Iraq, Italy launch business council to expand $5B trade exchange
Shafaq News – Baghdad (Updated at 16:33)
Trade volume between Iraq and Italy has reached nearly $5 billion, an Iraqi official announced on Wednesday, describing the figure as below expectations.
During the launch ceremony of the Iraq-Italy Business Council, attended by Shafaq News correspondent, Deputy Trade Minister Sattar al-Jabri described the forum’s establishment as an important step toward strengthening cooperation between the public and private sectors in both countries, adding that $3 billion of the total trade favors Iraq, while $2 billion benefits Italy.
Iraq, al-Jabri noted, has been restoring ties with international partners after years of conflict, commending Italy’s contribution to Iraq’s counterterrorism efforts. He also pointed to long-standing cooperation in energy and infrastructure, recalling that the Partnership and Cooperation Agreement signed in Rome took effect in 2009, though the joint committee between both countries has not convened since 2019.
Al-Jabri concluded by revealing that the ministry has invited Italy to participate in the 2026 Baghdad Exhibition titled Made in Italy, confirming that Italian authorities have shown strong interest in joining the event next year.
Meanwhile, Italian Ambassador to Iraq Nicolo Fontana said the council represents a “practical platformfor direct dialogue between business leaders and investors. He said the body, which maintains offices in Baghdad and Erbil, includes a diverse board representing Iraq’s provinces and economic sectors.
Fontana clarified that the embassy in Baghdad and the consulate in Erbil have been working closely with both governments and the private sector to remove bureaucratic barriers and build confidence. This collaboration, he added, paved the way for a framework agreement between Iraq and Italy’s SACE export insurance agency—an initiative expected to boost industrial partnerships, expand Italian exports, and support Iraq’s production base.
He also noted that other Italian government entities are ready to play an active role in the Iraqi market, affirming that the newly launched council will help deepen economic ties step by step. Fontana concluded by outlining three measurable goals: increasing the number of qualified and verified suppliers, improving predictability in negotiations, and enhancing knowledge transfer and capacity building.
