FOR IMMEDIATE RELEASE
Monday, July 17, 2006

GUTIERREZ VISITS BAGHDAD, TOUTS ECONOMIC VITALITY AND STEPS TO BOOST ECONOMIC GROWTH AND JOBS

Baghdad, Iraq – U.S. Secretary of Commerce Carlos Gutierrez today visited Baghdad and met with Iraqi Prime Minister Maliki, other senior officials and private sector representatives to discuss ways to help the Iraqi economy grow, boost jobs and become more integrated in the regional economy.

“Promoting private sector development in Iraq is a key part of the new Government’s strategy to expand the economy and foster peace, stability and prosperity for the Iraqi people. Prime Minister Maliki and the new Iraqi government face many opportunities and challenges on the road to building a well functioning modern economy. But progress is being made - registered companies have soared from 8,000 to 34,000 and there are now 7 million subscribers of cellular services. I was impressed by the free market oriented initiatives announced by the Prime Minister in his speech to Parliament on July 12. President Bush and the entire Administration are committed to helping the Iraqi people along the way,” said Gutierrez.

In addition to his government meetings, Gutierrez delivered remarks to the American Chamber of Commerce, participated in a roundtable discussion with Iraqi business leaders, and toured an Iraqi business showcase highlighting the remarkable progress made in the communications sector over the past three years, as well as featuring recently launched public and public-private partnerships aimed at boosting Iraq’s international trade and investment.

“It was very heartening to see the energy and vision of the Iraqi entrepreneurs, who not only are focused on building their businesses, but also in building a modern, prosperous Iraq,” Gutierrez added.

Gutierrez is visiting Iraq in response to President Bush’s request to the Secretary to travel to Iraq and work with his Iraqi counterparts to identify ways the U.S. government can help the Iraqi government revitalize its economy.

Secretary Gutierrez announced today that the Commerce Department is implementing several new initiatives to help the Iraqi government and private sector further enhance economic development and create jobs:

•  Gutierrez and Iraqi Minister of Trade al-Sudani signed a joint statement outlining a cooperative action plan between the Department of Commerce and Ministry of Trade and appointed co-chairs to a working group charged with implementing the plan. The cooperative plan covers enhancing commercial relations, capacity building, trade development and promotion, and World Trade Organization accession.

•  Gutierrez unveiled a Commercial Law Development Program for Iraq, focused on creating a legal and tax environment conducive to domestic and foreign investment in Iraq’s key economic sectors, starting with the mineral resources sector. Through this Commerce Department initiative, Iraqi officials will be able to access the expertise of world-class professors and practitioners and attend technical workshops that will address Iraq-specific legal and tax issues.

•  Gutierrez and Iraq’s Minister of Trade also agreed to create the U.S.-Iraq Business Dialogue, a group of Iraqi and American firms which will discuss private sector issues with both governments. The group would focus on enhancing commercial relations, training, and providing input on trade and commercial policies in both countries.

•  Gutierrez announced that he is sending two trade advisors to Iraq for a one-year assignment to advise the Iraqi Government on standards and trade development and promotion issues.

Gutierrez provided details on the Commerce Department’s National Institute of Standards and Technology (NIST) “Standards in Trade” construction and housing training to be held in Washington.

Gutierrez highlighted:

•  Iraq’s economy and infrastructure have made tremendous progress since March 2003 particularly in the information technology sector where wireless telecommunications and internet access has gone from no infrastructure to over 7 million wireless subscribers (24% of population) and 2,000 internet cafes.

•  The stock market has gone from a state-owned entity with thirteen companies listed to an independent stock exchange with ninety-six companies listed.

•  Company registrations have jumped from 8,000 to 34,000.

•  The number of international airports has quadrupled from one to four.

•  Local markets and businesses are flourishing, selling consumer goods previously not available in Iraq.

Gutierrez noted that Iraq’s new economic freedom has unleashed a wave of economic activity and pent-up demand among Iraqi consumers, who suffered under Saddam Hussein’s brutal regime. Gutierrez noted that by working to integrate Iraq’s informal economy into a more open, modern economic system, the Iraqi government will, among other benefits, be able to increase tax revenues, improve consumer safety, fight corruption and promote investment and rule of law.


Background

Since March 2003, the Commerce Department has supported the Bush Administration’s efforts in Iraq by sending fifteen professionals to serve on detail with the Office of Reconstruction and Humanitarian Assistance, Coalition Provisional Authority or regular assignments with the U.S. Embassy. These professionals served in positions advising the Iraqi Government, drafting trade related legislation, supporting business centers and staffing the U.S. Commercial Service office.

The Commerce Department works with the Government of Iraq to help build a strong Iraqi economy, develop Iraq’s private sector and enhance U.S. Iraq-commercial ties. The Commerce Department’s Iraq Investment and Reconstruction Task Force (IIRTF) provides advice on trade issues to the Iraqi Government, serves an information clearinghouse for commercial opportunities in Iraq, and helps facilitate capacity building programs for Iraq. The Task Force has organized three Iraqi private sector trade delegations to the United States, participated in or organized over fifty trade and outreach events in the United States and overseas, and currently manages the most comprehensive U.S. government export portal for Iraq reconstruction.