Strategic Dialogue: Shaping the Iraqi-U.S. Relationship

June 29, 2020

The Burke Chair at CSIS is issuing a new version of its previous analysis of the challenges that Iraq and the U.S. face in creating a lasting strategic relationship. It provides a detailed analysis of the political/governance, economic, and security problems that now affect Iraq, and the how Iraq and the United States can work together to help Iraq emerge as a strong, stable, secure, and sovereign state; and it emphasizes the need to shape a new strategic relationship between Iraq and the U.S. raised by Secretary Pompeo’s announcement on April 7, 2020, that the United States would hold a strategic dialogue with the Iraqi government in mid-June 2020.

Secretary Pompeo’s announcement stated that,

“With the global COVID-19 pandemic raging and plummeting oil revenues threatening an Iraqi economic collapse, it's important that our two governments work together to stop any reversal of the gains we've made in our efforts to defeat ISIS and stabilize the country. All strategic issues between our two countries will be on the agenda, including the future presence of the United States forces in that country and how best to support an independent and sovereign Iraq.”

“Secretary Pompeo made it clear that the United States would have to reassess its strategy in Iraq in terms of the growing Iranian and Iraqi Popular Mobilization Forces (PMF) pressure on the U.S. troop presence in Iraq, but also in terms of the impact of the Coronavirus on the Iraqi economy and the lack of any clear political unity in Iraq. He stated that the United States would support any Iraqi regime that moved, “away from the old sectarian model that ended up with terror and corruption.”

Drawing on Progress in the Iraqi-U.S. Strategic Dialogue

This revision takes account of recent developments in Iraq and of the strategic dialogue that took place on June 11, 2020. The meeting was held via video teleconferencing between Iraqi officials – led by Senior Under Secretary of the Ministry of Foreign Affairs Abdul Karim Hashem Mostafa – and U.S. officials – led by U.S. Under Secretary of State for Political Affairs David Hale.

The results of this meeting represented major progress in several ways. The dialogue took place because Iraq now has a functioning government that focuses on both security and reform. It addressed immediate security issues like the near-term role of U.S. forces in aiding Iraq in the fight against ISIS and the threat to U.S. advisors and forces in Iraq posed by pro-Iranian Popular Mobilization Forces (PMFs).

The dialogue also addressed Iraq’s broader strategic problems – and ones that are ultimately far more important to its security and stability – such as the critical need to reform its economy, politics, governance, and security forces, if it is to meet the needs of its people and achieve lasting stability. The dialogue also made it clear that the role of the United States was to help Iraq become a strong and fully sovereign state, and that the U.S. did not “request permanent bases or a permanent military presence in Iraq.”

The governments of the Republic of Iraq and United States issued the following statement after their meeting:

The delegation of the Republic of Iraq, led by Senior Under Secretary of the Ministry of Foreign Affairs Abdul-Karim Hashim Mostafa, and the delegation of the United States Government, led by Under Secretary of State for Political Affairs David Hale, held Strategic Dialogue discussions via video teleconference today, in accordance with the 2008 Strategic Framework Agreement for a Relationship of Friendship and Cooperation between the United States of America and the Republic of Iraq. The discussions covered security and counterterrorism, economics and energy, political issues, and cultural relations.

The two countries reaffirmed the principles agreed upon by the two sides in the Strategic Framework Agreement (SFA), as well as the principles in the exchange of diplomatic notes and the letters of the Republic of Iraq to the United Nations Security Council dated 25 June 2014 (S/2014/440) and 20 September 2014 [S/2014/691] respectively. The United States reaffirmed its respect for Iraq’s sovereignty, territorial integrity, and relevant decisions of the Iraqi legislative and executive authorities.

On economic and energy issues, the two countries recognized the enormous economic challenges facing Iraq in light of the two crises of the COVID-19 pandemic and the decline in oil prices, and on the need for Iraq to enact fundamental economic reforms. 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 two governments discussed the potential for investment projects involving world-class U.S. firms in the energy and other sectors, provided that business conditions are favorable.

