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Iraq

Iraq

The EU's trade relations with Iraq are governed by the EU-Iraq Partnership and Cooperation Agreement, which is the first contractual relation between two partners.

The text of the agreement was signed in May 2012. Its trade provisions entered into force provisionally in August 2012 until ratification procedures for the whole agreement are completed.

Trade picture

  • The EU is Iraq's second-biggest trade partner behind China, followed by India, Syria, Turkey, and South Korea.
  • Total bilateral trade between the EU and Iraq amounted to over €16.1 billion in 2015.
  • EU imports from Iraq were worth €11.1 billion in 2015. Oil imports represent up to 99.7% of all EU imports from Iraq.
  • The EU is the fourth-largest source of imports for Iraq followed by Turkey, Syria and China.
  • The EU exported €5 billion worth of goods to Iraq in 2015. EU exports to Iraq are dominated by machinery and transport equipment, chemicals, food and live animals.

EU-Iraq "trade in goods" statistics

Trade in goods 2013-2015, € billions
Year EU imports EU exports Balance
2013 10.6 5.5 -5.2
2014 11.5 4.7 -6.9
2015 12.2 4.6 -7.6

EU-Iraq "trade in services" statistics

Trade in services 2012-2014, € billions
Year EU imports EU exports Balance
2012 0.9 1.4 0.4
2013 0.7 1.3 0.6
2014 0.7 1.5 0.8

Foreign direct investment

Foreign direct investment 2014, € billions
Year Inward stocks Outward stocks Balance
2014 0.1 6.3 6.2

Date of retrieval: 14/04/2016

More statistics on Iraq

EU and Iraq

The EU sees closer trade ties with Iraq as an important part of the reconstruction and development of Iraq.

The European Commission's strategy for Iraq was set out in the 2004 Commission Communication "The EU and Iraq: a framework for engagement", reinforced by the 2006 Commission Communication "Recommendations for renewed engagement with Iraq".

Both documents support Iraq's political transition to democracy and the establishment of a market economy. The Communication of 2004 proposed the negotiation of a Trade and Cooperation Agreement as a first step to develop a partnership between the EU and Iraq.

Iraq is not a member of the World Trade Organisation (WTO), though it requested WTO accession in September 2004. The EU supports Iraq's accession to the WTO and believes that WTO membership will enhance structural reform in the country and reintegration into the multilateral trading system.

Therefore the EU-Iraq Partnership and Cooperation Agreement that entered into force provisionally in August 2012 is a non-preferential trade agreement (an agreement between the EU and a non-WTO member that uses basic WTO rules).

Trading with Iraq