The official U.S. export credit agency signed agreements with Iraq calling for improved economic cooperation, including in energy, the U.S. government said.

The Export-Import Bank of the United States signed a memorandum of understanding with the Iraqi Ministry of Finance meant to improve trade and economic ties between the two countries. The MOU, signed in Kuwait, outlines potential projects in Iraq that could use goods and services from the United States.

Speaking during the signing ceremony, U.S. Secretary of State Rex Tillerson said the MOU should serve as a reminder of the U.S. commitment to Iraq's economic development.

"Iraq's economic health needs the resilience to dampen the effects of every up and down swing in the price of oil," he said at the event. "Doing business in Iraq can be complicated, but the Iraqi market has vast potential."

In January, U.S. Ambassador Douglas Silliman led a delegation to Baghdad to meet with Iraqi Oil Minister Jabbar al-Luaibi to discuss bilateral cooperation in the Iraqi energy sector. Both men said they were keen on strengthening ties, especially in the oil and gas industry sector.

According to the Iraqi government, the oil minister invited U.S. companies to bid for any investment opportunities offered by Baghdad.

U.S. supermajor Chevron operates at the Sarta and Qara Dagh blocks in the northern semiautonomous Kurdish region of Iraq, covering about 279,000 acres in what's considered complex geology. Most operations are still in the exploration phase.

Exxon Mobil has an agreement with Iraqi state oil companies and Royal Dutch Shell to develop the West Qurna oil field in southern Iraq. Production there reached a milestone more than five years ago at close to 300,000 barrels per day.

The U.S. EXIM bank under the terms of the MOU has agreed to help finance the export of U.S. goods to state-owned entities in Iraq up to $3 billion. Separately, the U.S. Overseas Private Investment Corp., the government's development finance institution, said it had $250 million in investments already in Iraq and was reviewing $500 million more.

The economic agreement follows U.S. plans to lighten its military footprint in Iraq following Baghdad's claims of victory last year over the terrorist group calling itself the Islamic State. In response to the 2019 budget plan outlined this week by U.S. President Donald Trump, the federal finance institution said its mandate is to bolster U.S. foreign policy by fostering economic growth in emerging markets.

War-battered Iraq says it's 'open for investors'
Kuwait City (AFP) Feb 13, 2018 - War-battered Iraq sought Tuesday to attract international investors to rebuild the country after defeating the Islamic State group, offering hundreds of projects and touting extensive legal guarantees.

"Iraq is open for investors," declared Sami al-Araji, chairman of Iraq's National Investment Commission, on the second day of a major reconstruction conference in Kuwait.

Baghdad says it needs nearly $90 billion to rebuild after a three-year war against IS which devastated homes, schools, hospitals and economic infrastructure, displacing millions of people.

World Bank officials joined Iraqi government representatives on Tuesday in Kuwait City to seek pledges from more than 2,000 representatives of international firms in attendance.

US Secretary of State Rex Tillerson told the conference that much work was needed to rebuild Iraq and "modernise" its economy.

"It is equally important to show that ISIS and its violent ideology have failed," he said, using an alternative acronym for IS.

"A government that is inclusive, accountable and transparent builds a society that can counter extremist ideologies."

Araji said Iraq, which has been either at war or under international sanctions since 1980, is offering projects in almost every field of the economy.

He presented more than 200 projects open to investors, including oil refineries, massive housing and industrial ventures, transport projects and at least four power plants.

Investors will enjoy a high level of legal protection, Araji said, adding that Iraq is also planning to establish four economic zones.

French Foreign Minister Jean-Yves Le Drian called for the entire country to benefit from "reconstruction, stabilisation and national reconciliation".

"Reconstruction efforts should not leave out any region or community, especially those who have been marginalised in Iraq's recent history," he said.

"I am thinking in particular of Kurdistan, which took more than its share of the burden and the sacrifices" in the fight against IS.

Tensions between Baghdad and Iraq's Kurds have been high following a controversial September referendum on Kurdish independence, which prompted the central government to seize back oil-rich Kirkuk province from Kurdish forces.

Iraq said its 10-year reconstruction plan will cost $88.2 billion, of which $22 billion was required immediately.

Non-governmental organisations on Monday pledged $330 million, but the main commitments are expected to be made by about 70 countries on Wednesday, the last day of the conference.

Iraqi and World Bank officials on Tuesday talked up legal guarantees available in post-IS Iraq, pointing to an investment law that offers ownership, unlimited cash transfers and tax breaks, among other benefits.

Nizar Nasser Hussein, the head of the legal department at the National Investment Commission, said the latest version of the law does not distinguish between foreign and Iraqi investors.

"Foreign investors can establish Iraqi companies," he told AFP, adding that investors would be given lease contracts for 50 years, renewable for a similar period.

In addition, investors will be exempt from customs duties and income tax for 10-15 years, Hussein said.

Araji said investors in Iraq will find "high risks, but high returns".

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