DINAR REVALUATION REPORT: Latest Developments: Iraq and the WTO in 2024, 4 NOV

 Latest Developments: Iraq and the WTO in 2024

On November 3, 2024, significant progress has been made in Iraq's bid to join the World Trade Organization (WTO). After a 16-year hiatus, Iraq has resumed its negotiations to become a member of the WTO, a move that could have substantial economic benefits for the country. Here's a detailed overview of the recent developments:

Resumption of Negotiations

Iraq announced on July 18, 2024, that it has resumed negotiations to join the WTO after a 16-year pause. The Iraqi Trade Minister, Athir Dawood Al-Ghurairi, stated that Iraqi negotiation teams have started preparatory meetings at the WTO headquarters in Geneva. These meetings are crucial for the third working group meeting on Iraq's accession. 2

Key Challenges and Support

Technical and Legal Preparations

Iraq faces significant challenges in its accession process, primarily due to the need for comprehensive legislative and regulatory reforms. The country must align its trade-related legal and institutional frameworks with GATT/WTO rules. This includes addressing a wide range of questions from WTO member countries regarding Iraq's foreign trade regime and initial offers in goods and services. 3

International Support

Several international organizations and countries are providing support to Iraq in its accession process: United States: The US has pledged support for a series of projects aimed at helping Iraq join the WTO and protect intellectual property rights. 6 International Trade Centre (ITC): The ITC has organized training programs to provide in-depth insights and practical tools for Iraqi policymakers. The training focused on project management and value chain analysis.  6 United Nations Conference on Trade and Development (UNCTAD): UNCTAD will undertake an advisory mission to Baghdad from October 6 to 9, 2024, to guide and support Iraqi officials and negotiators in their technical preparatory work. 3

Benefits and Implications

Economic Benefits

Joining the WTO could bring several economic benefits to Iraq, including increased trade, improved market access, and enhanced investment opportunities. The WTO provides a platform for governments to negotiate trade rules and disputes, which can help Iraq integrate more effectively into the global economy. 4

Regional Stability

Iraq's accession to the WTO could also contribute to regional stability by fostering economic cooperation and reducing tensions. The process of aligning with international trade standards can help Iraq build stronger economic ties with its neighbors and the global community.  4

Timeline and Next Steps

Third Working Party Meeting: The third meeting of the Working Party on Iraq's accession to the WTO was held on July 18, 2024. Advisory Mission: UNCTAD will conduct an advisory mission to Baghdad from October 6 to 9, 2024. Future Meetings: Additional meetings will be held to review Iraq’s accession to the WTO, with the next meeting date yet to be specified. 4

Conclusion

Iraq's renewed efforts to join the WTO mark a significant step towards economic reform and international integration. Despite the challenges, the support from international organizations and countries like the United States is crucial in helping Iraq navigate the complex accession process. As Iraq continues to align its trade policies with international standards, the potential economic and regional benefits are substantial.