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(Last updated: 20 Jan 2012)
Current business situation
Exporters should be aware that Australia maintains United Nations Security Council sanctions in respect of Iraq. These sanctions require Australian organisations and individuals to comply with a range of measures and, in general, also apply extraterritorially to Australian nationals overseas.
See the following Department of Foreign Affairs and Trade website for more information about sanctions: www.dfat.gov.au/un/unsc_sanctions/iraq.html.
For information about United Nations sanctions currently in force, please see: www.dfat.gov.au/un/unsc_sanctions/index.html.
For information about the operation of the defence and strategic goods export control regime, please see www.defence.gov.au/strategy/dtcc.
Although a good number of countries across the Middle East are relatively stable, Australians planning to travel there, or who are currently visiting or a resident there, are urged to exercise care and monitor developments that may affect their safety through the Department of Foreign Affairs and Trade's (DFAT) current general travel advice and bulletins. Individuals should take sensible precautions and ensure that travel documentation, including passports and any necessary visas, for themselves and their dependents are valid and up-to-date.
Within Iraq there is no question that personal security continues to be a major obstacle to doing business. The Government formally recommends Australians not to travel to Iraq at this time (Specific travel advice for Iraq). That said, Australian companies are securing contracts and selling into Iraq with our people and products highly-regarded. Nonetheless, the commercial operating environment remains exceptionally difficult.
Reasonable security measures may reduce the threat of physical attack against an office or accommodation, however, movement presents a particular difficulty in that the threat of Vehicle Borne IED and abduction is pervasive. Although the intent may often be criminal toward a ransom rather than scoring political mileage and ‘being there’ can deliver high reward for high risk, the threat to any abductee’s life is manifest. Aside, there are huge liabilities with insurance cover for people and goods. Importantly and depending on the nature of product or service, companies may be able to secure business in Iraq, with some natural erosion of margin, without the need to visit. For example, many Iraqi businesses operate from neighbouring Middle East markets and we can link into them.
Australian companies intending to operate in or visit Iraq, after consulting the travel advice, are strongly advised to seek adequate security arrangements. We encourage Australian companies to consult Austrade and reputable security companies regarding individual arrangements for accommodation and security. A list can be provided by emailing Aows.Dargazali@austrade.gov.au. We strongly recommend Australian business people visiting Iraq to register their presence with the Australian Embassy in Baghdad - www.dfat.gov.au/missions/countries/iq.html.
Logistics
The Baghdad International Airport (BIAP) is accepting commercial cargo. The seaport of Umm Qasr is open to commercial traffic but priority is given to humanitarian assistance shipments. The port of Aqaba, Jordan and ports in Kuwait and Turkey are handling goods transiting to Iraq.
Many regional trucking companies are willing to ship commercial goods into Iraq from Jordan, Turkey and Kuwait, but they are charging high rates due to security concerns and empty returns. Please contact international and regional freight forwarders and transportation firms for services available.
In spite of the challenging security environment, Austrade remains keen to support and where practical and possible, can provide a range of services from market intelligence, represent and assist companies in negotiating and securing contracts.
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