Iraq

U.S. bilateral assistance to Iraq focuses on economic reform, assistance to vulnerable groups, and democracy and governance. We continue to help strengthen the capacity of Iraq’s civil society organizations and elected representatives. U.S. bilateral assistance aims not only to bolster Iraq’s democratic institutions, but also to preserve the strategic, political, and economic importance of the U.S.-Iraq partnership in a changing Middle East region. Since 2014, the United States has contributed billions of dollars in humanitarian, demining, and stabilization aid to conflict-affected and displaced Iraqis in the region, including support for communities recovering from genocide. U.S. security assistance supports the development of a modern, accountable, fiscally sustainable, and professional Iraqi military capable of defending Iraq and its borders. U.S. security assistance programs also promote civilian oversight of the military, adherence to the rule of law, and the respect for human rights, while simultaneously increasing the Iraqi military’s capability to respond to threats and conduct counter-terrorism operations.

The Iraqi government has stated its intention to transition from a centrally run economy to one that is market oriented. The United States is one of Iraq’s largest trading partners, and investment by U.S. companies has increased significantly in the last 10 years. To increase trade, the United States has designated Iraq as a beneficiary developing country under the Generalized System of Preferences program and several U.S. companies are active in Iraq, including in the energy, defense, information technology, automotive, and transportation sectors. Two-way trade in goods in 2019 totaled $8.2 billion, with $1.2 billion in U.S. exports to Iraq and $7.0 billion of Iraqi exports to the United States, almost entirely consisting of crude oil.