Iraq gives trade priority to Saudi Arabia

Iraqi Minister of Industry and Minerals Mayssar Raja Shlah has said that the Iraqi leadership gives priority to Saudi Arabia in its trade dealings. Bilateral trade volume under the United Nations oil-for-food program has amounted to $ 1 bn, Shlah said.
"Following the Beirut Arab summit and positive developments in the Arab relations, the Iraqi leadership has instructed to give Saudi Arabia priority in trade dealings," Shlah was quoted as saying. Shlah made the remarks after returning from his 10-dayvisit to Saudi Arabia.
Shlah said the two sides have agreed on a project of manufacturing equipment for irrigations systems. "Saudi businessmen and industrialists showed great desire to extend their cooperation with Iraq," Shlah said.

There has been a marked thaw in relations between the two former Gulf War foes in the wake of the Beirut Summit, during which Izzat Ibrahim, vice chairman of Iraq's decision-making Revolutionary Command Council, embraced Saudi Crown Prince Abdullah Ibn Abdul-Aziz. Saudi Arabia severed relations with Iraq after the latter invaded Kuwait in August 1990 and Iraq has been under sweeping United Nations sanctions since then.
As an exception to the sanctions, the UN oil-for-food program allows Iraq to sell oil and buy food, medicine and other basic necessities to offset the impact of the sanctions. Iraq has awarded Saudi companies contracts worth some $ 64.7 mm under the oil-for-food deal since the start of this year.