The Government currently has no plans to extend favoured nation status to Iraq. Our policy is that any enterprise seeking trade with Iraq must ensure that it is in full compliance with the relevant UN resolutions, including the oil for food programme.
The basis for the continued imposition of UN sanctions on Iraq remains the Iraqi Government's refusal to co-operate with the UN Commissions appointed to verify the dismantling of Iraq's programme to acquire weapons of mass destruction. The Government regrets that Iraq has not so far fully complied with the resolutions adopted by the Security Council, including those provisions concerning Iraqi weapons of mass destruction.
We would wish to see the necessary co-operation from Baghdad to allow greater progress to be made on the suspension, and ultimate lifting, of sanctions. This would be a welcome and a major step towards the return of Iraq to full participation in the international community, which would also include a return to normal trading relations.