Tehran sees $20b trade target with Iraq as achievable
Iran and Iraq can increase their annual trade to $20 billion from unofficial estimates of $14-15 billion, the head of the Iran-Iraq Joint Chamber of Commerce said on Wednesday, calling the target “practical and achievable,” as reported by ISNA.
Yahya Al-Es’Haq, speaking at a meeting with business figures in the western province of Kermanshah, described trade with Iraq as more than an economic matter, linking it directly to regional security and development.
“If we seek development and security in the region, we must focus on developing trade,” he was quoted as saying.
Hassan Danaeifar, head of Iran’s economic development headquarters for Iraq and a former ambassador to Baghdad, noted that non-oil exports to Iraq have averaged 22% of Iran’s total over the past two decades. He described the Iraqi market as “vital” for Iranian production and said the emergence of new competitors such as the United Arab Emirates and China should be seen as an opportunity to improve the quality and diversity of Iranian exports. He stressed the need for serious planning to regain lost ground.
Abdul Amir Rabihawi, director general of the West Asia office at Iran’s Trade Development Organization, said new export procedures are being designed and a special committee has been formed to address currency-related hurdles for exporters. He identified Kermanshah province as Iran’s top exporter to Iraq.
Both officials emphasized the need to balance trade with Iraq. Al-Es’Haq pointed to the current imbalance – billions of dollars in exports versus millions in imports – and called for greater focus on importing essential goods, raw materials and industrial parts from Iraq. He urged chambers of commerce to play a more active role in this effort to help pave the way toward the $20 billion goal.