From The New York Times:
WASHINGTON — The thousands of American contractors in Iraq who have been above Iraqi law since the war began are suddenly facing a new era in which their United States passports will no longer protect them from arrest and imprisonment.
When the Iraqi government ratified an agreement last week setting new terms for a continued American presence in Iraq, private contractors working for the Pentagon faced the inevitability that they would be stripped of their immunity from Iraqi law. That immunity had been granted by the Coalition Provisional Authority before a postwar Iraqi government was established.
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