Even though trade between Iran and Iraq is booming, the two countries are yet to take full advantage of their vast trade opportunities, said Farzad Piltan, director general of Arab and African States Department of Trade Promotion Organization of Iran.
“The Islamic Republic of Iran considers Iraq its most important trading partner and both sides are eager to accelerate the process of commerce,” he said on the sidelines of the Conference on Trade With Iraq, Azerbaijan and Turkmenistan on Sunday, IRNA reported.
Annual trade between Iran and Iraq currently stands at $12 billion a year with trade balance heavily in favor of Iran. The two neighbors hope to increase their annual trade to $25 billion in the coming years.
During the joint economic commission held in Baghdad in January 2015, 12 agreements were signed in the areas of mining, health and exchange of trade delegations.
“Trade with Iraq has a number of advantages, including ease of access, common cultural-religious background and similar taste in daily products,” Piltan noted.
Banking troubles, standards compliance, transportation and border and customs-related issues are among the challenges of trade between the neighboring countries, as cited by the TPO official.
