Secretary's Speech

U.S. Secretary of Commerce Carlos M. Gutierrez Remarks to the American Chamber of Commerce in Iraq
Baghdad, Iraq

Deputy Prime Minister Barham Salih, Minister Al-Sudani, members of the private sector…thank you for the warm welcome. Chairman Mills (Tim), and members of the American Chamber of Commerce in Iraq, thank you for hosting us.

I’ve had the opportunity to travel around the world. But traveling to Iraq is a tremendous highlight.

There is no more talked-about place on earth. Everyone sees Iraq on television and reads about Iraq in their newspapers, but very few have the opportunity to meet face-to-face with the Iraqi people. For me this is a great honor.

This is my second visit to Iraq. On my last trip I heard from our military leaders that beyond security, the best thing we could do for Iraq’s future is to help rebuild the economy here.

I’m proud of the progress made, and am here to identify more ways to collaborate with the government and private sector leaders to bring jobs, growth and opportunity to the Iraqi people.

This is a crucial time in Iraq. In light of the U.S. military troop surge, which has helped create a more stable and secure environment, now is the time for economic liberalization and the growth of the Iraqi private sector.

We believe that increased economic opportunities and job creation will help build upon the security gains that have been made in the past year.

The good news is that we are on the right track. A December survey of Iraqi businesspeople showed rising optimism:

• 45 percent of business firms believe sales will increase in the next six months;
• And, 84 percent say they feel security is better now than the previous year.

And there are statistics that back up that optimism. Since 2003, and the fall of the Hussein Regime:

• In 2006, Iraqi exports to the world were up three-fold from $8.6 billion to $28.3 billion;
• The IMF estimates GDP growth of seven percent this year;
• And, new businesses registered nationwide increased 9.1 percent last year.

Iraqi merchants are meeting consumer demands and helping to revive and stabilize cities throughout the country. But, we know that our work is far from over. As President Bush said in his State of the Union address last month:

“The Iraqis still have a distance to travel. But after decades of dictatorship and the pain of sectarian violence, reconciliation is taking place—and the Iraqi people are taking control of their future.”

An important part of “taking control of the future” is having an economic base from which to grow. We need to create an environment for Iraqi industry to flourish. No country can succeed in the long term without a strong private sector and a marketplace that welcomes business.

In 2006, Minister Al-Sudani and I agreed upon a number of objectives to strengthen commercial ties, including the creation of a U.S.-Iraq Business Dialogue.

With me this week are six U.S. business leaders who have answered the call to help build Iraq’s economy. They join a number of Iraqi business leaders to assist both governments in helping to develop the private sector.

We have just finished a very substantive meeting and have received the group’s first set of formal recommendations.

We believe the private sector best allocates capital, creates jobs and innovates. It is government’s role to create an environment in which they can succeed. We believe this because it has worked for many economies, and we want to help Iraq reap the same rewards.

Iraqi’s economy is continuing to recover and strengthen, and commercial relations between our countries are growing and maturing.

Overall bilateral trade has risen each year since 2003, and private sector ties are evolving from being focused on reconstruction contracting to more traditional international business relationships. U.S. companies from telecom to agriculture have, with a strong desire to invest in Iraq.

And, Iraqi entrepreneurs and business leaders are also getting in the game. More than 30,000 private companies are now registered with the Iraqi Ministry of Trade—up from 8,000—and the number of firms on the Iraqi Stock Exchange is up from 13 to nearly 100.

The combination of foreign investment and Iraqi owned businesses will create the long-term growth and economic stability needed to succeed.

Nearly five years ago, the Commerce Department set up the Iraq Investment and Reconstruction Task Force to let American companies know about Iraqi opportunities. We have commercial service officers here to help businesses navigate the Iraqi system and create vital partnerships.

We are proud and ready to help Iraqi businesses partner with American companies.

However, we will need the Iraqi government to undertake the necessary reforms. Stable economies require a strong adherence to the rule of law. Businesses invest their capital where there is a fair, stable and transparent environment.

Iraqi businesses know reform is needed. In fact, four in 10 Iraqi business leaders want to see more laws and regulations in business.

There were significant economic reforms laid out last year in Egypt as part of the “International Compact with Iraq.” The framework will help Iraq on its road to economic self sufficiency. These reforms must be vigorously pursued. This is an important goal in which the U.S. remains your committed partner.

Importantly, Iraq needs to take the steps now that will enable it to join the World Trade Organization. By joining the 151-member community of the world’s trade leaders, Iraq will be able to more fully engage in the global economy, and reap the rewards of increased trade and commerce.

Iraq has widespread support from WTO members. Iraq must continue to demonstrate its commitment to economic liberalization and move toward accession.

Overall, we are very optimistic about Iraq’s future. The country has come along way in coming out of the shadows of brutality and tyranny that ruled for too long.

The road ahead will not be easy—but the U.S. will travel it with you. We are your partners in security and we want to be your partners in prosperity. We both need to show the same will and determination to build prosperity as we have to build security. Thank you for your friendship and your partnership.