Rabu, Oktober 25, 2006

Will Iraq private sector import cars and sell them by installments?

This falls in line with the changes that the Ministry desires through adopting the free market system in business dealings after it was gripping for all of import and export, with partial waiver, in recent years, for the merchants to import components of the ration card. öö öö Al-Mada tried through this poll to know the views of a number of economists and whom it concerns about the implications of these changes, especially with regard to trade in cars and their prices in the local market.

The start was with citizen, Mahmoud Jaafar, who said: vehicles are durable commodities just like many others, so the State has no right to deprive the private sector from engaging in this business, which is one of the important activities, and play the role of a trader; the State better carry out bigger and more important tasks. Adding that allowing the private sector to practice this trade, will be positively reflected on the sector and makes the sale of vehicles in installments possible without exhausting the citizens. He asserted that the dissolution of the General Company for Cars Trade would allow the private sector to import modern and sophisticated cars; the market may witness some slackness at the beginning but it would not last for long.

Dr. Saleem Almshahadani, a professor at the Administration and Economy college at Baghdad, says: The import of cars in the past was done according to certain specifications that suit the weather conditions of Iraq, the availability of expertise in the company and all were subjected to control; therefore, allowing the private sector companies to import variable and sophisticated cars may have a negative impact at the beginning. He pointed out that starting private companies for importing cars will lead to the import of fine quality cars and opens the way to competition among these companies to win customers and prove their success, which is a positive thing.. But importing too many cars will have a negative impact on providing spare parts, which will not last for long because traders and companies will provide those tools being a profitable business.

Mr. Ahmed Jasb, owner of an exhibit for buying and selling cars says: The dissolution of the General Company for Cars Trade will be of great benefit because the importer will not adhere to certain qualities and specific brands, like the company used to do, , which will diversify the types of cars. He pointed out that the private sector may sell cars to citizens by installments with certain guarantees to be presented by the buyer. Also, companies that provide after-sale services may appear, as well as companies that undertake importing spare parts and maintenance, as is the case in foreign companies. He explained that car companies and exhibits will be agencies of international companies and will sell cars at a low cost.

Mr. Tahseen Al-Dulaimi, a car exhibit owner, says: The dissolution of the Company would not affect the work of exhibits because traders will turn to them to display the cars they importÇ with the possibility of opening branches of companies, especially after an agreement is reached or the issuance of instructions to organize the work with each of the customs and traffic. The new procedures to be followed by the ministry would be in the interest of exhibits owners because it would encourage and activate the sale and purchase processes. He, also, warned of importing fine cars by the private sector because this will affect the Iraqi street which can not accommodate more than the current number and will suffer from jams if public demand for importation of luxurious cars increases. In stead, he suggested the replacement of old vehicles with more recent ones.

While Mr. Aos, an exhibit owner, expected: a state of confusion will happen in the process of buying and selling after the new procedures which the Ministry intends to do, especially after allowing the private sector to import modern cars of high prices that the Iraqi citizen can not afford. He, also, explained: The majority of citizens prefer the old cars being affordable and car owners will face difficulties in this aspect. (Source)Al-Mada Newspaper


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