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OO RUEHBC RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #2031/01 1661257
ZNY CCCCC ZZH
O 151257Z JUN 06 ZDK
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5093
INFO RUCNRAQ/IRAQ COLLECTIVE PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 002031 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 06/14/2016 
TAGS: EAGR EAID ECON ETRD KFPC PGOV IZ
SUBJECT: NEW AGRICULTURE MINISTER EMPHASIZES INCREASED 
COORDINATION, PRIVATE SECTOR DEVELOPMENT 
 
BAGHDAD 00002031  001.2 OF 002 
 
 
Classified By: A/DCM Daniel V. Speckhard for reasons 1.4 (b) and (d). 
 
 
¶1.  (SBU) SUMMARY: DCM Satterfield and Embassy staff met on 
June 5 with new Agriculture Minister Yuarib Nadhim Al-Abudi 
and members of his staff. Al-Abudi, a Shi'a with Sadrist 
affiliation, told us that he looks forward to an improved 
relationship with the Embassy and a joint effort to rebuild 
Iraq's agricultural sector.  His staff requested increased 
coordination on capacity-building projects and assistance in 
developing Iraqi agribusiness.  DCM pledged full Embassy 
support and described Iraq's agricultural sector as second 
only to oil in its importance to Iraq's economic development. 
 DCM stressed the need for Iraq to reform its Public 
Distribution System (PDS) and eliminate unfair trade barriers 
as critical steps for realizing Iraq's full agricultural 
potential.  Based on Minister Al-Abudi's willingness to 
cooperate and his staff's requests for private-sector 
development assistance, we are hopeful of a positive 
relationship, although we are wary of the Minister's Sadrist 
affiliation.  END SUMMARY. 
 
---------------------- 
Improving Coordination 
---------------------- 
 
¶2. (SBU) DCM Satterfield, USAID Director, Agriculture 
Counselor, MNF-I representative, and EconOff met on June 5 
with Yuarib Nadhim Al-Abudi, the new Minister of Agriculture, 
and several members of his staff.  Al-Abudi expressed a 
desire to improve the relationship with the Embassy and to 
work together to rebuild Iraq's agricultural sector.  Deputy 
Minister Subhi M. Al-Jumaily requested further consultations 
about USG programs and projects during both the planning and 
execution stages.  According to Director General of Planning 
Salah Al-Din Kathem Aziz, American expertise can be 
invaluable for solving many of Iraq's agricultural problems, 
including high soil salinity in southern Iraq, which he 
blamed on the destructive practices of Saddam's regime. 
 
¶3. (SBU) DCM pledged full Embassy support to rebuild Iraqi 
agriculture through free-market principles and stressed the 
enormous employment and economic growth potential of the 
sector.  Agriculture Counselor explained the importance of 
Iraq's extension service project because of its potential to 
transfer new technologies and knowledge from the United 
States to Iraq.  AgCouns also expressed our desire to support 
development in Iraq's traditionally strong areas, such as 
lamb and rice.  USAID Director told the Minister about 
USAID's ongoing efforts to assist Iraqi farmers through 
grants, employment programs, irrigation projects, and various 
other programs -- stressing that USAID plans to continue its 
support into the future.  The Minister and his staff reacted 
positively to our comments, and Deputy Minister Al-Jumaily 
said he looks forward to our "fruitful cooperation." 
 
----------------------------- 
Developing the Private Sector 
----------------------------- 
 
¶4. (SBU) DG Aziz told us that Iraq needs USG assistance to 
develop its agricultural private sector.  Because Iraqi 
agribusiness development currently is so limited, Aziz 
explained, farmers are forced to rely on the government to 
provide many of their needs and to procure much of their 
output.  DCM stated that Iraq's PDS is a major reason that 
Iraqi agribusiness is currently so underdeveloped, and he 
expressed our willingness to help the GOI reform the PDS. 
(NOTE: The PDS is a highly inefficient $3 billion 
food-subsidy program administered by the Ministry of Trade 
(MoT).  The MoT procures approximately 87 percent of the food 
items used in the distribution system from foreign sources. 
END NOTE.)  Iraq's protectionist barriers to free trade over 
the past year, especially regarding poultry, have been 
harmful to development, DCM noted.  DCM added that the MoA 
should pursue transparent trade policies based on health and 
safety standards.  The Minister and his staff, while not 
openly embracing the DCM's statements about PDS reform and 
trade barriers, did not disagree. 
 
--------------------------- 
Comment:  A Welcome Change? 
--------------------------- 
 
¶5. (C) COMMENT: Minister Al-Abudi's willingness to cooperate 
is a welcome change from the last Minister, who refused to 
place MoA representatives on either the Embassy Ministry 
Advisory Team (MAT) for Agriculture or the Embassy Joint 
Agricultural Task Force (JATF).  (NOTE: The MATs are part of 
a USG program to build capacity within the ministries.  The 
JATF is a team comprising Embassy, military, and 
international partners, with the mission of better 
 
BAGHDAD 00002031  002.2 OF 002 
 
 
coordinating agriculture development projects throughout 
 
Iraq.  END NOTE.)  The former Minister also failed to create 
a strategic plan for rebuilding Iraq's agriculture sector or 
establish a multilateral sector working group (a 
recommendation made by the World Bank in autumn 2005 at a 
meeting in Amman). 
 
¶6.  (C) COMMENT CONT'D: We are also encouraged by the 
Minister's desire to increase private-sector development.  It 
remains to be seen, however, whether Minister Al-Abudi's 
Sadrist affiliation will adversely affect his and his staff's 
initial willingness to cooperate and their desire to increase 
private-sector development. 
 
¶7.  (C) COMMENT CONT'D: DM Al-Jumaily and DG Aziz did most of 
the talking on the Iraqi side.  Minister Al-Abudi, though 
attentive and engaged, did not speak much after his 
introductory remarks.  It is hard to determine whether his 
quiet demeanor stemmed from personality, leadership style, 
lack of experience in agriculture, or dislike of America. 
Also, considering that DM Al-Jumaily has been at the MoA for 
more than three years and DG Aziz also has spent considerable 
time there, their command of the issues is not surprising. 
END COMMENT. 
SPECKHARD