WORLDEF Prime Antalya 2026 — Super Early Bird Discounts

Register Now

A New Roadmap from Türkiye and Iraq to Accelerate Customs Procedures

Customs

Türkiye and Iraq reaffirmed their goal of increasing bilateral trade volume to $30 billion in the medium term. During the meetings held in Ankara, the harmonization of customs procedures, the facilitation of transit trade, mutual investments, and the steps to be taken within the scope of the Development Road Project were discussed. The integration of the Ibrahim Khalil Border Crossing into Iraq’s automated customs system, ASYCUDA, is intended to reduce uncertainty at border crossings and accelerate commercial transactions.

A New Era of Digital Integration at the Customs Gate

Minister of Trade Ömer Bolat said that connecting the Ibrahim Khalil Border Crossing to the ASYCUDA system as soon as possible would make a significant contribution to the $30 billion trade target. The integration is expected to strengthen cooperation between the customs administrations of the two countries and make transit transportation processes more organized.

Türkiye is Iraq’s fifth-largest trading partner. The current trade volume between the two countries stands at approximately $17 billion. This figure had risen to as much as $24 billion during the post-pandemic period and when energy prices increased.

The Development Road Will Be Supported by Logistics Centers

The meetings also addressed the Development Road Project, which is planned to begin at Al-Faw Port in the Persian Gulf and extend to Europe via Türkiye. Within the scope of the project, new logistics centers and cities are planned to be established, road and railway connections are to be developed, and transit trade channels to Gulf countries are to be expanded. The new customs and logistics infrastructure is expected to contribute to the development of cross-border e-commerce, retail supply chains, warehousing, distribution, and delivery operations.

A New Trade Roadmap Will Be Prepared

The third meeting of the Türkiye-Iraq Joint Economic and Trade Committee is planned to be held in Türkiye in the final quarter of 2026. A new roadmap for the $30 billion target will be prepared at the meeting.

Turkish contracting companies have completed 1,157 projects in Iraq to date, with a total value of $40 billion. In addition to trade, the parties aim to expand cooperation in investment, transportation, energy, logistics, and contracting.

E-Commerce Hit by Hormuz Crisis as 20% of Global Oil Trade Is Affected

strait-of-hormuz-disruption-slows-iraqi-e-commerce-as-costs-rise-and-deliveries-delay

The ongoing disruption in the Strait of Hormuz is beginning to ripple through Iraq’s digital economy, with e-commerce businesses facing rising costs, delayed deliveries, and increasing order cancellations.

Online retailers across Iraq report mounting logistical challenges as shipments-many routed through key global trade corridors are slowed or rerouted. The impact is particularly visible in delivery timelines, once considered a competitive advantage for e-commerce platforms.

Delivery Delays and Rising Cancellations

Small and medium-sized online sellers are among the hardest hit. Many rely on imported goods from international suppliers, particularly in Asia, making them highly dependent on stable shipping routes.

Retailers say delayed shipments have triggered a surge in cancellations, as customers opt out of purchases when delivery times become uncertain. Sellers are also absorbing additional operational pressure, balancing customer expectations with limited control over supply chain disruptions.

Transport costs have increased significantly, squeezing already thin margins. Some businesses are choosing to maintain prices to remain competitive, even as profitability declines.

Supply Chain Pressure Hits Core E-Commerce Model

The Strait of Hormuz is one of the world’s most critical maritime trade routes, handling a substantial share of global energy and cargo flows. Any disruption quickly translates into higher fuel prices and shipping costs globally, directly impacting online retail.

Economists warn that e-commerce built on speed, affordability, and product availability is especially vulnerable to such shocks.

Higher oil prices are already driving up logistics expenses across both air and sea freight. This, in turn, is increasing product prices, reducing consumer purchasing power, and weakening demand in price-sensitive markets like Iraq.

Reduced Variety and Slower Market Activity

Beyond delays, the disruption is also affecting product availability. Import-dependent markets are seeing reduced variety as supply chains slow, particularly for goods sourced from China and India.

This shift is forcing e-commerce platforms and sellers to rethink inventory strategies, promotional campaigns, and pricing models. Some larger players may pass costs directly to consumers, while smaller sellers risk losing market share.

Experts note that emerging markets tend to feel the impact more sharply due to their reliance on imports and limited logistical alternatives.

A Structural Challenge for Digital Commerce

The situation highlights a broader vulnerability in global e-commerce: dependence on key geopolitical chokepoints.

As disruptions in the Strait continue, Iraqi e-commerce is likely to remain under pressure, with longer delivery cycles, higher prices, and reduced competitiveness shaping the market in the near term.

For the sector, the crisis serves as a reminder that digital commerce is only as resilient as the physical infrastructure behind it.

Source