Cablegate: Jordan's Exports to Iraq Exceed Traditional

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS AMMAN 006178

SIPDIS

SENSITIVE

USTR FOR SAUMS
USDOC 4520/ITA/MAC/ONE/PTHANOS
TREASURY FOR ABIGAIL DEMOPULOS

E.O. 12958: N/A
TAGS: ETRD EFIN ETTC IZ JO
SUBJECT: JORDAN'S EXPORTS TO IRAQ EXCEED TRADITIONAL
PRE-WAR LEVELS, BUT NOT AT PREFERENTIAL ACCESS LEVELS OF
2001-2002

REF: AMMAN 00106

SENSITIVE BUT UNCLASSIFIED. PROTECT ACCORDINGLY.

1. (U) A Ministry of Industry and Trade (MOIT) source
provided embassy with the latest summary of Jordanian export
statistics to Iraq showing a strong rebound in the
wide-ranging trade to levels in excess of those in the
1995-2000 period. Amer al-Hadidi, MOIT Director of
Industrial Development reported that the export of Jordanian
products to Iraq reached 93 million Jordanian Dinars (JD)
(USD 131 million) during the five-month period between April
20 and September 23. The MOIT focused on the period after
major hostilities had ceased. By comparison, in the first
two months of 2003, Jordanian exports to Iraq were at 36.6
million JD (USD 51.7 million). Al-Hadidi stated that goods
must have at least 40 percent value added in Jordan to
qualify as national exports. UN-sponsored Oil for Food
Program (OFF) items are considered "re-exports"--as are
items being shipped in the heavy transit trade now going
through Aqaba to Iraq--and are not included in these
statistics.

2. (SBU) At an average of USD 26.2 million per month, these
new export figures exceed the comparable figure in 1995-2000
of about USD 14 million a month. In 2001, Jordan's exports
to Iraq took off (reftel), when the value of goods exported
to Iraq topped out at USD 422 million for the year.
Al-Hadidi reported that, in 2002, Jordan exported 311.9
million JD (USD 440 million) in goods to Iraq, or an average
of USD 36.6 million a month.

3. (SBU) COMMENT: Jordan's preferential access to Iraq in
2001-2002 was part of the former Iraqi regime's efforts to
cultivate economic dependence among Jordanian industries in
what appeared to be an effort to gain influence and reap
political benefits. That trade connection has disappeared
and, although we do not yet have product breakouts, the
traditional Jordanian exports to Iraq under the former oil
for goods protocol are not participating in post-war export
flows. Al-Hadidi said most of the recent gains were from
consumer products, particularly alcohol and tobacco. These
new trade figures demonstrate the advantage Jordan has from
its proximity to and experience in the Iraq market.

4. (U) Baghdad minimize considered.
GNEHM

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