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Brazil and Iraq discuss sanitary agreement

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The treaty should simplify exports of poultry and beef. This was one of the themes of the meeting of the Bilateral Committee, in Baghdad. The Arab country aims to invest US$ 120 bn in infrastructure.
Alexandre Rocha* [You must be registered and logged in to see this link.]
São Paulo – The Brazil-Iraq Bilateral Joint Committee met on Sunday and Monday (17) in Baghdad to discuss themes of bilateral interest. On the Brazilian side, one of the demands is the signing of a sanitary agreement to simplify exports of poultry and beef to the Arab country.

The director general at the Arab Brazilian Chamber of Commerce, Michel Alaby, who participated in the event, said that it was agreed that technicians of the Iraqi government should travel to Brazil to visit slaughterhouses and associations in the sector to verify the control existing in the country, creating the base for the agreement.

Currently, Iraqi authorities require a certificate of conformity issued by a certifier after analysis of the load, which generates costs and increases the delivery time of the products. The procedure increases the shipping cost of each container by around US$ 5,000, according to Alaby. “Importers pay for that,” he said.

The visit by the technicians should not take place before February next year. When the agreement is signed, though the date has not yet been stipulated, there should no longer be a need for certificates. Up to then, however, the requirement is maintained.

Chicken and beef are, respectively, the first and third items in the Brazilian trade basket with Iraq. From January to November, revenues with chicken sales totalled US$ 161 million, 18.4% less than in the same period last year, according to figures disclosed by the Ministry of Development, Industry and Foreign Trade.

Shipments of beef, however, rose 40.34% to US$ 20.6 million in the same comparison. In total, Brazilian exports to Iraq generated US$ 256 million from January to November, a reduction of 29%.

On the Iraqi side, one of the themes of interest is the renegotiation of the debt the country has with Brazil, which may positively influence the flow of trade, especially with regard to financing.

Investment

The delegation from Iraq was led by the deputy Foreign Relations minister, Labeed Abbawa. According to Alaby, he said that the country plans to invest US$ 120 billion in infrastructure and construction by 2020 and that there are opportunities for supply of building material, engineering services, transportation material and food, among other products and services.

The deputy minister added that Iraq hopes to invest US$ 20 billion in generation and distribution of electric energy by 2014, as power shortages are common.

To strengthen dialogue in the area of business, the Brazilian delegation visited the Council of Iraqi Businessmen, an organisation that includes 180 members who operate in the areas of trade, investment and construction. According to Alaby, it was agreed with the president at the institution, Ibraheen Al-Baghdadi, that in 2013 members at the organisation will visit Brazil for trade meetings.

Alaby added that he agreed with the president of the Federation of Chambers of Commerce and Industry of the Arab country, Abdul Salam Al-Qaysi, the signing of an agreement for exchange of information and promotion of bilateral business.

The Brazilians also met with the minister of Trade, Kheirallah Hassan, who said that he would like to see bilateral business return to the level at which it was in the 1980s, and with the deputy minister of Industry, Abdel Kareen, who said that his country needs to buy machinery, equipment and electric energy generators.

At the Mixed Committee, according to Alaby, also discussed were talks to establish bilateral economic and political consultation, cooperation in sports, economic and financial cooperation and the possibility beginning of talks for a free trade agreement between Iraq and the Mercosur, the offering by Brazil of training to Iraqi employees in the areas of metrology, sanitary and phytosanitary affairs and international negotiations, and the reactivation of the Brazil-Iraq Parliamentary Commission, as well as the exchange of information about programs to fight poverty.

The meeting included 11 representatives on the Brazilian side and 27 on the Iraqi side, among them the Itamaraty undersecretary general for the Middle East and North Africa, Paulo Cordeiro, the ambassador of Brazil to Baghdad, Anuar Nahes, and the ambassador of Iraq in Brasília, Baker Fattah Hussen.

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