Economy, Domestic Economy

Trade Exchange With Iraq Down

Trade Exchange With Iraq DownTrade Exchange With Iraq Down

Bilateral trade with Iraq has decreased by nearly 8% this year compared with last year, Jahanbakhsh Sanjabi Shirazi, the secretary general of Iran-Iraq joint chamber of commerce said on Monday, noting that Iran’s share in the Iraqi market stands at 17.5 percent.

“Iran exports 16 different types of commodities to Iraq on an annual basis,” he was quoted by ISNA as saying.

Iran’s major exports to Iraq include industrial machineries, food products, construction materials, home appliances and other items mainly used in civil projects, he added.  

“Turkey has been able to secure a bigger share in Iraq to the extent where currently 25% of the Iraqi market is controlled by Turkey,” he noted, calling on Iran to make use of its cultural commonalities and long border lines to boost its trade with the neighboring country.

On the IS terrorists occupying parts of Iraq’s territory and its possible impact on trade between Iran and Iraq, he said, “The unfolding events have polarized trade with Iraq. Those parts of the Iraqi market that have traditionally been home to Iran’s exports have now fallen under the control of the IS.”

Iran and Iraq are poised to increase bilateral ties in industrial, mining, and banking sectors. The Export Development Bank of Iran has allocated $300 million to boost exports to Iraq.  Iranian officials believe there are plenty of trade opportunities in Iraq that can be seized by the Iranian exporters once a project-based approach is adopted to take advantage of these opportunities.

Head of the Iraqi Chamber of Commerce and Industry, Jaafar al-Hamdani, recently announced that the volume of trade exchanges between Iraq and Iran totaled around $12 billion in 2013, pointing to the possibility of doubling this figure in the coming years.

According to the Islamic Republic of Iran Customs Administration (IRICA), Iraq was the second leading importer of Iranian non-oil goods in 2013.