Identifier
Created
Classification
Origin
08STOCKHOLM769
2008-11-14 14:04:00
UNCLASSIFIED
Embassy Stockholm
Cable title:
SWEDISH TRADE MINISTER TO LEAD BUSINESS DELEGATION
how-toP 141404Z NOV 08 FM AMEMBASSY STOCKHOLM TO SECSTATE WASHDC PRIORITY 3900 INFO EUROPEAN POLITICAL COLLECTIVE PRIORITY IRAQ COLLECTIVE PRIORITY AMEMBASSY BAGHDAD PRIORITY DEPT OF COMMERCE WASHINGTON DC PRIORITY
UNCLAS STOCKHOLM 000769
E.O. 12958: N/A
TAGS: ETRD ECIN ECON ECPS EINV ENRG EPET PGOV PREL
IZ, SW
SUBJECT: SWEDISH TRADE MINISTER TO LEAD BUSINESS DELEGATION
TO IRAQ
UNCLAS STOCKHOLM 000769
E.O. 12958: N/A
TAGS: ETRD ECIN ECON ECPS EINV ENRG EPET PGOV PREL
IZ, SW
SUBJECT: SWEDISH TRADE MINISTER TO LEAD BUSINESS DELEGATION
TO IRAQ
1. Summary: Swedish Minister of Trade Eva Bjorling is leading
a business delegation of major Swedish companies to Iraq.
Scania Trucks is looking into opening a truck factory in
Iskandaryah and service centers in Erbil and Basrah that
would provide 500-600 jobs in Iraq. Embassy Stockholm
facilitated a fact-finding conference call between Bjorling
and Embassy Baghdad to help pave the way for a successful
trip.
2. On November 12, U.S. Ambassador Michael Wood and Foreign
Commercial Counselor Frank Carrico met with Swedish Minister
of Trade Eva Bjorling to conduct a fact-finding conference
call to Political Counselor Ambassador Robert Ford at U.S.
Embassy Baghdad about doing business in Iraq. Bjorling will
lead a trade delegation consisting of representatives from
the following Swedish companies: Scania Trucks (part of the
Saab Scania Group),ABB (a global electricity grid and
infrastructure company),Ericsson (a telecommunications
infrastructure company),and Lundin Oil (oil exploration and
drilling).
3. Scania Trucks hopes to open a factory in Iskandaryah and
service centers in Erbil and Basrah that would provide
500-600 jobs in Iraq. When Bjorling asked which obstacles
Swedish companies might face, Ambassador Ford cited four
major challenges that U.S. companies have encountered in
doing business in Iraq:
- The security situation. Security remains important, but
less so in the north.
- The legal system. Iraqi commercial court and dispute
resolution mechanisms are neither up to speed nor transparent.
- The labor pool. Skilled labor is difficult to find,
especially in the provinces.
- The infrastructure. Inadequate infrastructure,
particularly the lack of electricity and potable drinking
water affects operations negatively.
4. Ambassador Ford also noted that the legal framework
regarding the oil sector remains unclear, especially where
the sharing of oil revenues is concerned. He commented that
electricity is a high priority sector for Iraq and that much
needs to be done in this area. Ambassador Ford told Bjorling
that two cell-phone networks exist in Iraq, and that
cell-phone penetration is great (80%),while Internet
penetration is low. He also cited the cumbersome Iraqi
procurement and approval process implemented to combat
corruption as a potential hinder to doing business in Iraq.
Ambassador Ford recommended that Bjorling turn to a
consulting company with a good knowledge of Iraq. He also
suggested tapping into the large pool of Iraqi immigrants in
Sweden, many of whom are skilled and have business
experience, to utilize people who the Iraqi business culture.
WOOD
E.O. 12958: N/A
TAGS: ETRD ECIN ECON ECPS EINV ENRG EPET PGOV PREL
IZ, SW
SUBJECT: SWEDISH TRADE MINISTER TO LEAD BUSINESS DELEGATION
TO IRAQ
1. Summary: Swedish Minister of Trade Eva Bjorling is leading
a business delegation of major Swedish companies to Iraq.
Scania Trucks is looking into opening a truck factory in
Iskandaryah and service centers in Erbil and Basrah that
would provide 500-600 jobs in Iraq. Embassy Stockholm
facilitated a fact-finding conference call between Bjorling
and Embassy Baghdad to help pave the way for a successful
trip.
2. On November 12, U.S. Ambassador Michael Wood and Foreign
Commercial Counselor Frank Carrico met with Swedish Minister
of Trade Eva Bjorling to conduct a fact-finding conference
call to Political Counselor Ambassador Robert Ford at U.S.
Embassy Baghdad about doing business in Iraq. Bjorling will
lead a trade delegation consisting of representatives from
the following Swedish companies: Scania Trucks (part of the
Saab Scania Group),ABB (a global electricity grid and
infrastructure company),Ericsson (a telecommunications
infrastructure company),and Lundin Oil (oil exploration and
drilling).
3. Scania Trucks hopes to open a factory in Iskandaryah and
service centers in Erbil and Basrah that would provide
500-600 jobs in Iraq. When Bjorling asked which obstacles
Swedish companies might face, Ambassador Ford cited four
major challenges that U.S. companies have encountered in
doing business in Iraq:
- The security situation. Security remains important, but
less so in the north.
- The legal system. Iraqi commercial court and dispute
resolution mechanisms are neither up to speed nor transparent.
- The labor pool. Skilled labor is difficult to find,
especially in the provinces.
- The infrastructure. Inadequate infrastructure,
particularly the lack of electricity and potable drinking
water affects operations negatively.
4. Ambassador Ford also noted that the legal framework
regarding the oil sector remains unclear, especially where
the sharing of oil revenues is concerned. He commented that
electricity is a high priority sector for Iraq and that much
needs to be done in this area. Ambassador Ford told Bjorling
that two cell-phone networks exist in Iraq, and that
cell-phone penetration is great (80%),while Internet
penetration is low. He also cited the cumbersome Iraqi
procurement and approval process implemented to combat
corruption as a potential hinder to doing business in Iraq.
Ambassador Ford recommended that Bjorling turn to a
consulting company with a good knowledge of Iraq. He also
suggested tapping into the large pool of Iraqi immigrants in
Sweden, many of whom are skilled and have business
experience, to utilize people who the Iraqi business culture.
WOOD