The latest data shows that Iraq-U.S. trade faced notable changes in 2024. The total value of goods and services exchanged reached about $12.0 billion. This marked a drop of $1.0 billion from the previous year. The decline equaled 8.1 percent and came after several years of mixed results in trade.
When breaking down the figures, goods trade accounted for the largest share. The total goods trade reached $9.2 billion. U.S. goods exports to Iraq fell sharply to $1.7 billion, dropping by 25.9 percent. This meant a loss of nearly $584 million in export value compared to the previous year. Meanwhile, goods imports from Iraq also declined. They dropped by 10.8 percent to $7.5 billion, representing a fall of about $909 million. As a result, the goods trade deficit narrowed to $5.9 billion. This was a reduction of 5.2 percent, or around $325 million, compared to 2023.
However, services trade between Iraq and the U.S. told a different story. It grew to a total of $2.8 billion. Services exports from the U.S. to Iraq increased strongly by 23.9 percent, reaching $2.2 billion. This growth added around $432 million to export earnings. On the other hand, services imports rose only slightly, increasing by 2.1 percent to $532 million. The services trade surplus expanded to $1.7 billion, a gain of 32.7 percent or roughly $420 million from the year before.
Overall, the Iraq-U.S. trade balance showed both challenges and opportunities. While goods trade experienced a downturn, services trade continued to grow. This shift suggested that economic cooperation between the two nations is diversifying. Increased services exports could signal new business opportunities for American companies in Iraq. Similarly, Iraq’s modest growth in services imports indicated ongoing demand for specialized expertise.
Looking ahead, the trend in Iraq-U.S. trade will likely depend on broader economic conditions. Shifts in energy markets, investment flows, and policy decisions may shape the coming years. The latest numbers highlight the need for balanced growth in both goods and services trade. For Iraq and the U.S., building stronger partnerships could help offset sector-specific declines.
In short, the Iraq-U.S. trade relationship in 2024 was mixed. Goods trade fell, but services trade rose, offering some optimism for future cooperation.