TEHRAN – Iran is seeking to expand its commercial presence in Iraq, with the Iran–Iraq Joint Chamber of Commerce outlining a three-year target to raise bilateral exchanges to $20 billion, driven by Iran’s capacity to supply a broad range of consumer goods, food products and industrial materials.

Iraq, with a population of nearly 50 million and close cultural and political ties with Iran, has long been one of Tehran’s most accessible export destinations. Despite strong demand, Iranian officials say the country risks losing market share if it does not modernize its commercial tools, improve data-driven decision-making and strengthen trade planning.

Yahya Al-e-Eshaq, head of the Iran–Iraq Joint Chamber of Commerce, said formal bilateral trade reached about $12 billion last year, with unofficial exchanges bringing the figure close to $15 billion. He said the long-term target of twenty billion dollars is achievable under the existing bilateral agreement.

Al-e-Eshaq said Iran supplies a wide spectrum of goods to Iraq, including construction materials, detergents, food items, engineering services, fruit and agricultural products, and medical and leisure tourism services. Iran currently holds around twenty percent of Iraq’s consumer market.

He said bureaucratic hurdles, customs procedures, standards requirements, transit issues, visa rules, and fragmented decision-making across institutions in both countries often slow trade. Uneven import–export balances have also prompted Iraq to impose sudden restrictions on certain goods.

According to Seyed Taha Hossein Madani, head of the Smart Governance Think Tank, Iran still has significant untapped capacity in the Iraqi market.

Dairy products, he said, show strong performance, with Iran exporting 660,000 tons worth $1.059 billion in 2024, more than half of which went to Iraq.

He said potato exports to Iraq reached $15 million last year—12 percent of Iran’s regional shipments—and can increase substantially. Construction materials also remain a major opportunity, despite declining market share in cement and other products compared to a decade ago.

Madani said Iraq remained the top destination for Iranian iron and steel exports, with shipments valued at $1.4 billion last year.

He said Iran’s fragmented commercial strategy has contributed to its loss of markets even among neighbors.

His institute plans to introduce the “Iran Trade Atlas,” a tool aimed at helping policymakers and exporters identify target markets and strengthen export performance. A dedicated event on the platform will be held later this year to gather key stakeholders and outline steps to expand Iran’s trade capacity.

EF/MA