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US and Iraq reach an agreement to reduce American troops in Iraq

The US and Iraq agreed to reduce the number of American troops in Iraq in the coming months in the first round of the bilateral strategic dialogue.

The first talks of their kind in a decade, the strategic dialogue kicked off in an online session on Thursday to discuss several issues, including the Iraqi economy and the withdrawal of US troops from Iraq.

In a joint statement by both countries, published by the US Department of State on early Friday, it was revealed that one outcome of the talks is a US-commitment to continue withdrawing troops from the country in the near future.

“On the security partnership, the two countries recognized that in light of significant progress towards eliminating the ISIS threat, over the coming months the US would continue reducing forces from Iraq and discuss with the Government of Iraq the status of remaining forces as both countries turn their focus towards developing a bilateral security relationship based on strong mutual interests,” the statement reads.

US forces have withdrawn from several Iraqi bases in recent months, which they say is part of a general repositioning in response to successes in the campaign to defeat ISIS and to protect personnel amid the COVID-19 pandemic.

In the space of a month, the US-led coalition handed over control of six military bases to the ISF, including Abu Ghraib near Baghdad, K1 in Kirkuk, al-Qaim near the Syrian border, Qayyarah in western Iraq, al-Sqoor in Mosul, and al-Taqaddum in Anbar.

The US claims it “does not seek nor request permanent bases or a permanent military presence in Iraq,” the statement says.

Economic crisis in Iraq

Iraq is currently facing a severe economic crisis resulting from the COVID-19 pandemic and the collapse of the oil prices. 

The current Iraqi government cabinet decided this week to not move forward with a budget for 2020 and will instead focus on formulating a budget for 2021. Finance Minister Ali Allawi revealed on Sunday that the Iraqi government is planning to receive loans from the World Bank to weather the current economic crisis. 

Speaking to journalists at a press conference in Baghdad on Thursday, Kadhimi blamed previous cabinets for mismanagement and stated that the country currently gets 94.7 of its income from oil sales. He argued that the previous cabinets should have diversified its income resources.

The strategic dialogue included a discussion about the provision of American economic advisors to work with the Iraqi government in facing the country’s economic challenges

“The United States discussed providing economic advisors to work directly with the Government of Iraq to help advance international support for Iraq’s reform efforts, including from the international financial institutions in connection with firm plans to enact fundamental economic reforms,” the statement reads.

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