weighted score 6.6 · nine dimensions
Country Risk Profile
Iraq
Sourcing risk, regulatory exposure and audit intelligence for Iraq-origin supply chains.
Forced & child labour
5
Child labour documented in agriculture, brick kilns, and waste picking. IDP populations vulnerable. ILO conventions ratified but enforcement weak.
Worker rights & FOA
6
Trade union activity legally permitted but constrained in practice. Militia influence over labour markets in some regions. Kurdistan Region has separate labour framework.
OHS & audit transparency
7
Occupational safety standards poorly enforced. Independent audit access limited outside Baghdad and Kurdistan Region. Security constraints restrict verification.
Food & product safety
6
Food safety regulatory framework exists but enforcement is weak. Import dependency high for processed foods. Quality assurance infrastructure limited.
Environmental & regulatory
5
Oil industry environmental damage extensive. Gas flaring among highest globally. Environmental regulatory enforcement minimal in conflict-affected areas.
Governance & anti-corruption
8
TI CPI 2025: 28/100. Oil revenue management and public procurement deeply affected by corruption. Militia influence on state institutions persists.
Tariff & preferential access
7
No EU GSP. MFN tariffs apply. EU-Iraq PCA partially applied. Trade relationship dominated by crude oil imports.
Non-tariff barriers
7
Import licensing complex. Customs procedures unpredictable. Informal checkpoints and militia-controlled border crossings in some regions.
Supply chain traceability
8
Traceability infrastructure virtually non-existent for non-oil goods. Multi-tier supply chain visibility near zero. Informal economy dominant in many sectors.
Labour & Social Risk
Labour & Social Risk
- Forced labour risk
- Child labour remains prevalent in agriculture, brick kilns, and waste picking. Internally displaced populations are particularly vulnerable to exploitation. ILO engagement ongoing but enforcement capacity is limited.
- Sectors at elevated risk
- Agriculture, construction, brick manufacturing, informal waste recycling. Reconstruction-related labour in areas affected by the ISIS conflict carries elevated exploitation risk.
- Audit limitations
- Independent social compliance audits are severely constrained outside Baghdad and the Kurdistan Region. Security conditions limit auditor access to many production areas.
- ILO conventions
- Iraq has ratified core ILO conventions including C029 (Forced Labour) and C138 (Minimum Age). However, enforcement capacity remains weak and labour inspectorate resources are limited.
EU Regulatory Exposure
EU Regulatory Exposure
- GSP status
- Iraq does not benefit from EU GSP. Standard MFN tariffs apply. No EU-Iraq FTA in force. EU-Iraq Partnership and Cooperation Agreement signed 2012, partially applied.
- Trade composition
- EU imports from Iraq are overwhelmingly crude oil. Non-oil exports to the EU are negligible. CBAM exposure is minimal due to the commodity structure of trade.
- EU Forced Labour Regulation
- Regulation (EU) 2024/3015 applies from December 2027. Iraq-origin goods in sectors with documented child labour risk may face investigation under Article 5.
- Anti-corruption
- TI CPI 2025: 28/100. Iraq ranks among the most corruption-affected countries globally. Public procurement and oil revenue management are particularly exposed to governance failures.
Logistics & Supply Chain
Logistics & Supply Chain
- Primary export corridor
- Crude oil via Basra oil terminal (Persian Gulf) and Ceyhan pipeline (Turkey-Mediterranean). Non-oil exports negligible.
- Key transit chokepoints
- Strait of Hormuz (Basra corridor), Turkish Straits (Ceyhan corridor)
- Infrastructure status
- Port and road infrastructure severely degraded by decades of conflict. Umm Qasr port capacity is limited. Reconstruction partnerships with Gulf states are improving some corridors.
- Electricity & utilities
- Chronic electricity shortages persist. Water scarcity is worsening due to reduced flows from Turkey and Iran. Both constraints limit manufacturing viability.