Iran’s exports to Iraq during the first four months of the current Iranian year (March 21-July 22) registered a 15% decline compared with the similar period of last year.
The secretary-general of Iran-Iraq Chamber of Commerce says there are three main reasons for the decline, with the main one being import restrictions set by Iraqi authorities.
“Every year, Iraq imposes a seasonal import ban on certain products with the aim of supporting domestic production. These are mainly agricultural products. Usually in the second half of the year when these restrictions are lifted, our exports to this western neighbor increases,” Jahanbakhsh Sanjabi Shirazi was also quoted as saying by Fars News Agency.
The official noted that during the four months under review, Iran exported a total of 6.93 million tons of goods to Iraq worth $2.39 billion.
“Another reason for the decline in exports to Iraq during the period is the inflation in Iran caused by the removal of import subsidies, which has increased the prices of exports,” he added.
Referring to the Central Bank of Iran’s mandate on exporters to sell their earnings to the government at lower rates compared to the open market prices, he said this discourages exporters.
“Other reasons include requiring traders to use the rial instead of dollar in transactions, and lastly the fact that Iraq’s oil revenues have increased, expanding the country’s import market. This has made many other countries enter the Iraqi market to rival Iranian exporters,” he said.