Iraq plans to reduce the price of oil traded to Jordan in return for preferential tariffs on goods that Iraq receives from Jordan through the Aqaba port, according to Iraqi Prime Minister Adel Abdul Mahdi, Zawya reported citing Reuters.

The Iraqi Prime Minister is going to meet Jordan’s premier Omar Razzaz to discuss the deal and discuss establishing a new industrial zone, the Iraqi Prime Minister told reporters without giving further details.

Aqaba port at the north end of the Red Sea has long been a major transit route for Iraqi imports and exports, and Amman has long relied on Iraqi crude to fuel its economy.