Publication Details
Abstract
The research focuses on analyzing the current state of Iraq's foreign trade, which is experiencing a noticeable deterioration. This is attributed to the country's economic diversification weakness and an increase in economic exposure, creating a state of extreme caution regarding the issue of joining the World Trade Organization (WTO). Iraq's foreign trade is heavily dependent on a single primary commodity, namely oil, which significantly contributes to the country's GDP. The substantial and serious decline in economic diversification will have a negative impact on various components of economic activity. The dominance of oil in foreign trade exacerbates the situation, leading to a limited capacity for local demand absorption in the domestic market. This limitation stems from the insufficient local production of goods and services, opening the door to imports that flood the market. The financing of these imports relies on the financial revenues generated from oil exports. Consequently, this process will result in negative repercussions on the country's trade balance, as well as a deterioration of the value of the local currency and a decrease in the reserves of hard currencies held by the country.