Iraq, Italy launch business council to expand $5B trade exchange

Shafaq News – Baghdad (Updated at 16:33)

Trade volume between Iraq and Italy has reached nearly $5 billion, an Iraqi
official announced on Wednesday, describing the figure as below expectations.

During the launch ceremony of the Iraq-Italy Business
Council, attended by Shafaq News correspondent, Deputy Trade Minister Sattar
al-Jabri described the forum’s establishment as an important step toward
strengthening cooperation between the public and private sectors in both
countries, adding that $3 billion of the total trade favors Iraq, while $2
billion benefits Italy.

Iraq, al-Jabri noted, has been restoring ties with
international partners after years of conflict, commending Italy’s contribution
to Iraq’s counterterrorism efforts. He also pointed to long-standing
cooperation in energy and infrastructure, recalling that the Partnership and
Cooperation Agreement signed in Rome took effect in 2009, though the joint
committee between both countries has not convened since 2019.

Al-Jabri concluded by revealing that the ministry has
invited Italy to participate in the 2026 Baghdad Exhibition titled Made in
Italy, confirming that Italian authorities have shown strong interest in
joining the event next year.

Meanwhile, Italian Ambassador to Iraq Nicolo Fontana said
the council represents a “practical platformfor direct dialogue between
business leaders and investors. He said the body, which maintains offices in
Baghdad and Erbil, includes a diverse board representing Iraq’s provinces and
economic sectors.

Fontana clarified that the embassy in Baghdad and the
consulate in Erbil have been working closely with both governments and the
private sector to remove bureaucratic barriers and build confidence. This
collaboration, he added, paved the way for a framework agreement between Iraq
and Italy’s SACE export insurance agency—an initiative expected to boost
industrial partnerships, expand Italian exports, and support Iraq’s production
base.

He also noted that other Italian government entities are
ready to play an active role in the Iraqi market, affirming that the newly
launched council will help deepen economic ties step by step. Fontana concluded
by outlining three measurable goals: increasing the number of qualified and
verified suppliers, improving predictability in negotiations, and enhancing
knowledge transfer and capacity building.