Lankan bilateral trade with Iraq hits $ 87 mn

The trade delegation visiting Iraq led by Minister Rishad Bathiudeen, secured the vital ME economic market, expected to become the second biggest global oil power in 2020.

Iraq( the $119 bn GDP Republic) in turn, was keen to expand its presence in Sri Lanka at multiple levels, specially B2B, in a considerable way. “Trade between the two countries declined due to the continued war in Iraq. But now we are back on track and business is booming. We are also excited by prospective direct air-links between the two countries,” said Abdul Hussein JR Mubaraka, the General Secretary of Federation of Iraqi Chambers of Commerce on February 22 at the historic Baghdad landmark Ishtar Sheraton in Firdos Square, Baghdad.

The delegation which consisted of Department of Commerce Officials and Tea Research Institute officials to Baghdad, arrived in Baghdad on February 21. Also continuously present during the Iraqi visit of the delegation was Sumith Nakandala, Sri Lanka’s Ambassador to Iraq. On February 22 the business level meeting held with the Federation of Iraqi Chambers of Commerce at the historic Baghdad landmark Ishtar Sheraton Hotel at Firdos Square finally sealed the market’s private sector for Sri Lanka.

Secretary Mubaraka’s Federation of Iraqi Chambers of Commerce represents 18 Iraqi Chambers and is seen as having a strong command of the strategic Iraqi marketplace which in turn, has a considerable penetration claim with Household Consumption Expenditure claiming 52.5% of its GDP (2011), similar in proportion to Thailand and Belgium consumer markets and driven by the growing middle class, with an urban bent. Iraq is located in an important strategic location bridging the Arabian Gulf markets and the Middle Eastern region with its strategically important ports (such as Mina Al Bakr) and airports and possesses one of the world’s youngest populations, with more than 70% under 30 and 83% under 40. In October 2010, Secretary Mubaraka’s Federation signed an MoU with the National Chamber of Commerce of Sri Lanka at the seventh session of the Sri Lanka - Iraq Joint Committee for Economic and Technical Cooperation in Colombo in the presence of Iraqi Trade Minister Safa Al-Deen Al-Saafi and Minister Bathiudeen. Secretary Mubaraka signed the 2010 MoU in Colombo on behalf of the Iraqi private sector.

“We have understood that the quality of Sri Lankan products are good and high. And we are keen to establish a Sri Lanka Trade Centre in Baghdad, preferably soon, so that our importers can find what Sri Lanka can offer. We are also planning to send an Iraqi business delegation to Colombo within the first half of 2013 and we also invite Sri Lankan exporters to take advantage of our marketplace. Rubber, agro, seafood and food products are in ready demand in Iraq, where Sri Lankan exporters can easily supply. Trade between the two countries declined due to the continued war in Iraq. But now we are back on track and business is booming. We are also excited by prospective direct air-links between the two countries,” Mubaraka added.

Minister Bathiudeen said, “I believe that the planned next Joint Economic / Trade Sessions as well as Baghdad International Trade Fair to be held in November this year, to which we plan to send a strong delegation, and strongly integrating our private sector in these, can advance our trade volumes beyond current levels.”Minister Bathiudeen also commended the Lankan Ambassador in Baghdad and his embassy staff for their continuous, on-site backup till the deal was clearly secured on February 22.