Iraq and the United States concluded on Wednesday week-long negotiations in Washington that tackled the future of relations between their countries in line with their 2008 Strategic Framework Agreement (SFA).
Iraqi Foreign Minister Fuad Hussein and Secretary of State Antony Blinken co-chaired a Higher Coordinating Committee (HCC), in accordance with the SFA for a Relationship of Friendship and Cooperation between the US and Iraq, said a State Department statement.
“The delegations reaffirmed their determination to deepen the strategic relationship across the full range of bilateral issues, for the sake of their respective national interests and their shared interest in regional stability,” it continued.
This meeting marked the first time the HCC focused on economic cooperation, energy sector development, and climate change – a sign of a maturing strategic partnership under the SFA, it added.
The Iraqi delegation included high-level representatives from the Council of Representatives, the Central Bank, the Ministry of Foreign Affairs, the Ministry of Oil, the Ministry of Planning, the Ministry of Finance, the Ministry of Electricity, the Office of the Prime Minister, the Climate Envoy, and the Kurdistan Regional Government.
In addition to the Secretary of State, the US delegation included National Security Advisor Jake Sullivan, USAID Administrator Samantha Power, Special Presidential Envoy for Climate Change John Kerry, Deputy Treasury Secretary Wally Adeyemo, Special Presidential Coordinator for Global Energy and Infrastructure Amos Hochstein, Coordinator for Global Anti-Corruption Richard Nephew, and National Security Council Middle East Coordinator Brett McGurk, as well as senior officials from the Departments of State, Treasury, Energy, and Commerce.
“The two sides discussed challenges facing Iraq’s economy, including the parallel currency exchange markets,” continued the statement.
“The United States welcomed the Iraqi government’s efforts to enact economic and monetary-policy reforms, modernize the financial and banking system, combat corruption, and prevent manipulation of the financial system – actions that can help boost Iraq’s economic prospects, including strengthening financial and currency markets,” it said.
“The US delegation reiterated support for Iraq’s ongoing efforts to build technical capacity and implement international standards to protect the banking system from financial crimes, money laundering, and terrorist financing.”
“The two sides resolved to continue working together to modernize Iraq’s financial system for the betterment of the Iraqi people,” stressed the statement.
“The US and Iraqi delegations shared the view that pursuing an ambitious energy-independence agenda is necessary to maximize Iraq’s economic prosperity and safeguard its sovereignty. The two delegations acknowledged that Iraq has a historic opportunity to invest in energy infrastructure initiatives designed to improve electricity services for the Iraqi people, secure Iraq’s energy self-sufficiency, and mitigate environmental damage to both the global climate and Iraqi public health,” it noted.
“To this end, the two sides resolved to accelerate efforts to capture flared gas, upgrade natural gas distribution infrastructure and reduce methane leakage, regionally interconnect Iraq’s electricity grid, modernize Iraq’s electricity infrastructure, and explore renewable energy opportunities.”
“The US delegation lauded Iraq’s commitment to regional electricity interconnection projects with Jordan, Saudi Arabia, and the Gulf Cooperation Council Interconnection Authority,” it added.
Head of the Center for Political Thinking in Iraq Dr. Ihssan Shmary told Asharq Al-Awsat that the joint Iraqi-US statement “draws the roadmap” of relations between the two countries, notably with a Baghdad government that was formed by the pro-Iran Coordination Framework.
The meetings in Washington will “test the intentions” of officials when it comes to translating the statements into action, he remarked.
Previous governments failed to “revive” or “invest” in the strategic framework agreement, significantly because of the balance of power in Iraq and Iran’s “veto” when it comes to developing relations between Baghdad and Washington, he explained.
“It now appears as though we are facing a new phase that will test Iraq and its political class when it comes to relations with Washington, especially among the Coordination Framework,” Shmary noted.
It is now up to the PM to decide whether he would forge ahead with the SFA, the Coordination Framework to decide whether it will view the US as an enemy or partner, and Iran to decide whether it will allow this relationship to grow, he stressed.
Meanwhile, Iraqi Prime Minister Mohammed Shia al-Sudani oversaw in Washington on Thursday the signing of a Memorandum of Understanding between the Ministry of Electricity and General Electric.
The agreement falls in line with the “framework of the government program that aims to develop the electricity sector in Iraq,” said a statement from Sudani’s office.
The MoU covers developing the electrical production and increasing the efficiency of the electrical grid, as well as transportation, maintenance, staff training, and reducing carbon emissions to support the energy transition in Iraq.
The government is serious in supporting the energy file and providing full support to the electricity ministry in order to raise production and resolve the electricity crisis to ease the suffering of the people, Sudani was quoted as saying.
