Domestic Economy

Iraq Biggest Destination of Iranian Export in 7 Months

Iraq accounted for 27% of Iran’s total exports during the first seven months of the current Iranian year (March 20-Oct. 21)

A total of 17.6 million tons of commodities worth $5 billion were exported to Iraq during the first seven months of the current Iranian year (March 20-Oct. 21), which made the neighboring country Iran’s biggest export destination during the period, according to the director general of Trade Promotion Organization of Iran’s Arab and African Affairs Department.

“Our main exports to Iraq included gas, electricity, iron bars, tomatoes and tomato paste, tiles and ceramic, watermelons, evaporative coolers, steam turbine spare parts, cheese and biscuits,” Farzad Piltan was also quoted as saying by IRNA.

The official noted that Iran’s main rivals in the Iraqi market over the period were Turkey, China, South Korea, India and the US with a 26%, 25%, 6%, 5% and 4% share of the neighboring country’s market respectively.

“Iraq exports close to $90 billion worth of commodities and imports around $32 billion per year in return. The country’s imports include wheat, rice, vegetable oil, sugar, pharmaceuticals, industrial machinery, cars, power plant and telecommunication equipment and its main exports are crude oil, chemical products, foodstuffs and livestock,” he said. 

“The neighboring country accounted for 27% of Iran’s total exports over the seven months under review. Iran’s second to fifth biggest export destinations were China with $4.4 billion, the UAE with $2.2 billion, Turkey with $1.5 billion and Afghanistan with $1.3 billion, accounting for 24%, 12%, 8.2% and 7.3% of total exports respectively.”

Iran’s foreign trade during the seven months under review stood at 85 million tons worth $37.28 billion. Exports hit 65.57 million tons worth $18.24 billion while imports reached 19.33 million tons worth $20.04 billion. 

Based on figures released by the Islamic Republic of Iran Customs Administration, more than 13.8 million tons of Iran’s overall imports were essential goods.

Also known as necessity goods, essential goods are products consumers will buy, regardless of changes in income levels.

Three border crossings with Iraq, namely Chazzabeh and Shalamcheh in southern Khuzestan Province and Mehran in the western Ilam Province, reopened for exports during all weekdays as of Sept. 12

Earlier, amid the spread of the new coronavirus, customs procedures were carried out only on Sundays and Wednesdays at most border terminals with Iraq, except for Khosravi in western Kermanshah province, which was open to trade during all weekdays, according to Rouhollah Latifi, the spokesperson of the Islamic Republic of Iran Customs Administration. 

Chazzabeh was the last of seven official border crossings between the two countries that reopened after about six months following the outbreak of coronavirus. 

“At the beginning of its reopening in late July, 30 trucks were allowed to cross the border. Now 170 trucks carry mainly vegetables and construction materials to the neighboring country via Chazzabeh daily,” Latifi added.

Ali Mousavi, an official with Arvand Free Trade Zone, said each day, 300 trucks of Iran’s private sector carry fruit and vegetables, cucurbits, food, construction materials, minerals and steel products to Iraq through Shalamcheh into the neighboring country. 

A total of 329,000 tons of commodities worth more than $183 million were exported from Mehran border crossing in the western province of Ilam during the first half of the current Iranian year (March 20-Sept. 21).

“The exports come as Mehran was closed down for three months due to the outbreak of Covid-19. Two months after the outbreak, the border was opened for two days per week only,” Rouhollah Gholami, director general of Ilam Customs Administration, was quoted as saying by the news portal of Iran Chamber of Commerce, Industries, Mines and Agriculture.

The official added that around 48,169 tons of agricultural products worth $24.78 million were exported to neighboring Iraq from Mehran border crossing during the six-month period.

“Other main exported products were foodstuff, plastic and glass products, automotive spare parts, steel, tiles, ceramics and construction material,” he said.

According to Gholami, an average of 300 trucks carrying Iranian export goods cross Mehran border to Iraq every day.

Last year (March 2019-20), he said, exports form Mehran checkpoint reached $1.18 billion.

Iraq closed its international borders and provincial boundaries in March, except for the delivery of essential goods such as food as it sought to curb the spread of coronavirus.

Iran exported 25.68 million tons of goods worth $8.99 billion to Iraq in the last fiscal year (March 2019-20). It also exports to Iraq through border crossings with the Kurdish region of the neighboring country, namely Bashmaq, Parvizkhan and Tamarchin, which have been open all along the coronavirus pandemic.

Amid restrictions imposed by the Iraqi government on cross-border trade due to the spread of the new coronavirus, Iran has been directing the bulk of exports to the neighboring country through its borders with Iraqi Kurdistan.

About 8.1 million tons of goods worth $3.8 billion were exported from Iran to Iraq through the Iraqi Kurdistan Region during the last fiscal year that ended on March 19, 2020, according to the spokesman of the Islamic Republic of Iran Customs Administration.

The exports accounted for 42% of Iran’s total exports to Iraq in terms of value and for over 31% in terms of tonnage during the period under review.

According to Superintendent of Kurdestan Customs Administration Bakhtiar Rahmanipour, 90% of Kurdestan Province's foreign trade pass through Bashmaq in Marivan County of the province.