US Commerce Secretary Donald Evans has encouraged US companies to do business with Iraq. "Business conditions are improving everyday in Iraq, creating a greater opportunity for US business to explore virtually an untapped market," Evans said in Washington February 11, 2004.
"The country is taking the appropriate steps to compete in the global business arena and is making remarkable progress in establishing institutions and creating environments conducive to modern commerce," he added. Evans made the remarks at the "Business Conference on Export and Investment Opportunities in Iraq." About 500 businessmen attended the conference, according to a Commerce Department source.
Chief of the US Commercial Service Robert Connan told the conference participants that the challenges of doing business in Iraq are without precedent. He said the obstacles confronted by businesses moving into Russia and Croatia in the 1990's are small compared to those of Iraq today. But he added that the possible returns on investment are correspondingly greater.
Connan said in the short term, business people are going to make profits from contracts with the Coalition Provisional Authority (CPA), but he urged them to consider establishing long-term business relationships with Iraq. He said energy, agriculture, tourism and franchising hold long-term potential.
The Commercial Service chief said it is necessary for American business people eyeing the Iraqi market to travel to Iraq to find local partners. "It's difficult to find an Iraqi partner. It's one of the reasons why you have to be there to assess the potential partner to see if there's a match," Connan said. "When you start working in Iraq, you're going to find a lot of information, disinformation and misinformation. You being on the ground there, you and only you are going to be able to assess that partner."
The Iraqi Representative to the United States Rend Al-Rahim said that Iraqis abroad are investing about five million dollars a day in their native country and per capita income has risen from three to five dollars a month under Saddam to about $60 per month. She said the World Trade Organization (WTO) has granted Iraq observer status, signaling its confidence, and Iraq will respond by striving to meet the WTO's standards for transparency and accountability. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
