Turkish-Iraqi Economic Partnership Advances with Landmark Infrastructure Deal

President Recep Tayyip Erdoğan and Iraqi Prime Minister Mohammed S. Al Sudani oversaw the signing of a preliminary agreement between Türkiye, Iraq, Qatar, and the United Arab Emirates (UAE) to cooperate on the Development Road project. The project, valued at $17 billion, aims to connect Iraq’s Grand Faw Port to Türkiye through a 1,200-kilometer road and rail network, boosting Iraq’s position as a transit hub between Asia and Europe.

During Erdoğan’s visit to Baghdad, bilateral trade discussions took center stage. Despite a slight decrease in overall trade in 2023, Turkish exports to Iraq surged by 24.5% in the first quarter of 2024, demonstrating growing economic ties. Both leaders emphasized the importance of enhancing economic cooperation and exploring opportunities for further trade expansion.

Additionally, the visit addressed the ongoing dispute over oil exports from the Kurdistan Regional Government (KRG). The Iraq-Türkiye oil pipeline has remained offline since March 2023, leading to significant financial losses for Iraq. Discussions on resuming exports have encountered challenges, with issues attributed in part to foreign oil firms operating in the KRG. This unresolved matter underscores the complexities of regional economic dynamics.

Furthermore, the signing of the Development Road project agreement underscores a broader commitment to infrastructure development and connectivity in the region. The project not only promises to facilitate trade between Türkiye and Iraq but also holds the potential to stimulate economic growth and development along its route.

In conclusion, the agreements and discussions during President Erdoğan’s visit to Iraq reflect a multifaceted approach to strengthening economic ties and addressing longstanding challenges. While obstacles persist, both countries appear committed to pursuing mutually beneficial initiatives and fostering greater cooperation in the economic sphere.