The First Iran-Iraq Investment Forum is scheduled to be held in Baghdad concurrent with Iraq’s Investment Opportunity Exhibition from March 28 to 31, according to the deputy minister of economic affairs and finance.
“Iran’s Economy Minister Ehsan Khandouzi and his Iraqi counterpart Ali Allawi will be attending the forum, along with 1,000 businesspeople and economic players from the two sides,” Ali Fekri was also quoted as saying by IRNA.
During the exhibition, said the official, who doubles as head of the Organization for Investment, Economic, and Technical Assistance of Iran, Iraqi investors and the advantages of Iran’s investment regulations are going to be introduced, investors from the two countries will have the chance to meet and become familiar with each other’s activities, successful investment projects in Iran will be reviewed and Iraq’s market and investment opportunities are going to be surveyed.
“Among other objectives of the forum are introduction of Iranian knowledge-based businesses and opportunities for production in Iran or Iraq, showcasing the latest technologies, equipment, machinery and services that Iranians can offer Iraqi businesses and presenting projects and investment opportunities in the two countries,” he said.
Fekri noted that apart from Iraq and Iran, Turkey, the UAE, Egypt, and Saudi Arabia are also taking part in the four-day event that is to be held in Baghdad International Exhibition Center.
*** Iran’s Imports From Iraq Increase
Iran has dramatically increased imports from Iraq.
The neighboring country exported a total of 1.99 million tons of goods worth $920.48 million to Iran during March 21, 2021-Jan. 20, registering a staggering rise of 2,414% and 793% in weight and value respectively compared with the similar period of last year, according to the spokesperson of the Islamic Republic of Iran Customs Administration.
“During the same period last year, we imported close to 80,000 tons of goods from this western neighbor of ours valued at $103 million. In talks with Iraqi officials, we have agreed to balance our bilateral trade, therefore Iran is taking measures to supply a bigger part of its domestic demand from Iraq,” Rouhollah Latifi was also quoted as saying by ILNA.
The official noted that last year, Iraq was the 26th exporter to Iran but, given the figures above, it has now become the ninth supplier of goods to Iran after the UAE, China, Turkey, Germany, Switzerland, Russia, India and the UK.
“Our main imports from Iraq during the period were essential goods that stood at 1.86 million tons worth $734 million, accounting for 93% and 80% of the overall weight and value of imports from Iraq respectively,” he added.
Also known as necessity or basic goods, essential goods are products consumers will buy, regardless of changes in income levels.
Latifi said the import of essential goods from Iran included $329 million worth of wheat, $159 million of field corn, $101 million of soymeal, $55 million of barley, $44 million of unrefined vegetable oils and $36 million of sugar.
Iran exported 25.04 million tons of goods worth $7.29 billion to Iraq during the same period under review, registering a 12% and 14% rise in volume and value respectively compared with the corresponding period of last year.
According to IRICA, exports mainly included seafood, livestock, dairy, and agrifood products with a total of 2.66 million tons worth $1.22 billion
They also included industrial machinery, minerals and construction materials.
*** $1.6b in Arrears on Gas Payments
Iraq is $1.6 billion in arrears on its payments for importing Iranian gas, its acting electricity minister said, urging Washington to allow cash payments despite its sanctions on Tehran.
Despite its immense oil and gas reserves, Iraq remains dependent on imports to meet its energy needs, as neighboring Iran currently supplies a third of its gas and electricity under a tightly controlled waiver from US sanctions, New Arab reported.
When Washington reimposed sanctions on Tehran after abandoning a nuclear deal with Iran in 2018, Iraq was allowed to pay for its energy imports from Iran in kind, not in cash.
The restrictions require Iran to use the gas money to fund imports of farm and medicinal products, which must be approved by US officials on a case-by-case basis.
In an interview with state television late Wednesday, acting electricity minister, Adel Karim, said Iraqi arrears on payments to Iran now totaled $1.69 billion.
"These funds remain in the Trade Bank of Iraq and have not been paid to the Iranian government," Karim said.
"With the funds, [Iran] is supposed to buy food products or drugs. This requires lengthy vetting by the US government, or other bodies before the purchases can go ahead. Given the US government has allowed us to import the gas, it should also allow us to release the funds."
Iran "needs to make very large investments in renovating its infrastructure in the gas sector".
Frustrated by Iraq's failure to pay its debts, Iran has already on several occasions cut its gas and electricity deliveries to Iraq, further aggravating the chronic outages that plague the Iraqi grid.
The Iraqi official said Iranian interruptions in deliveries to Iraq were sometimes due to the shortfalls in own domestic supply.
"When they need gas, they cut our supplies," Karim said.
He also noted the contract with Iran contained no penalty clauses for failure to honor agreed deliveries.
"I imagine this contract was drawn up rather hastily," he added.
An Iraqi delegation was due in Tehran to discuss the issue "in the coming days", Karim said.
