Iraq: EU Commission proposes negotiating mandate for Trade and Cooperation Agreement

Summary: Iraq: EU Commission proposes negotiating mandate for Trade and Cooperation Agreement (12 December 2005: Brussels)

The European Commission has proposed that the EU should start negotiations for a Trade and Cooperation Agreement (TCA) with Iraq in 2006. Once the Council has approved the mandate, the Commission will negotiate the Agreement with the first constitutionally elected Iraqi government. Also, Commissioner Ferrero-Waldner, on behalf of the Commission, and Ambassador Mohammed Jawad Al-Doreky, on behalf of the Iraqi government, have signed today an agreement ("Accord de Siege") to open a European Commission Delegation office in Baghdad.

Benita Ferrero-Waldner, European Commissioner for External Relations and Neighbourhood Policy, said: "Iraq is at a critical juncture. The two moves announced today 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. Together they represent a real step change in relations between the EU and Iraq as we progressively build up political dialogue and lay foundations for a wider relationship. The Iraqis are seeking a significant partnership with the EU, and we intend to meet their expectations."

Peter Mandelson said: "Negotiations on the Trade and Cooperation Agreement mark the beginning of a closer cooperation between the EU and Iraq on trade and economic issues and will lead to strengthened ties between us. The European Commission has already granted Iraq preferential access to EU markets and is supporting its bid to join the World Trade Organisation, both of which are important in assisting Iraq's transition process and its re-integration into the world trading system."

By entering into contractual negotiations with Iraq, the Commission 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, favouring an inclusive reform mechanism at a crucial historical moment for the country;
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 based on the expansion of harmonious economic relations between the parties; and
Ensure a minimum level of predictability, transparency and legal certainty for economic operators.

The objective of entering into contractual relations with Iraq was set out in the Commission Communication "The European Union and Iraq: a strategy for engagement" of June 2004 . This strategy envisages that the EU should put forward a framework for progressively closer relations with Iraq at a pace determined by the progress achieved in the political process, including the approval of a Constitution, and the holding of elections under that Constitution.

The Communication also foresaw the opening of a Commission Delegation in Baghdad. The signing of the Establishment Agreement is a further step towards this goal and it is hoped that an office can open in Baghdad soon.

Additional information at
http://europa.eu.int/comm/external_relations/iraq/intro/index.htm

Ref: EC05-419EN
EU source: European Commission
UN forum:
Date: 12/12/2005

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