On political issues, the United States of America expressed its solidarity with the Republic of Iraq, not only through close bilateral cooperation on the security and political levels, but also through its support for Iraq and the new Iraqi government. The two nations reiterated the importance of assisting Iraq in implementing its governmental program and reforms in a manner that reflects the aspirations of the Iraqi people, including carrying out humanitarian efforts, restoring stability, rebuilding the country, and organizing free, fair and credible elections. The United States, with its international partners, emphasized its continued support for Iraq’s electoral preparations, efforts to strengthen rule of law, human rights, and the return and reintegration of displaced people, especially the smaller components of Iraqi society that were targeted for genocide by ISIS.

On the security partnership, the two countries recognized that in light of significant progress towards eliminating the ISIS threat, over the coming months the U.S. 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 United States reiterated that it does not seek nor request permanent bases or a permanent military presence in Iraq, as previously agreed to in the 2008 SFA which provides for security cooperation to be undertaken on the basis of mutual agreement. The Government of Iraq committed to protecting the military personnel of the International Coalition and the Iraqi facilities hosting them consistent with international law and the specific arrangements for their presence as will be decided upon by the two countries.

On the cultural front, the two governments discussed plans to return important political archives to the Government of Iraq and efforts to increase the capabilities of Iraqi universities. The two sides also discussed plans to return artifacts and the Baath Party archives to Iraq.

The two sides reaffirmed the importance of the strategic relationship and their determination to take appropriate steps to enhance it in the interest of both countries and to achieve security, stability, and prosperity in the region. The United States Government welcomed the opportunity to reaffirm and strengthen its partnership with Iraq as Prime Minister Mustafa al-Kadhimi begins his term in office. The two governments look forward to in-depth discussions of the above issues at a Strategic Dialogue Higher Coordination Committee meeting in Washington, D.C., likely in July.

Iraq and the United States confirmed that a follow-up meeting would be held in July 2020, with a planned visit by the new Prime Minister Kadhimi to travel to Washington. This meeting would address the most sensitive topic on hand – the status of U.S. troops in Iraq. Both senior Iraq and U.S. officials made it clear that the United States would seek to find stable way in which the U.S. could assist Iraqi security forces and how the U.S. could help Iraq develop its economy.

The Broader Focus of this Analysis

This new draft reflects the positive impact of Mustafa al-Kadhimi’s selection as Prime Minister and his focus on Iraq’s need for economic and security reforms. And, it addresses the impact of current security issues like the rise in ISIS attacks and the threat posed by Iran and Iranian-backed Iraqi Popular Mobilization Forces (PMFs).

The principal focus of this report, however, are the longer-term structural problems and trends that shape Iraq's underlying problems and challenges. It shows that Iraq desperately needs to improve the quality of its governance at every level and to deal with a level of corruption and sectarian and ethnic divisions that pose as many threats as extremist groups like ISIS.

It describes the depth of Iraq’s long-term economic crises and needs for reform that will affect every aspect of its economy and that will also pose critical challenges to Iraq’s unity and stability. At the same time, it updates the analysis to show the impact of the Coronavirus and the massive cuts in world oil prices and Iraq’s oil revenues.

The analysis looks beyond near-term security issues to show that Iraq’s security problems and need for an effective rule of law require further major changes in its security forces and justice system. Iraq also needs to rebuild its security forces to a level where it can deter and defend against outside threats from neighbors like Iran and Turkey to fully protect its sovereignty.

Dealing with Iraq’s “Ghosts” as well as Its Present

Setting the right goals for a U.S-Iraqi strategic dialogue – and for a more lasting joint effort to create a stable strategic relationship – is a critical step towards creating some form of lasting U.S.-Iraqi relationship, one that will counter both extremism and contain Iran. At the same time, such a strategic dialogue must address the cumulative impact of the three critical structural problems in Iraq’s current position. These are problems that have taken decades to evolve and made the country fundamentally unstable, but they have generally received little high-level policy attention and even less successful action – rendering them close to being treated as Iraq’s “ghosts.”

