DINAR REVALUATION REPORT: Iraq's Milestone Step Towards WTO Membership in 2024 & THE ENHANCEMENT OF THE IRAQI DINAR VALUE, 11 OCT

 Iraq's Milestone Step Towards WTO Membership in 2024 & THE ENHANCEMENT OF THE IRAQI DINAR VALUE

Iraq's journey towards becoming a member of the World Trade Organization (WTO) in 2024 marks a significant milestone in the country's economic reform and integration into the global economy. After 16 years, Iraq has resumed its accession talks, a move that signals its commitment to enhancing trade policies and creating favorable conditions for foreign investment. 2

Iraq's WTO Accession Process

The resumption of Iraq's WTO accession process is a testament to the country's determination to align its trade policies and regulatory frameworks with international rules and standards. During the third meeting of the Working Party on Iraq's accession, held in July 2024, Iraq's Minister of Trade, Atheer Dawood Salman Al Ghrairi, led a high-level delegation to Geneva. 2 This meeting, the first since 2008, was seen as a distinctive step for Iraq towards full-fledged WTO membership.

Economic Reforms and Stability

Iraq's efforts to join the WTO are part of broader economic reforms aimed at stabilizing the country's economy. The International Monetary Fund (IMF) reported in May 2024 that Iraq's domestic stability had improved since the new government took office in October 2022. 4 This stability facilitated the passage of Iraq's first three-year budget, which entailed a fiscal expansion that supported the recovery of the non-oil economy after a contraction in 2022. However, the IMF also noted that risks are tilted to the downside due to regional conflicts and the country's large dependence on volatile oil prices. 4

The Iraqi Dinar and Investment Prospects

The potential enhancement of the Iraqi dinar's value is a direct result of Iraq's economic reforms and its pursuit of WTO membership. 

Investing in the Iraqi dinar involves purchasing a certain amount of IQD with the expectation that its value will rise. 1 However, the decision to invest should be carefully considered, given the historical volatility of the currency and the ongoing challenges facing the Iraqi economy. 1

The Role of International Support

Iraq's path to WTO membership and economic stability is not a solitary endeavor. The country has received support from various international partners. For instance, the International Trade Centre (ITC) has provided training to Iraqi policymakers to enhance trade and support economic diversification. 3 Additionally, the United States has pledged support for projects aimed at helping Iraq join the WTO and protect intellectual property rights. 3

Enhancing the Iraqi Dinar's Value

The enhancement of the Iraqi dinar's value is a complex issue intertwined with broader economic reforms and the country's integration into the global economy. As Iraq progresses in its WTO accession talks and implements economic reforms, the dinar's value may be bolstered by increased investor confidence, improved trade relations, and a more stable economic environment. 1

Conclusion

Iraq's milestone step towards WTO membership in 2024 and the enhancement of the Iraqi dinar's value are significant for the country's economic future. These developments are part of a broader narrative of reform and integration, supported by international partners. As Iraq navigates the challenges of economic diversification, political stability, and global trade dynamics, the success of its WTO accession and the performance of its currency will be closely watched indicators of its progress.

RV UPDATE BY CLARE, 11 OCT

Clare  

 Article:   "The government completes the file to join the WTO"

   Quote:   "Iraq has fulfilled all the requirements for joining the organization, through a package of legislation and laws currently being discussed to reform the current legal system to be in line with the requirements and controls of the international organization, such as coordinated trade policies throughout the country, including tariff rates and customs procedures."

🚨BREAKING NEWS: IRAQ Passing Laws To Go INTERNATIONAL 🚨WTO: NEXT !

US seeks energy dominance in Iraq, challenging Chinese influence, 11 OCT

US seeks energy dominance in Iraq, challenging Chinese influence

Shafaq News/ The US government is intensifying efforts to bring American companies into Iraq’s energy sector, seeking to surpass Chinese investors, reduce emissions from Iraq’s oil and gas production, and limit Iran’s influence, according to a report from the American Forbes magazine.

Geoffrey Pyatt, the State Department’s Assistant Secretary for Energy Resources, emphasized Iraq’s strategic importance, “Everybody recognizes the asset that Iraq represents, second largest proven reserves in OPEC,” he told Forbes. Iraq holds 145 billion barrels of proven oil reserves, an amount expected to last about 100 years at current production rates, according to World Bank estimates.

Since the US invasion in 2003, which left Iraq’s energy infrastructure severely damaged, the country has struggled to rebuild its electricity grid. Now, the Biden administration sees an opportunity to support Iraq’s pro-business Prime Minister Mohammed Shia Al-Sudani in revitalizing the sector. “Two decades of American blood and treasure are in Iraq, and we shouldn’t forget that,” Pyatt noted. “Now the relationship is shifting into a new phase.”

