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Rt. Hon. Lord Mandelson, First Secretary of State, Secretary of State for Business, Innovation & Skills, Lord President of the Council
London, 30 April 2009
I’m honoured to welcome Deputy Prime Minister, His Excellency Dr Salih to this first Invest in Iraq Conference.
I regard this as a landmark conference, a new chapter in our relationship. I greatly enjoyed my visit to Iraq and as European Trade Commissioner, I have known you - Dr Salih - for some time.
For centuries, our two countries have traded together. And your presence here today, along with His Excellency Prime Minister Nouri al-Maliki, who I have left in Downing Street with our own Prime Minister, just shows how important this trading relationship is to Iraq’s future success. We want to be there, as part of that, working to help you bring it about.
Challenges of course remain in Iraq. But the security situation, as you pointed out and I saw, has improved and a more stable business environment has already attracted British companies and investment on the ground.
Working with the Iraqi Government, British officials and companies are helping to reconstruct vital infrastructure, deliver essential services, boost skills and capacity and support, of course, vital humanitarian efforts.
Through DFID, we’ve organised 19 visits by potential investors to Iraq that have resulted in proposals worth $10 billion.
We’ve also supported the Iraq National Investment Commission and helped establish, train and mentor the Basra Investment Commission - who I also met during my visit - an organisation to promote foreign direct investment into Southern Iraq. And it will continue to enjoy our full support.
This is just the start of our work together.
As many of you know, I recently visited Iraq myself. I led a large UK trade delegation.
There can be no stronger reflection of the belief and commitment of British businesses to Iraq’s future than the sheer range and calibre of companies, which made that trip with me.
What we found were people ambitious for the future. Keen to reach out and build a more stable and prosperous life for their families.
They recognise the huge potential that their country has to offer. Iraq’s location at the heart of a regional market of over 200 million people, a skilled and educated workforce, massive oil and gas reserves and lands ripe for agriculture. And I think, Deputy Prime Minister, you were absolutely right to point out the scale of oil wealth and paramount need to unlock this wealth to drive future prosperity and we need early decisions to make this a reality.
All of these are strengths the people of Iraq can draw on to create jobs and drive economic growth.
The relative youth of Iraq’s population - around 40 per cent of its 27 million people are now under 15 - adds to this dynamism; the recognition that this society, along with the rest of the Gulf, will continue to move forward in the years to come.
That it will continue to adapt, as we all must, to an increasingly interdependent and globalised economy - one in which goods, services, ideas and people move with increasing freedom and rapidity. And where the key to success is empowering all your men and women to take their part in driving forward the economy.
Faced with this relentless change, the Iraqi people will look to companies they can trust. Many of them, I’m proud to say are British businesses and many are represented in this room today.
And in Baghdad, we met with His Excellency, Prime Minister al-Maliki, Deputy Prime Minister - Dr Salih and other Iraqi Ministers to discuss strengthening trade links.
What I found was a great realism and determination to drive business forward as a foundation of future strength.
Today is another important step towards that.
Over 150 business people came to meet us in Basra, more than three times the number we expected. All of them were passionate about Iraq’s future and keen to reiterate that Iraq wants to work with Britain.
I really felt when I left that there was a welcome mat by the door and I’m glad you emphasised this once again today.
Despite the tough global conditions, British exports of goods to Iraq increased by 17% last year to £156 million. And I want many more British firms to follow those British goods, services and people already in Iraq.
This includes Foster Wheeler Energy Ltd, contracted by the Southern Oil Company to provide basic engineering support for new offshore oil export facilities.
The US$400 million dollar joint venture between the Mesopotamia Petroleum Company and Iraq Drilling Company.
And an estimated $200 million contract for Maritime & Underwater Security Consultants to map the seabed off the Al Faw peninsula and provide pipeline services.
British businesses have the expertise and experience to help you complete these major, major infrastructure projects essential to Iraq’s ambitions for the future.
From construction to healthcare; from water to transport; from power to security; banking and insurance, British skills and technology can help the Iraqi people develop these key sectors right across the economy.
Just one example is the work of B-Plan Information Systems with Iraq’s biggest bank. This UK company is rolling out a new banking software system at 150 branches of the Rafidain Bank. This new technology will computerise the management of bank accounts for millions of customers.
It is the sort of access to technology and knowledge joined with services that the Iraqi people have been deprived of for too long and now the access and opportunities are beginning to grow.
I want to strengthen the UK’s position as a trade partner of choice in Iraq. This conference is a call to action for those British businesses not yet aware of the opportunities on offer and likewise, the Iraqi firms that can grow through trade with the UK.
To help support them, we’ve put four new UKTI officials on the ground in Iraq. In the summer, they’ll be joined by a senior UK trade diplomat.
I am also delighted to announce that following our remarks here this morning, we will be signing a new Memorandum of Understanding on Economic Cooperation between Iraq and Britain. This will establish annual trade and economic talks between the UK and Iraq and set out our priorities for engagement and much more besides.
Every relationship needs a framework, and people within that framework to carry forward the actions from their discussions.
It comes at the start of discussions to secure a new Investment Promotion and Protection Agreement, designed to keep markets open and transparent for bilateral investment.
In addition, the British Government has recently created a Joint Steering Group with the Iraqi Government to provide support and expertise to build skills and capacity in Iraq’s energy sector.
Let me say this in conclusion, the Iraqi people I met last month, spoke with cautious optimism about their future. Who can blame people for being cautious, but their optimism is growing.
Crucial to their ambitions is the knowledge and expertise they can draw on to rebuild their economy and the strength of the trade relationships that will help bring new jobs and opportunities to their country.
The British businesses represented here today are serious about being part of that. Our aim is to encourage that interest and we will.
And we are committed to doing everything we can to enable more companies here and in Iraq to come together and rebuild Iraq’s prosperity in the decades ahead.
The truth is politics are hard in Iraq and security is challenging. But I’m sure that what will move politics and security forward - is investment, jobs and growth. The Iraqi people have a stake in this future. It is the beginning of something new and exciting.