• The first such set of “ghosts” shapes the underlying structure of Iraqi politics and governance. Serious as the immediate tensions and divisions within Iraqi politics have become, the Iraqi government does not provide a clear path to effective leadership, and it is dysfunctional and corrupt at every level. Iraqi politics are deeply divided, and these divisions reflect deep and growing failures. This must change if Iraq is to emerge as a stable and secure state.


• The second set of “ghosts” shapes the Iraqi economy. Iraq now faces massive structural problems in economics that its current economy is in near collapse because of the global drop in demand for petroleum caused by both the Coronavirus and the surplus of supply from the “oil war” between Russia and Saudi Arabia. It was weak and unstable even before these crises began, had weak agricultural and industrial sectors, and was affected by Iraq’s divided elite that took a far larger share instead of providing the kind of income distribution that would bring Iraq stability. Divided as Iraq was on a sectarian and ethnic level, it faced further growing divisions because its economy did not serve its people.


• Finally, the third set of "ghosts" shapes Iraq’s level of “security.” One part of this problem: sectarian conflict and extremism – has been the center of U.S. strategic attention since the invasion of Kuwait and the ISIS invasion of Iraq in 2013, which have led to almost continuous fighting from 2005 to 2010 and from 2013 to today. For all the effort the U.S. and Iraqi governments have devoted to this issue, however, Iraqi security forces still lack the capability to stand alone in order to deter and defend against potential threats like Iran. Iraq’s divided security forces are still haunted by the past rather than moving towards a clear future.

A meaningful strategic dialogue between Iraq and the United States must look well beyond the immediate security challenges from ISIS, Iran, and pro-Iranian Popular Mobilization Forces. It must address all three of these sets of issues – or "ghosts" – and understand that it will take years to properly address each one. 

Iraq and the U.S. must be realistic in forging a new strategic relationship. Iraq must find its own answers to dealing with many of the challenges, and the United States cannot help an Iraq that cannot unite to the point where it can help itself. This is particularly true in a world being reshaped by the Coronavirus crisis, so many other failures in government and development, and so many other humanitarian crises. It is a world where limited aid resources must go to the nations that can use them effectively and not be wasted on simply buying limited help for a limited time in nations that cannot.

Such a dialogue also, however, requires the United States to commit itself to a sustained effort to help Iraq emerge as a nation can meet the needs and expectations of its people, and one that is unified and strong enough to prevent further civil conflict and act independently of Iranian pressure and threats. There are no quick answers or solutions to creating a stable security relationship for either Iraq or the United States. Real progress will take consistent effort over at least half a decade, and the plans, pledges, and political spin will be no substitute for real progress.

Methodology and Sources

The document provides a broad historical perspective regarding the evolution of Iraq’s political governance, economic, and security challenges, as well as a series of detailed quantitative analyses of the key political, governance, economic, and military issues involved. It shows all too clearly that it is not enough to only call for a dialogue or to focus on current issues like the revival of the threat from ISIS and the threat from Iraqi Popular Mobilization Forces and their ties to Iran.

The report draws heavily on Iraqi and U.S. government reporting and from that of international institutions like the UN, IMF, and World Bank. It also draws heavily on a range of NGOs and private research centers. The coverage of security issues and Iraqi forces does draw on a wide range of work by various NGOs, but it also draws heavily on the official U.S. reporting by SIGAR and LIG from the Quarterly Reports they issued in April and May 2020. Where possible, the study supports these analyses with graphs, tables, and charts.

This new report also reflects comments on the earlier drafts from a variety of outside experts, as well as from a number of Iraqis following an Internet conference moderated by Munqith Dagher – the CEO and founder of IIACSS research group (Al Mustakillah) in Iraq and a Gallup International board member – that was held in Arabic and English on April 17, 2020.

The report’s Table of Contents include:

This report entitled, Strategic Dialogue: Shaping the Iraqi-U.S. Relationship, is available for download at https://csis-website-prod.s3.amazonaws.com/s3fs-public/publication/200629_Iraq_Strategic_Dialogue.pdf

Anthony H. Cordesman holds the Arleigh A. Burke Chair in Strategy at the Center for Strategic and International Studies in Washington, D.C. He has served as a consultant on Afghanistan to the United States Department of Defense and the United States Department of State.