Iraqi Minister of Trade, Dr. Safa Al-Deen Mohammed Abdul Hakeem Al-Safi, headed the Iraqi delegation. The previous Session was held eight years ago in Baghdad.
Acording to Minister Bathiudeen, while Sri Lanka's exports to Iraq, stood at $37.4m in 2009, Iraq's exports to Sri Lanka, remained at a very low level of less than $1m. Tea has been Sri Lanka's principal export item to Iraq, which accounted for about 98% of Sri Lanka's total value of exports to Iraq.
Trade between the two countries, increased from $8.7m in 2003 to $37.5m in 2009, with the balance of trade being in favour of Sri Lanka. However with Sri Lanka importing crude oil from Iraq, this trend will be reversed.
Iraq had been supplying crude oil to Sri Lanka long before the First Gulf War broke out in early 1990s. It is learnt that Iraq’s terms will be more concessionary than those of Iran which is presently providing the bulk of Sri Lanka’s crude oil purchases.
SOMO is the sole body vested with the authority of marketing Iraqi oil. Iraq sells Basra light crude below world prices to a number of foreign buyers, including Unites States. The war-torn nation exports nearly 1.5 million barrels a day of crude oil via the port of Basra.
Iraq's oil production costs are among the lowest in the world, but only about 2,000 oil wells have been drilled in Iraq, compared with about 1 million wells in Texas alone.
(Source: Asian Tribune)
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