The Iraqi economy between the politics of dumping and the obstacles to international integration


Shatha Khalil *

The Iraqi economy faces a number of economic challenges that threaten political and social stability, such as poverty, unemployment, inflation and destructive infrastructure, high production costs, administrative and financial corruption, environmental pollution, water problems, deterioration of agricultural and industrial production, and so on. And without any corresponding preventive measures by the State, or to develop strategies that would provide appropriate and appropriate solutions to solve these challenges because of their preoccupation with the issue of security and terrorism, which requires the development of an integrated strategy Through which these challenges are addressed. 
Obstacles to Iraq’s accession to the World Trade Organization: 
Iraq is witnessing its transition in its economic policy, and the transition from the central economy oriented to the market economy, has decided to join the World Trade Organization according to the following stages:
 On February 11, 2004, Iraq submitted its application for accession as an observer to the World Trade Organization (WTO) and was approved by the General Council. 
 But is Iraq eligible to join the World Trade Organization (WTO)? Iraq has adopted wide open policies towards the world, and sought to establish important economic and legislative bases that operate according to the mechanisms of the market system – supply and demand – after an economic siege that lasted more than a decade. It was marginalized on the map of the world economic system and its deprivation Of investment opportunities, progress, development and technological know-how that should have enabled it to cope with the rapid developments and developments in the international market and to change its competitiveness in the last two decades.
 Iraq suffered international isolation in a world that was swept by the currents of integration of its companies, liberalization of its markets and integration, especially financial ones, and the supremacy of the neo-liberalism, which required extensive economic transformations in the field of informatics and financial services.

 However, in the integration of financial markets with assets of more than $ 850 trillion, the acronym of financial globalization, the main focus of the global neoliberal economy, and the introduction of the GATT transition from the year (WTO). The latter was concerned with organizing a wide range of trade in services, particularly financial services, which were named after the GATS in 1994, based on the Uruguay Round.

 At a time when global gross domestic product did not exceed 70 trillion dollars per year in 2013, and the value of world trade in goods and services annually is only less than one-third of this world output, trade in currency conversion and speculation is about four and a half trillion Trillion dollars a day in the international monetary and financial markets, a trade of financial speculation that exceeds the annual total of more than fifty times the total world trade in the activity of goods and services.

In light of international trade and financial exchanges, Iraq has moved to important regulatory levels in the transition to a market economy, to break the effects of its international isolation, progress in financial services and improve the foreign investment environment, through banking and investment law, the Central Bank Law, Which allows foreign banks to work in Iraq and allows the transfer of capital and currency in a way that serves the opening of Iraq to the world, in the conditions of a central rent economy difficult to understand the liberal market, which nevertheless provided positive opportunities and the foundations of legal and regulatory promising Iraqi Business Group.

 The situation of Iraq will not allow it to be in the course of international economic competition, as there are still more than five thousand text of the legislative impediment to economic freedom and market activity, which the legal circles are studying today, which need to be amended, so that Iraq can integrate into trade and investment And to prepare it to join the World Trade Organization, according to the terms of membership, so that our country obtains the condition of the most favored state and the principle of national treatment.

Problems and obstacles to Iraq’s accession to the WTO:
While oil production dominates more than 60% of GDP, it uses only 2% of the Iraqi labor force, which accounts for only 22% of the total population. Which means that there is a huge imbalance in the composition of human productive wealth and the ability to invest it, especially the female labor force, which complains neglect, ignorance and illiteracy on a large scale. 
 The country’s exports of crude oil and its revenues constitute the absolute absolute majority of total exports, the revenues of the general budget and the country’s foreign exchange earnings. In addition, the World Trade Organization (WTO) rules out crude oil as a commodity within the internationally traded commodity group, Is the essence of the contradiction in Iraq’s accession to that organization, which excludes crude oil.

 If the World Trade Organization allows oil to be included in the price, it will be determined by global supply and demand, away from the cartel of producer groups represented by the Organization of the Petroleum Exporting Countries (OPEC) or consumer groups represented by the International Energy Organization and its lines and programs in rationalizing oil demand and its role in rationing production And the impact on prices, which put price restrictions and the amount of a commercial commodity, but the political strategy is the driving force of Iraq’s foreign trade.

 The agricultural sector, which comprises one-third of the population of Iraq and about 22% of the actual labor force, contributes to the GDP at a rate of only 5-7% at best. This makes Iraq almost an importer and does not have the necessary resources to provide grain food security. Or agricultural inputs, after shrinking agricultural areas produced by desertification and salinization and weak infrastructure, which overcome the disruption of more than 80% of the arable land, and the percentage of local security of grain exceeds 40% of the wheat crop in the best cases, and little mention of other varieties Which are partially covered by imports Ge, such as rice field and other crops.

