Thread: Archive Latest News - Think Tank - 01/01/08 - 14/04/08

Najaf, Babel and Karbala intend to apply FIMS

Najid Hammoudi Majeed, regional coordinator of the public finances in the American Agency for International Development, confirmed that the provinces of Najaf, Babel and Karbala will apply the Financial Management Information System (FIMS) at the beginning of next April.

Hammoudi said that the government reached a new agreement last month with the company "Bering Point" to operate the system in Iraq and in all governorates, pointing out that the American Agency for International Development has proposed an alternative system at the provincial level and that is the financial and informatics management, which is ancillary to the FMIS system; it will also train cadres in the calculation units of the three provinces.

The Iraqi government had contracted with the company "Bering Point" to install FMIS system, which allows direct contact between spending units in the state's institutions of Iraq, but the kidnapping incident of five British experts working in the company last year prevented the completion of this system.

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Iraqi textile industry retreat and Chinese products dump the markets

An official at "Wasit Company for Textile Industries", which is one of the most important installations of tailoring different clothes in Iraq, said that the abolition of government support since 2004 and the adoption of self-financing, created a state of confusion and caused the interruption of a number of production lines in its plants because of its inability to modernize them or provide raw materials to them. He noted that two grants, one American and the other Iranian, of $13.85 million was supposed be handed over to the company for the rehabilitation of lines, but it is not delivered until now.

Associate Director of the Company, Ziad Mohammad Obaid, said that the ratios of production in the company's factories dropped by %75 during the past year, and warned that the decline of the industry makes it stand on the brink of collapse. He added that failure to modernize production lines, the abolition of government funding and reduce working hours, led to a state of depression that might stop the company completely from work. He pointed out to the dangers of dumping the local market of foreign products and the absence of controls on imports, especially Chinese products, being cheap, demanding the government to enact laws to protect the national product and tighten controls on the import of clothing or the materials used in making them.

He explained that "Wasit Company" has three factories produce different types of fabrics and clothing, but the laboratories are the most underdeveloped in the world due to its obsolescence, and has a large surplus of workers numbering about 5524, their annual wages of about one million dollars.

It is noteworthy that the Iraqi Ministry of Industry and Minerals announced last year a plan for the development of local firms relying on foreign loans (valued one billion dollars) and including 6 projects, one of which is the rehabilitation of textile industry labs in Kut, which can supply the Ministries of Defense and Interior with their needs of military clothing and non- combatant supplies.

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New designs for Public Markets

The secretariat of Baghdad announced on Tuesday that it completed a number of designs for the establishment of new standard markets to contain the non- organized popular market and control their random spread.

A source in the secretariat of Baghdad said that "the new designs developed by the Department of Design in Baghdad Secretariat included the establishment of modern markets with one or two floors, containing several shops used for commercial activities and supplied with services for water and sewage systems and modern lighting; the market will also include parking spaces and will be surrounded by be fences to protect them, as well as exploiting the spaces and arenas nearby to make a green belt to increase the aesthetic of these markets that will be built in the same old market sites.

The source added that the secretariat of Baghdad "will remove the random popular markets before the implementation of the new design," noting that "most of those markets suffer from a lack of basic services, especially those relating to cleanliness and vendors exceeded the streets and the sidewalks close to those markets. " He also said that popular markets present " cause an aesthetic distortion of the capital and a clear upheaval in the traffic," explaining that "the secretariat is seeking to integrate the popular markets located in nearby residential districts into one market designed in a modern manner commensurate with the number of vendors and the reality of the city in which it is located."

The source said that the secretariat of Baghdad "will begin implementation of this project, which is the first of its kind, in a number of areas after intense studying, planning and detection of sites," asserting that "this project will gradually include all popular markets in the capital, which comes as part of the requirements of architectural renaissance of the capital and the upgrading of services."

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Negotiations continue for EU-Iraq trade and cooperation agreement

The European Commission and the government of Iraq will hold the fourth round of negotiations for a Trade and Cooperation Agreement (TCA) since negotiations started in November 2006.

The fourth round is expected to cover human rights issues, trade in goods and services, customs and taxation, industrial cooperation, transport, employment and social protection, education, training and, youth, culture, agriculture and rural development. The negotiations will be led on the Commission’s side by Hugues Mingarelli, Deputy Director General for the External Relations DG, and Mohammed Hamoud Bidan, Iraqi Vice Minister of Foreign Affairs.

Launched by Commissioners for External Relations and Neighbourhood Policy, Benita Ferrero-Waldner, and Trade, Peter Mandelson, and Iraqi Deputy Prime Minister for Economic Affairs, Barham Salih, in November 2006, the TCA negotiations aim to improve the trade arrangements between Iraq and the EU and to integrate the country in the international economy.

The previous rounds of negotiations in June and November 2007 have been very productive with several chapters already agreed in areas such as combating terrorism, countering proliferation of weapons of mass destruction and energy cooperation, among others. Following the upcoming fourth round, another round of negotiations is expected to place in June this year.

