Why is Iraq not allowed to join the World Trade Organization yet?
The economic expert Salam Sumaisem confirmed, on Sunday (20 June 2021), that the failure to activate the laws supporting the private sector and the “deterioration of the quality” of Iraqi local products prevent Iraq’s accession to the World Trade Organization, and thus deprive it of entering global markets.
Sumaisem told IQ News, “Iraq has been an observer member of the World Trade Organization, since 2004 until now, and has not joined it due to its failure to activate the economic laws that support the activities of the private sector, which is the basis of the principle of freedom of trade, which is what the World Organization is based on.”
She added, “Iraq’s failure to join the organization until this moment prevents it from entering the global markets that fall under the tent of the Trade Organization,” pointing out that “entry into the organization is currently done through competition, and this is a task that is not easy for Iraqi products because it is not at the required quality level, and it is declining in this regard.” the field”
The World Trade Organization was established after the “Marrakesh Agreement” on January 1, 1995, and includes in its membership many countries of the world, and its headquarters is located in Geneva, the capital of Switzerland, and its main mission is to ensure the free flow of trade between the 164 member states, with 20 members observer.
Baghdad previously announced that it is conducting negotiations and moving to join this organization, while the private sector in Iraq is a bureaucracy of government procedures, and its work is not regulated by law.
On November 27, 2020, the Ministry of Commerce announced the preparation of a plan to join the World Trade Organization, which is to re-form a higher national committee to complete the files required to join, and to expedite the legislation of the necessary laws for this, such as the National Product Protection Law, the Consumer Protection Law, the Competition and Anti-monopoly Law, and the Law Customs tariffs and others, and confirmed at the time that joining the organization would contribute to increasing national production, providing job opportunities for the unemployed, and thus “a noticeable increase in per capita income and total output. link
A member of the Parliamentary Finance Committee is likely to return the dollar to its previous price
Member of the Finance Committee, Representative Ahmed Hama Rashid, suggested that the dollar exchange rate will return to its previous price against the dinar, stressing that the rise in Iraq’s financial imports of oil will reduce the price of the dollar in the market.
Rashid said in a statement to the National Iraqi News Agency ( NINA ) that “Basra, light and heavy oil prices recorded their highest price in years, and this is thanks to the rise in global oil prices and the increase in demand for it, which contributes to the entry of hard currency into Iraq, the increase in the dollar supply in the local market and the decrease in demand for it, and thus the decrease Its inflamed price.”
He pointed out that “traders and speculators took advantage of the decision to float the dinar by raising the price of the dollar to its maximum limit, and it began to rise above what was decided in the general budget, and this harmed the very simple citizen. In the market to control the rise of the dollar.” link
Financial Tribune: The Rial Gets Some Respite
Foreign exchange rates continued to decline in Tehran on Sunday as the rial got a long-awaited boost following reports that talks in Vienna to restore Iran’s nuclear deal were in the final round.
The dollar lost close to 2% or 5,000 rials in the early hours of trade in the open market before paring some losses later.
The comeback was partly due to the official exchange shops’ move to increase prices in mid-session. The greenback closed Sunday at 237,400 rials, down 1.1% or 2,600 rials.
Official exchange bureaus affiliated to the Central Bank of Iran, tagged the dollar at 240,330 rials, up from 234,690 earlier in the day and 2.35% or 5,440 rials higher than Saturday’s close.
Other major currencies also fell. The euro lost more than 1.9% and was worth 279,460 rials. The UK pound sterling fetched 325,080 rials down 1.91 or 6,210 rials compared to Saturday.
The UAE dirham dropped slightly by 0.16% to be traded at 65,400 posting the biggest daily decline a session before shedding 2.3%.
Market observers say currency dealers are closely monitoring the ongoing negotiations aimed to revive the Iran nuclear agreement known as Joint Comprehensive Plan of Action (JCPOA).
The currency market decline is mainly due to positive reports that a deal is imminent, which could and would practically translate into a stronger rial.
On the sidelines of the latest round of talks in Vienna, Iran’s chief negotiator, Abbas Araghchi, told state TV late Saturday that all the documents required to finalize the accord are in place “subject to decisions that need to be made by the negotiating parties.”
Araghchi expressed the hope that a final agreement to restore the deal can be reached in the next round of negotiations, IRNA reported.
A new rise in oil prices after the talks between Iran and world powers ended without an agreement
Oil prices rose on Monday, after recent talks between world powers and Iran ended without an agreement, a day after the OPEC producer elected a new president.
Diplomats have postponed a sixth round of meetings with major loopholes left to fix the pact, the third time since talks began in April that negotiators have missed their own deadlines for renewing the pact. Reviving the deal is likely to ease US sanctions and increase crude oil flows.
Crude oil is up nearly 50% this year as major economies emerge from restrictions and lockdowns after Covid-19 vaccines were rolled out around the world, and demand has rebounded, especially in the United States and parts of Asia. China’s oil consumption has surpassed pre-pandemic levels, and India is showing signs of recovery from the deadly second wave of the virus that has devastated its economy.
Brent crude rose 0.26% to $73.70 on the ICE Futures Europe exchange, after rising 0.6% in the previous session link
Source: Dinar Recaps
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