Iraq China Agreement

September 24, 2021

[49] “Iraq has entered into a contract with China CPECC for the transformation of gas from a vast oil field,” Reuters, April 24, 2019, www.reuters.com/article/us-iraq-gas-halfaya/iraq-agrees-deal-with-chinas-cpecc-to-process-gas-from-giant-oilfield-idUSKCN1S01HE. In July 2011, two agreements to strengthen economic cooperation were signed during a meeting in Beijing between then Iraqi Prime Minister Nouri al-Maliki and his Chinese counterpart Wen Jiabao. [34] Wen said Beijing would support Iraq`s reconstruction, accelerate debt cancellation, and strengthen cooperation in the upstream and downstream oil/gas sectors. [35] By the end of 2013, China had overtaken the United States as the largest foreign investor in Iraq and surpassed the United States as Iraq`s largest trading partner. [36] The agreement signed in mid-2019 provides for Chinese companies to carry out projects in Iraq, mainly infrastructure, in exchange for the supply of 3 million barrels of Iraqi oil per month. MK Hoshiar Abdullah said the pact was vulnerable to legal challenges because the China deal was not presented to parliament. “Parliament has the right to approve or reject any international agreement or treaty, including economic one,” he told al-Monitor. “Continuing the implementation in this way would lead for years to quarrel and problems. If the agreement is in the interests of Iraqi citizens, Parliament will not reject it.

On a trip to China, former Iraqi Prime Minister Adel Abdul Mahdi led a high-level delegation made up of most of his cabinet and about 14 of the country`s 18 governors. Abdul Mahdi was very interested in promoting the deal as the first of his plans to revive the Iraqi economy. In addition, the government has made the deal a major concern of the media by proposing that the deal create investments of more than $500 billion. Indeed, this amount exceeds all the capital expenditure that successive Iraqi governments spent on infrastructure projects after 2003, and most of this spending was wasted by networks of political and financial corruption. . . .

No Comments »

Comments are closed.