 The agricultural sector with the oil sector is structurally opposed in the direction of openness to the global market and in two different ways, in terms of the impact of trade benefits and costs, the global market forces or supply and demand have become strong, both in the demand for oil and its impact on the value of Iraqi exports, Food and its impact on the cost of Iraqi imports.

 With reference to the philosophy of reducing customs restrictions by 24% and abolishing non-tariff restrictions, which are imposed by the World Trade Organization on the member country of the developing countries to work and implement them within six years from the date of accession, as well as the reduction of agricultural subsidies by 13.3% Ten years of accession, these conditions collide with the conditions of the agricultural market and food stock exchange.

The world is living in agricultural monopolies, offset by a deterioration in Iraqi agricultural development, posing a real threat to food security unless it is preceded by an agrarian program for self-sufficiency. Iraq will need a green revolution like Mexico and many other Latin American countries. Between three and six major monopolies in the world control 80-90% of the agricultural trade, controlling prices and quantities such as wheat, sugar, tea, coffee, cotton, jute and other products, while ten multinational companies still dominate one third of seed and pesticide production. Tha in the world.

In spite of the above, the entry of Iraq, regularity in the global economic space through the WTO, and its dealings with international groups, on conditions that apply to all formally, at a time when the world is still divided between the North and South, or advanced industrial center countries and the developing world .

 The status of Iraq under Chapter VII of the UN Charter since 1990 until its completion on 30 June 2013, made Iraq in a negative economic environment hostile to development, and perhaps a barrier to natural integration in the global market, which has been banned for decades over the past because of restrictions on Iraq Until recently, that it was a high-risk country, a threat to world peace, and the use of force against it, despite the elimination of the objective reasons under which the economic sanctions were imposed on Iraq in due course.

 The accession of Iraq to regional economic zones, such as the Greater Arab Free Trade Area and other economic agreements within the League of Arab States, or other forms of regional integration and integration, should take into account the implementation of the provisions of the WTO Agreement, GATT, which have both become bound by the implementation of trade agreements, so any commercial facilities within the framework of regional agreements, become without benefit or value if they are without facilities provided within the framework of the World Trade Organization.

 On the other hand, the survival of Iraq is isolated from its international environment without a climate of interaction with markets and international organizations, especially the World Trade Organization, it will cost a lot because of the loss of the advantages and opportunities regulatory, technological and legal benefits, and other areas of investment and arbitration and ensure intellectual property rights and address dumping commodity , And others, opportunities that isolation from the organized world does not provide, nor can it gradually transform into a group of stable and low-risk countries that aspire to a shift towards openness to the world and can only be achieved by the availability of capacity Z formal integration of Iraq into the global trading system and its institutions of the World Trade Organization and in accordance with the foundations of a negotiated fair.

Dumping policy:
Despite the attention of the Organization to the issue of dumping, which started many laws that prevent dumping, but we find that some of the member states of the Organization, the adoption of this policy to achieve its interests at the expense of damage to the interests of others, as did the United States of America when the large quantities Of the maize crop to the Philippines, and the sale of one ton at a price that is 30 percent below the world price, which is the biggest harm to more than two million farmers living on maize production in the Philippines.

In Iraq, the Iraqi market was exposed to global markets after the US occupation in 2003, and was flooded with agricultural commodities, some of them are of poor quality and sold at low prices, which led the consumer to go towards, because of low income and weak knowledge of the negative effects on health, society and economy, The negative impact on local production, because of the inability of the local producer to compete with the importer, for the high costs of its production, especially after the lifting of agricultural support, which left the peasant leaves his land. Consequently, the dumping policy negatively affected agricultural production and destroyed it, and led to increased unemployment in the countryside. 
This is expected when Iraq joins the organization:

1. The negative impact of this policy on the local production continues for the following reasons: 
 Poor quality laws and regulations. 
 Poor health control. 
 Weak tariff efficiency. 
 The need for the Iraqi market for agricultural crops due to low domestic production. 
 The absence of a technical team specialized in dispute resolution. Most of the disputes between developing and developed countries have been resolved in favor of developed countries because of the weak capacity and possibilities of negotiators from developing countries.

