By next year, car companies must open branches in Iraq if they want to sell cars in the country, the Trade Ministry announced on Sunday.
Currently, cars are imported through agents in neighboring Gulf States. AKnews reports that these intermediate imports will be prohibited by the end of the year.
With the new law, the government will also try to reduce car prices, a spokesman for the ministry said.
Japanese car maker Toyota was notified on Sunday that it has six to seven months to comply with the new regulation. Similar messages will be sent the other companies who sell cars in Iraq.
The companies will also be required to open repair shops.