BRUSSELS: The European Union and Iraq have agreed the outlines of a partnership covering counter-terrorism, human rights and trade, the European Commission said Friday.

Talks going back to November 2006 were wrapped up and the text -- which will also pave the way for fresh investment in Iraqi oil and gas -- will now go to the leaders of EU member states for their approval.

The so-called Partnership and Cooperation Agreement "marks a new beginning in our relationship," said External Relations Commissioner Benita Ferrero-Waldner in a statement.

"There are many things we want to do together in order to increase political and economic stability as well as social welfare in Iraq," she added, calling for "speedy approval" by national EU leaders and Iraq's government.

The commission said the agreement includes a clause on countering the "proliferation of weapons of mass destruction."

The existence of WMDs was used by former US president George W. Bush and ex-British premier Tony Blair to launch a 2003 invasion that led to the toppling of one-time dictator Saddam Hussein.

However, none were found.

Brussels cited some 900 million euros (1.35 billion dollars) already pumped into the Gulf state's reconstruction since 2003.