TEHRAN - Two local Iranian chambers of commerce have signed a cooperation document aimed to boost the country’s exports to neighboring Iraq, especially to the southern province of Basrah.

The document was signed by Mostafa Mousavi, the chairman of Khorramshahr Chamber of Commerce, and Mahmoud Najafi Arab, the chairman of Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA).

Speaking on the sidelines of the signing ceremony, Mousavi referred to the potential of Khorramshahr and Abadan in southern Iran, and Iraq’s Barah Province, stressing that the private sector investors have to get familiar with the capacities of these areas.

Mahmoud Najafi Arab, the chairman of Tehran Chamber of Commerce, also told reporters that the document aims to increase cooperation between the two local chambers of commerce, enabling them to focus on exports of more goods to the Iraqi market. He believed that Basrah Province is a proper place for Iranian investment and transferring part of the production process from Iran to foreign countries.

Iraq is already one of Iran’s top trading partners, with bilateral trade exceeding $10 billion annually. However, Iranian exporters face challenges such as customs barriers, banking restrictions, and logistical difficulties. By enhancing cooperation between local chambers of commerce, Iran hopes to streamline trade operations, particularly in the food, construction materials, and petrochemical sectors, which are in high demand in Iraq.

The Iranian private sector sees significant opportunities in Basrah, a province rich in oil and natural resources but in need of infrastructure development. In recent years, Iranian companies have been involved in power plant construction, road development, and water supply projects in Iraq. The new agreement could pave the way for further collaborations in industrial production, agriculture, and services.

Additionally, Iranian officials are pushing for the use of alternative payment mechanisms, such as barter trade and local currency transactions, to bypass financial restrictions caused by U.S. sanctions. Strengthening trade ties with Iraq remains a strategic priority for Iran as it seeks to diversify its export markets and reduce reliance on oil revenues.

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