Iraq to ask US for exemptions on Iran sanctions

ERBIL (Kurdistan 24) – The Iraqi government said on Tuesday that it will request an exception from the United States on some provisions in recent US sanctions on Iran, given the Iraqi economy's dependence on trade with its Eastern neighbor.

“The government plans to ask Washington for a waiver. It’s going to happen soon,” said an official from the state-run Central Bank of Iraq to Reuters.

Iraq imports many goods from Iran, including food, agricultural products, home appliances, air conditioners, and spare car parts. In addition to trade ties, there are also energy contracts between the two Middle Eastern allies contributing to a volume of trade of $12 billion in 2017.

US President Donald Trump recently re-imposed trade sanctions on Tehran after he pulled out the US from an international deal aimed at limiting Iran’s nuclear program.

Over the past few months, the US has repeatedly stressed that countries will face strict consequences if they violate the economic sanctions.

This puts Iraq in a challenging position since Baghdad relies on Iran to importing crucial goods, including a substantial percentage of its food supplies, while at the same time relying on Washington for security assistance and training.

Iraqi Prime Minister Haider al-Abadi previously stated that his country would respect the sanctions, but then retracted the remarks, stating his comments were misunderstood, claiming, “I did not say we abide by the sanctions; I said we abide by not using dollars in transactions. We have no other choice.”

Such comments likely demonstrate the tightrope that Iraqi politicians often walk between Tehran and Washington as well as internal pressure Abadi receives from major Iraqi Shia parties, including his own, that have close ties to Iran.

A delegation of Iraqi officials are expected to travel to Washington to ask for the exemption, officials told Reuters but did not offer further details about when the trip will take place.

An official from the US State Department stated that Washington is discussing policies against Iran with partners around the world.

“We have given the same message to all countries around the world that the President has said, the United States is fully committed to enforcing all of our sanctions," but added, “Iraq is a friend and important partner of the U.S, and we are committed to ensuring Iraqi stability and prosperity.”

Iraq is concerned that the implementation of the sanctions will lead to shortages of crucial imports from Iran just as it is experiencing an already delicate political situation and recent mass protests against chronic lack of services.

Officials in Baghdad said they have asked their ministries to put together a list of imports most significant to the economy of Iraq, to be passed to the US with a request for exemption on those items, according to Reuters.

The semi-autonomous Kurdistan Region in northern Iraq also enjoys comprehensive trade relations with Iran, but the Kurdish Prime Minister Nechirvan Barzani previously told Kurdistan 24 that it would follow the general policy of Iraq on the sanctions.

On Monday the US announced it had arrested and indicted two Iranian men on spying charges, including the surveillance of a Jewish facility and members of an Iranian militant opposition group.

On Tuesday, Iranian President Hassan Rouhani unveiled a new fighter jet and promised to boost military strength for fear of “powers” eyeing to “take over” the country, adding that the US would not dare launch an attack.

“Why does the United States not attack us?" he asked. "Because of our power, and it knows the consequences.”

Editing by John J. Catherine