The Iraqi government has granted preliminary approval for the transit of Iranian goods to Kuwait through its territory, according to Amin Fartousi, a board member of the Iran-Kuwait Joint Chamber of Commerce.
Speaking to ILNA news agency, Fartousi explained that Iranian exports to Kuwait traditionally relied on sea transport, with goods shipped from Iranian ports.
The newly approved land route would enable cargo to enter Iraq via the Shalamcheh border and reach Kuwait through the Safwan crossing, reducing transit time from Iran to Kuwait to just an hour, a substantial improvement over maritime transport.
The advantage of land transport is that goods are loaded onto trucks at the origin and unloaded at the destination, eliminating the need for port handling and reducing overall transportation costs, Fartousi said. He added that this could lower the final cost of trade with Kuwait, making re-exporting Iranian goods from Kuwait to other markets more economically viable.
Despite the approval, Fartousi noted that the plan has not yet been implemented, and no shipments have been transported via Iraq to Kuwait. However, he emphasized that if realized, the transit route could revolutionize trade relations between the two countries.
Kuwait is a significant importer of Iranian products, including minerals such as gypsum and cement, as well as fruits, vegetables, and seafood. Fartousi highlighted that the shorter transit time through Iraq could even eliminate the need for refrigerated trucks for some perishable goods.
Iraq’s recent commitment to adhering to the TIR Convention, which facilitates international transport of goods, is seen as a critical factor in this development. Fartousi remarked that as Iraq seeks membership in the World Trade Organization, its compliance with international regulations will enable Iranian goods to transit through Iraq not only to Kuwait but also to neighboring countries like Syria, Jordan, and Saudi Arabia.