Economy, Business And Markets

Call for Reforming Export Approach to Iraq

Call for Reforming Export Approach to Iraq
Call for Reforming Export Approach to Iraq

Abundant trade opportunities in Iraq can be seized by Iranian exporters once a project-based approach is adopted to take advantage of these opportunities, said an official of the Iran Chamber of Commerce, Industries and Mines.

“We need to seize the opportunities to enhance the volume of trade between the two countries, as they will not last forever” said Pedram Soltani, vice president of ICCIM who was speaking on the occasion of the fourth meeting between the government, Private Sector Dialog Council and businessmen of the private sector in Kermanshah Province.

Soltani characterized the present condition of trade between the two countries as “not favorable”, and called for shifting from what he called traditional “retail merchant” approaches of trade towards more advanced ones.

Among the important factors that have been ignored in developing trade between Iran and Iraq, Soltani referred to lack of development of new industries in border cities like Kermanshah, which according to the official “had unique commercial and climate characteristics and resources.”

“Kermanshah can turn into an export hub in the west of the country,” said Soltani who disapproved of the current 18th ranking of the province in the field of industry.

Iran’s export to Iraq hit $13 billion last year; however, officials of the Iran-Iraq Economic Cooperation Commission had anticipated that this will hit $25 billion this year.

Iran and Iraq are working to finalize a comprehensive trade plan which will reportedly quintuple their bilateral trade to $30 billion per year. The plan is to be agreed upon between the trade ministers of the two countries.  

The plan includes measures to enhance industrial, mining, and banking cooperation between the two countries and launching joint ventures to boost bilateral trade.

According to the IRI Customs Administration (IRICA), Iraq was the second leading importer of Iranian non-oil goods in the previous Iranian calendar year, which ended on March 20, 2014.