US-China Competition

Pyatt underscored that developing Iraq’s energy system is also a chance to diminish China’s influence. “Unlike the Chinese, who may have other motives, our companies will only get involved where they see an asset and where there are options for recovery of capital,” Pyatt stated. China, already a key player in Iraq’s oil sector, secured bids earlier this year to develop 10 additional oil and gas fields. Iraq sends 35% of its crude oil to China, with trade between the two nations reaching $50 billion.

Despite China’s dominance, Pyatt said he is not concerned about which country ends up buying Iraq’s oil. “I don’t worry at all about the flag on the molecule. It’s a fungible and integrated market,” he said.

Strengthening Bilateral Relations

Over the last six months, the relationship between the US and Iraq has strengthened, with U.S. officials and major American energy companies, such as GE, BP, and Halliburton, holding several meetings with Iraqi counterparts. In October, the US Export-Import Bank (EXIM) announced a nearly $300 million deal with Iraq’s Ministry of Electricity to upgrade power plants. This initiative will raise Iraq’s power generation capacity by 40%, while reducing greenhouse gas emissions by over 31%.

Pyatt highlighted Iraq’s efforts to address gas flaring, a major contributor to emissions, stating, “There are huge opportunities under Al-Sudani to capture gas that’s currently vented at record levels.”

Climate and Energy Goals

In line with broader climate objectives, the US is working with Iraq to reduce its environmental impact. Iraq’s Minister of Oil, Hayan Abdel-Ghani, aims to eliminate gas flaring by 2028, a goal consistent with the Biden administration’s climate agenda. Additionally, Iraq plans to install rooftop solar systems on 500 public buildings, with $68 million set aside in the 2024 national budget.

While Iraq's oil production is expected to grow, Pyatt emphasized the need to minimize the carbon footprint of fossil fuel extraction. “We need to make sure we’re doing everything possible to reduce the climate intensity of the fossil energy that the world does produce,” he said.

The US remains committed to ensuring Iraq's energy development aligns with global sustainability goals, positioning American companies to play a central role in Iraq's future energy infrastructure.

Disclaimer: The views presented by the author do not necessarily reflect the official standpoint of Shafaq News Agency.

RV UPDATE BY WOLVERINE, 11 OCT

 Wolverine  

...What I heard is that huge Whales have received their notifications and are flying to their destination to receive their blessing...

I can’t say more until I’m allowed to speak. Nothing is guaranteed in this journey but I have absolute faith that any day we are going to receive the news we’ve been waiting for... 

Iraq's Milestone Step Towards WTO Membership in 2024 & THE ENHANCEMENT O...

DINAR REVALUATION REPORT: Iraq's Milestone Step Towards WTO Membership in 2024, 11 OCT

 Iraq's Milestone Step Towards WTO Membership in 2024

In a significant stride for Iraq's economic landscape, the government, under the leadership of Prime Minister Mohammed Shia Al-Sudani, has announced the completion of the preparatory process for joining the World Trade Organization (WTO). 1  3 This move marks a pivotal moment in Iraq's global economic integration, reflecting a series of crucial reforms and policy adjustments aimed at aligning the nation's economic framework with international standards.

Clear Vision for Economic Future

Iraq's government has outlined a comprehensive plan for its economic future, setting clear timelines for liberalization and focusing on sectors with high potential, such as agriculture, industry, and services. 2 By prioritizing these sectors, Iraq aims to boost its trade capabilities and facilitate a smoother accession process to the WTO.

Legislative and Policy Reforms

Iraq has undertaken a series of legislative reforms, including the discussion of new laws aimed at overhauling its legal system to comply with WTO requirements. 2These reforms encompass coordinated trade policies across the country, including adjustments to tariff rates and customs procedures, signaling Iraq's commitment to aligning its practices with international trade norms.

Resumption of Negotiations

The Minister of Trade and head of the Iraqi team concerned with joining the WTO, Atheer Daoud Al-Ghurairi, revealed the resumption of negotiations, marking a significant advancement after a hiatus of over 16 years. 3 Iraqi negotiating teams have initiated preparatory meetings at WTO headquarters in Geneva, indicating a high level of readiness and preparedness for the accession process.

Benefits of WTO Membership

Experts view Iraq's accession to the WTO as a major achievement, with potential benefits including an increase in Iraqi exports and a boost to economic growth. 2Membership is expected to open new markets for Iraqi goods and services, contributing to the diversification of the economy and reducing dependence on oil revenues.

Enhanced Competence in Negotiations

The Iraqi negotiating team has reached an unprecedented level of experience and competence in the field of negotiation, reflecting the development of their capabilities and the ability to handle complex issues related to WTO membership. 3This development signals a positive outlook for Iraq's future role in international trade.

Support from Saudi Arabia

The efforts of the Kingdom of Saudi Arabia have been acknowledged as crucial in Iraq's WTO accession process, with coordination and partnership playing a vital role in advancing Iraq's candidacy. 2

Iraq's journey towards WTO membership represents a strategic move to integrate more deeply into the global economy, enhance its trade capabilities, and foster economic growth. The completion of the preparatory process is a testament to the government's commitment to economic reform and international cooperation.