WASHINGTON, DC – Yesterday, a coalition of rice state legislators including four Senators and eight House members, led by Senator Bill Cassidy (R-LA), sent a
letter to the Department of the Treasury requesting a quick resolution to financing restrictions which have prevented the Government of Iraq from procuring essentials including U.S. rice.
Iraq is the second largest market for U.S. milled long grain rice. The government of Iraq provides rations, including that rice, to 41 million Iraqis with 6 million receiving additional rations because they live below the poverty line; the total population in Iraq is approximately 45 million people.
The Memorandum of Understanding (MOU) signed between USA Rice and Al Awees, the entity purchasing rice on behalf of the government in Iraq, calls for annual purchases of 200,000 tons of U.S. rice which has been fulfilled for the past two years. Eighty thousand tons has been sold thus far in the 2023-2024 cycle. Financing restrictions from the U.S. government that went into effect earlier this year have restricted the use of U.S. dollars so that Al Awees is unable to continue with its regular purchases of U.S. rice.
The Congressional members commended the Department of Treasury’s work to curb illegal uses of U.S. currency, “however, there must be other compliance steps that can be taken to thread the needle and provide support to banks that play a commercial role in financing substantial U.S. exports.”
A delegation from Iraq, including the prime minister, is in Washington this week to discuss many issues including these food security concerns with U.S. government agencies and President Biden.