COMMERCIAL ADVOCACY IN IRAQ - THE TIME IS NOW

UNCLAS BAGHDAD 000418

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ECON EINV ETRD EAGR IZ
SUBJECT: COMMERCIAL ADVOCACY IN IRAQ - THE TIME IS NOW

REF: BAGHDAD 399

Sensitive but Unclassified. Please handle accordingly.


1. (U) The following is a personal message from Charge
d'Affaires Patricia A. Butenis.


2. (SBU) Our partnership and engagement with Iraq is about to
hit another milestone with the release of the 2009 Country
Commercial Guide (CCG) for Iraq. This first post-conflict
CCG for Iraq captures and represents the rapid evolution of
Iraq's commercial and economic outlook from the depths of
widespread violence to a picture of growth and
diversification. Serious hurdles will continue to confront
American investors and businesspeople here, and the CCG is
careful to highlight these, but opportunities exist and our
companies must be well-positioned to compete in this market.


3. (SBU) As the guide will attest, Iraq, despite the many
real challenges it still faces, has the potential to be one
of the world's leading mid-size markets. Iraq is in need of
all manner of goods and services, and the competition to
American suppliers is not standing idly by. Foreign business
delegations are venturing beyond the friendly confines of the
KRG, as Baghdad, Najaf, and Basra increase their share of the
visitors.


4. (SBU) In early February, President Sarkozy of France led a
business-focused visit to Baghdad, announcing not only the
expansion of the French diplomatic mission here, but also the
impending visit of a delegation of French companies to Iraq.
He was careful to point out that they would be seeking
opportunities "not just in the areas of security and
defense." A German business delegation led by high-level
political officials will soon be in country, and the UK is
planning for a large Iraq trade show in April. This is not
to mention aggressive manufacturers and suppliers from the
neighborhood, currently being led by Turkey and the UAE.


5. (SBU) The time is now for the USG to redouble its efforts
to build links for American companies here and craft the
underpinnings of a strong interagency advocacy effort on
their behalf. Opportunities for structured engagement with
Iraqi decision makers on economic and business matters are
growing. We will take advantage of the working groups formed
under our Strategic Framework Agreement to press for
business-friendly policies and facilitate access for American
companies, and will continue our multifaceted outreach to
regional investment officials, legislators, and business
groups. The establishment of the American Business
Council-Iraq as the U.S. Chamber of Commerce-sanctioned
AmCham provides us with an important new partner to improve
both the business climate overall and the opportunities for
specific U.S. commercial projects. DPM Barham Salih is
pushing for a large U.S. business delegation to visit Iraq in
the near term and the U.S. Chamber is prepared to assist
(reftel). We must work to facilitate these exchanges.


6. (SBU) Building trade and investment links is critical to
our long-term objectives in Iraq: diversifying and growing
the economy, and broadening the linkages between our two
countries. Despite the challenges, significant opportunities
exist for American companies to prosper in Iraq. As the new
Administration reviews its priorities for Iraq, and as we
continue with steps to "normalize" this mission, I strongly
urge that we devote sufficient resources to business
promotion, expanding our FCS presence on the ground and
ensuring that we are able to adequately meet our goals.
QBUTENIS