In such a situation, achieving $20 billion- trade over the next two years is expected. As the trade volume between Iran and Iraq grows, Iraq is becoming Iran"s main export market, and even in some months of the year, Iran"s export to Iraq has increased more than China.
It is while the western neighbor of Iran, having undergone several different conflicts, now needs to be reconstructed in all areas, and Iran is the most economical option to be present in this country.
The Iranian Minister of Industry and Trade said that the volume of Iran"s trade with Iraq is now more than $ 10 billion, stressing the need to increase this figure to $20 billion over the next two years.
Also, with the aim of developing trade with Iraq, the first vice president of Iran, in an order to the ministries of industry and economy as well as the Central Bank, increased granting foreign exchange assistance to support exporters of technical and engineering services to Iraq for two years.
Despite the many advantages of Iran for joining the Iraqi market, banking issues, visa-related problems, as well as trade imbalances between Iran and Iraq can be seen as the most important barriers to trade with the country. However, Trade Promotion Organization of Iran has announced the volume of trade between Iran and Iraq in the 9 months of this year at 7.356 billion dollars.
This volume of trade is not equally divided between the two countries, and while Iran has exported 7.322 billion dollars worth of goods to Iraq, in the first nine months of this year, the share of Iraqi exports to Iran during this period was only $36 million.
In this regard, the head of the Iran-Iraq Chamber of Commerce, Yahya Al-Eshaq, in an interview with IRNA said the areas of investment in the different areas of Iraq from infrastructure to current issues have caused the country to become the largest investment-receiver in the region in countries neighboring Iran for the next 15 years.
He added Iran"s trade with Iraq will reach $12-13 billion by the end of the year, so trade with the country will likely reach $20 billion in the next two years and pointed to the ground paved for rise od economic activities between two countries.
Source: IRNA - Date: (11 March 2019)