Germany's Iraq trip heralds new dawn in trade relations (Roundup)

Feb 17, 2009, 17:14 GMT

Berlin - Germany and Iraq revived diplomatic ties Tuesday during a visit to Iraq by Frank-Walter Steinmeier, the first by a German foreign minister in 22 years.

The trip came six years after Germany, alongside France, led European opposition to the US-led invasion of Iraq that toppled Saddam Hussein.

'We extend our hand to the new Iraq,' Steinmeier said. His trip was the first by a German foreign minister since 1987, and is is intended to relaunch German business relations with Iraq.

Steinmeier was accompanied by a group of German business leaders, including representatives from Siemens and Daimler.

Iraq's President Jalal Talabani said, 'the doors are open to German businesses in all areas of the Iraqi economy.'

Iraq has already ordered Daimler-made trucks to help rebuild the country's transport network, while Siemens is part of a consortium tendering for a hospital construction project.

'The security situation is still difficult and we mustn't pretend otherwise,' Steinmeier cautioned. He added, however, that there were clear signs of growing political stability.

During the trip, a business information centre was formally opened, which will offer advice and contacts for German companies operating in Iraq.

Iraq's President Nuri al-Maliki said, 'German businesses won't need to make large efforts to re-establish themselves. They used to be very active and enjoy a good reputation.'

Iraq's Foreign Minister Hoshiar Sebari said the German visit 'shows growing trust in our country.' Since the signature of the agreement on US troop withdrawal from Iraq, many countries were now coming forward, Sebari added.

Speaking in Germany ahead of his departure, Steinmeier had said, 'In the last months, the Iraqi government has achieved important successes in stabilising the country politically.'

He added that his trip shows a German desire to 'support this new Iraq on the path to democratic consolidation and the peaceful balance between religions and ethnicities.'

The German foreign ministry has cited the change of government in Washington, Iraq's political advances and increased independence from the US, as well improvement in the country's security as reasons for the policy turnaround.