Sri Lanka’s Victory in Baghdad!

 “8th SL-Iraqi JEC in Baghdad a hit!” – Rishad

Iraq, the top Middle Eastern buyer of Ceylon Tea, has thrown its state controlled market doors wide-open to Sri Lanka for the first time agreeing for import of Ceylon Tea to the country directly -and also removed its import ban on Sri Lankan cocopeat with immediate effect on 25 February. “The two-day-long trade talks held in Baghdad is a great success! It also resulted in Iraq lifting ban on our coco peat, opening their markets wider for Pure Ceylon Tea and 13 new Sri Lankan exports” said Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on the eve of 25 February.

Minister Bathiudeen was discussing the success of the eighth session of Sri Lanka Iraq Joint Committee for Economic Cooperation (JEC) with some of his delegation members on 25 February in Baghdad. The eighth session of trade talks commenced on 24 February at International Palestine Hotel, Baghdad and concluded on 25 February. Minister Bathiudeen was in Baghdad leading the 16 member strong Lankan delegation to Iraq for the eighth JEC. On its part, displaying an unprecedented interest, the Government of Iraq was fielding an official team of more than 30 members that consisted reps from such key Iraqi Ministries as Trade, Economic Relations, Transportation, and Industry & Minerals.  Iraqi team at the Baghdad JEC session was led by Minister of Trade, Kheer-allah Hassan  babaker Muhammad. According to the Department of Sri Lanka, the value of total trade between the two countries that stood at $ 8.72 Mn in 2003 topped $ 89.99 Mn in 2013. Sri Lanka exported goods totalling $ 89.80 Mn to Iraq and imported only goods of $ 0.19 Mn from Iraq during 2013.

The Iraqi side has also agreed to facilitate direct tea imports from Sri Lanka and requested to encourage Sri Lankan suppliers to establish direct links with the tea buyers in the Iraqi market.

Tea has been a major export item to Iraq accounting for about 95% of Sri Lanka’s exports to Iraq, with an estimated 15,000MT of Ceylon tea is being exported indirectly through Dubai, Jordan and Kuwait.

The immediate gain that Sri Lanka enjoys with the conclusion of the latest Baghdad session however, is the removal of import ban imposed on Sri Lankan cocopeat to Iraq. Sri Lanka’s coco peat exports that totaled only $ 1.07 Mn has tremendously increased within a short period of time and in 2012, rose to $ 27.9 Mn.  The representatives of horticulture industry of Sri Lanka, coco peat exporters as well as Lankan horticulture exhibitors who participate in Iraqi trade fairs are set to receive an immediate boost as a result of the Iraqi decision. Sri Lanka’s foliage exports to Iraq suffered a setback with the ban on cocopeat which is considered to be one of the best organic growth media.

During the session, the Iraqi State Trading Corporation expressed its willingness to buy 13 other selected export items from Sri Lanka including rubber tires, stationary and papers, electrical wires and cables, generators and accessories, apparel and textiles, households appliances, toys, foodstuff, and covering for trailers.

Also, both sides succeeded in discussing a wider range of cooperation areas than originally envisaged-the sectors discussed were Banking and Financial sector, Taxation, Free Trade Zones, Investment, Agriculture, Air Services, Shipping and maritime, Health sector, Electricity, Housing and Construction sector, Oil and Energy sector, Mineral sector, Education and Higher education, Culture, Tourism, and Science and Technology.

Iraqi Minister of Trade, babaker Muhammad, reiterated: “Iraq side is keen to share the experiences of Sri Lanka particularly in the fields of investment promotion, Free trade zones, financial and Health sectors.”

The 16 member Sri Lanka delegation also included Sumith Nakandala (HE Ambassador of Sri Lanka to Iraq), R.D.S. Kumararatne (Director General of Commerce), Senior Officials from the Department of Commerce, and officials from other relevant line Ministries.