Iraq: negotiations with Saudi Arabian companies are being made

Iraqi Trade Minister Muhammad Mahdi Saleh said that negotiations are being made with Saudi companies to buy foodstuffs and medicines despite the fact that relations between Riyadh and Baghdad are severed. Saleh told reporters that, "Trade negotiations are being currently made with our brothers in Saudi Arabia" in the framework of the "oil-for-food-agreement."

He added that representatives of Saudi companies have recently visited Iraq. "We are now negotiating with these Saudi companies to sign medicine and foodstuffs contracts." Baghdad severed diplomatic relations with Riyadh only few days after the eruption of the Gulf war in January 1991, but announced repeatedly its readiness to restore dialogue with Riyadh as well as relations.

Last May, Iraqi Foreign Minister Muhammad Saeed al-Sahaf said that Iraq proposed to Saudi Arabia to exchange the opening of offices for supervising interests in each of Baghdad and Riyadh. He indicated that the Saudis "did not refuse the proposal and also did not take tangible steps to this end." He stressed that relations between the two countries "are witnessing notable improvements," MENA reported.

In a new development indicating Iraq's strengthening of its inter-Arab relations Damascus reopened its trade center in Baghdad following 18 years of closure.