Iraq signed a memorandum of understanding to buy US rice in next five years. The trade minister of Iraq Salman Al Jumayli said the people of Iraq will be benefited by the cheap and quality rice from USA.
The minister believes that US rice will be the best product for Iraq markets. The Iraq market will become cheaper and qualitative in terms of rice when the deal is completed. The Iraq trade ministry is considering the agreement as win win state for both countries. The economy of Iraq will enhance to its peak level when the trade started between two countries. Moreover, it will be good news for Iraq markets as well.
Iraq is the country that buys all agricultural products from international market. It is necessary to fulfill the daily needs of its people in the country. Iraq is buying wheat, rice and many other cash crops from other countries of the world to maintain demand and supply of such agricultural products. The trade minister believes MOU signed by both countries is beneficial for the people of Iraq to fulfill their market needs for rice. The price of the rice is cheap than the previous contract signed by Iraq and some other countries. The trade minister said it is also good news for the resellers in the country.
They will be able to supply the rice on better rates in the country to earn profit. Moreover, the people of Iraq will have to pay lesser amount to buy the rice for their daily use. The experts believe the agreement is not just a trade agreement. This is one way to invest in the country to take part in the rebuilding of Iraq. World Bank and UNO is already working on this mission and inviting the other countries to take part in the rehabilitation of Iraq. USA is therefore signing these contracts with the Iraq.
There was a time when Iraq itself was a big producer and exporter of rice and wheat in the world market. The agriculture sector of Iraq destroyed by the interest less behavior of Iraq rulers who always focused on oil and gas and considered these things as cheap or useless. With the passage of time the agricultural sector completely destroyed in the country by the lack of interest by government. Moreover, Iraq remained constantly in the state of war. It is also one of the big reasons for lack of interest in the agriculture sector.
Now Iraq is totally dependent on the production and export of crude oil in the international market. The experts believe this dependency of Iraq is an alarming situation for Iraq and its economy.