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Iraq unrest costs Jordanian trade $600m

Jordan's industrial sector has endured more than $600 million in losses due to the deteriorating security situation in Iraq and confrontations with the Islamic State (ISIS) in 2014, Chairman of Small and Middle Enterprises (SME) Association Fathi Jaghbir said.

Jordanian exports to Iraq amounted to nearly 760 million Jordanian dinars ($1,070 million) during the first 11 months of 2014, down by nearly 22 per cent compared to the same period last year.

Jaghbir said, in remarks to the Anadolu Agency, that the Jordanian industrial losses included failure to implement export contracts, high exportation costs to Iraq, increasing drivers' salaries by 300 per cent and the high fees imposed by ISIS which force some to transport their shipments via Turkey, increasing costs.

According to Jordanian exporters, ISIS imposes industrial tariffs amounting to $400 per truck on Jordanian exports to Iraq.

Exports from the Amman Chamber of Industry (ACI) have fallen by three per cent since the beginning of the year until the end of November.

Over the past year, Jordan's exports to Iraq increased by 24 per cent to reach $1.24 billion compared to $1 billion in 2012.

In July, Jaghbir warned that the unrest in Iraq costs Jordanian industries approximately 80 million Jordanian dinars ($113 million) a month.

Since the start of the year, the Iraqi army forces and tribal fighters loyal to them have been engaged in fierce battles against ISIS forces mainly in the Anbar province to regain control of the areas captured by the group.

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IraqJordanMiddle EastNews
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