Baghdad, Iraq – Prime Minister Mohammad Shia’ al-Sudani chaired a crucial meeting to discuss the economic and trade effects of the United States’ decision to increase tariffs on imports. In response to this decision, the Prime Minister outlined four key measures aimed at protecting Iraq’s economic interests.
The meeting focused on understanding the broader impacts of the US tariff hike, not just on trade relations between Iraq and the US, but also on global economic conditions, including crude oil prices. The discussions highlighted that the US tariff increase, primarily targeting imports from other countries, was based on trade imbalances, not on the customs duties Iraq imposes on US goods.
A key point raised during the meeting was the fact that the bulk of Iraq’s imports from the US come via other countries. This pattern has emerged due to the business strategies of American companies working with Iraq. The Prime Minister noted that these realities needed to be considered as Iraq moves forward with plans to mitigate the impact of the tariff hike.
In light of this, Prime Minister al-Sudani instructed the relevant authorities to take immediate action based on the best interests of the Iraqi economy. The four steps outlined to address the tariff increase are as follows:
- Enhance Trade Relations: Iraq will work to improve bilateral trade by opening channels for US distributors and activating Iraqi commercial agencies. The goal is to establish direct trade between Iraqi sectors and the US.
- Strengthen Banking Services: The Prime Minister directed efforts to develop banking and financial services between Iraq and the US. This will help ensure mutual economic benefits.
- Review Trade Relations: A special team will review the foundations of Iraq-US trade relations to improve them. The aim is to create balanced economic ties and foster a positive partnership.
- Engage Key Ministries: Iraq’s ministries of foreign affairs, finance, and trade will engage in direct dialogue with their US counterparts. The goal is to enhance trade relationships and monitor global financial markets, with weekly reports sent to the Prime Minister’s office.
Through these initiatives, Iraq aims to safeguard its economic interests while strengthening its trade relations with the United States, ensuring mutual growth and stability.
