VZCZCXRO2513
PP RUEHBC RUEHDA RUEHDE RUEHDH RUEHDIR RUEHIHL RUEHKUK RUEHTRO
DE RUEHGB #2960 3121233
ZNR UUUUU ZZH
P 081233Z NOV 09
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 5370
INFO RUCNIRA/IRAN COLLECTIVE
RUCNRAQ/IRAQ COLLECTIVE
RHEHNSC/NSC WASHDC

UNCLAS BAGHDAD 002960 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL BEXP BTIO IR IZ
SUBJECT: IRAQ/IRAN: IRAN MAKES BIG SHOWING AT BAGHDAD TRADE 
FAIR 
 
¶1.  (SBU) SUMMARY: Among the nearly 400 firms present at the 
2009 Baghdad International Fair that kicked off on November 
1, 51 were from Iran; making it the largest single delegation 
among the 32 countries in attendance.  With annual trade 
between Iran and Iraq estimated at USD 4 billion (up 30 
percent since 2008), Iran,s dominant presence underscores 
the country,s continued (and growing) focus on Iraq as a 
viable market for Iranian goods and services.  It faces 
serious competition, however, from other foreign competitors, 
especially Turkey.  END SUMMARY 
¶2. (U) The Baghdad International Fair kicked off on November 
1, continuing GOI efforts to attract foreign investment to 
Iraq.  Iran was one of 32 countries at the fair and had 51 
companies present, the largest contingent among the 
approximately 400 companies in attendance. Iranian Ambassador 
to Iraq Hassan Kazemi-Qomi sounded a positive note about the 
prospects for international investment in Iraq, commenting to 
the press that the fact that the fair is being held despite 
the October 25 bombings demonstrates the deep interest of 
foreign investors in the Iraqi market.  Iranian companies in 
the fields of medicine, construction, textiles, engineering 
services, food processing, and other areas were present at 
the event, Qomi told Iranian press. 
¶3. (U) The ten-day trade show focuses on  Construction and 
Foreign Investment, and is the first international fair to 
be held in Baghdad since 2002.  It follows the U.S.-Iraq 
Business and Investment Conference in Washington October 
20-21, and precedes one scheduled for November 5-6 in Berlin. 
 Other countries heavily represented at the fair were Turkey, 
France, and Brazil.  The GOI paved the way for European 
participation in the fair in early October, when it dropped a 
condition requiring participating companies to pledge to 
boycott Israel.  According to press reports, on November 2 
French design firm Aeroports de Paris International signed a 
28 million Euro contract to design the Middle Euphrates 
Airport to serve the Shi,a holy cities of Najaf and Karbala, 
according to press. 
¶4. (SBU) COMMENT: The high level of Iranian participation in 
this trade fair shows Iran,s continued efforts to expand its 
economic ties with ) and influence over ) Iraq.  The 
IRIG,s enthusiasm notwithstanding, it is unclear what 
contracts or agreements may result from Iran,s strong 
showing.  Iranian press outlets often exaggerate the 
significance and finality of trade and contractual 
discussions, not to mention the quality of Iranian goods. 
Latest estimates indicate that trade between Iran and Iraq 
continues to grow and is approximately USD 4 billion, with 
Iranian imports representing approximately 48 percent of 
Iraq,s imports.  However, presence does not necessarily 
translate into unlimited opportunity for Iranian firms, who 
continue to face growing foreign competition, most notably 
from Turkey.  Due to security concerns, there was no U.S. 
participation at the fair.  END COMMENT 
HILL