Iraq seeks to enter global economy via WTO

Iraq’s interim government is pressing for closer ties to the global economy with a request to join the World Trade Organization.

The process to join the WTO can be laborious — China needed 15 years of negotiations — but is considered an important prod for internal reforms and a way to gain the confidence of international investors.

Membership also would open Iraq’s economy to fierce competition and allow its companies easier access to the world’s biggest markets, though formal accession would appear to be years off as continuing violence undermines reconstruction and economic rebuilding.

The Bush administration backed Iraq’s request for the WTO to form a working group to assess membership terms.

“The U.S. government supports the Iraqi interim government’s efforts. To that end, we have invited a team of senior Iraqi officials and experts to the U.S. to discuss trade issues, including preparation for WTO accession negotiations,” a State Department spokesman, who asked not to be named, said yesterday.

WTO Director General Supachai Panitchpakdi welcomed the request.

“He welcomes interest from all parties. Whether the time is ripe [for Iraqi membership] we will have to wait and see,” said Keith Rockwell, a WTO spokesman. All of the organization’s 148 members must agree on accession terms.

Some WTO members said they were surprised Iraq would apply before it was stable. The country is struggling to impose internal security and regain its economic footing.

Deputy Prime Minister Barham Salih at an international donor’s conference this week in Tokyo said his government envisions a market-based economy fully integrated into the international community. The conference was geared toward speeding international aid for Iraq’s reconstruction and security ahead of elections scheduled for January.

The meeting was a year after a conference in Madrid where nations pledged $32 billion, including $18.4 billion by the United States. Deputy Secretary of State Richard Armitage, in Tokyo, said the United States plans to quickly allocate $3.46 billion for security, governance and rapid job creation.

About $1 billion in non-U.S. aid has been disbursed, and that has gone to U.N. and World Bank reconstruction funds.

“Donors are not giving enough money to the trust funds, and the trust funds are not disbursing the funds. At every stage there are problems and delays, and it is very hard to figure out what the source of the delays are,” said Rend Rahim, Iraq’s former ambassador designate to the United States, speaking at an event in Washington.

“One way or another, we have to accelerate this process,” Mrs. Rahim said.

In Tokyo, Iraq pleaded for quicker aid. Donors agreed that the funds should be disbursed more rapidly, though concerns about security have made donors wary.

“Invest now, and your return — and ours — will be a market-based, democratic Iraq that will be at peace with itself and at peace with the world,” Mr. Salih said.

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