Kurdistanbazar: Iraq and the Kurdistan Region are “important trade and business” hubs for Austria, highlighted Foreign Minister Alexander Schallenberg, while noting that bilateral trade between Vienna and Baghdad is the highest in over a decade.
“For the first time since 2013, our bilateral trade volume with Iraq has exceeded the 100 USD Mio. threshold, with significant contributions from trading activities with the Kurdistan Region,” Schallenberg told Rudaw in an interview.
Austria is a member of the US-led anti-ISIS coalition that continues to support Iraqi and Kurdish fighters against ISIS remnants in Iraq.
“We also discussed broader regional developments, including the current situation in the Middle East,” he added.
Schallenberg said that Vienna is “committed to fostering robust relationships with both Baghdad and Erbil.”
The following is the transcript of the interview with Austrian Foreign Minister Alexander Schallenberg:
Austria has had extensive trade relations with Iraq in the past. How does Austria plan to strengthen its relations with Iraq and the Kurdistan Region?
The Kurdistan Region as well as Iraq as a whole, is an important trade and business hub. I reopened the Austrian Embassy in Baghdad in September 2023 which enhanced trade and investment potential between Austria and Iraq including the Kurdistan Region. During my visit to Erbil in September last year, I opened a very well-attended bilateral economic forum in Erbil. Austrian companies engaged with potential business partners through tailored B2B meetings. Following this visit economic relations have intensified. For the first time since 2013, our bilateral trade volume with Iraq has exceeded the 100 Mio. threshold, with significant contributions from trading activities with the Kurdistan Region. Austria has a lot to offer when it comes to environmentally friendly technology, sustainable industrial products, telecommunications infrastructure, as well as crisis management and fire fighting vehicles and equipment. We are very interested in contributing to the sustainability agenda of the Kurdistan Regional Government.
Why doesn’t Austria open a consulate in the Kurdistan Region?
Austria highly values its relationship with the Kurdistan Region and continuously evaluates the best ways to enhance cooperation. In this spirit, the issue of an Austrian representation in Erbil was discussed and will be jointly explored further. Both sides remain committed to finding a tailored solution that satisfies both parties as soon as possible.
Austria’s foreign trade continues to weaken. imports declined by 12.2%, exports by 5.5% In the period January to June 2024, the total value of imports of goods was nominally at €94.05 bn, while exports of goods amounted to €96.90 bn. Thus, imports decreased by 12.2% and exports by 5.5% in this period. The trade balance asset rose to a value of €2.85 bn, compared to a deficit of €4.56 bn in the same period the year before. In the first half of 2024, trade with all of the ten most important import partners showed decreases on the import side. Besides the decrease with Germany (−9.3%), major declines were recorded with Switzerland (−41.4%), China (−10.0%) and Italy (−7.5%). In trade with the ten most important export partners, four countries showed increases and six countries showed decreases. The strongest increases were recorded in the United States (+12.1%), China (+9.7%) and Switzerland (+2.0%), the sharpest declines were recorded in Germany (−7.6%), Italy (−6.9%) and Hungary (−7.8%).
As a country with an open economy, Austria is heavily dependent on foreign trade: Exports account for around 50% of Austria’s economic output and more than a third of the goods and services produced in Austria are sold abroad.
More than 1.2 million jobs depend on the success of the export industry and export-focused companies are not only more crisis-proof, but also more innovative than other companies. The vast majority of companies active in exports are small and medium-sized enterprises across many industries and sectors.
