"A new agreement, drafted to get over differences and increase cooperation between both the Jordanian and Iraqi public and private sectors, will refresh " 

A new agreement, drafted to get over differences and increase cooperation between both the Jordanian and Iraqi public and private sectors, will refresh economic relations with Baghdad, a senior government official said Thursday.
Deputy Prime Minister and Minister of Industry and Trade Mohammad Halaiqa indicated Thursday that a new economic agreement will cancel the 1980 agreement signed with the ousted Iraqi regime.

"Our economy is suffering from lack of awareness and is unbalanced because of the current security situation," Iraqi Trade Minister Mohammad Jabouri said during the opening meeting. "We hope that more cooperation with our neighbours can help rebuild the Iraqi economy."

Noting that the Iraqi private secor had been in the shadow for the last 40 years as the Trade Ministry controlled all trade, Jabouri added: "Our economy should be transferred into a market economy and we are ready to work with the Jordanian private sector on joint projects."

For the first time, the meetings included representatives of both sides' private sectors who are expected to discuss possibilities of strengthening trade and starting joint-ventures.

Iraqi Deputy Central Bank Governor Ahmad Mohammad said the new agreement will supersedes all pending issues as well as previous differences.

Halaiqa said that both sides realise the negative effects of the war adding that Jordan and Iraq will consider resuming oil relations once Iraq is ready.

Iraqi oil exports to Jordan under preferential prices stopped after the ousting of Saddam Hussein's regime. Currently, Baghdad is importing refined oil as the Iraqi refineries' cannot meet the increasing demand.

According to sources at the ministry, both sides are seeking to build a fresh legal platform for the new relations, and are discussing the possibility of signing a Free-Trade Agreement.

The ministry's Secretary General Farouq Hadidi said Thursday that both countries are expected to sign soon three agreements to protect investments, cooperate on customs, and on dual-taxation, as a base for future agreements.

He indicated that Jordan is ready to provide its expertise for Iraq's rebuilding, noting that the pharmaceuticals sector is currently studying the best means to boost exports to Iraq to cover Iraqi medical needs.

According to Hadidi, further cooperation in the agricultural, health, education and cultural sectors will also be included in the discussions.