Regarding the third phase – exports -- Ahmed said: “When our local markets become saturated with local goods, then we can activate this stage as well.”
Imports to Iraq’s autonomous Kurdistan Region continued to rise last year, while non-oil exports fell sharply, the Import & Export Union of Kurdistan Region (IEUK) said.
Imports, measured monetarily, rose from 6.9 trillion Iraqi Dinars (ID) in 2012 to nearly 8.6 trillion ID last year, according to data from IEUK.
It said that non-oil exports during the same period – measured in volume – fell from 1.1 million tons to only 88,671 tons.
IEUK spokesman Bakhtiyar Mala Ahmed attributed the fall in exports to raw materials being used in domestic industries. “Leather, wool, plastic and metals were used in the domestic industries,” he said.
The majority of Kurdistan’s exports are comprised of raw materials only, while imports range from fruits and vegetables to consumer goods and machinery.
Experts say this indicates a great imbalance in trade, with the Kurdistan Region at a disadvantage because money that could be spent on domestically-produced goods leaves the region to pay for imports. Exports have reportedly been on a steady decline since 2010.
“Importing goods that are more expensive when made locally has more harm than benefit. We have to develop our local industries,” said Arshad Taha, an economist.
Ahmed, meanwhile, said a plan is underway to rectify the balance of trade.
“We have plans for three stages: Importing, developing local industries and building factories, and exporting,” he said. “We have been successful in importing, but in 2010 we worked more vigorously to help our members build factories and businesses. We were able to build 360 different factories in Kurdistan in 2013,” he added.
Regarding the third phase – exports -- Ahmed said: “When our local markets become saturated with local goods, then we can activate this stage as well.”
Exports include dates, aluminum, honey, fruits, Kurdish gum, olive, traditional sweets and some other goods, mostly sold overseas through participation in international economic exhibitions.
Fathi Muhammad, an economist in the Kurdistan Region’s commerce ministry, explained the imbalance in imports and exports: “We are not a productive region. We depend on the foreign markets for our local needs,” he said.
“We do not allow export of goods that are locally needed. We are also trying to utilize the raw materials in our local industries,” Muhammad said.
The energy-rich Kurdistan Region is also looking to dramatically boost oil and gas exports to Turkey, once a dispute is resolved with the central government in Baghdad.
According to the IEUK, their union participated in 96 different exhibitions, workshops, and economic conferences locally and abroad, and signed 11 memoranda of understanding.
The IEUK has also visited 13 different countries and participated in 24 exhibitions abroad and 12 local ones in addition to 60 workshops.
http://rudaw.net/english/kurdistan/06022014
