BREAKING FREE FROM THE SHACKLES: IRAQ’S TRADE RECOVERY
The UN policy of containment was dependent on Iraq having its economic power curtailed by sanctions. However, this framework is rapidly disintegrating as other countries show increasing sympathy towards Iraq.
In May 2002, the US General Accounting Office said that, in 2001, Iraq earned $2.2 billion in illicit trade, $1.5billion of it through illicit exports and $700 million in surcharges. In September 2002, Tony Blair said this may be closer to $3.0 billion (Answering questions in a press conference in his Sedgefield constituency, 3 Sept 2002. The Prime Minister said at the time the figure came from memory, and may not be exact).
• In his evidence to US Congress, Khidir Hamza, a defector, said that “Iraq is using corporations in India and other countries to import the needed equipment for its {nuclear} programmes, then channel them through countries like Malaysia for shipment to Iraq.”
• Turkey now makes $400 million a year by taxing energy products smuggled from northern Iraq.
Nov 1998 The Iraq-Syria oil pipeline reopens. The Syrians use Iraq’s oil, then export more of their own. This illicit operation earns Baghdad $800 million a year.
Apr 2002 The United Arab Emirates and Bahrain both reopen embassies in Baghdad, leaving Kuwait and Saudi Arabia as the only two Arab states with no diplomatic links to Iraq.
Apr 2001Tapes are released showing that Leonid Kuckma, president of the Ukraine, agreeing to sell the “Kolchuga” anti-aircraft radar to Iraq in July 2000. Tape was released by his former bodyguard, who defected to the UN and testified in a court in California. He died in a car crash in March 2002.
Jan 2001 Turkey, which says UN sanctions have cost it $35 billion, returns an ambassador to Iraq.
Feb 2001 Iraq expands its Russian and Belarus embassies, appointing a senior military officer to head a new unit in Moscow.
Jan 2002 Iraq’s Foreign Minister visits Iran
Jan 2002 Saudi Arabia reopens its border with Iraq under the UN’s oil-for-food programme
Mar 2002 Saudi Arabia, Kuwait and Iraq take steps to reconcile at the Arab League Summit in Jordan. |
