The Research Center of Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA), in a recently published report, have explored ways for realization of a $20 billion trade target between Iran and neighboring Iraq.
The report says that in order for Iran and Iraq to increase their bilateral trade from a current $14 billion to a target $20 billion, a series of measures are needed to be taken by both countries in different decision-making, trade, transportation, training, infrastructural, banking and financial areas.
Noting that Iraq has been facing difficulty for the settlement of its debts to Iran as a result of US sanctions on Tehran, the report indicates that the Iranian assets in the Iraqi banks can be used as a source of finance for carrying out projects in Iraq by Iranian companies.
The ICCIMA reports said that besides sales of agricultural equipment, Iran can launch production lines of agricultural machinery in Iraq as the farming methods and tools have got old in the country.
It also said that constructing roads and buildings is another main area of cooperation between Tehran and Baghdad as years of war in Iraq have widely damaged the country’s infrastructure.
The report also underlines the need for Iran to increase imports from Iraq noting that due to its wide trade deficit, Baghdad will be reluctant to sign a preferential trade agreement with Tehran.
Stressing the necessity to pay due attention to trade of services with Iraq, the report noted that Iran enjoys huge capacity for offering health tourism services to the Iraqi nationals which requires the country to prepare the ground and introduce the companies eligible for offering such services.