News in Iraq has been slower than normal lately, but I found something I thought was interesting. There are current talks between Iraq and Iran about how to improve the cross border trading agreements. In a recent article the Trade Minister from Iraq commented that the two states are engaging in discussions on how they can increase trade activity upwards of 50-75%. Among areas of expansions are tourism and commerce as well as “an increase in the presence of Iranian firms and entrepreneurs.” The growth would catupult trade from $3M to $5M or above.
It appears that this might already be happening. An Iranian firm was awarded one of the largest construction contracts at $1.5 Billion to rebuild part of the city Basra. The plans are to develop a modern town with amenities such as apartment flats, supermarkets, commercial shops and schools. It will provide approximately 5000 housing units ranging up to $250,000.
It is interesting to me that this appears to be going unnoticed by Iran’s opponent, the United States. One of the justifications of invading Iraq was the opportunity to influence the entire Gulf region, with Iran being in the center. It’s well known that Iran has emerged as a threat to democratic nations and these events could discourage what the US has been trying to accomplish in Iraq. Although this might be relatively minor in the grand scheme of things, the precedence has been established and the road map has been drawn to provide Iraq with a neighboring ally that contradicts the liberation movement within the region.
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