2. Intellectual property rights:
Iraq has gone a long way in producing some components of the agro-technology package such as improved seeds, seeds and fertilizers, which have played a major role in increasing agricultural production, as well as Iraq’s possession of scientific expertise and research centers, which reflected positively on agricultural production, To the relative self-sufficiency of some agricultural crops, such as fruits, vegetables, eggs and chickens, and the rise of strategic and industrial grain production to about 43% of the actual need.

After the occupation in 2003, Iraq has become totally dependent on importing the components of the technological package from abroad, because of the killing, displacement and arrest of most of its research cadres, as well as the destruction of most, if not all, research centers on the pretext that they are for military purposes, Destruction, which adversely affected agricultural production. 
It is expected that the negative impact of intellectual property will continue even after Iraq’s accession to the Organization for the following reasons: 
 According to the IP conventions, the prices will rise in the world markets, which costs Iraq very large sums of money when imported, and can not be imported by private activity Hand, and ignorance of what that technology on the other. 
 The weakness of the farmer towards technology due to his ignorance and weak financial capabilities.
 reluctance of developed countries and monopoly companies owning agricultural technology to export to Iraq, so as to remain a market for the disposal of agricultural goods produced in developed countries.

We conclude from this that the World Trade Organization is operating in a time of polar exclusivity and the United States’ dominance of global political and economic conditions, which has served the interests of the United States and its allies because the objectives of the Organization are to increase protection, reduce and eliminate tariffs for free trade, Because it does not have good industrial and agricultural products and low prices, in order to compete goods and commodities coming from developed and newly industrialized countries, such as China, South Korea, Taiwan and others. , Which indicates that membership in the Organization requires great political and economic measures and reforms in order to achieve justice and promote the global economy. Developed countries should take into consideration the political and economic conditions of developing countries, especially Iraq, and the difficult economic and political conditions that On the fundamentals of development.

Economic Studies Unit

Link Center for Research and Strategic Studies

Adel Abdul Mahdi and the last chance for a prosperous Iraq


When Barham Saleh was elected President of the Republic on October 2, 2018, he even commissioned the Shiite politician, Adel Abdul Mahdi, to form a new Iraqi government, replacing the outgoing Prime Minister Haidar Abadi, who led Iraq over the past four years, The war on the organization of the preacher terrorist. On 24 of this month, the Iraqi Council of Representatives voted on 14 of the 22 ministries nominated by Prime Minister Adel Abdul Mahdi. After the Council’s vote on more than half the cabinet cabin, Adel Abdul Mahdi was sworn in as Prime Minister and Commander-in-Chief of the Iraqi Armed Forces .

 Adel Abdul Mahdi is one of the founding leaders of the “Iraq after 2003”, seen as a long-standing figure in Iraqi politics, as an independent figure capable of keeping the middle of the relationship between the internal and external parties strongly present on the Iraqi political scene. Is not an emergency on Iraqi politics. He is the owner of prayers and tours made his name on every entitlement in Iraq, as a compromise candidate is acceptable to all parties. Therefore, this “old” in his hands, much more than he can take on the task entrusted to him.

It is acceptable to Tehran as well as to Washington, a necessary consensus in a country that has long found itself in the midst of tension between these two bitter enemies, Baghdad’s allies. Abdul Mahdi is also credited with maintaining good relations with Kurdish leaders, a major advantage of normalization of relations with the region. Iraq’s self-governing Kurdistan, and held a failed referendum on independence from Baghdad a year ago.

Months before his appointment to form the next Iraqi government, Iraqi Prime Minister Adel Abdul Mahdi wrote an article in the newspaper «Justice», which oversees the presentation of his views and views of how to build the state, an article bearing an interesting title, «Thank you conditions are not available». He pointed out the real danger to any economic and political reform in Iraq, and may note many of the skill of the man in his understanding of these problems and ability to diagnose them in real terms, these points began to diagnose the problem of the rents of the Iraqi economy and what constitutes a barrier to the rest of the sectors of production, The political forces of the economic reform approach to the habit of the state mentality of rent as described, and address the issue of separation of powers and the establishment of constitutional institutions, and the problem of administrative corruption, and support the formations of military support, also referred to international relations based on logic, SAS dependency.

The task of Abdul Mahdi, no doubt, difficult, but has been described in political circles and elites as a last chance for Iraq, especially that the events of Basra may be repeated in more than one place in Iraq and perhaps overthrow the entire political system. In this context, observers believe that Dr. Adel Abdul Mahdi received the presidency of the Council of Ministers with a heavy legacy as a result of the war on (da’ash), and randomness that accompanied the past period, with scarce resources and the ceiling of high and high expectations, and it is not easy to achieve high success rates. “What needs to be done is to calm the anger and anger of the street, and to provide an energized dose of hope, by providing jobs from the private sector, by offering temptations and exemptions within the available limits,” Dabbagh said. The state is no longer able to absorb the huge numbers of unemployment and the mass of new graduates. ” “It requires a minimum of services, and improved through a new vision that does not rely on a mechanism that has not been successful.”

