An Amman-based business leader has said Jordan should recognise Iraqi letters of credit (L/Cs) to complement other measures to boost trade between the two countries.

The call comes as a free trade agreement between Jordan and Iraq comes into force this month.

Revival

The free trade agreement aims to revive a commercial economic relationship that has suffered badly since the US invasion of Iraq in 2003.

Yet Jordan remains cautious about the relationship, an attitude born out of security concerns but which impacts on trade.

Trade barriers

Chairman of the Iraqi Business Council in Amman, Majid Allawi al-Saedi, points to several barriers to bilateral trade when it comes to Jordanians doing business with Iraq.

Top of his list is that the Jordanian central bank does not recognise Iraqi L/Cs, even those issued by the Trade Bank of Iraq.

Other issues Jordan needs to address, he says, include tough visa restrictions on visiting Iraqi businessman and a more bureaucratic business environment compared with neighbouring countries such as Lebanon.

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