Resources for the Iraq Market

There has been a noticeable increase in the number of questions related to exporting to Iraq coming to the Wisconsin Department of Commerce. In response, we sought out some resources available to Wisconsin firms interested in the Iraqi market.

On November 1, 2008, the Iraqi government hosted a meeting of the U.S.-Iraq Business Dialogue, which drew U.S. government officials as well as representatives of Iraqi government agencies and private sector firms. The conference created a setting for officials to discuss Iraq's commercial environment and private-sector development.

The Business Dialogue was established in 2006 by bilateral agreement between the U.S. Department of Commerce and the Iraqi Ministry of Trade to facilitate private-sector business growth in Iraq and to strengthen trade and investment ties between Iraq and the United States. The Dialogue's recommendations to the U.S. Secretary of Commerce and the Iraqi Minister of Trade reflect private sector views, needs, and concerns regarding private sector business development in Iraq and enhanced bilateral commercial ties that can form the basis for expanded bilateral trade between the two countries.

Currently, there are four open membership opportunities for American representatives to join the U.S. section of the Business Dialogue. Applications must be received no later than January 21, 2008; 5:00 pm EST. Requests for consideration should be sent to Ms. Susan Hamrock Mann, Director, Iraq Investment and Reconstruction Task Force, U.S. Department of Commerce, either by fax at (202) 482-0980 or by mail to U.S. Department of Commerce - 14th and Constitution Avenue, NW. - Mail Stop 3868 - Washington, DC 20230.

Security continues to be the number-one concern of the international business community in Iraq. While improved, the security situation in Iraq remains serious. Theft and violent crime persist in Iraq, and the potential for attacks against U.S. citizens and facilities remains high. The U.S. Department of State periodically updates its travel warning for Iraq.

While most United Nations and U.S. economic sanctions against Iraq were lifted in May 2003, the Iraqi legal and regulatory system, as well as an inadequate infrastructure and an unstable security situation, pose numerous obstacles to doing business in Iraq. Numerous products that can be sold without a license in other countries require a license from the U.S. Department of Commerce's Bureau of Industry and Security (BIS) if they are destined for Iraq. U.S. export licensing requirements for products entering Iraq can be found through the BIS website.

U.S. government-funded contracts continue to be one of the leading business opportunities in Iraq. Opportunities for U.S. firms to participate in the reconstruction of Iraq are mostly associated with rehabilitating the country's infrastructure. A list of recent contracts and their known subcontractors, along with links to their websites can be found at http://trade.gov/iraq.

Iraqi government ministries and state-owned enterprises are also listing tenders. Lucrative private investment opportunities and joint ventures with Iraqi government entities may exist for some market-savvy firms with regional experience. For companies interested in a long-term foothold in the Iraqi market, but with a lower risk tolerance, Iraqi Kurdistan is an increasingly popular gateway. The U.S. Department of Commerce has published a Business Guide for Iraq and the Doing Business in Iraq Frequently Asked Questions (FAQs). U.S. Department of Commerce staff focusing on the Iraqi market can be contacted at IraqInfo@mail.doc.gov, or toll-free (866) 352-IRAQ (4727).

-- Stanley Pfrang