RIYADH, 19 November 2002 — No agreement has been reached between the Saudi Export Promotion Center and the Iraqi Federation of Chambers of Commerce and Industry on a visit by an Iraqi delegation to Saudi Arabia to explore the possibility of joint industrial projects and to hold talks on economic and industrial cooperation between the two countries, a source at the SEPC, a subsidiary of the Saudi Chambers of Commerce and Industry, said.
“Nothing official has been received from the Iraqi side in this regard. No arrangements have been made to hold such a meeting as was reported in the Iraqi media,” the source said.
On the other hand, Abdul Rahman Al-Jeraisy, chairman of the Saudi Chambers of Commerce and Industry, has received an invitation to lead a Saudi business delegation to Iraq. However, no reply has been given to the invitation, the source added.
The source explained that the issue of a free trade zone between the two countries is still under study. However, the export center submitted a report to the ministries of commerce, finance and national economy and foreign affairs on the importance of a free trade zone with Iraq. This proposal is, in fact, based on a previous preliminary agreement between Iraq and nine Arab countries including four Gulf countries on setting up a free trade zone. The present 30 percent duty imposed on Saudi imports to Iraq’s private sector will be waived if such a zone is established.
The source stressed the need for reviewing the present regulations in both the countries to facilitate free flow of Saudi goods to Iraq. The present ban on Saudi trucks entering Iraq makes the export more expensive because Saudi goods are unloaded and reshipped from Jordan.
The issuance of certificates of origin for Saudi goods has to be made more flexible. Saudi manufacturers should be allowed to be present at Iraqi exhibitions and Iraqi businessmen should be allowed to visit Saudi manufacturing centers so that they are convinced of the supply potentials of Saudi firms. Another obstacle faced by the Saudi exporters is the Saudi Telecom’s inability to offer direct telecommunication links with Iraq.
SCCI had earlier received a letter from Commerce Minister Osama Faqeeh stating his ministry’s approval for Saudi businessmen to re-export goods to Iraq. It also urged the businessmen to use the newly opened Arar border crossing to Iraq. Export through this border crossing will reduce cost by 8 percent compared to shipping goods through Jordan.
A Saudi trade delegation recently made a landmark visit to Iraq and it was described as a "grand success" by the leader of the team that comprised 80 businessmen and scores of administrative staff. "The visit has been a grand success. The Iraqi reception was overwhelming and several contracts were signed between Saudi suppliers and Iraqi ministries," said Abdul Rahman Al-Zamil, leader of the team and head of the Saudi Export Development Center.
