In the post-2003 period, Iraq has been the most substantial issue in Turkish foreign affairs, due to the intense domestic conflict and political instability in Iraq. For Turkey, the unity of Iraqi territory and the security of the region have been a top priority since the US occupation of Iraq. Moreover, the PKK terrorist organization has positioned itself in Northern Iraq and has conducted its activities against Turkey from this location, creating a security concern for Turkey. However, depending on the cooperation efforts of both countries, it can be said that during the past two years, the relations have become more constructive through the mutual visits of politicians.

Turkish Foreign Minister Ahmet Davutoðlu and state Minister Zafer Caglayan paid a one-day visit to Iraq to meet with Iraqi president Jalal Talabani, Prime Minister Nuri Al Maliki and Foreign Minister Hoshyar Zabari in preparation for the second meeting of the High Level Cooperation Council. The aim of the meeting was, in the words of Davutoglu, “not only cooperation but an integration” of the two countries and the establishment of the scope of security issues, including the close of the Mahmur Terrorist Camp. They are also planning the future expansion of a similar integration project to include Syria and Russia.

The Bilateral High Level Strategic Cooperation Council was established on 10 July 2008 during Turkish Prime Minister Recep Tayyip Erdogan’s visit to Iraq. The Council’s second meeting was on the agenda during Davutoglu’s last visit. It will be held in October 2009 and will determine the details of the Council. Generally, the Council will include the establishment of a common security framework, a high-level political dialogue, mutual economic dependence and cultural cooperation. The Council will be co-headed by two Prime Ministers and conducted with the participation of nine ministries. The ministers will meet three times a year with the aim to improve their interaction in energy, security, diplomacy, and economy issues.

The relations between the two countries are at their best level after the many years of tension following the occupation; and in the last months a number of mutual visits have been made, including President Abdullah Gul’s visit to Iraq in March 2009 and Iraqi Prime Minister Nuri Al Maliki’s visit to Turkey in July 2009 for the signing of Nabucco Project. Erdogan was the first Turkish Prime Minister to visit Iraq in 18 years, and the visits will continue in the forthcoming months with Erdogan, Interior Minister Beshir Atalay and leader of the Republican Party Deniz Baykal all planning trips to Iraq. The intensified relations between Iraq and Turkey will be shaped around a “new partnership model”. Iraq has been passing through an important process in the past few years, and Turkey and Iraq will help each other to solve their domestic issues.In addition, the recent visits paid by the bureaucrats of the two countries and Turkey’s equal treatment of different Iraqi groups are expected to influence next year’s parliamentary elections in Iraq.

Iraq is the fifth largest partner for Turkish exports and Turkey is Iraq’s largest trading partner, with the trade volume this year reaching 7 billion dollars; a 58 percent increase from last year. The trade volume is expected to reach 20 billion dollars by 2011, and the improvement of transportation between the two countries will contribute to these plans. The countries are also planning to sign a free trade agreement. Turkish investments in Iraq have focused mainly on construction. For example, a Turkish company built 5 of the recently constructed hospitals in Iraq.

Two important issues for the countries are shared water resources and common action against terrorism. Regarding the water issue, Davutoglu said, “Our perspective is that the water issue is our common fate,” referring to Turkey’s providing water to Iraq. He recalled that Turkey allowed over 500 m³/second of water to flow to Iraq in the months of June and July, adding that trilateral projects between Turkey, Iraq, and Syria must be undertaken to ensure a more productive use of water by all parties. As the downstream countries, Syria and Iraq depend on the Tigris and Euphrates Rivers born in Turkey.

Regarding terrorism, it is hoped that the two sides will act together; the economic improvement between the countries and their increased mutual dependence, with the win-win approach and zero problem with neighbors principle, aim to marginalize the PKK terrorist organization. For example, the Project for the Common Industrial Zone planned to be established on the borders between Turkey and Iraq aims to securitize the Iraq-Turkey border through mutual cooperation and will focus on energy investments to meet the electricity and petrol refinery needs of Iraq. Moreover, after the elections in Northern Iraq, the appointment of a new Prime Minister is awaited, and if Barham Salih is appointed to the post, it is expected that the cooperation between Turkey and Northern Iraq will increase and will be reflected in the expulsion of the PKK from the Northern Iraq.