The TCA negotiations underline the European Union’s determination to play a significant role in Iraq’s transition and to help Iraq improve living conditions for its citizens. This commitment is also reflected in the more than US$1 billion already contributed by the European Commission towards the reconstruction of Iraq since 2003, with a focus on assisting the Iraqi people in accessing basic services, furthering democracy, and promoting good governance.

After the conclusion of this round of negotiations, the negotiators will brief the press on the record on Wednesday 27 February.

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Minister says commercial affairs assist in normalization of Iraq

Foreign Trade Minister Kür‏ad Tüzmen has stated that Turkey is supporting a return to normal conditions in its neighbor Iraq through ongoing commercial relations and that the military incursion into northern Iraq to eradicate the Kurdistan Workers’ Party (PKK) bases in this region is by no means an assault on Iraq.

“Turkey and Iraq have no problems with each other; we are standing on the Iraqi nation’s side now,” he noted, while adding that the battle with the PKK terrorists will continue until the terrorist group is cleared from the area.
The minister was speaking with the press in Ankara after a promotional meeting for the 3rd International Iraq Fair. State Minister for the Treasury Mehmet قim‏ek, Turkish Union of Chambers and Commodity Exchanges (TOBB) Chairman Rifat Hisarc‎kl‎oًlu and Iraqi Ambassador to Turkey Sabah Cemil Omran were also present at the meeting.

Tüzmen stated that commercial relations have always been maintained between the two countries even at the most difficult times. “Our exports [to Iraq] exceeded $2.8 billion in 2007. Adding the transit trade, investments, contracted projects and other commercial transactions, this amount comes to $6 billion. Our target is to take it even higher,” he said.

Hisarc‎kl‎oًlu pointed to the level of trade -- $3.5 billion as of the end of 2007 -- between Iraq and Turkey. Along with the trade volume, the projects undertaken by Turkish companies as a part of reconstruction activities in war-torn Iraq have also strengthened the significance of both countries to each other, he added.

The International Iraq Fair is the only international event the Iraqi Trade Ministry is sponsoring this year. It is being held for the third time this year, and hundreds of Iraqi businessmen established ties with their Turkish counterparts in the first and second editions, Hisarc‎kl‎oًlu said. Gaziantep is city in the southeastern Anatolian region; it is an economically deprived area relative to the western parts of the country. The city is hosting the fair again this year largely thanks to its position as the nearest industrial city to Iraq, and it has become a hub for businessmen who want to establish stronger business relations with the Middle East.

More than 900 companies from 30 countries participated in the fair in 2007, the TOBB president recalled, citing this fact as proof that Gaziantep and the event have been rapidly becoming a strategic location for trade with Iraq. Hisarc‎kl‎oًlu said thousands of visitors will attend the fair from Syria, Jordan, Saudi Arabia, the United Arab Emirates, Iran, Lebanon and Egypt. The fair will run from May 22-25. Economy and trade ministers from Middle Eastern countries, procurement specialists and a large number of Iraqi businessmen will have exhibits in the fair area, the TOBB chairman noted. He stated that the organizers are arranging flights and bus trips from Arbil, Baghdad, Mosul, Basra, Amman, Aleppo and Dohuk to transport participants safely to the fair.

The Small and Medium Industry Development Organization (KOSGEB), the governorship of Gaziantep, the Greater Gaziantep Municipality, the Gaziantep Chamber of Industry (GSO), the Gaziantep Chamber of Trade (GTO) and many more regional organizations are sponsoring the fair.

The Iraqi economy has performed well recently. The gross national product of the country was more than $100 billion (derived from purchasing power parity) last year, and the economy is expected to grow by 5 percent this year. An Iraqi dinar was being traded at $1.466 in 2006 but it gained value last year, reaching $1.255. Iraq’s exports amounted to $34 billion and its imports hit $23 billion in 2007.

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US and Iraq Pledge Economic Cooperation

U.S. officials have praised Iraq's recent efforts to develop its economy and pledged cooperation on banking and trade. But Iraqi officials say the lack of security is still restricting investment and growth. Daniel Schearf reports from the northern Iraqi city of Irbil.

American and Iraqi officials wound up two days of talks Thursday aimed at finding ways to improve Iraq's fledgling economy.

David McCormick, the U.S. Treasury Undersecretary for International Affairs, says Baghdad has made progress on its budget, the reform of state-owned banks, and cracking down on corruption. "I think I speak for all my colleagues at this table when I say that you will find in this team a group that is absolutely committed to working with you, working with your leadership in the coming months, and bringing all the commitment and focus and resources we can bring to bear to ensure the success of what you're doing," he said.

U.S. officials have said Iraq should take advantage of recent security gains to improve the economy.

