Trade between Iraq and Jordan experienced a significant decline, falling by 30% in the first quarter of 2026. This substantial reduction notes a sharp downturn in commercial activity between the two nations during the early part of the year. The decrease represents a considerable shift in the economic relationship between Baghdad and Amman, impacting various sectors dependent on cross-border transactions and signaling potential challenges for future bilateral trade. The overall trade value between the two countries saw a steep drop, showing the severity of the economic contraction.
Trade Imbalances Emerge
Jordanian exports to Iraq decreased by 12% year-on-year during the first quarter of 2026. This decline in direct exports was accompanied by a more significant reduction in re-exports from Jordan to Iraq, which dropped by 38% over the same period. The data indicates a substantial shift in the flow of goods through Jordan destined for the Iraqi market, reflecting reduced demand or altered supply chains. The 12% decline in direct Jordanian exports points to a weakening of traditional trade channels, while the steeper 38% drop in re-exports suggests a broader impact on Jordan's role as a transit hub for goods entering Iraq.
Meanwhile, Iraqi exports to Jordan experienced an even sharper fall. The value of goods exported from Iraq to Jordan plummeted from $73 million in the first quarter of 2025 to just $20 million in the first quarter of 2026. This represents a considerable decrease in Iraq's outbound trade with its neighbor. Specifically, Iraqi exports to Jordan plunged by 73% during the quarter. This stark divergence in export figures notes a growing trade imbalance between the two nations during the reporting period, with Iraq's exports to Jordan suffering a more severe contraction than Jordan's exports to Iraq.
Key Exports and Imports
Jordan’s primary exports to Iraq include fertilizers, medical supplies, pharmaceuticals, and food products. This was stated by Manar Al-Obaidi, head of the Future Iraq Foundation for Economic Studies and Consultations. Al-Obaidi added, "Iraqi exports to Jordan are largely concentrated in crude oil and petroleum derivatives." Despite the overall trade decline, Iraq maintained its status as the leading destination for Jordanian exports during the first quarter of 2026. This continued reliance on the Iraqi market shows the importance of the trade corridor for Jordanian goods, even as volumes decreased. The specific nature of these key exports and imports notes the distinct economic needs and production capabilities of each nation within their bilateral trade relationship, with Jordan supplying manufactured and processed goods, and Iraq primarily exporting raw materials.
Economic Context and Outlook
The total trade value between Iraq and Jordan decreased significantly, falling to $479 million in the first quarter of 2026. This figure represents a substantial drop from $684 million recorded during the same period in the previous year, Q1 2025. This reduction reflects a broader contraction in commercial exchanges between the two countries, impacting both import and export figures. The 30% overall decline in trade value demonstrates a considerable weakening of economic ties during the first three months of the year.
Iraqi exports to Jordan experienced a sharp decline, plummeting by 73% during the quarter. The substantial drop in Iraqi goods crossing the border contributed significantly to the overall trade reduction, indicating a major shift in the flow of goods from Iraq to Jordan. Meanwhile, Iraq imported $265 million worth of Jordanian goods during the first four months of 2026, indicating continued but reduced demand for products from Jordan. The significant decrease in overall trade value and the sharp decline in Iraqi exports to Jordan point to a challenging period for economic cooperation between the two Arab nations.
