TEHRAN- The value of Iran’s non-oil export to Iraq rose four percent in the first eight months of the current Iranian calendar year (March 21-November 21), as compared to the same period of time in the past year, the head of Iran’s Trade Promotion Organization (TPO) announced.

Alireza Peyman-Pak said that Iran has exported non-oil commodities worth $4.305 billion to Iraq in the eight-month period of this year, while the figure was $4.133 billion in the same time span of the previous year.

Referring to the problems that the cruel sanctions have created for the development of foreign trade, he noted: “This organization, which is in charge of the country's foreign trade, despite these problems, especially the banking limitations, has put on the agenda the implementation of several programs to develop exports to Iraq and maintain the Iraqi market.”

In explaining these programs, the TPO head said: “Establishment of five trade centers in different cities of Iraq, annual setting up of about 30 pavilions of Iran in international exhibitions of Iraq in different cities of this country, annual holding of about 10 conferences to introduce different parts of the Iraqi market to the private sector of the country, the annual acceptance of about 30 Iraqi business delegations in Iran's international exhibitions in various fields, annually holding at least 10 specialized desks on trade with Iraq with the aim of establishing coordination between government institutions and the private sector involved in trade with Iraq, following up on the strengthening of commercial infrastructure from relevant institutions, and providing about 3000 commercial consultations to the private sector by the trade advisor of this organization in Iraq and also the experts of the Iraq desk of the organization are among the measures that have been taken.”

On Sunday, Head of the Iran-Iraq Joint Chamber of Commerce Yahya Ale Eshaq said trade challenges between the two countries have been mostly resolved and bilateral trade is expected to reach $10 billion by the end of the current Iranian calendar year (March 20, 2023).

Iran and Iraq have set a target of $20 billion in annual trade, and businessmen and authorities of both countries are determined to meet that target, Ale Eshaq told IRNA.

According to the official, Iran and Iraq have had the experience of reaching $14 billion in annual trade in previous years.

He added that the international trade recession and lower Iranian electricity and energy sales to Iraq were the main reasons for the decline in trade exchanges between Iran and Iraq.

Ale Eshaq stated that the ban on the export and import of certain goods according to the laws of the two countries has also been a major reason for the decrease in the trade volume.

Referring to the Iraqi prime minister's recent visit to Iran, he noted that various areas of cooperation including joint investments, oil and gas and collaboration in the economic sector were discussed during that trip.

“In general, Iran and Iraq have agreed to improve relations and change the monetary and banking conditions so that the central banks of the two countries will ease the current situation and solve the problems,” he added.

The value of Iran’s exports to Iraq rose 20 percent during the previous Iranian calendar year (ended on March 20) as compared to the preceding year.

Iran exported $8.916 billion worth of commodities to its neighbor in the mentioned year, making Iraq the Islamic Republic’s second-biggest trade partner.

Exports to Iraq accounted for 18.3 percent of the country’s total non-oil shipments in the previous year.

Iran and Iraq signed a memorandum of understanding (MOU) on economic cooperation back in January 2021, at the end of the fourth meeting of the two countries’ Joint Economic Committee.

During the committee meeting, technical committees were formed in various business fields to discuss technical and engineering services and other topics of interest. The meeting also proposed and supported the establishment of a joint investment fund between the two countries and hopes to continue its path.

MA/MA

Photo: TPO Head Alireza Peyman-Pak