GOLDILOCKS
The Republic of Iraq has achieved a key milestone with the signing of the Guarantee Agreement between the General Authority of Customs and the TIR national association. This agreement will pave the way for the implementation of the United Nations TIR transit system in Iraq."
A key requirement for joining the WTO is consistent trade policies throughout the country, including tariff rates and customs procedures.
The signing of this agreement will go a long way in the accession process for Iraq early next year through the WTO.
The United Nations TIR transit system in Iraq offers significant benefits by significantly reducing border crossing times, streamlining customs procedures, boosting trade potential, and promoting economic development within the region by enabling faster and more secure movement of goods across borders through a globally recognized system, essentially minimizing delays at customs checkpoints and facilitating efficient trade flows.
In March 2023, Iraq became the 78th country to join the United Nations (UN) Transports Internationaux Routiers (TIR) Convention. Key benefits of the (TIR) system in Iraq:
Reduced border waiting times:
TIR allows trucks to cross borders quickly with sealed load compartments, eliminating the need for lengthy customs checks at each border crossing, leading to faster transit times.
Simplified customs procedures:
The TIR carnet acts as a single document that guarantees the customs duties throughout the transit journey, reducing paperwork and bureaucratic hurdles.
The United Nations and the International Road Transport Union (IRU) have joined efforts to fully computerize the TIR procedure. This is called eTIR, and it allows associations to issue electronic TIR carnets to authorized holders online.
Increased trade potential:
By facilitating easier movement of goods, the TIR system can stimulate trade between Iraq and other countries in the region, boosting economic growth.
Enhanced security:
The sealed load compartments and strict customs controls under the TIR system provide greater security for goods during transit, minimizing the risk of smuggling or diversion.
Cost reduction:
Reduced border delays and simplified customs procedures can lead to lower transportation costs for businesses.
Improved regional integration:
By joining the TIR system, Iraq aligns itself with international standards, promoting smoother trade interactions with other countries in the region.
Yes, trade agreements and customs can affect exchange rates:
Trade agreements
Trade agreements can lead to more stable exchange rates. When countries trade more, their economies become more aligned, which can reduce the risk of exchange rate volatility.
Tariffs
Tariff increases can lead to real exchange rate appreciation. Tariffs are a type of trade barrier that can raise the relative prices of imported products.
Exchange rates and FTAs
Exchange rates can play a significant role in the utilization of free trade agreements (FTAs). For example, if an exporter's currency depreciates against the importer's currency, it can enhance FTA utilization.
Exchange rates can be volatile and can adjust when central banks make economic and political decisions, or attempt to control inflation or adjust interest rates.
Although Iraq is expected to have a rate for the United Nations TIR (Transit International Road) system to trade. There is no indication in these articles that one has been decided upon.
👆 TIR is a Regional Expansion - next stop - Global with the WTO
© Goldilocks
https://www.iru.org/news-resources/newsroom/new-iraqi-customs-agreement-opens-door-huge-trade-growth
https://unece.org/media/press/377333
https://www.sciencedirect.com/science/article/abs/pii/S0261560617300931#:~:text=The%20focus%20on%20AKFTA%20enables,the%20paper%20in%20Section%205.
https://www.iru.org/news-resources/newsroom/iraqi-digital-transport-service-provider-transforat-joins-iru
https://www.google.com/search?q=iraq+joins+tir+convention&ie=UTF-8&oe=UTF-8&hl=en-us&client=safari
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