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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 EU-Iraq Partnership and Cooperation Agreement was signed on 11 May 2012. Its trade provisions entered into force provisionally on 1 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. In 2015, the EU accounts for 18,4% of the total Iraqi trade, compared to 20,9% for China, 11,9% for India, 10,6% for Syria, 10,0% for Turkey, and 7,5% for South Korea.
  • Total bilateral trade between the EU and Iraq amounted to over €13,9 billion in 2016.
  • EU imports from Iraq were worth €10,3 billion in 2016. Oil imports represented €10,3 billion, up to 99.7% of all EU imports from Iraq.
  • The EU exported €3,5 billion worth of goods to Iraq in 2016. EU exports to Iraq are dominated by machinery and transport equipment (€1,6 billion, 45,9%), chemicals (€0,6 billion, 18,8%), and food (€0,3 billion,11,0%).

EU-Iraq: Trade in goods

Trade in goods 2014-2016, € billions
Year EU imports EU exports Balance
2014 11.5 4.7 -6.9
2015 12.1 4.5 -7.6
2016 10.3 3.5 -6.8

EU-Iraq: Trade in services

Trade in services 2013-2015, € billions
Year EU imports EU exports Balance
2013 0.7 1.3 0.6
2014 0.7 1.5 0.8
2015 0.6 1.3 0.7

EU-Iraq: Foreign direct investment

Foreign direct investment 2015, € billions
Year Inward stocks Outward stocks Balance
2015 0.1 7.0 6.9

Date of retrieval: 15/02/2017

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.

Most recently, the EU's commitment towards peace, stability and security of Iraq has been reiterated in the Council conclusions on Iraq (December 2015) and the Council  conclusions on the EU Regional Strategy for Syria and Iraq as well as the Da'esh threat (May 2016).

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