A memorandum of understanding was recently signed between the US Chamber of Commerce and the KRG to enhance investment and trade relations.
The memorandum “focuses on how can we as two different business communities work together”, Steve Lutes, vice president of Middle East Affairs at the US Chamber of Commerce, told Rudaw's Omar Muradi on June 27.
“It is all about engagement and exchange. So, some of that is on an information basis. It is letting US companies know what the opportunities are here for investment and commercial activity across the range of the economy. And some of that is also informing businesses here about how they can pursue partners and even opportunities in the United States,” Lutes said.
“In addition to the information exchange, it is also about what we are doing here, looking to accomplish with our business delegations visit, which is actually bringing people here, business leaders to see things first hand,” he added.
The Kurdistan Region and Iraq are emerging from a costly war with the Islamic State group (ISIS), which seized large swathes of territory in the summer of 2014. Many cities were devastated in the battle to retake these territories.
The jihadist group was declared territorially defeated in Iraq in December 2017. Much of the territory previously ruled by ISIS lie in ruins and in dire need of reconstruction and basis services.
Iraq is trying to attract foreign companies to invest in the country. American firms want to expand trade with Erbil and Baghdad, which are slowly rebuilding relations after the Region’s referendum for independence from Iraq in late 2017 led to a brief armed conflict and embargoes on the Region’s trade, travel, and diplomacy.
The crisis further damaged the Region’s economy, already wounded by budget cuts and a financial crisis.
The improvement in relations between the KRG and the federal government in Baghdad has created good conditions for foreign companies to invest, Lutes said.
“We know that Iraq and the Kurdistan Region of Iraq are at a pivotal moment. We think it is an opportune time for American companies to be looking to come in to invest and do business,” the trade official said.
“We are hopeful that we will see not only more energy companies, but more healthcare companies, more IT companies, more agriculture companies, running that range of the economy coming here and looking at those types of commercial and investment opportunities.”
Lutes said US companies can also help modernize Iraq’s antiquated financial sector.
“Modernizing the banking system in Iraq is one of the most important things that we as the business community, as a business advocacy organization, should be focusing on,” he said.
