Economy, Business And Markets

Window of Opportunity for Iran in Iraq’s Dairy Market

Window of Opportunity for Iran in Iraq’s Dairy MarketWindow of Opportunity for Iran in Iraq’s Dairy Market

Iraq has agreed to reduce import tariffs for Iranian dairy products from the current 40% to 10% as of early 2018. The agreement was reached in a recent meeting between the head of Iraq’s General Customs Authority, Munther Abdul Amir Asad Haider, and Iran’s commercial attaché to Iraq, Nasser Behzad. The two sides also agreed to clear Iranian food and dairy exports without undergoing border examination and screening, provided the quality approval certificate is presented by Iranian organizations within the framework of Iraq’s regulations. This is a good opportunity for Iranian dairy exporters to gain a foothold in the Iraqi market, as the current 40% tariff applies to all dairy exporters to Iraq and the cut will give Iran an upper hand in the neighboring country. Iraq is one of the major customers of Iranian dairy products and an important market for Iran. According to managing director of Food, Agriculture and Pharmaceuticals Holding of the Civil Servants Pension Organization, Ali Roumi, Iran accounts for 20% of Iraq’s $600 million import market for dairy products, IRNA reported. Some 20 Iranian companies export dairy products to the neighboring country.

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