Iran has dramatically increased imports from Iraq as it is seeking to balance trade with the western neighbor.
The neighboring country exported a total of 1.99 million tons of goods worth $920.48 million to Iran during the first 10 months of the current Iranian year (March 21, 2021-Jan. 20), registering a staggering rise of 2,414% and 793% in weight and value respectively compared with the similar period of last year, according to the spokesperson of the Islamic Republic of Iran Customs Administration.
“During the same period of last year, we imported close to 80,000 tons of goods valued at $103 million from this western neighbor. In talks with Iraqi officials, we have come to an agreement to balance our bilateral trade exchanges, therefore Iran is taking measures to meet a bigger part of its domestic demand from Iraq,” Rouhollah Latifi was also quoted as saying by ILNA.
The official noted that last year, Iraq was the 26th biggest exporter to Iran but, given the above figures, it has now come become the ninth supplier of goods to Iran after the UAE, China, Turkey, Germany, Switzerland, Russia, India and the UK.
“Our main imports from Iraq during the period [March 21, 2021-Jan. 20] were essential goods with more than 1.86 million tons worth $734 million, accounting for 93% and 80% of the weight and value of total imports from Iraq respectively,” Latifi said.
Also known as necessity or basic goods, essential goods are products consumers will buy, regardless of changes in income levels.
“The import of essential goods included $329 million worth of wheat, $159 million of field corn, $101 million of soymeal, $55 million of barley, $44 million of unrefined vegetable oils and $36 million of sugar,” he added.
The map shows border crossings on the joint border between Iran and Iraq
Iran exported 25.04 million tons of goods worth $7.29 billion to Iraq during the same period under review, registering a 12% and 14% rise in volume and value respectively compared with the corresponding period of last year.
According to IRICA, exports mainly included industrial machinery, minerals, construction materials, seafood, livestock, dairy and agrifood products with a total of 2.66 million tons worth $1.22 billion.
Kermanshah in western Iran shares around 371 kilometers of borders with Iraq and the Kurdistan Region.
The province accounts for around half of Iran’s annual non-oil exports to Iraq.