US embassy cable - 05VIENNA3818

UNCLAS VIENNA 003818 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, PREL, AU, IQ 
SUBJECT: AUSTRIAN ECONOMIC CHAMBER OPENS SECOND OFFICE IN 
IRAQ 
 
REF: VIENNA 3493 
 
Trade Office Opens in Kurdistan 
------------------------------- 
1.  The Austrian Economic Chamber (WKO) opened a second 
office in Iraq on December 1 to promote trade and investment 
opportunities for Austrian companies in northern Iraq.  The 
office is in the Kurdish town of Erbil, which the WKO 
believes is the center of the most promising commercial 
potential in Iraq (reftel).  The WKO will solicit engagement 
particularly from small- and medium-sized Austrian companies 
in Kurdistan in the construction, sewage, health, energy and 
environmental technology sectors.  The Erbil office is a 
subsidiary of the Austrian Foreign Trade Bureau in Baghdad. 
 
 
Growing Austrian-Iraqi Trade Relations 
-------------------------------------- 
2.  WKO President Christoph Leitl issued a press statement 
noting that the WKO considers renewed engagement in Iraq as 
"Austrian business' contribution towards stability in Iraq." 
Leitl added that Iraq needed "concrete assistance at this 
critical moment."  Before the 1991 Gulf War, Iraq was 
Austria's most important trading partner in the Middle East. 
Leitl said he hopes Iraq would become a significant trade 
partner again "as soon as the domestic situation 
stabilizes."  Before 1991, trade volume reached USD 200 
million and the WKO believes trade could rise to USD 600 
million in the coming years. 
 
 
3.  Austrian trade relations with Iraq are in the process of 
recovering from an all-time low in 2003.  In 2004, exports 
doubled from USD 24 million to USD 49 million.  Main exports 
included machinery, and medical and security equipment. 
Imports from Iraq, primarily crude oil, climbed to USD 44 
million in 2004.  Austrian exports to Iraq in the first 
three quarters of 2005 were only USD 37 million, but the WKO 
expects year-end export growth of over 60%, based on 
significant growth in the fourth quarter. 
 
 
Austria Seeks Intensified Economic Cooperation With Iraq 
--------------------------------------------- ----------- 
4.  During a mid-November meeting with Iraqi Trade Minister 
Mawloud in Vienna, the GoA's Ministry of Economy and Labor, 
Martin Bartenstein, promised to intensify EU commercial 
cooperation with Iraq during Austria's EU Presidency the 
first half of 2006.  Bartenstein added that Austria would 
welcome Iraq's application to join the WTO.  He underlined 
that Austria would continue to support Iraq by implementing 
a debt forgiveness package and through humanitarian aid 
projects. 
 
 
KILNER#