07-Aug-2019

Jordan's total exports to Iraq decreased by 12.22%, compared with the increase of Jordan's total exports to Syria by 30%, in the first five months of this year compared to the same period last year, according to the Department of Statistics figures.

Jordan's total exports to Iraq in 2019 amounted to JD 165.111 million, compared to JD 27.858 million worth of Jordan's total exports to Syria.

Total exports include exported goods and re-exported goods.

The Karama-Trebil crossing was reopened in August 2017, which has been closed since 2014, due to security incidents on the Iraqi side of the border.

The Jaber-Naseeb border crossing with Syria opened on October 15, 2018, after three years of closure after opposition armed factions took over the Syrian side of the crossing.

High imports

On the other hand, Jordanian imports from Iraq and Syria increased by 126.83% and 3.25% respectively in the first five months of this year compared to the same period of 2018.

Jordan imported from January to the end of May 2019 worth 1.547 million dinars from Iraq, and 17.429 million dinars from Syria.

Trade surplus

The value of exports and imports shows that the trade balance recorded a surplus for Jordan with the two border countries.

Trade balance recorded a surplus with Iraq worth 163.564 million for the first five months of this year, a decrease of 12.73% compared with the same period last year.

The trade balance also recorded a surplus with Syria worth KD 10.429 million for the first five months of this year, an increase of 129.31% compared with the same period last year.

The trade balance reflects the value of the difference between total imports and exports, and when total exports outweigh imports, this is a surplus and a positive indicator of the economy.

Data from the Department of Statistics revealed a deficit in the trade balance with the countries of the world worth 3.5378 billion during the first five months of this year, a decrease of 3% compared to the same period last year.

On February 2, Jordan signed agreements with Iraq to support the economy during ministerial meetings at the Trebil-Karama crossing point , most notably the establishment of a 24km2 joint industrial zone in December 2018.

The Iraqi cabinet activated a decision in 2017 to exempt Jordanian goods from customs duties as of February 2, and the average volume of commercial transport by truck between Jordan and Iraq is 200 trucks per day.

Jordanian exports in 2018 to Iraq, amounted to 466 million dinars, while imports from Iraq amounted to 1.6 million dinars, and therefore the balance of trade tends to the benefit of Jordan by 464.4 million dinars.

Jordan banned imports of goods from Syria on the basis of reciprocity last April, after Syria imposed restrictions on the entry of Jordanian goods into Syria

Minister of Industry, Trade and Supply Tariq al-Hammouri told the Kingdom at the time that "the Syrian side prevented 40% of Jordanian goods from entering Syria, and 60% entered with prior permits, indicating 100% restrictions imposed by Syria on Jordanian goods."

"Jordan has banned the import of 30% of Syrian goods and placed restrictions on 49% of other goods in such a way that they require prior authorization," Hammouri said.

Jordan's industrial exports to the Syrian market fell to JD19 million during the first quarter of this year, compared with JD61 million for the same period last year, or 68.85%.

Jordan Chamber of Industry Chairman Fathi al-Jaghbir said in April that Jordanian exports to the Syrian market, or through its transit, have declined from the beginning of events in Syria in 2011 to 2018, by more than 150 million dinars. National exports from 3.8% in 2011, reaching 0.7% last year.