Afro Asian Business Chronicle

Iraq: Rekindling Trade Links

Historically a dynamic country, Iraq is grappling with the present changed global power dynamics. The new coalition government let by Nouri al-Maliki is all geared to lead the country towards stability, peace and progress. While different factions challenge and support the new regime, all are united in their country’s claim to peace and development for the people of Iraq. In an exclusive interview to Renu Malhotra, Editor in Chief of Afro Asian Business Chronicle, Ambassador of Iraq to India H.E.
Mr. Ahmad Berwari spoke about his countries commitment to Indo-Iraq relations. Edited Excerpts:

Despite Iraq and India having historic relations, the bilateral trade and economic relations remain subdued.   What is there in store in the near future in the bilateral trade front?

As you have rightly said, the cordial and friendly relations between Iraq and India date back to centuries. This relationship also had strong economic content, and the trade between the two countries was strong and expanding. Now with the new government of Iraq, we are keenly looking forward to reviving and strengthening the multi-dimensional relationship. Given the potential for the course, the Government in Iraq is confident that both our countries will be able to enhance the bilateral trade with greater speed and our relations will grow manifold soon.

Do you think Law and Order situation in Iraq is a big hindrance in bolstering trade relations?

As is being recognised by all countries, the security situation in Iraq has been improving gradually and the new Government is giving top priority to the law and order situation. With the improving situation, the number of foreign companies trying to do business in Iraq is also increasing. More and more business representatives are visiting Iraq and international enterprises are establishing their offices in Iraq so as to avail  new opportunities that are emerging in our country.  The government in Iraq is also facilitating investment and business collaborations by making business friendly regulations and procedures.

Do you think Iraq and India Joint Commission for Economic and Technical Cooperation, has failed to really push bilateral cooperation?

The Iraq-India Joint Commission has not failed and is being activated by both the governments. The Iraqi Minister of Oil, H.E Dr. Hussein Al- Shahirstani, who is the Co-Chairman from the Iraqi side, has already conveyed to Hon'ble Minister of Petroleum and Natural Gas, Murli Deora, Iraqi desire to convene the next session of the Joint Commission in Baghdad, at his convenience. Both governments attach importance to the to the Joint Commission meetings which cover relations in different areas, like political, economic, cultural. Scientific and technical, tourism, health, oil, transport, telecommunications, higher education, pilgrimage, agriculture etc. So, we view the Joint Commission sessions as a very important and useful in pushing forward the level of bilateral relationship.

Which are the sectors do you think where Iraq and India can cooperate in a big way?

I am happy to say that apart from the traditional areas of cooperation between the two countries, several new areas are emerging as quite promising the mutual benefit. I would especially mention the sectors like Information Technology and Telecommunications, Healthcare, Bio-Technology, Financial Services etc. As  both countries move forward in expanding their interaction, many more new opportunities will emerge to make Iraq-India relationship much more dynamic. I may also add that government of Iraq has put in place many investor friendly policies and procedures to attract investment. Now Iraq offers wide opportunities for investments in a number of fields.

The United States of America has set a deadline for pullout of its forces from Iraq's cities by June 2011 and combat forces by December 31, 2011. Do you think Iraq is prepared to handle the internal security situation post withdrawal of US troops?

As I mentioned earlier, the security situation is Iraq is improving because of the improving capacity of the Iraqi security agencies, and with containing training of police and other forces, there is going to be full control of the situation by the Iraqis themselves. By the time the US withdrawal takes place, the Iraqis will be well prepared to take effective and total control of every situation in the country. And this will further boost the business confidence in Iraq.

Do you think India can play a role in the stability of the region, particularly Iraq?

Iraq has achieved stability and the new government has been able to exercise effective control. Long term plans are being drawn up for achieving greater peace and progress in the country. Both Iraq and India have played significant roles in strengthening international peace and cooperation in the past, and we would like to continue these initiatives in future.

Do you think India can play a major role in training Iraqi police and army personnel?

There is no proposal at present for cooperation in this area. We could consider such proposal and inform the concern authorities in Iraq who would like to benefit from the Indian expertise and experiences in this field.

India being one of the fastest growing economies, its energy demand is going up phenomenally. What kind of assurance Iraq is willing to give India on the continuous and enhanced supply of crude oil?

India is indeed emerging as the high growth country and this is leading to increasing demand of energy. As you know, Iraq possesses second highest reserves of oil and in the past there was very close cooperation between the two countries in this sector. I may also mention here that at present Iraq is the third largest oil exporter to India, after Saudi Arabia and the Islamic Republic of Iran. The Iraqi exports of 250 thousand barrels per day of crude oil to India constitute one eighth of its total oil exports. As a friendly country, Iraq will be happy to expand this cooperation and supply crude oil to meet India's energy requirements which are being met mainly by imports.

How do you view the recent visit of US President Barack Obama to India and his open pronouncement that his country would back India to become a permanent member of the UN Security Council?

The visit of the US President to India was extensively covered in Indian media. As close friend of India, Iraq would be happy to see higher international recognition of India's growing importance.

Will Iraq support India for a permanent member of the UNSC?

Iraq recognises the important role being played by India in international affairs and would support its claim for permanent membership of UNSC.

The number of Indian workforce in Iraq has depleted following the internal security situation. What steps are being initiated to reverse the situation?

I am in a position to clarify that the number of Indians working in Iraq has been growing. As the new projects go underway, there will be more opportunities in Iraq- As I have remarked earlier, the internal security situation in Iraq is no longer a hurdle. Many Indian companies are conveying their interest in undertaking projects in Iraq. Iraq and India have also signed agreement to start direct air services between the two countries. All these are new developments which will soon lead to larger number of foreign specialists and experts getting involved in reconstruction projects in Iraq.