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Government's Decision Threatens Iraqi Automotive Industry

The Iraqi government recently issued a decision imposing heavy registration fees on those who purchase new cars, a move that could destroy the country’s automotive trade, writes Omar al-Shaher.
A view of Kahramana square in Baghdad August 31, 2010. The U.S. military formally ends combat operations in Iraq on Tuesday as President Barack Obama seeks to fulfil a promise to end the war despite persistent instability and attacks that kill dozens at a time. U.S. troop numbers were cut to 50,000 in advance of the Aug. 31 milestone in the 7-1/2-year-old war launched by Obama's predecessor, George W. Bush, whose stated aim was to destroy Iraqi weapons of mass destruction. No such weapons was found.     REU
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A sudden government decision has caused confusion among the car market in Iraq and resulted in a significant rise in prices.

Earlier this year, the Iraqi government decided to repeal an exception  granted to the state-owned General Automotive Co. that exempted the company from having to cancel the license plate for an old car each time they sold a new car.

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