They pointed out that Adel Abdul Mahdi will focus on defusing internal and regional political tension; that he is a man of dialogue and not a personality clash. And will manage what can be resolved from hot files, and manages what is different in a different way, which creates trust between partners and discards doubts. At the regional level, he needs a calm approach to crises in the region and strained relations with some countries, such as Turkey. And that the Prime Minister-designate needs to develop this harmony between the three presidencies, each of its position, without prejudice to the role of each of them.

Abdul Mahdi is expected to benefit from the challenges he faces from long political experience, from good relations with most of Iraq’s political components, from being a man of compromise, not from a man of confrontation. This puts him outside the local, regional and international polarization. In addition to having good relations with the most Sunni political forces, Abdul-Mahdi links historical relations with Kurdish politicians; which may contribute to improving the relationship between Baghdad and the Kurdistan region, which was marked by tension during the periods of Maliki and Abadi, Baghdad alone does not bear – certainly – its responsibility, After the referendum crisis in the independence of Kurdistan, and the subsequent repercussions, such as the redeployment of the Iraqi army in Kirkuk and the disputed areas (September – October 2017).

At the regional level, Adel Abdul Mahdi is a consensual person, as is the case at the domestic level. It was no accident that his name was re-presented to the premiership. He had already been put forward during the crisis of 2010, after the victory of the Iraqi List, led by Allawi, in the first place, but Maliki took over as prime minister. However, pushed by Iran, which pushed for a broader coalition, . In the context of fierce regional rivalries and conflicts in the region, it is not known that a specific regional party opposes it; it is not calculated on the Iranian line, and at the same time does not pursue policies opposed to Iran. He is also acceptable to the US, though not the US candidate for prime minister.

Observers see the Iraqi issue is facing serious challenges such as economic reform, reconstruction and improvement of services. He has come to face it not because of the power he derives from the authority he will assume, the support he receives from an influential neighbor or a “patronizing” superpower, but for a sense of historic opportunity for change, because all his rivals have exhausted their strengths in fighting each other. Everyone needs to rearrange the situation of Iraq and return it to a “natural” situation in which life can resume, or at least delay the resolution of local, regional and international conflicts indefinitely. And for that
Adel Abdel Mahdi will need experienced advisors in political affairs, international relations, culture, economics, finance and services to make the change. But the most important thing to know is that the Iraqi street with him, as was the case with Haider Abadi in 2015, that he should not accept less than an effective government to restore things to normal, and stop corruption and the provision of basic services and security and jobs and restore Iraq’s stability. Adel Abdul Mahdi is the last chance for a prosperous Iraq.

Iraqi Studies Unit

Link Center for Research and Strategic Studies

News of the commissioning of Haider Abadi, headed by the popular crowd

Policy  2018/10/27 18:32  459

Baghdad today – Baghdad

A leading figure in the popular crowd, Saturday, reported news that former prime minister Haider al-Abadi was appointed head of the Popular Propaganda Agency.

The leader, who asked not to be named for “Baghdad today,” that “there is news reached us to assign Abbadi, headed by the body of popular mobilization acting during the coming period,” noting that “Prime Minister Adel Abdul Mahdi, who issued this order, according to news reaching us “He said.

The leader added that “al-Hayat did not receive until this moment any official order to announce the assignment of Abadi, this task, and all we have are news that we do not know until now.”

Trump envoy’s policy : Iraq today is better than when Abadi took power


Trump's envoy: Iraq today is better than when Abadi took power
 Twilight News    
 one hour ago

US President George W. Bush’s envoy to the international coalition against a pro-Syrian organization in Iraq and Iraq on Saturday is better than the one received by former prime minister Haider al-Abadi.

“There is more than a million displaced people in Mosul,” he said. “We want to return displaced people to their places of residence in Iraq,” he said.

“Iraq is better now than Abadi took power,” he said.

