Jordanian and Egyptian officials are discussing the possibility of reducing tariffs levied at the Suez Canal on imports destined for Aqaba, a Jordanian Ministry of Transport official said on Wednesday.
Imports shipped through the canal either end up in Jordan or pass through the desert kingdom to Iraq or other neighboring countries.
“Last year, Jordan implemented measures to enhance cargo traffic in transit to Iraq. But it decreased in 2000 to 400,000 tons whereas [in the mid-1990s] it totaled around seven million tons,” Alaa Batayneh, the ministry's secretary general, told the Jordan Times.
The measures, he said, included reducing the tariffs on imports heading to Iraq through Aqaba by 50 percent and reduced land transport tariffs by 25 percent.
Yet these measures were not enough, and the ministry began debating other measures, namely reducing tariffs on imports heading to Aqaba by way of the Egyptian Suez Canal, said Batayneh.
“A major factor in the drop of cargo traffic heading to Iraq are the relatively high Suez Canal tariffs on imports,” said one official who declined to be named.
Minister of Transport Nader Dahadi will visit Egypt soon to finalize the recommendations reached by Jordanian and Egyptian officials to reduce tariffs on imports, said Batayneh.
He added that reduction on tariffs imposed by the canal would help Egyptian and Jordanian ports to become more competitive.
The Jordanian officials are also negotiating with the Egyptians to obtain preferential prices and more incentives on exports of Jordanian potash, phosphate and cement that are passing through the canal.
Jordanian-Egyptian economic ties have markedly improved recently.
A meeting of the joint Jordanian-Egyptian Higher Committee in June concluded with the signing of nine bilateral accords – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
