Iraqi-Sri Lanka trade talks in Baghdad

Iraq is certainly an important market for us not only for tea but even for other prospective products. Similarly, there would be good opportunities for Iraq to promote its products with potential in Sri Lanka, Industry and Commerce Minister Rishard Bathiudeen told the eighth session of Sri Lanka-Iraq Joint Committee for Economic Cooperation (JEC) at Palestine Hotel, Baghdad last week.

Minister Bathiudeen was accompanied by a 16-member delegation.

The Government of Iraq fielded a team of more than 30 members that consisted of representatives from Iraqi Ministries such as Trade, Economic Relations, Transportation, and Industry and Minerals.

The Iraqi team was led by Minister of Trade, Kheer-allah Hassan babaker Muhammad.

Minister of Trade, babaker Muhammad said, "Iraq is keen to share the experiences of Sri Lanka particularly in the fields of investment promotion, free trade zones, financial and health sectors."

According to the Commerce Department sources the value of trade between the two countries that stood at $ 8.72 million in 2003 topped $ 89.99 million in 2013. Sri Lanka exported goods totalling $ 89.80 million to Iraq and imported goods worth only $ 0.19 million from Iraq during 2013.

Tea has been a major export item to Iraq accounting for about 95% of Sri Lanka's exports to Iraq, with an estimated 15,000 mt of Ceylon tea being exported indirectly through Dubai, Jordan and Kuwait.

Minister Bathiudeen said, "The setting up of the Joint Committee for Economic Cooperation, between our two countries in 1975, opened a new chapter in cooperation for development and enhancing relations in diverse fields covering trade, economic and technical cooperation.

"This bilateral mechanism has played a crucial role, in bringing our two countries, much closer in different fields of mutual interest to us. Our friendly relations will continue to bring prosperity to the people of our countries, in the future," he said.

"At the seventh session, in Colombo in 2010, we focused on cooperation in trade, industry, investments, economic, agricultural, scientific and cultural fields.

While progress is seen in some areas, we are yet to explore the avenues for development in several other prospective sectors," the Minister said. "Elimination of terrorism from the country and building the economic infrastructure and gaining from the unique strategic location have brought Sri Lanka into a significant advantageous position for international trade," he said.

"The second phase of the development policy frame- work have been geared for Sri Lanka to become, a naval, aviation, commercial, energy, knowledge hub in Asia. Such positioning of Sri Lanka is expected to establish closer integration with countries in the region and integrated value chains for mutual benefit," Minister Bathiudeen said.

"I am confident that Sri Lanka and Iraq would benefit through greater economic cooperation," he said.

"With regard to bilateral trade, there is slow progress which may be due to the prevailing circumstances. The time has come for a new beginning in our bilateral trade, to look beyond the limited activities," the Minister said.

"Trade is only limited to export of Ceylon Tea to Iraq which recorded US $ 90 million in 2013. Iraq is certainly an important market for us not only for tea but for other prospective products. There would be good opportunities for Iraq to promote its products in Sri Lanka," he said.

"Therefore, it is important for us to identify avenues available and the prospects for introducing new products to each other's market. We are hopeful that with our continued dialogue and interactions, we will find ways and means to overcome the practical difficulties and address those issues," Minister Bathiudeen said.

"The business community of our two nations need our encouragement, facilitation and assistance. The restoration of peace and normalcy has created a greater optimism, providing a strong basis, for long-term sustainable development, supported by conducive policies," he said.

"We expect Sri Lanka's economy to grow over eight percent. In this process of economic development, our international partners play an important role with their involvement in trade, economic and investment activities in Sri Lanka," the Minister said.

"Significant growth in foreign direct investment has been recorded during the past few years. In 2013 attracted Foreign Direct Investments worth over US $ 1.2 billion from different sources, covering projects in diverse sectors. "There is a lot of renewed interest among foreign investors in investing in different sectors.

Sri Lanka's highly literate and skilled labour force, transparent investment laws guaranteed by the Constitution and international agreements has made Sri Lanka, one of the most preferred investment destination, among the international business community.

"I invite the Iraq business community to visit Sri Lanka and explore the opportunities available in Sri Lanka is strategically located connecting east and west through sea and air routes. This is the biggest advantage that we have in our economic development plan to make Sri Lanka a global commercial hub.

"Sri Lanka is increasingly becoming an attractive tourist destination. Tourist arrivals have increased during the past few years and in 2013, it crossed one million. The Government's target is 2.5 million tourist arrivals by 2016.

"The Government is making it a priority to develop tourism related infrastructure, to cater to this increasing tourist arrivals and develop the industry and the economy. The Joint Commission is important for bilateral cooperation. With mutual understanding, we will discuss proposals and address issues, that are before us at this session of the Joint Commission," Minister Bathiudeen said.