DINAR REVALUATION REPORT: Iraq's Parliamentary Committee Announces Plan to Amend Economic Laws for Trade Facilitation, 30 AUGUST

 Iraq's Parliamentary Committee Announces Plan to Amend Economic Laws for Trade Facilitation

The Parliamentary Economic Committee of Iraq revealed on August 30, 2024, its intention to amend approximately 10 economic laws. 1 The objective of these amendments is to enhance trade facilitation, simplify customs and tax procedures, support both the public and private sectors, and create a strategic roadmap for economic reform.

Enhancing Iraq's Economic Landscape

The committee's initiative aims to address and improve the current economic landscape, which has been challenged by various factors such as political dynamics and the country's reliance on oil revenue. 1 Iraq has struggled to diversify its economy and modernize its financial and banking sectors, with the private sector and foreign direct investments (FDIs) remaining underdeveloped. Corruption and the lack of basic services have also been widespread issues.

Digital Customs and Revenue Growth

In a recent move to boost trade and government revenue, Iraq launched ASYCUDAWorld, a customs automation software, in October 2023. 2 This software has been instrumental in digitalizing customs clearance processes, reducing risks of fraud, and streamlining cross-border commerce. Since its implementation, customs revenue at Baghdad International Airport has increased by over 215% between January and May 2024, compared to the same period the previous year. Import transactions also rose significantly, hitting a decade-long high.

Expansion of Digital Customs

ASYCUDAWorld is currently operational in Iraq's nine largest customs offices, which together account for 81% of the nation's international trade by volume. 2This includes customs operations on the borders with Kuwait, Jordan, and Saudi Arabia, as well as at the port of Umm Qasr leading to the Persian Gulf.

Long-term Partnership and Political Backing

The agreement to implement ASYCUDAWorld was initiated in May 2021, as part of Iraq's partnership with the Automated System for Customs Data (ASYCUDA) programme, a major technical cooperation project run by UN Trade and Development across over 100 countries. 2 The collaboration has received top-level political support, which is crucial for its success and sustainability.