Iran’s non-oil exports to Iraq during the first six months of the current fiscal year (March 21-Sept. 22) stood at 13.9 million tons worth $3.8 billion, registering a 50% and 28% year-on-year growth in weight and value respectively, according to the head of the Iran-Iraq Chamber of Commerce.
“China and Turkey are our traditional competitors in the Iraqi market, but we are witnessing the growing willingness of countries such as Saudi Arabia and Jordan to take over and gain a lasting foothold in the Iraqi market,” Jahanbakhsh Sanjabi Shirazi was also quoted as saying by IRNA.
In fact, Iraq was Iran’s second biggest export destination during the period under review after China with 14.8 million tons of imports worth $6.5 billion.
Exports to Turkey reached 7.2 million tons worth $2.3 billion, the UAE 5.8 million tons worth $2.2 billion and Afghanistan 2.5 million tons worth $1 billion, according to the Islamic Republic of Iran Customs Administration.
Iran’s total exports, excluding crude oil, stood at 60 million tons worth $21.8 billion in H1, showing a 30% and 61% rise in weight and value respectively year-on-year, IRICA chief, Mehdi Mirashrafi, was quoted as saying by Iribnews.ir.
According to Keyvan Kashefi, the head of Kermanshah Chamber of Commerce, Industries, Mines and Agriculture, about 40% of Iran’s total exports to Iraq during the period were shipped from Kermanshah Province.
“Some 60-70% of these exported goods were produced in Kermanshah,” he was quoted as saying by IRNA.
Iran also exported to Iraq through the Iraqi Kurdish Region.
More than $11 billion worth of agrifood products have been exported to Iraq from Iran during the past five years, of which $3.7 billion were fruit and vegetable group, director general of Arab-African Affairs Bureau of Trade Promotion Organization of Iran said in June.
From the fiscal 2016-17 to fiscal 2020-21, about 30% of total exports to Iraq consisted of agricultural and food products, including fruits and vegetables, dairy products, sweets and chocolates, cereals, nuts and dried fruits, flowers and medicinal plants, of which fruits and vegetables had the largest volume of export from this group.
“During the period under review, despite the formation of the production process for these types of products in Iraq and the application of prohibitions and tariff and non-tariff restrictions on the import of some goods by the Iraqi government, Iran's exporters of agricultural products and food industry have managed to maintain a strong presence in Iraq,” Farzad Piltan was also quoted as saying by IRNA.
Fresh Fruits and vegetables, tomato, apple, watermelon, potato, onion, cucumbers and kiwi were the main goods exported to Iraq from Iran during the period.
Rail Connection in the Making
Iranian President Ebrahim Raeisi said last month that during his meeting in Tehran with Iraqi Prime Minister Mustafa al-Kadhimi, the two sides discussed the acceleration of Basra-Shalamcheh railroad project joining Iran to Iraq.
He said the Iraqi prime minister has ordered Iraqi officials to give a boost to the strategic Basra-Shalamcheh project.
Preparations for the construction of a 32-km line connecting the Iranian and Iraqi rail systems have been completed.
In a meeting between the Ambassador of Iran to Iraq Iraj Masjedi and the secretary of Ministers Council in Iraq, Hamid Naim Al-Ghazi, on Aug. 9, it was confirmed that organizations in Iran had completed their preparatory work, the International Railway Journal reported last month.
“An agreement was reached on May 27 to connect the two country’s railroads via the Basra–Shalamcheh line in southern Iraq,” Masjedi said.
A 17-km section connecting the Khorramshahr railroad to the Shalamcheh Border was completed in 2011, but since then the 32-km section has remained incomplete.
“The project will expand trade exchanges and transit transport between the two sides,” he says.
In Iran, Rostam Qasemi, the minister of roads and urban development, confirmed that the government is looking to raise private funds for projects, including building rail lines, due to a limited government budget and the ministry’s limited resources.
In a meeting with various parliamentary groups on Aug. 16, Qasemi stressed the need to complete the Iran-China railroad via Afghanistan, and lines to Turkmenistan and China.
Two Expos Scheduled in Mosul and Erbil
The Trade Promotion Organization of Iran is scheduled to hold two specialized exhibitions in Mosul and Erbil of Iraq’s Kurdistan Region, with the aim of expanding trade and bilateral cooperation in the field of technical and engineering services.
Iran’s specialized exhibition in Mosul is to open on Nov. 30 and run through Dec. 3.
The Erbil Exhibition is scheduled for Dec. 21 to 25, Mizan Online reported.
The events are being organized by the Arab-African Affairs Bureau of TPO in collaboration with Iran’s consulates in Mosul and Erbil.
