EU officials propose trade and co-operation agreement with Iraq

The European Commission today proposed that it negotiate a trade and co-operation accord with Iraq and committed itself to opening an office in Baghdad early next year.

EU External Relations Commissioner Benita Ferrero-Waldner signed an accord with Iraq’s envoy to the EU to open a European Commission office in Baghdad’s ‘Green Zone’ – the heavily fortified area of government offices in the heart of the Iraqi capital.

The envoy, Jawad Al-Doreky, said at a news conference with Ferrero-Waldner that the opening of the office sends “a strong message to the terrorists” that Iraq is on the road to democracy.

Ferrero-Waldner proposed the EU governments have the EU head office negotiate a trade and cooperation deal with the Iraqi government that comes out of Thursday’s general elections.

It would cover trade in goods and services and extend EU cooperation in such areas as human rights, anti-terrorism, energy, non-proliferation of weapons of mass destruction, the environment and customs issues.

“The Iraqis are seeking a significant partnership with the EU, and we intend to meet their expectations,” Ferrero-Waldner said.

“The proposal to start negotiations for a trade and cooperation agreement is very much welcomed by my government,” said Al-Doreky.

The accord – likely to be completed in early 2006 – would be the first contractual arrangement linking the EU to Iraq.

Ferrero-Waldner said the EU office will open “as early as possible in 2006” in the Green Zone. Doreky said his government “will take all necessary steps to assure the safety” of EU diplomats and local staff there.

“Negotiations on the trade and cooperation agreement mark the beginning of a closer co-operation between the EU and Iraq on trade and economic issues,” EU Trade Commissioner Peter Mandelson said in a statement.

The EU already has granted Iraq preferential access to European markets and supports the country’s bid to join the World Trade Organisation.

A trade and co-operation agreement seeks to promote bilateral trade in accordance with WTO rules and is meant to stimulate Iraq’s reintegration into the international community.

Ferrero-Waldner said that opening an EU office and the proposed agreement together would “send a strong signal to the Iraqi population of Europe’s intention to become increasingly engaged in Iraq and to continue playing a significant role in its transition".