A senior Kurdistan Regional Government (KRG) official said Erbil and Baghdad have not reached a final agreement on the ASYCUDA customs system.
The official stated that negotiations remain ongoing despite earlier signs of progress. Both sides continue discussions over technical and jurisdictional issues linked to the system.
According to the official, Erbil and Baghdad still disagree on administrative authority, coordination mechanisms, and customs management procedures. Therefore, negotiations have not yet produced a final framework acceptable to both parties.
The ASYCUDA system, developed by the United Nations Conference on Trade and Development, helps governments modernize customs operations and improve transparency.
Officials in Erbil and Baghdad have discussed introducing the system as part of wider customs reforms. The project also aims to strengthen revenue collection and simplify trade procedures across Iraq.
However, the KRG official stressed that both governments must first resolve legal and operational concerns. He added that the talks remain sensitive because they involve constitutional and financial issues.
In addition, officials continue technical meetings to prevent disruptions to trade movement and border operations. The KRG official emphasized that protecting commercial activity remains a shared priority.
The issue comes amid broader negotiations between Erbil and Baghdad on border management and revenue-sharing mechanisms. Political leaders from both sides have recently increased dialogue to address longstanding disputes.
Despite the lack of a final agreement, the official described the discussions as constructive. He also expressed hope that both sides will eventually reach a mutually acceptable solution.