EU and Iraq launch negotiations for a Trade and Cooperation Agreement

On 20 November, the European Commission and the Iraqi government will open in Brussels the negotiations for a Trade and Cooperation Agreement (TCA) between the EU and Iraq. The negotiations will be launched by Commissioners Ferrero-Waldner and Mandelson, on behalf of the Commission, and by Barham Salih, Iraqi Deputy Prime Minister for Economic Affairs, on behalf of Iraq. The TCA will help to progressively strengthen the EU’s relations with Iraq and integrate the country in the world economy.

EU Trade Commissioner Peter Mandelson said: "Establishing this framework for EU-Iraq trade relations is a small part of Iraq's difficult road to stability. Those committed to Iraq's peaceful future must begin planning for it now."

“This is an important moment in our relations with Iraq. Through this agreement we will for the first time establish contractual relations. This is a natural step for the Commission which has supported substantially the Iraqi reconstruction and the political process since 2003. Clearly, for this agreement to achieve its full potential a stable and secure environment in Iraq will be necessary.” said Commissioner for External Relations and Neighbourhood Policy, Benita Ferrero-Waldner.

This agreement aims to improve the trade arrangements between Iraq and the EU, covering a wide range of issues, including trade in goods, services, measures to encourage investment, customs, intellectual and industrial property rights, and public procurement rules. Co-operation could cover a number of key aspects in the economic area, as well as in the human development and poverty reduction field, environment, culture and education. All agreements with third countries now feature human rights, terrorism and WMD as important elements.

By entering into negotiations for contractual relations with Iraq, the EU aims to:

· Facilitate Iraq’s engagement with the international community and with the EU in particular, to the benefit of the internal and regional stabilisation process.

· Stimulate and anchor ongoing institutional and socio-economic reforms at both policy and operational levels.

· Contribute to the socio-economic development of Iraq and to the improvement of living conditions in the country.

· Promote bilateral trade relations in accordance with WTO principles.

· Ensure a minimum level of predictability, transparency and legal certainty for economic operators.

During his visit, Deputy Prime Minister Salih will also hold separate bilateral talks with Commissioners Ferrero-Waldner and Mandelson. With Commissioner Ferrero-Waldner, discussions are likely to focus on the general political and security situation in the country and Commission assistance to alleviate the situation for the population as well as means to promote national reconciliation. The meeting with Peter Mandelson will be an occasion to share views on the long-term bilateral trade relations between the EU and Iraq.

Background

Since 2003, the European Commission has contributed €720 million towards the reconstruction of Iraq with a focus on assisting Iraqi people in accessing basic services, furthering democracy, and promoting good governance. In 2006, the Iraqi government has proposed that a Compact be developed to build a new partnership between Iraq and the international community. The Commission supports this initiative, which should aim to promote political, economic and social development in the country. Lately, the Commission has also stepped up its presence in Baghdad and has opened a Delegation.