VZCZCXRO1378
PP RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHAK #6526 3331401
ZNR UUUUU ZZH
P 291401Z NOV 06
FM AMEMBASSY ANKARA
TO RUEHC/SECSTATE WASHDC PRIORITY 0104
INFO RUCPDOC/USDOC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHIT/AMCONSUL ISTANBUL PRIORITY 1704
RUEHDA/AMCONSUL ADANA PRIORITY 1378
RUCNRAQ/IRAQ COLLECTIVE

UNCLAS ANKARA 006526 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ETRD ECON PREL TU IZ
SUBJECT:  TURKEY-IRAQ JEC FORMULATES ECONOMIC ROADMAP 
 
Ref:  A) Ankara 5844 B) Ankara 6487 
 
Sensitive but Unclassified.  Not for Internet Distribution. 
 
¶1. (SBU) Summary:  In a November 15 - 17 meeting of the Turkey-Iraq 
Joint Economic Committee (JEC), Turkey laid out what it called a 
roadmap for long-term economic cooperation and integration with its 
Iraqi neighbors.  Turkish Foreign Trade Officials continue to 
emphasize Turkey's interest in expanding trade with Iraq, but the 
vision remains general and contingent on the establishment in Iraq 
of a political order that is acceptable to Turkey.  End Summary. 
 
¶2. (SBU) Turkish Foreign Trade Undersecretariat (FTU) officials told 
us that the November 15 - 17, 2006 meeting of the Turkey-Iraq JEC 
(ref A) resulted in a roadmap for long-term economic cooperation and 
integration of the two economies.  Turkish State Minister for 
Foreign Trade, Kursad Tuzmen, and Iraqi Oil Minister, Hussain 
Al-Shahristani, chaired the meetings.  We e-mailed the Agreed 
Minutes to Embassy Baghdad and to EUR/SE, and NEA/I. 
 
¶3. (SBU) In a November meeting, Foreign Trade Undersecretariat 
Director General, Sevket Ilgac, referred to the Agreed Minutes as a 
"roadmap" for the future integration of the two economies and Iraq's 
economic development.  The two sides agreed to work together to 
conclude a preferential trade agreement, a double taxation treaty, 
and a bilateral investment treaty.  They agreed to open second and 
third border crossings and to create "border trade centers," as well 
as to enhance air, road, and transportation hubs and Turkish 
electricity exports.  The two sides also agreed to exchange 
agricultural information and for Turkey to provide assistance on 
animal disease and veterinary cooperation. Looking even further into 
the future to the creation of a free trade area, the Turks gave the 
Iraqi delegation a copy of Turkey's preferential trade agreement 
with Georgia (which he said will be signed in the next few weeks) as 
an example of the type of agreement Turkey would eventually like to 
sign with Iraq.  Ilgac also emphasized Turkey's support for Iraq's 
future membership in the WTO.  Ilgac stressed that realigning this 
vision of a comprehensive relationship would require political and 
security stabilization in Iraq. 
 
¶4. (SBU) The delegates also reached agreement on closing out the 
settle the remaining balances in the accounts in Turkey established 
under the Saddam-era Border Trade Agreement (BTA).  Under this 
barter agreement, Iraq accepted Turkish goods in return for oil 
shipments to Turkey.  At the time of the 2003 war, there remained a 
balance in favor of Iraq.    A technical meeting on fuel trade 
issues focused mostly on SOMO shipments from Turkey to Iraq and the 
ongoing payment issues (ref B). 
 
¶5. (SBU) Comment:  While problems in fuel trade continue to dominate 
current trade discussions between Iraq and Turkey, FTU officials 
emphasized again their keen interest in developing stronger trade 
relations with Iraq in the long-term interest of both countries. 
For the moment the ideas remain general and details undefined, but 
holding out the prospect of an eventual bilateral free trade 
agreement shows the potential for mutual economic development should 
Iraq achieve a form of political stability that Turkey finds 
acceptable.  End comment. 
WILSON