Iraq implements tariffs on rebar imports to diversify economy and bolster domestic production

In a bid to fortify its economy and diminish dependence on oil revenue, the Iraqi government has implemented a substantial tariff on rebar imports. 

By imposing tariffs, Iraq aims to encourage domestic production and reduce reliance on imports. the Iraqi government imposing a 20% customs duty on rebar imports from all origins. Rebar, a crucial material for construction and infrastructure projects, has been subject to increased demand in Iraq. 

Iran, a major exporter of rebar, may face challenges as a result of Iraq’s tariff policy. Historically, Iran has supplied a significant portion of Iraq’s rebar needs.  Iraq stands as a pivotal market for Iran's rebar exports, with a substantial 64% of Iran's total rebar exports finding their way to Iraqi shores last year.

Local Iraqi manufacturers have applauded the government's decision, citing the increasing difficulty in competing with foreign suppliers, particularly Iranian exporters who resort to price dumping strategies. With the new tariffs in place, Iranian exporters may find it more difficult to compete in the Iraqi market. The limited availability of rebar from Iran could lead to increased demand for locally produced rebar or imports from other countries.

This move comes in the wake of the region of Iraq imposition of a 30% tariff on rebar imports from all sources last year, further underlining the nation's commitment to safeguarding its domestic steel industry.