Contractors in Iraq have long been in sort of a legal free zone, immune from Iraqi control and outside the reach of U.S. authorities. Recent congressional legislation has extended jurisdiction to U.S. prosecutors to charge DOD contractors for crimes in federal court, but the number of prosecutions have been limited. Meanwhile those contractors working for the State Department, like Blackwater, have largely escaped legal ramifications. This loophole drew fierce protests from the Iraqis, particularly after the 2007 Blackwater shooting killed 17 civilians.
The backlash that and other incidents generated made Iraqis particularly sensitive to winning legal jurisdiction over contractors, particularly security personnel, officials and experts said.
The agreement has yet to be finalized but is expected to reach final approval in the coming weeks. Last week, it passed over a major hurdle when the Iraqi cabinet gave it the green light. The Iraqi parliament is expected to take a vote next week after which it needs sign off from the executive.