Appearance of Dr. Mohammed Saleh: Discussing Iraq and the WTO and Assessing the Cost

Appearance of Dr. Mohammed Saleh: Discussing Iraq and the WTO and Assessing the Cost



Posted: June 2, 2013 in Iraqi Dinar/Politics
Tags: economy, Economy of Iraq, General Agreement on Tariffs and Trade, Gross domestic product, International Organization, Iraq, World Trade Organization, WTO

Adopted Iraq since 2003 policies open and wide around the world and sought to establish the rules of economic and legislative task of working according to the mechanisms of the market system, as it helped mostly on improving trade Iraq for Foreign Affairs, after the economic blockade lasted for more than a decade and odd time led to the marginalization of Iraq on a map of the economic system and the denial of global investment opportunities, progress and development and technological knowledge that should have been appointed to cope with the rapid developments and changes that occurred to the international market and change their competitiveness sharply over the past two decades.

Thus انعزل Iraq surroundings international in the midst of a world invaded streams merger of his companies and liberalization of its markets and integration, particularly financial and sovereignty doctrine neo-liberal which required economic transformations and wide in the field of information is consistent with the UN productive activity through the role that took play multinational companies and increased competitive advantage for products that began generated world markets.

In spite of this, we find in the integration of financial markets, which have become valuable assets today more than 850 trillion dollars, is the title of financial globalization and the focus of domination key in the global economy, the neo-liberal is at the same time represented didn Jump hubs of international trade and the introduction shift from the scope of GATT GATT, signed in 1948, to the Convention on the World Trade Organization (WTO), where the latter focused on the organization of a broad spectrum of trade in services, particularly financial services, which was named GATS Annexes to the Convention in 1994 on the basis of the Uruguay Round.

While not exceed the global GDP 70 trillion dollars annually at the present time and also did not increase the value of world trade in goods and services annually is the other, but less than a third of global output mentioned above, we find that trade in currency converter and speculation in which more than about 4 and a half trillion dollars a day in the markets, the International Monetary and Financial a financial trade speculation over the annual total to more than fifty times the total world trade in goods and services activity

In the midst of these changes in the commercial space and the international financial, go Iraq to organizational levels are important in the transition to a market economy to break the effects of isolation of international cross-engage in the area of ​​strong economic liberalism which centered in the liberation of the areas of trade Iraq’s foreign goods and services and ways of financing, although volatility organization, as well as areas of progress in financial services and improving the environment for foreign investment through legislation legal banking, investment and the central bank law, including allowing foreign banks to operate in Iraq and allows the transfer of capital and currency and in a manner that serves the openness of Iraq to the world in the circumstances of the economy yield a central Saab Anchors in a liberal understanding of the market, which led, however, to provide opportunities for positive and the foundations of legal, regulatory and promising business environment in Iraq.

But all that is not enough to put Iraq on the path of economic competition international. Because there are still more than five thousand text of legislative texts, hindering economic freedom and market activity, holds the legal community today considered that would spend as modified so that Iraq’s integration in trade and international investment and prepare to join to the World Trade Organization under the terms of its membership in order to get our country on the most-favored-nation clause and the principle of national treatment.

Paradox of oil, agriculture and other problems to join
At the time, which dominates the oil production on the proportion of about 60% of the components of GDP, but he ايستخدم only 2% of the labor force of Iraq, at a time when a country’s exports of crude oil and returns the ratio Great semi-absolute total exports revenue of the general budget and the outcome of the country foreign exchange. In the face of all that, the WTO ruled out of crude oil being a commodity within the range of goods that are traded internationally, which still forms the core of the contradiction in Iraq’s accession to that organization, which excludes crude oil. If the WTO allowed enter the oil in the account to leave the price is determined by supply and demand world away from the cartel or consumer groups and the representative of the International Organization for power lines and programs to rationalize the demand for oil. Or away from the cartel or gatherings producers represented by the Organization of Petroleum Exporting Countries (OPEC) and its role in the regulation of production and the impact on prices, which put restrictions price and quantity of a commodity business, but strategic and political at the same time, which is the driving force behind the trade of Iraq’s foreign.

And on the other side of the Iraqi economy, we find the agricultural sector, which includes one-third of Iraq’s population and about 22% of its work force Aasahm in GDP, but by not exceeding 5%, making the country imported almost pure food Aowalsla Agricultural and this important sector, which was the militarization and neglect over the last thirty years, possess the ingredients sufficient in providing food security of grain or agricultural production requirements after shrinking productive agricultural areas due to desertification and salinization, and poor infrastructure in it.

Here, contrary to the agricultural sector with structurally oil sector in the trends of openness to the world market and different wings in terms of the impact of trade benefits and costs. Has become the market forces or global supply and demand controls strongly, both in the demand for oil and its impact on the value of Iraqi exports or in the presentation of the food and its impact on the cost of Iraq’s imports of them.

And when you return to the philosophy of reducing restrictions customs by 24% and the abolition of restrictions customs which the conditions imposed by the World Trade Organization on the Member State in the group of developing countries to work out and apply within a period of six years from the date of accession, as well as the reduction of agricultural subsidies by 13.3% over a period of ten years of accession. these conditions collide with market conditions and agricultural food Stock Exchange. If we look to the monopolies of world agricultural front of the deterioration of agricultural development in Iraq, we find a real threat to food security restricts the country in case of joining the organization unless preceded by a start racing or walk in the agricultural program for self-sufficiency and we really will need a green revolution along the lines of what was done Mexico and many countries in Latin America. Especially if ماعرفنا is that there are between 3 to 6 major companies in the world control 80 to 90% monopolized trade of agricultural crops and control of prices and quantities, such as wheat, sugar, tea, coffee, cotton, jute, etc.. At a time still dominated by ten multinational companies to one-third of the production and trade of seeds and pesticides in the world.

Notwithstanding the foregoing, the entry of Iraq to the regularity in the space of global economic via the WTO and its dealings with international groups terms apply to all of the formalities at a time still when the world is divided between northern and southern countries or countries industrial center of Advanced and Pacific developing, what on Iraq the option to leave the international isolation that he inherited since the siege, which began in 1990 and that the situation in Iraq under Chapter VII of the UN Charter, a chapter which still provides a negative economic environment hostile to development and possibly disruptive to the natural integration into the global market. Where prohibited this chapter levels of investment in advanced technology Awaltaati facilitator it with the world because Maevrdah restrictions on our country being the countries high-risk and threatening world peace and legalization use of force against him despite the demise of the substantive reasons that the imposition of the economic blockade under which Iraq. Noting that the accession Iraq to the areas of regional economic, as a greater Arab free trade and other economic agreements within the scope of the Arab League or other forms of integration and regional integration, it is necessary to take into account the implementation of the provisions contained in the WTO Agreement and before the GATT, which became both a constraint binding the implementation of trade agreements. Thus, any trade concessions in the framework of regional conventions become without the benefit or if the value is below the facilities provided in the framework of the World Trade Organization.

Finally, the survival of Iraq isolated from its surroundings international cost him a lot because of the loss of the benefits and opportunities regulatory and benefits of technological, legal and other areas of investment and arbitration, which the opportunities for Ayufarha his isolation from the world and can not be of a gradual transition to a stable countries and few risks, a shift that encourages cooperation the international investment environment and global brand safe.

Deputy Governor of the Central Bank of Iraq and former economic researcher