Jordan

Jordan and Iraq sign nine cooperation deals to advance economic ties


JordanPolitics & Security
  • Nine agreements cover competition policy, consumer protection, support for small and medium-sized enterprises, education, environmental protection and diplomatic cooperation
  • The two governments agreed to create a mechanism to follow progress on energy, transport, electricity and other joint projects
  • Iraq proposed a bilateral free-trade zone, but no agreement, location or implementation timetable was announced

Jordan and Iraq signed nine cooperation agreements during Iraqi Prime Minister Ali al-Zaidi’s visit to Amman, as the two governments sought to advance economic cooperation and accelerate joint projects. Prime Minister Jafar Hassan said bilateral initiatives should move into implementation through practical measures and clear timelines. The agreements cover competition and antitrust regulation, consumer protection, support for small and medium-sized enterprises, environmental protection, education, scientific research, cultural exchange and diplomatic training.

The two sides also discussed energy, electricity interconnection, transport, industry, trade, logistics and security cooperation. Hassan and Al-Zaidi agreed to establish a follow-up mechanism for major projects, while the Iraqi prime minister proposed a bilateral free-trade zone to facilitate commerce and investment. The proposal was not among the documents signed during the visit, and neither side announced a location, legal framework or timetable. King Abdullah II also met Al-Zaidi and emphasised the importance of deeper economic and security cooperation.

The agreements build on an existing but uneven record of bilateral infrastructure cooperation. The Jordan-Iraq electricity interconnection began operating in 2024, initially supplying Iraq’s Al-Rutba area, but larger plans have faced repeated delays. The proposed Basra-Aqaba pipeline, which would provide Iraq with an additional export route and improve Jordan’s energy security, was discussed as part of the wider bilateral agenda but was not included among the nine agreements. The importance of the trade relationship has increased in 2026 as disruption to shipping through the Strait of Hormuz has redirected more Iraqi-bound cargo through Aqaba, increasing the strategic value of Jordan’s transport links with Iraq.

Overall, the visit confirms that both governments want to convert close political relations into more tangible trade, energy and logistics gains. The agreements themselves are mainly institutional and regulatory, while the free-zone proposal and large infrastructure projects remain at an earlier stage. The practical test will be whether the new monitoring mechanism produces deadlines, financing arrangements and project-level decisions, particularly on electricity, transit trade and the long-delayed Basra-Aqaba pipeline.