The president of Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA) has highlighted the vast potential in Iraq’s market and stressed the need for increased participation from Iran’s private sector to strengthen economic ties with the neighboring country.
During a meeting with the board of directors of the Iran-Iraq Joint Chamber of Commerce, Samad Hassanzadeh stated that Iran holds extensive capabilities to expand in Iraq, making the goal of achieving $20 billion in trade between the two countries feasible.
"Iran today has significant production capacities across all sectors that Iraq needs, including food industries, construction, petrochemicals, and other key sectors," Hassanzadeh said. "We should aim to capture a substantial share of Iraq’s $150 billion trade market and expand our presence there."
Hassanzadeh noted that one-third of Iran's non-oil exports are directed to Iraq but pointed to currency transfer challenges facing Iranian traders in foreign markets. "Due to the lack of banking mechanisms, we are forced to lose more than 10% of our export revenue, and with other costs taken into account, we lose one dollar for every five dollars in export earnings.” He added.
He, however, noted that the country’s central bank is working on alternative methods to ensure that Iran's export income is not reduced.
Yahya Al-e Eshaq, head of the Iran-Iraq Joint Chamber of Commerce, stated that Iran’s official exports to Iraq last year totaled $10.7 billion, with informal exports being around $12-13 billion. "If obstacles are removed, the $20 billion trade target is within reach," he said, noting that 70% of Iraq's investment needs are met through imports, presenting a prime opportunity for Iran.
He emphasized the importance of resolving trade imbalances with Iraq to establish a sustainable relationship with the country and moving towards joint investments and the presence of Iran’s major brands in the Iraqi market.