An important transition is underway in the official relationship between the United States and Iraq. Since late 2008, relations have been governed by two agreements: one related to the planned withdrawal of US forces from Iraq by 2011, and one that sets a strategic framework for the future of US-Iraq relations and for broad cooperation in fields including education, health, environment, and trade. There are many uncertainties about Iraq’s future course, and its foreign policy in the region and towards the United States, but ties between Washington and Baghdad are likely to be a priority for both countries for the foreseeable future. This report examines the recent trends in US-Iraq relations and considers how continued engagement will affect the national interests of both countries. While Iraq and the United States may not be natural allies, with proper nurturing, prudent policymaking, and strengthened sectoral and institutional ties, a friendly,  even strategic, partnership between Iraq and America over time is surely achievable.