A free trade agreement between Iran and the Iraqi Kurdistan region can help bolster trade with the city of Sulaymaniyah, says a an authority at Iran Chamber of Commerce.
“I propose that Tehran and the Kurdistan Regional Government (KRG) work on a free trade agreement,” said Mohammad Reza Karbasi, Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) deputy in international affairs at a joint Iran-Iraqi Kurdistan business forum in the city of Sulaymaniyah on Monday.
“I also believe that if small and medium-sized enterprises (SMEs) from Iran and Iraqi Kurdistan are connected with each other, it will expand the bilateral economic relations,” added Karbasi who was attending the forum accompanying Iranian Foreign Minister, Mohammad Javad Zarif, who ends his 5-day tour of the neighbouring country on Thursday.
He also urged Iran and KRG to accelerate building necessary infrastructure such as proper roads, airports and border customs so that the Iranian and Kurdish businessmen can boost their economic activities.
The ICCIMa deputy in international affairs stressed Iranian firms’ expertise in minerals exploration and construction materials production, saying “they are ready to exchange their experience with their Iraqi brothers,”.
It’s common for Iranian and Iraqi authorities to call each other “brother” that puts an emphasis on the two nations’ shared cultural background as well as their close political ties.
Karbasi also called on Iraqi Kurd officials to clear the outstanding payments to Iranian construction firms that have been working during the past four years in the region but haven’t received their money. “I hope that should this situation resolve, there will be more Iranian firms in the Iraqi Kurdistan region,” he said.
For his part, the Iranian foreign minister assured Iranian and Iraqi Kurd businessmen that “sanctions won’t cut our ties or affect trade with KRG.”
He mentioned that Tehran and Erbil are at talks to further facilitate trade to increase their trade volume. Iran and Iraq annual trade stands at nearly 8 billion dollars. Tehran wants to increase to up to 20 billion dollars.