Iraq Grants Blanket Customs Exemption on Food and Medicines

IraqiNews.com reported that the Iraqi Council of Ministers ratified an executive decision on Tuesday, October 13, 2026, granting blanket customs tariff exemptions on all imported food commodities and pharmaceutical products.

Retroactive Effect and Objectives

The exemption takes effect retroactively from October 7, 2026, and is described as a critical intervention designed to safeguard national food security and maintain the uninterrupted flow of essential healthcare provisions throughout the country.

Link to Exchange Rate Adjustment

According to an official statement from the Council of Ministers, the blanket tariff relief forms a core component of a wider regulatory package enacted by the federal government to stabilise domestic consumer markets and contain parallel market pressures. The measure directly responds to retail price shifts that followed the federal decision to set the official benchmark at 1,500 dinars per U.S. dollar, an adjustment that initially triggered cash market volatility and raised operational import costs across wholesale supply chains.

Building on Earlier Relief Measures

By eliminating border duties on all foodstuffs and medications, federal authorities aim to suppress speculative price hikes, minimise clearance bottlenecks at land crossings and seaports, and curb retail consumer inflation. The decision expands upon prior targeted relief, such as the Ministry of Agriculture’s suspension of fees on imported poultry, eggs, and livestock, and is part of a unified executive push to shield household purchasing power from currency fluctuations and broader regional economic shocks.