US embassy cable - 04AMMAN2791

C O N F I D E N T I A L AMMAN 002791 
 
SIPDIS 
 
E.O. 12958: DECL: 04/07/2014 
TAGS: ETRD, IZ, JO, PREL 
SUBJECT: JORDAN'S EXPORTS TO IRAQ SURGE DESPITE ANTI-JORDAN 
BIAS IN SOME QUARTERS 
 
1.  (C)  SUMMARY:  Although Jordan's exports to Iraq surged 
by 47% over the first two months of this year, a top 
Jordanian Trade Ministry official reported that Jordan still 
faces an anti-Jordan bias in some quarters in Iraq.  He 
recently met with a visiting Iraqi trade official who had 
promised to improve communications to Jordan on upcoming 
procurements in Iraq so that Jordanian companies could 
participate in the future tenders.  END SUMMARY. 
 
2.  (U)   According to Farouk Hadidi, Secretary General of 
Jordan's Ministry of Trade and Industry, Jordan's exports to 
Iraq in the first two months of this year surged 47% over the 
same two months of last year.  These figures record the 
exports of Jordanian-produced goods alone, consisting of 
garments, appliances, food, construction materials, and 
electrical equipment. 
 
3.  (U)  In response to the Ambassador's observation that 
Jordanian businessmen should be pleased with this surge in 
capacity, Hadidi said the nature of the trade had changed. 
Companies that were exporters to Iraq in the past, primarily 
under the oil for food program (providing powdered milk, 
vegetable oil, and detergents) were not now exporting to any 
significant extent.  These companies could no longer compete 
for contracts under Iraq's food basket program.  Recognizing 
that Iraqi consumers cannot yet afford to buy these products 
at market prices, he bemoaned the fact that Jordan cannot 
afford to lose the Iraqi market for these products for the 
next two years.  On the bright side, there were new products 
being exported to Iraq.  Exports of construction materials, 
for example, were booming. 
 
4.  (C)  The Ambassador noted the number of negative remarks 
that we hear from Iraqis--both from government officials and 
the public--about Jordan and its trade relationship with the 
previous regime.  Hadidi admitted that there was a problem. 
 
5.  (C)  Iraq's Ministry of Health, even before the regime 
change, had an unwritten policy not to buy Jordanian goods. 
As a result, much of Iraq's business in this area, as well as 
in some other areas, was shifting to Syria.  Hadidi believed 
this shift in trade was a political decision--not one based 
on price or quality.  He noted that there was a campaign 
under way in Iraq before the war to explain this shift to the 
Iraqi public. 
 
6.  (C)  Nevertheless, it was true that Jordan had not found 
the most friendly environment in Iraq since the war's end. 
The Ministry was addressing the problem.  He had met recently 
with an Iraqi Trade Ministry Official. (Note: It was Ahmad 
Al-Mukhtar, Director General of the Ministry of Trade, 
Foreign Relations Department, who represented the Iraqi 
government at the "Rebuilding Iraq Conference" held in Amman 
in late March. End Note.)  Hadidi described the Trade 
Ministry as "more reasonable" than some other Iraqi 
ministries.  He said Al-Mukhtar believed that Iraq needed 
more open channels with all countries and was also 
appreciative to Jordan for useful training which Trade 
Ministry staff had received earlier in Amman. 
 
 
GNEHM