EU, Iraq finalize far-reaching cooperation deal (Roundup)

Nov 13, 2009, 15:44 GMT

   Brussels - Negotiators from the European Union and Iraq finalized Friday a wide-ranging treaty aimed at boosting ties on issues such as trade, energy investment and counter-terrorism.

The deal, which took three years to negotiate, is 'far more ambitious' than its original focus on trade, said EU chief negotiator Hughes Mingarelli.

'We have found real friends in Europe,' said Iraqi Deputy Foreign Minister Muhammad al-Haaj Hammoud after talks in Brussels.

The EU is keen to win access to Iraq's immense energy reserves via pipelines passing through Turkey and to help stabilize the country, while Iraq is eager for more access to EU markets and to EU financial and political support.

   'For the first time we will have a contractual relationship with the new Iraq. There are many things we want to do together in order to increase political and economic stability as well as social welfare in Iraq,' EU Foreign Affairs Commissioner Benita Ferrero- Waldner said in a statement.

   The EU's 27 member states will have to approve the agreement before it can come into force. Experts in Brussels say this will likely take several months.

   The so-called Partnership and Cooperation Agreement (PCA) sets the rules for EU-Iraq cooperation on issues such as trade, investment in the energy sector, human rights, the fight against terrorism, and modernizing Iraq's economy. The sides will hold regular meetings aimed at exploring areas of mutual interest.

   According to EU diplomats, the bloc is particularly keen to improve its access to Iraq's energy supplies so that it can wean itself off its dependence on Russian sources. Iraqi is already a major exporter of oil to the EU.

   In May, the EU approved the concept of a 'South-Eastern Corridor' of energy pipelines stretching from Europe across Turkey to the Middle East and Central Asia, with Iraq named as one of the key potential sources of energy.

Negotiators in Brussels said the sides would begin to exchange information on their respective energy policies, with the EU ready to help Iraq boost its oil production.

In return, Iraq is ready to step up its efforts to protect minorities and respect the rule of law.