Basra Council announces receipt of 229 billion dinars by the central government



Information / special .. 
The Council of the province of Basra, on Saturday, the receipt of more than 229 billion dinars of the share of border crossings, which the central government. 
Council member Ahmad Abdul Hussein told Al-Maaloumah that “the Basra Council has 329 billion dinars by the Central Government of the imports of border crossings for the period from the beginning of this year until the first of August.” 
He added that “the Council received 229 billion dinars of its debt and left 100 billion of the burden of Baghdad as well as the share of the month of August and September,” noting that “those amounts will be allocated to projects suspended, which exceeded the completion rates of 80% provided that they are within the service projects that have priority.” 
“There are negotiations between the governor and the finance ministry to release the rest of the funds of the central government,” Abdul Hussein said

Abdul Mahdi issued a series of directives to security leaders from the headquarters of the Interior


Release date: 2018/10/27 15:41 • 179 times Read
(Baghdad: Al Furat News) The Prime Minister issued a general command of the armed forces, Adel Abdul Mahdi, a set of guidance to security leaders.
“Abdul Mahdi visited Saturday the headquarters of the Ministry of the Interior and held a meeting with security leaders, where he listened to a presentation on the security situation in the country and future plans to enhance security for citizens,” a statement from his office said. 
“Abdul Mahdi issued a series of directives to the security leaders, which contribute to the stability of the security situation and the vision provided through the ministerial platform on security and strengthening.

Guterich calls on Abdul Mahdi to promote national reconciliation in Iraq and speed up the construction of what was destroyed by the war

Policy 2018/10/27 12:42 240 Editor: Mos

Baghdad today _ Baghdad

UN Secretary-General Antonio Guterres on Saturday (October 27, 2018) called on Prime Minister Adel Abdul-Mahdi to promote national reconciliation in Iraq and to accelerate the reconstruction of the war-ravaged country.

“We welcome the announcement of the formation of a new government and the adoption of a new ministerial program within the constitutional time frame,” Guterch said in a congratulatory telegram sent to Abdul Mahdi on the occasion of the formation of his government. “He called for the appointment of women to hold ministerial positions that have not yet been filled.”

The Secretary-General of the United Nations, expressed his “hope that the new Government will be able to speed up the overall effort to rebuild the country after years of conflict and war, promote national reconciliation and promote lasting peace and security in Iraq.”

“The United Nations will continue to support the government and the people of Iraq during this critical period,” Gutierrez said in his message.

The House of Representatives was granted, during the meeting held on Thursday, October 25, 2018, the confidence of the government of Prime Minister, Adel Abdul Mahdi, and voted on the selection of 14 ministers from the cabinet reshuffle made by the latter during the session.

The Minister of Finance, Fuad Hussain, Minister of Communications Naim Al-Rubaie, Minister of Construction and Housing, Benkeen Rikani, Minister of Commerce Mohammad Hashim, Minister of Foreign Affairs Mohammad Al-Hakim, Agriculture Minister Saleh Al- Minister of Health and Minister of Water and Water, Minister of Youth and Sports Ahmed Al-Obeidi, Minister of Health Alaa Alwan, Minister of Industry Saleh Al-Jubouri, Minister of Labor and Social Affairs Basem Al-Rubaie, Minister of Electricity Louay Al-Khatib, Minister of Water Resources Jamal Al-Adly and Transport Minister Abdullah Luaibi).

He abstained from voting on candidates for ministries, justice, culture, education, planning, higher education and scientific research, immigration and displaced persons, defense, and interior

Saleh: We will work to end the outstanding problems between Baghdad and Erbil in accordance with the Constitution

Release date: 2018/10/27 12:44

(Sulaymaniyah: Euphrates News) President of the Republic Barham Salih, on Saturday, the importance of restoring stability to the city of Kirkuk, among the work will be to end the outstanding problems between Baghdad and Erbil.

“It is necessary for the new government to restore the citizen’s confidence in the government,” Saleh told a news conference after arriving in the city of Sulaymaniyah today, adding that he will work to preserve the rights of the Kurds in Baghdad and end the outstanding problems between Erbil and Baghdad according to the constitution.

He stressed that “the work to restore the stability of the situation in the city of Kirkuk and normalization, especially the administrative and security aspects,” pointing out that the decision-making will be in the hands of the people of the province.

The President of the Republic said that he will “work to compensate the victims of the fire of the Bala market in Erbil,” as well as the families of the victims who were killed by the floods that swept through several areas in the Kurdistan region. “It

is noteworthy that President Barham Salih, In his first official visit since taking office as President of the Republic

was received by the President of the Republic of Kosrat Rasul Ali, Deputy Secretary-General of the Patriotic Union of Kurdistan, and the governor of Sulaymaniyah and its founder, and a number of members of the House of Representatives, and political figures and several parties.