Iraq and the United States signed a Trade and Investment Framework Agreement (TIFA) in 2005, which took effect in 2013. Meetings were held in 2014 and 2019 under the agreement. Iraq is a member of the Multilateral Investment Guarantee Agency (MIGA) and a World Trade Organization (WTO) observer, but it is not yet a full member.
Iraq – EU
On May 11, 2012, the EU-Iraq Partnership and Cooperation Agreement were signed. Its trade provisions went into effect on August 1, 2012, on a preliminary basis. After the EU, its Member States, and the Iraqi government accepted the deal, it went into effect in August 2018. It gives EU companies preferential status and significant market access in public procurement (the same as national companies) and services, and the establishment and investment in Iraq. The agreement covers goods and services trade, Intellectual Property Rights, technical trade obstacles, sanitary and phytosanitary issues, and a procedure for resolving disputes. The EU-Iraq Sub-committee on Trade and Related Policies held its last meeting on December 15, 2020. In 2020, the total goods traded between the EU and Iraq were worth €10.8 billion. The EU imported €7.3 billion worth of goods from Iraq, most of which were fuel and mining materials. Machinery and transport equipment, agriculture and raw materials, as well as chemicals, accounted for the majority of the EU’s €3.5 billion in exports to Iraq.
World Trade Organization
Iraq is not a World Trade Organization member (WTO). Iraq received observer status in February 2004 and requested membership in the World Trade Organization in September 2004. The EU supports Iraq’s WTO membership, believing that membership will help the country’s structural reform and reintegration into the multilateral trading system. The Partnership and Cooperation Deal between the EU and Iraq is a non-preferential trade agreement based on WTO rules. The EU established a new strategy for Iraq on January 22, 2018, with numerous strategic objectives, including job creation and the promotion of sustainable, knowledge-based, and inclusive economic growth.
Iraq and UAE
On November 2, 2001, the UAE and Iraq inked a free trade agreement aimed at simplifying the movement of goods and investments between the two countries. Only home-made products are covered under the free trade agreement, which excludes items that are prohibited by local legislation due to health, environmental, or religious concerns. The two nations agree to provide adequate and indiscriminate protection for copyrights, intellectual property, trade secrets, and industrial property. The free trade agreement eliminates all customs charges and other tariffs on both countries’ national products. It further states that any non-custom obstacles must be removed immediately and that no new barriers must be erected.
Iraq and Bangladesh
In 1971, Bangladesh and Iraq inked a trade agreement to enhance trade and commerce. It has the potential to boost the two countries economic ties. In the fiscal year 2020-2021, Bangladesh exported items to Iraq worth $3.80 million. At the same time, it purchased $53.42 million worth of commodities from Iraq.
Iraq and India
After the invasion of Iraq in 2003, India’s commercial and trade contacts with Iraq weakened. However, total bilateral trade has been steadily increasing since 2010, owing primarily to rising crude oil imports. Bilateral commerce with Iraq was valued at $25.61 billion in the fiscal year 2019-2020 and $15.78 billion in the fiscal year 2020-2021, accounting for around 2.31 percent of India’s total international trade. From April to November 2021, bilateral trade reached $19.84 billion, a rise attributable to increased economic activity. Iraq has surpassed China as India’s fifth-largest trading partner. In August 2016, India built a consulate in Erbil, the capital of the Kurdistan region, to boost economic and trade ties with Iraq.
