Iraq Signs Free Trade Agreement With Qatar

Iraq on Sunday signed here a free trade agreement with Qatar to promote trade ties between the two countries.

"The signing of the agreement is a further step to improve bilateral economic and trade ties," Iraqi Minister of Finance Hekmat Ibrahim al-Azzawi told reporters after the signing ceremony.

The agreement was inked by Azzawi and visiting Qatari Minister of Economy and Trade Sheikh Hamad Bin Faisal al-Thani, who arrived in the Iraqi capital on Friday for the visit.

"The agreement will open ample fields of trade exchange and promote bilateral cooperation," the Qatari minister said, adding that talks between the two sides have led to the signing of contracts worth 200 million U.S. dollars.

Iraq, under stringent United Nations sanctions since its 1990 invasion of Kuwait, deals its trade exchange with other countries under the U.N. oil-for-food program.

The humanitarian program, in effect since 1996, allows Iraq to bypass the sanctions to sell oil and use part of the oil proceeds to buy food, medicine and other essentials to offset the impact of the sanctions.

The Qatari minister held talks with Iraqi President Saddam Hussein on Saturday and both expressed keenness to enhance relations and boost scopes of economic cooperation.

Under the preferential trade agreement, import and export tariffs between the two countries will be gradually cancelled and acommon Arab market will be eventually established.

It was the 10th agreement signed between Iraq and other Arab countries.

In addition to Qatar, Iraq has also signed free trade accords with Egypt, Syria, Tunisia, Sudan, Yemen, Algeria, Lebanon, the United Arab Emirates (UAE) and Oman.

Iraqi Trade Minister Mohammad Mehdi Salah, who attended Sunday'ssigning ceremony, said more free trade deals will be hammered out with other Arab countries.

Iraqi official media has reported that besides the UAE, Oman andQatar, Bahrain may be next Gulf Arab country to strike a free tradedeal with Iraq.

Saddam has said that Iraq gives trade priority to fellow Arab countries in efforts to break the 12-year-old U.N. sanctions.