Embassy News
U.S.-Iraq Dialogue on Economic Cooperation Joint Final Communique
US Embassy Baghdad News Release
February 28, 2008
On February 27-28, 2008, Representatives from the Governments of the United States and the Republic of Iraq held a meeting in Baghdad, Iraq of the U.S.-Iraqi Dialogue on Economic Cooperation (DEC). Iraqi Deputy Prime Minister Dr. Barham Salih co-chaired the meeting with U.S. Undersecretary of State for Economics, Energy, and Agriculture Reuben Jeffery III and Treasury Undersecretary for International Affairs David McCormick. The interagency delegations included Iraqi Ministers of Finance, Planning, Oil, Electricity, Industry & Minerals, Trade, Construction & Housing, and Agriculture, as well as Iraqi Presidency and Council of Ministers senior officials, and top officials and specialists from both governments and development agencies.
The DEC is the sixth in a series of bilateral economic meetings that have focused on Iraq’s economic reform agenda and priorities. The meeting highlighted Iraqi leaders’ ongoing commitment to establishing a robust, market-oriented economy, as described in the International Compact with Iraq, and the U.S. government’s continued role in supporting these efforts.
U.S. officials applauded the Iraqi government for progress on economic reforms, noting success in bringing inflation under control and recent legislation on pension reform. They also commended the Iraqi government for successful conclusion of its 2007 agreement with the International Monetary Fund and recent bilateral agreements on debt relief, noting that these achievements represent key building blocks for a sustainable economic foundation.
U.S. officials welcomed passage of the 2008 Iraqi government budget and urged sustained progress on public revenue management, including further steps to accelerate budget execution and the timely implementation of a financial management system to enhance tracking and accountability. U.S. officials agreed to help strengthen capacity of provincial governments and commended the increased allocation to the provinces in the 2008 Iraqi budget.
Government of Iraq officials reaffirmed that successfully harnessing Iraq’s natural resources remains key to fulfilling the country’s economic potential. They emphasized the importance of transparency and accountability in management of these resources, and agreed that establishing a strong legal and regulatory framework remains essential to sustained, broadly shared economic growth. Accordingly, officials acknowledged the importance of early passage of a hydrocarbon framework law and related revenue sharing legislation. U.S. officials commended the Deputy Prime Minister for his leadership in combating official corruption, noted the recent formation of a joint anti-Corruption Working Group to promote coordination on this vital issue and welcomed the Government of Iraq’s Action Plan to fight corruption, including accession to the EITI International Secretariat.
U.S. and GOI representatives discussed the essential role that banks play in spurring investment and growth, and discussed the GoI’s plans for strengthening the banking sector. Officials agreed to work together to help modernize Iraq’s financial institutions, including with U.S assistance to the banking sector.
Delegations also discussed the importance of sound trade and investment regimes. Iraqi officials outlined Iraq’s plans for acceding to the World Trade Organization and recent progress in establishing its Investment Commission. U.S. officials encouraged the speedy adoption of regulations necessary to implement Iraq’s investment law. Parties agreed to hold a bilateral Trade and Investment Council meeting in 2008. This meeting, together with other outreach activities intended to inform Iraqi producers and exporters, will help Iraq take better advantage of the benefits of the U.S. Generalized System of Preferences. GOI officials agreed to carefully consider the recommendations made by the U.S.-Iraq Business Dialogue to encourage private sector growth and job creation, as well as the need for additional legislative and regulatory measures to attract and maintain private sector capital and technology in various sectors.
GOI officials welcomed USG commitments to support revitalization of agriculture with expanded assistance from the U.S. Department of Agriculture's agricultural extension program, which links Iraqi scientists and educators with U.S. counterparts.
The Government of Iraq affirmed its commitments to implement social safety net measures to provide crucial services for Iraq’s most vulnerable populations and to develop a plan for phasing out Iraq’s Public Distribution System.
Both sides affirmed the importance of continuing this dialogue on bilateral economic cooperation in an effort to further Iraq's economic revitalization and broad-based growth. They agreed to hold a meeting during Spring 2009, the location will be determined later.
To continue constructive bilateral dialogue, both sides agreed to mandate the High Economic Committee Secretariat within the Iraqi Council of Ministers and the U.S. Embassy in Baghdad to follow up coordination and implement recommendation and decisions of this meeting.
