The U.S. role in the rebuilding of Iraq, along with U.S. support for the new Government of Iraq, has led to major realignment of imports.  U.S. exports to Iraq, which were less than $2 million in 1998, are now on track to surpass $2 billion in 2007.

The numbers are up, and so is the array of U.S. products going into Iraq.  In 2001, the U.S. exported fewer than 20 product categories to Iraq.  In 2007, more than 112 product categories will be traded.  Not surprisingly, dominant import categories are infrastructure rebuilding goods such as telecom equipment, trucks, generators, and drilling equipment.  Sales of security and defense-related equipment are also expected to increase.  The Government of Iraq recently ordered 600 Humvees, 300 armored personnel carriers, and UH-2 advanced helicopters in a $1.5 billion military equipment purchase.

The engine of Iraq's economy, petroleum production, is experiencing a gradual comeback as firms work to put production back on line.  Iraq's current refining capacity is estimated at 644,000 barels per day, yet energy rich Iraq remains a net importer of petroleum products.  The oil ministry is seeking assistance from overseas to build five additional refineries at a cost of $1 billion, in addition to upgrading existing refineries.  The recent resumption of 10,000 bbl/d in pipeline petroleum exports to Jordan may signal a turning point in Iraq's efforts to increase production and sales.  Production Sharing Agreement contracts under consideration in the Iraqi parliament would allow 30-year production rights with 75 percent of net revenues to repay foreign producers willing to invest.

Niche exporters may be surprised to learn that recreational items, including sporting goods and musical gear, are growing at three- and four-digit annual rates.  Medical equipment and testing and control materials are undergoing similar geometric growth.

Links

Federation of Iraqi Chambers of Commerce
CIA Factbook
World Bank
Embassy in the U.S.
U.S. Embassy in Iraq