COMMERCE SECRETARY
CARLOS M. GUTIERREZ

REMARKS AT AMERICAN CHAMBER
OF COMMERCE
BAGHDAD, IRAQ
July 17, 2006

(Remarks As Prepared for Delivery)

 

Let me begin by thanking Tim Mills (AmCham chairman) and the American Chamber of Commerce of Iraq for hosting this event and for all your work here.

I also want to recognize Minister al Sudani, Minister al Hariri and Minister Jahid, who are with us today. We have talked about how we can work together to strengthen Iraq's economy.

I also just had the opportunity to see a great showcase of Iraqi products and services.

A new chapter in Iraq's history is being written. The Iraqi people have been liberated from the brutality of Saddam Hussein. Free elections have been held. A unity government has been formed.

There's still a lot of hard work to do. Creating a democracy is no easy task. It's a huge challenge in a time of war. But the Iraqi people are committed, and a beginning has been made.

Progress is real. Our efforts to defeat terrorism and work with the Iraqi government to restore security, revitalize the economy, and boost the government's capacity to provide essential services are succeeding.

The Iraqi government is coming together. It represents the broad spectrum of Iraqi interests. We are seeing the movement to political and economic freedom.

The Iraqi economy has greatly improved since the removal of Saddam Hussein in 2003; and it's having a significant impact on the lives of the Iraqi people.

•  Investors are beginning to show optimism.

•  Iraq now has a stable exchange rate.

•  Foreign reserves remain strong.

•  Foreign and domestic banks are opening new offices.

•  The independent stock exchange, established two years ago, already lists 96 companies.

•  With a streamlined and open process, more than 34,000 firms have registered to do business since March 2004.

•  Cell phone usage is skyrocketing. In 2003, there was virtually no cellular phone capacity. Today, there are now some 7 million wireless subscribers.

•  Iraq now has four international airports, compared to one under the Hussein regime.

•  A low tariff rate between 5 and 10 percent has replaced the high, non-transparent tariff system.

Perhaps most indicative of its long-term place in the world economy, Iraq is currently an observer in the World Trade Organization. And it's begun discussions for full WTO membership.

It's important that the Government of Iraq carry through on promising liberalization and reform measures recently undertaken, so that Iraq's reintegration into the global trading community can happen quickly.

Clearly, great progress is being made toward creation of a vibrant, confident and internationally-engaged market economy.

Yet, significant challenges remain. Foremost among these is security. Working with the Iraqis, the coalition forces are determined to root out the enemies of a free Iraq.

And Prime Minister Maliki is committed to strengthening security and to building up Iraq's economy so the Iraqi people can continue to see real change and possibilities in their lives.

The United States is committed to being a partner in these efforts. Please know, we are sticking with you.

As the Iraqi business people are here to confirm, Iraq today is open for business. Partnerships are welcome. In fact, partnerships are frequently an essential element of doing business in Iraq.

Any interested company or individual can now invest in Iraq. Iraqi leaders recognize the importance of foreign investment as a vehicle to build attract more capital and expertise into the country.

The Iraqi government is creating the environment to make Iraq's market more attractive to trade and investment.

I think it's important to note that Iraq is not a poor country. It was made poor by tyranny.

Iraq is rich in abundant natural resources. These include the world's largest oil reserves and the seventh largest natural gas reserves.

Iraq's most valuable resource is its people. The Iraqi people are educated and hardworking. And there are 25 million Iraqi men and women eager to rebuild their homeland and their lives.

With a solid democratic and economic foundation in place, Iraq is ready for the next stage of recovery.

The rebuilding process will not be easy. There are risks, real risks. The enemies of a free Iraq have no regard for life or liberty. But there are also real opportunities.

Agriculture, construction, and natural resources such as oil, gas, phosphates and sulfur should be the centerpieces of Iraq's future economic growth.

In addition to large international companies, economic reform should also attract small and medium-sized businesses.

At the Commerce Department, in 2003, we set up an Iraq Investment and Reconstruction Task Force to let companies know about the great opportunities in Iraq.

We have commercial service officers in Baghdad and Amman to help develop business opportunities and partnerships here.

I'm pleased to announce today that we're also establishing a Commercial Law Development Program for Iraq.

This is a technical-assistance program. It includes guidance on creating a business-friendly legal and tax environment that will be conducive to investment in Iraq's key economic sectors.

Minister al-Sudani and I have agreed to create a U.S.-Iraq Business Dialogue. We will look to members of the business community for advice on enhancing commercial relations between our countries.

Minister al-Sudani and I have also signed a statement on joint commercial cooperation on issues such as capacity building, trade development, and WTO accession.

Additionally, I'm sending two Commerce Department trade specialists to Iraq to advise the Iraqi Government on standards, and trade development and promotion issues.

The government and people of Iraq are moving toward a free Iraq that can govern itself, sustain itself and defend itself.

It's a goal that the government and people of the United States share with them.

The private sector is a strategic component of a new peaceful and prosperous Iraq that so many have fought and sacrificed for.

The Iraqi people are embarked on an historic undertaking.

You are creating a new system of representative government.

And you are working to create an economically strong and peaceful society where families can look forward to a future of hope and opportunity for their children.

While there remain significant challenges, the United States is standing shoulder to shoulder with you as you travel this road that holds the promise of a better tomorrow for all of us.

A lasting, prosperous democracy in the heart of the Middle East will make Americans, Iraqis and the world more secure.

Together, we can help make it happen.

Thank you.