War hampers bid for trade in Iraq

Press, 24 October 1980, Page 4

War hampers bid for trade in Iraq

Fourteen New Zealand; companies have a common interest in seeing the IranIraq . war ..end. as. quickly as i possible. The conflict is threatening an important opportunitv for them to break into Iraq, a potentially big: market. | New Zealand is one of 6d;: countries planning to ..exhibit at an international trade fair; to have been. held, in Bagdad I early this month but post-;; poned because of the war,;: until November 15. * !' Two Trade and Industry; Department officers were;! hurriedly brought out from ii Bagdad 'late last month and; businessmen on their way to;: the fair had to turn? back), • after;-, attacks /.closed;. thejj city’s airport. •* Ti;... -i I Crates of valuable exhibits} J

have been left sitting at the fair site, where, as it is a war zone, insurance cover does not apply. Department staff were ready to return to Bagdad as soon as the war stopped and 'the city was judged safe, isaid the director of trade fairs and publicity, Mr A. •W. Cook, yesterday. ; However, as it would take i two weeks to travel to Iraq ■ and prepare exhibits a decision whether, to continue I with New Zealand in- : volvement in the fair would have to be .made by late inext week, Mr Cook said. _ I The importance of the fair •as,the best avenue to establish trade contacts, in Iraq ! s centralised • economy had been, emphasised when the Iraqi Trade Minister . (Mr Hassan Ali) visited . New

Zealand earlier this year. . Mr Cook said New Zealand products had been exhibited at the annual fair before but not on such a large scale. The. department had begun preparations early in the-year including the translation in London of promotional literature into Arabic. The New Zealand Government is heavily underwriting the cost, of involvement by the New Zealand companies. The Government was paying for the construction and rental of stands? at t the fair, and publicity, Mr Cook said. As welh at least some of the companies would be able to claim export. incentive payments to offset, freight and other costs. • ■

Mr Cook estimated that the total cost to New Zea-

land of participation would be about $250,000. ' Iraq had target market status for Ullrich Aluminium, Ltd and the. cost to the company forits exhibit at the fair, would be only $4OO, the managing director, Mr G. W. Ullrich, said from Auckland. He still hoped the fair would proceed next month but was considering an alternative exhibition at the “Arabuild” fair, in Bahrain, starting on November 9. “We would like to carry on and exhibit in Bagdad if at all possible,” Mr Ullrich said. ' Iraq could be as significant a market , for the company as Saudi Arabia where its exports were exnected to be: about ,$L million thisiyear. ■ ,?•' - :

Target market status meant Government reimt bursement for 64 per cent of • all costs to the company i during its first year of busi- : ness in Iraq, Mr Ullrich , said. A crate of aluminium 1 products, including four Doats. valued about $30,000 was already in Bagdad. Mr 1 Ullrich was one of several 1 New Zealand businessmen 5 who travelled as far as. Bah- - rain before Bagdad Airport was closed. I Now, 5 he said it was a ‘ matter of watching events in 1 Iraq from day to day and hoping developments per- ’ mitted him time to travel to ' Bagdad and prepare his ex--1 hibit before November 15. , Mr Ullrich said he believed that Iraqi authorities

were patrolling the fair site and ensuring the security of exhibits stored there. Mr Cook said the New Zealand Embassy in Bagdad also thought that the exhibits were safe, although the site was near a military airfield.

The companies involved, which include U.E.B. Industries, Alex Harvey Industries, Canzac Cables, Orient (N.Z.) Trading Ltd, and the Christchurch firm of J.F. Oakley, Ltd, were all experienced exporters and probably would not be set back much if the fair was cancelled, Mr Cook said. In that event, he expected the Iraqi Government would make other arrangements to see what the New Zealanders had to offer.