EU, Iraq Conclude Trade, Cooperation Accord

ROBERT WIELAARD

BRUSSELS (AP) — European Union and Iraqi officials agreed Friday to significantly broaden their relations by working together to counter terrorism and promote human rights and by increasing trade and investment in areas such as energy and services.

Negotiators for both sides said the draft partnership and cooperation deal must now be approved by all 27 EU governments and that of Iraq. It is expected to take effect next spring or summer.

EU External Relations Commissioner Benita Ferrero-Waldner said in a statement the deal "marks a new beginning in our relations."

It is designed to help the European Union play a bigger role in Iraq by improving living conditions, helping the country diversify its economy, and providing expertise in transport, statistics and customs.

The EU is Iraq's largest trade partner after the U.S.

EU exports to Iraq amounted to euro1.69 billion ($2.51 billion) in 2008 which paled compared to imports from Iraq of euro9.12 billion — 99.9 percent of which was oil. EU exports to Iraq are mainly machinery and transport equipment, chemicals, food and live animals.