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Iraq

Iraq

The EU's trade relations with Iraq are governed by the EU-Iraq Partnership and Cooperation Agreement from 2012, which forms the legal basis between two partners. The EU sees closer trade ties with Iraq as an important part of the reconstruction and development of Iraq.

 

 

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  • Iraq is the EU’s 39th biggest trade partner, representing 0.3% of the EU’s total trade in goods with the world in 2020.
  • The EU is Iraq's 4th biggest trade partner, representing 12.1% of Iraq’s total trade in goods with the world in 2020. 11.3% of Iraq’s imports came from the EU and 12.7% of the country’s exports came from the EU.
  • Total trade in goods between the EU and Iraq in 2020 amounted to €10.8 billion. The EU’s imports were worth €7.3 billion and they mostly consisted of fuel and mining products (€7.25 billion, 99.3%). The EU’s exports totalled €3.5 billion. They were more diverse than the imports and were dominated by machinery and transport equipment (€1.4 billion, 40.0%), which were followed by agriculture and raw materials (€0.7% billion, 20.0%) as well as chemicals (€0.7 billion, 20.0%).
  • Two-way trade in services between the EU and Iraq in 2019 amounted to €1.27 billion, with EU imports of services representing €0.63 billion and exports €0.64 billion.
  • Total EU FDI outward stock in Iraq in 2019 equaled €5.3 billion.

EU-Iraq: Trade in goods

Trade in goods 2018-2020, € billions
Year EU imports EU exports Balance
2018 16.3 3.2 -13.1
2019 17.3 3.8 -13.5
2020 7.3 3.5 -3.8

EU-Iraq: Trade in services

Trade in services 2017-2019, € billions
Year EU imports EU exports Balance
2017 0.4 0.6 0.2
2018 0.5 0.6 0.1
2019 0.6 0.6 0.0

EU-Iraq: Foreign direct investment

Foreign direct investment 2019, € billions
Year Inward stocks Outward stocks Balance
2019 -0.0 5.3 5.4

Unless otherwise mentioned “EU” concerns for all indicated years the current European Union of 27 Member States.

Date of retrieval: 12/04/2021

More statistics on Iraq

EU and Iraq

The EU-Iraq Partnership and Cooperation Agreement was signed on 11 May 2012. Its trade provisions entered into force provisionally on 1 August 2012; the full agreement was implemented in August 2018 once it was ratified by the EU, its Member Sates and the Iraqi Government.
The agreement has a wide coverage of policy sectors including trade in goods, trade in services, trade related issues such as Intellectual Property Rights, technical barriers to trade, sanitary and phytosanitary issues and a dispute settlement method. It provides preferential elements and substantial market access to EU companies, namely in public procurement (the same treatment that national companies get), services and establishment and investment in Iraq.
The last meeting of the EU-Iraq Sub-committee on trade and related policies took place on 15 December 2020.
Iraq is not a member of the World Trade Organization (WTO). Iraq was granted observer status in February 2004 and requested to join the WTO 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. The EU-Iraq Partnership and Cooperation Agreement is a non-preferential trade agreement, which uses basic WTO rules.
On 22 January 2018, the EU adopted a new strategy for Iraq with several strategic objectives including the promotion of sustainable, knowledge-based and inclusive economic growth as well as job creation.

Trading with Iraq