Economic Regime for Iraq: the Foreign Trade Perspective

Abstract

Iraq faces structural reforms designed to effect transition from opaque administrative structures to competitive markets. The process has already begun with a series of measures announced by the Coalition Provisional Authority for Iraq. The paper provides arguments in favor of establishing liberal, preferably free trade regime based on past foreign trade performance indicating that there is not much to protect, Saddam Hussein’s legacy of negotiated free trade agreements with most Arab countries and domestic political economy considerations. It also argues in favor of radical reforms in measures shaping business climate as well as explores institutional measures to lock-in a current liberal trade regime.