While Iraq used to be a leading market for Turkish exports just before the first Gulf War, trade between the two countries was curbed with a 12-year UN embargo, which was lifted on May 22, 2003. Commercial relations between Turkey and Iraq then began to increase again significantly.
According to a report released by the Foreign Economic Relations Board (DEİK), Turkey’s exports to Iraq increased from $829 million in 2003 to $5.1 billion last year. Furthermore, trade volume, which was $941 million in 2003, exceeded $6 billion in 2009. In the course of a year Turkey’s exports to Iraq rose by 30 percent from 2008 to 2009, while Turkey’s imports from Iraq, however, declined by 28 percent, to $952.3 million, during the same period. Iraq is currently among the top five countries to which Turkey exports.
With its geographic proximity and logistical advantages, the Iraqi market also offers great opportunities for Turkish construction firms. The operations of Turkish contractors in Iraq rose thanks to infrastructure and superstructure investments during the period of reconstruction that followed the 2003 US invasion of the country.
Last year, Turkish construction firms assumed a total of 44 projects in Iraq, valued at $1.23 billion, up from $242 million in 2003. Operating in a wide range of areas from housing projects to highways, bridges and hospitals, Turkish contractors worked on 495 projects with a total value of $7.5 billion between 1972 and 2009.