Although security is still a problem, the number of terrorist attacks is down by sixty percent from the levels of June with a surge in U.S. troops and cooperation with militia groups.

The U.S. Ambassador to Iraq, Ryan Crocker, says improvements in security have come at an extremely high price in the lives of Iraqi and coalition soldiers and police. "We owe it to them, Iraqi and collation men and women, who gave their lives to make Iraq a better place that we move ahead with the economic development and reform that will cement the security gains permanently," he said.

Tens of thousands of Iraqis and nearly 4,000 U.S. troops have been killed since the 2003 invasion of Iraq.

Iraq has struggled to develop its economy after years of fighting, economic sanctions, and a largely centrally controlled economy.

The Deputy Prime Minister of Iraq, Barhim Salih, says terrorism, criminals, and corruption are slowing improvements.

He warns security gains will be lost if they do not make needed improvements to unite all Iraqis against fundamentalists and terrorists. He says security will deteriorate if they fail to improve services for Iraqis and their daily lives.

Political infighting over budgets and oil revenue sharing has held up spending on civil services and investment, and increased sectarian distrust.

Iraq this week approved a budget law after months of delay, but politicians have yet to agree on oil revenue sharing.

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Al Maliki stresses on Iraq reconstruction

Back from London, Prime Minister Nuri Al Maliki headed to Karbala to visit Imam Hussein Shrine from where he confirmed that national reconciliation has succeeded and the ghost of civil war has been chased away. In a speech before thousands of pilgrims, Al Maliki insisted that this year will be the year of Iraq construction.

Iraqi Prime Minister praised the role of Iraqi security forces in ascertaining security and stability in the province and along the way to Karbala and protecting citizens.

Al Maliki affirmed that the security situation in Baghdad has improved and that Al Qaeda in Kirkuk, Diyala and Mosul should be rooted out definitely in order to end the fight and resume reconstruction. Iraqi Prime Minister has stressed that violence targeting Iraqis is nothing but a conspiracy to slip the country into violence anew affirming the government’s determination to chase outlaws despite their religious and political backgrounds.

Al Maliki stresses on Iraq reconstruction | Iraq News | Alsumaria Iraqi Satellite TV Network

What is behind Iran President visit to Iraq?

Iranian President Mahmoud Ahmadinejad is due in Iraq on Sunday to show that Iran is an influential player in Iraqi politics which the United States is failing to isolate or ignore.

A Western diplomat in Tehran said the main issue during Iran President’s visit to Baghdad will be the foreign policy success of going to Iraq and coming back under the eyes of the Americans, when the Americans are talking about isolating Iran.

On the internal level, Iranian president might invest in foreign policy success to distract attention from the deteriorating economy and inflation which exceeded 10% before a March parliamentary election that will test his popularity.

While Iraqi officials are urging Washington and Tehran not to use Iraq as a proxy battleground to settle their differences on Iran’s nuclear issue, the situation on the ground is not reassuring. Given that the United States is pushing for a third round of UN sanctions on Iran, Iranian commentator Amir Mohebian uncovered explicitly the strong link between Iran’s nuclear issue and its influence in Iraq explaining that the influence of Iran in Iraq is very clear. “If the United States wants to use Iran's influence in Iraq to keep security, it is better to have good relations not sending the message of sanctions”, he said.

As for the Iraqi internal situation, analysts say that Iran has no interest in partitioning Iraq in fear of encouraging separatists inside its territories. “The best situation for Iran is a central government which is Shi’ite dominated but weak enough so it has to lean on Iran to maintain the power balance inside Iraq,” a diplomat said. Iranian analyst Baqer Moin said that Iran does not want Iraq to get out of control nor do wants it to be too comfortable for the US led coalition.

What is behind Iran President visit to Iraq? | Iraq News | Alsumaria Iraqi Satellite TV Network

Technical problem halts pumping crude oil towards Ceyhan

An Iraqi engineer that requested unanimity revealed that a technical problem in pumping unit caused the halt of Kirkuk crude oil exports thru northern pipelines towards Ceyhan Turkish port. The same source added that by tomorrow morning the pumping shall be resumed. However, Oil Ministry spokesman Assem Jihad said that the halt is due to a regular maintenance for the pipelines. The engineer said that Iraq used to pump oil with a rate of 350 thousand barrels per day before Wednesday. Earlier, a naval agent said that Iraq stopped Kirkuk oil export without mentioning any further details.

Technical problem halts pumping crude oil towards Ceyhan | Economics News | Alsumaria Iraqi Satellite TV Network

Conference for businessmen in Dhi Qar

In collaboration with civil construction team and US Agency for International Development and in the presence of Businessmen and governmental agencies, a broad conference for Iraqi Businessmen was held in Dhi Qar province. During this conference businessmen discussed means to develop private sector in south provinces thru studied programs and plans established by institutions related to development and construction.

Conference for businessmen in Dhi Qar | Economics News | Alsumaria Iraqi Satellite TV Network