a free trade zone between the two countries in a bid to increase the volume of trade exchange.

The agreement was signed during the Joint Jordanian-Iraqi Higher Committee meetings in Baghdad, which were co-chaired by Prime Minister Nader Dahabi and Iraq’s Prime Minister Nouri Maliki, the Jordan News Agency, Petra, reported.

At a joint press conference with Maliki, Dahabi said discussions at the meetings also covered the possibility of increasing the quantities of oil that Jordan imports from Iraq, expressing hope that the amount will increase gradually from the current 10,000 barrels a day to 15,000-20,000 barrels daily.

Dahabi added that Jordan will be able to receive further quantities of oil once maintenance work on the Kirkuk-Banias oil pipeline is completed.

The two countries also signed a cooperation agreement in the field of animal health.

The agreements followed a session of wide-ranging talks, which was attended by government officials from the two countries.

The two sides agreed to hold the meetings of the joint higher committee every six months instead of yearly.

Maliki commended during the talks Jordan’s political stance in support of Iraq and the Iraqi government’s efforts to boost the country’s security and stability, Petra said.

In his address, Dahabi underlined the importance of the meeting to open the way for new fields of cooperation.

Citing progress in economic relations achieved over the past three years, he said the joint commercial exchange volume totaled $489 million at the end of the first half of this year compared with $262 million during the same period last year.

In light of these figures, the premier said both the public and the private sectors of both countries have a responsibility to maintain and enhance them.

Dahabi also expressed his condolences over the deaths of scores of innocent Iraqi civilians in the terrorist bombings that have recently occurred in Iraq.

The premier expressed Jordan’s desire to maintain coordination with Iraq on issues of mutual concern, particularly the Palestinian issue, highlighting His Majesty King Abdullah’s efforts, in this domain, to arrive at a solution to the Palestinian-Israeli struggle on the basis of the two-state formula.

Earlier in the day, soon after his arrival in Baghdad, Dahabi met with Maliki to discuss means of strengthening relations between the two countries in all spheres.

During the talks, the two officials reiterated their joint commitment to foster Jordanian-Iraqi relations, especially in the fields of economy and trade and to eliminate any impediments that may hamper the goals and interests of the two nations.

Emphasising that Jordan and Iraq have historically had solid ties, the premier stressed Amman’s support for Baghdad and pledged the Kingdom’s political backing to the Iraqi people and government to boost the role of the neighbouring country on the Arab and international levels.

Dahabi also highlighted cooperation between Jordan and Iraq in the transportation sector, referring to Iraqi Minister of Transportation Amer Ismail's recent visit to Jordan, which resulted in the signing of several agreements to transport passengers between Iraq and Jordan as well as between Iraq and Egypt.

Discussions at the meetings also covered outstanding debts and other financial issues, the premier said, noting that a committee including the two countries' finance ministers and central bank governors will be formed to follow up on and finalise these issues.

According to media reports, the Iraqi central bank’s debts to its Jordanian counterpart are estimated at more than $1 billion, while Jordanian businessmen claim around $135 million owed by parties in the eastern neighbouring country.

At the conference, Maliki said that he discussed with Dahabi joint economic and political relations and issues of mutual concern, commending the facilities and services Jordan provides to the Iraqi people.


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