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This article analyzes the discursive-ideational barriers restricting regional cooperation by examining Turkey's relations with Iraqi Kurds from a critical, theoretical perspective in the context of Turkey's domestic reforms and its relations with the USA and the EU. It is argued that the ethnicity discourse undermines cooperation, insofar as it feeds the perception of rival groups with zero-sum interests. Presenting a simple model, the article argues that replacing the ethnicity discourse with alternative, post-ethnic discourses requires combining alternative discourses with policies that produce positive-sum interests, coordination between groups, and opportunities for joint collective actions. Hence, state capacity to formulate and implement such policies is crucial. Predictions and policy implications are generated accordingly. First, further reconciliation of Turkey's domestic Kurdish conflict through democratic and administrative reforms, EU integration, and the promotion of national-identity models that are more flexible and more reflective of diversity will facilitate cooperation with Iraqi Kurds. Second, prosperity and democratic stability in Iraq will help achieve a lasting resolution in Turkey. Third, regional cooperation requires that domestic and external actors promote the positive-sum perception of Turkish and Kurdish interests. Fourth, research can help by developing linguistic-analytical categories that transcend the narrow discourse of ethnicity in favor of discourses that reflect multiple and compatible group belongings. [ABSTRACT FROM AUTHOR]