Monday Sep 30, 2024
Monday Sep 30, 2024
Tuesday, 26 February 2013 00:00 - - {{hitsCtrl.values.hits}}
Successfully clinching a strategic Middle Eastern market on 22 February, the Sri Lanka trade delegation visiting Iraq overnight led by Minister Rishad Bathiudeen, secured the vital Middle Eastern economy billed to become the second biggest global oil power in 2020, the Republic of Iraq.
Iraq, in turn, is keen to expand its presence in Sri Lanka at multiple levels, especially B2B, in a considerable way. “Trade between the two countries declined due to the continued war in Iraq but now we are back on track and business is booming. We are also excited by prospective direct air-links between the two countries,” stated Abdul Hussein J.R. Mubaraka, the General Secretary of Federation of Iraqi Chambers of Commerce, on 22 February at the historic Baghdad landmark Ishtar Sheraton in Firdos Square, Baghdad.
Secretary Mubaraka was addressing Rishad Bathiudeen, the Minister of Industry and Commerce of Sri Lanka, who was in Baghdad leading a Lankan delegation to Iraq. The delegation, which consisted of officials from the Department of Commerce and the Tea Research Institute among others, arrived in Baghdad on 21 February. Sumith Nakandala, Sri Lanka’s Ambassador to Iraq, was also continuously present during the delegation’s visit to the country.
The Lankan delegation had already wrapped up ministerial level bilateral talks with Kheer-allah Hassan babaker Muhammad, Iraqi Minister of Trade on 21 February, concluding on an upbeat note but shy of Iraqi private sector voice. The business level meeting held with the Federation of Iraqi Chambers of Commerce at the historic Baghdad landmark Ishtar Sheraton Hotel at Firdos Square the next day finally sealed the Middle Eastern market’s private sector win for Sri Lanka.
Secretary Mubaraka’s Federation of Iraqi Chambers of Commerce represents 18 Iraqi chambers and is seen as having a strong command of the strategic Iraqi marketplace which in turn, has a considerable penetration claim with household consumption expenditure claiming 52.5% of its GDP (2011), similar in proportion to Thai and Belgian consumer markets and was driven by the growing middle class, with an urban bent.
Iraq is located in an important strategic location bridging the Arabian Gulf markets and the Middle Eastern region with its strategically important ports (such as Mina Al Bakr) and airports and possesses one of the world’s youngest populations, with more than 70% under 30 and 83% under 40.
In October 2010, Secretary Mubaraka’s federation signed a MoU with the National Chamber of Commerce of Sri Lanka at the seventh session of the Sri Lanka-Iraq Joint Committee for Economic and Technical Cooperation in Colombo in the presence of Iraqi Trade Minister Safa Al-Deen Al-Saafi and Minister Bathiudeen. Secretary Mubaraka signed the 2010 MoU in Colombo on behalf of the Iraqi private sector.
“We have understood that the quality of Sri Lankan products is good and high and we are keen to establish a Sri Lankan trade centre in Baghdad, preferably soon, so that our importers can find what Sri Lanka can offer. We are also planning on sending an Iraqi business delegation to Colombo within the first half of 2013 and we also invite Sri Lankan exporters to take advantage of our marketplace. Rubber, agro, seafood and food products are in ready demand in Iraq, which Sri Lankan exporters can easily supply,” said a very confident Mubaraka.
“Trade between the two countries declined due to the continued war in Iraq but now we are back on track and business is booming. We are also excited by prospective direct air-links between the two countries,” he added.
Addressing Mubaraka, Bathiudeen said: “I believe that the planned next joint economic/trade sessions as well as the Baghdad International Trade Fair to be held in November this year, to which we plan to send a strong delegation, and by strongly integrating our private sector in these, we can advance our trade volumes beyond current levels.”
Pleased with the inter-ministerial approach in securing the Iraqi markets successfully, Minister Bathiudeen also commended the Lankan Ambassador in Baghdad and his embassy staff for their continuous on-site backup till the deal was clearly secured on 22 February.
“I am pleased to note that our Embassy staff in Baghdad with the leadership of Sumith Nakandala, our ambassador, have continuously worked with us and even successfully introduced an online visa facility for the Iraqi private sector, fulfilling a long felt need. On behalf of our business and export community, I commend them for this trade support which they achieved within a short period of setting up our embassy in Baghdad.” Iraq is billed to be the second largest global oil supplier by 2020. According to the Department of Commerce of Sri Lanka, Sri Lanka’s trade with Iraq has been increasing over the past several years. The value of total trade between the two countries, which stood at US$ 8.72 million in 2003, has increased tenfold to US$ 87.28 million in 2012.
The balance of trade has been in favour of Sri Lanka during the last ten years. In 2012, Iraq became the fifth largest buyer of Sri Lankan tea after Russia, Iran, Syria and Turkey, absorbing $ 83 million tea from Sri Lanka. Sri Lanka is the single largest tea supplying country to Iraq, claiming 60% of Iraqi tea imports in 2012 and almost 91% in 2011. However, Iraq is fifth largest Ceylon Tea buyer only in terms of Lanka’s direct exports to Iraq.
