NAJAF BUSINESSMEN ON TRADE WITH IRAN: "NO OTHER

C O N F I D E N T I A L BAGHDAD 000495 SIPDIS E.O. 12958: DECL: 02/26/2019 TAGS: PGOV PREL ETRD ECON IR IZ SUBJECT: NAJAF BUSINESSMEN ON TRADE WITH IRAN: "NO OTHER CHOICE" REF: BAGHDAD 196 Classified By: Senior Advisor Gordon Gray for reasons 1.4 (b) and (d). ¶1. (C) Summary: Najaf businessmen expressed frustration with their limited choices of foreign business partners in a February 23 meeting with Senior Advisor Gordon Gray. Too often, they said, they are finding doors closed to them in Jordan, the Arab Gulf states, and Europe. End summary. ¶2. (C) Senior Advisor Gray, Provincial Reconstruction Team officers, and emboffs met with Najaf Chamber of Commerce Chairman Zuhair Sharba and approximately 15 businessmen who are members of the Chamber on February 23 in Najaf. When asked about Iranian influence on Najaf,s trade environment, they responded: "We have no other choice." They suspect Iraqis outside Najaf judge them sympathetic to Iran in their business dealings, but were adamant this is not the case. ¶3. (C) The Najaf businessmen told us they feel marginalized by the Arab business community. One stated he owns several businesses in Jordan but the Government of Jordan refuses to issue him a visa to visit his own companies. He is offended by being asked sectarian questions on his Jordanian visa application. Others expressed disappointment with the Arab Gulf states, saying they are often ignored and not taken seriously as trading partners. Many of the businessmen contrasted the ease of travel to Iran with the difficulties in obtaining visas from Arab Gulf countries. The businessmen said they welcome competition and look forward to business dealings with Europe and the United States, but cited difficulties in obtaining visas there as well. ¶4. (C) Comment: Najaf businessmen provided much the same feedback on the poor quality of Iranian products as Iran Watcher heard in Erbil (reftel). But unlike businessmen in Kurdistan who are close to Turkey, those in Najaf feel trapped and without options. Increased trade and investment links, with Arab Gulf states, the broader region, or industrialized economies abroad would help counter Iranian influence in Najaf,s business community. End comment. BUTENIS