Iran-Iraq Trade Growing After Reopening of Borders
IRAN NEWS ECONOMIC DESK
TEHRAN – Chairman of Iran-Iraq Chamber of Commerce Yahya Ale-Eshaq says after removing the imposed restrictions due to the Coronavirus pandemic and reopening of borders, the trade exchange between Iran and Iraq is growing.
Speaking to IRNA, Ale-Eshaq said despite all problems and incidents and ups and downs in trade with Iraq, Iran’s trade and connection with this country continues.
He said closure of borders due to the pandemic in recent months had led to decline in trade but it is improving after lifting some restrictions in the borders.
He said after reopening of southern borders of Shalamcheh and Sumar, the trade with Iraq continues two to three times a week, adding that Shalamcheh border admits some 250 trucks a week based on the issued license and Sumar will also admit Iranian trucks two times a week after negotiations.
Ale-Eshaq called for observing all necessary health protocols due to the pandemic, adding that some inevitable changes have happened in the trend of ties with Iraq like halt in pilgrim tourisms which is currently impossible due to the pandemic.
He pointed to Iran’s $12b exports to Iraq, noting that Iran’s trade with Iraq is not currently in inappropriate condition but due to economic reasons it has faced decline because Iraq has been unable to materialize its oil revenues due to the pandemic and it currently can’t afford to buy goods like the past years.
Ale-Eshaq noted that due to the fall in demand and lack of necessary facilities, Iraq has lowered its demands for goods, and accordingly, Iran’s exports to Iraq will drop by 30 percent and the bilateral trade will slump to $9b.
On the reopening of borders and commute of commercial trucks between both states, he said Iran’s borders with Iraqi Kurdistan are open and active and some 2,000 trucks are exchanged per day. He added that in the southern borders, some hygienic issues have caused concerns and talks have begun to resolve it but Shalamcheh and Mehran borders have reopened and other borders will reopen soon.
Ale-Eshaq further said officials of both states are determined to solve the problems, stipulating that before the pandemic, both countries had set target to increase their trade to $20b this year but due to the current condition it will be delayed for now.
He said China is Iran’s biggest rival in Iraq and both countries have good interactions, noting that both Iran and China are after bilateral investments in Iraq but the figure is currently insignificant. He reiterated that dairy and foodstuff companies have been launched in Iraq and they gained good shares of Iraq’s market.
