ARAB EUROPEAN RELATIONS - Dec 12 - EU Looks To Trade Deal With Iraq.

The EC takes the first step towards negotiating a trade deal with Iraq, in a sign of Brussels' willingness to deepen its ties with Baghdad. The Commission requested EU member states for the authority to negotiate a trade and co-operation agreement with Iraq - a sign of Pres Jose Manuel Barroso's receptiveness to American arguments that Europe needs to step up its help to the stricken country. Negotiations are set to begin next year, once Iraq has a new elected government in place, and could be completed in as little as 12 months - although sometimes such talks are bogged down by political issues. "Iraq is at a critical juncture", said Benita Ferrero-Waldner, the Commissioner for external relations. She added that she planned to open a EC delegation in Baghdad early next year. "The two moves announced today send a strong signal to the Iraqi population of Europe's intention to become increasingly engaged in Iraq", she said. The EU's relationship with Iraq to date has been plagued by the difficulty of operating in the country, the lack of a permanent elected Iraqi government and the 25-nation bloc's own divisions about the 2003 conflict. French diplomats still cite the fall out over the US-led war against Saddam Hussein as an enduring source of transatlantic tension. But the US has largely given up its attempt to find new troops contributors to its force in the country, instead trying to persuade countries that are already present to stay, while encouraging Europe and Arab countries to provide practical and symbolic support. When US STATE Sec Rice, met Nato ministers in Brussels last week she "pushed hard for support for Iraq after the elections but not necessarily military support", according to a senior US official present at the meeting. Instead she asked for more financial and institution-building help. The Commission says that by entering into contractual negotiations with Iraq, it aims to facilitate the country's engagement with the international community, stimulate reforms within Iraq and further the country's economic development.