The Secretary-General of the Iran-Iraq Joint Chamber of Commerce has accused European nations, acting on behalf of the United States, of conducting a new "full-scale economic war" to systematically reduce Iran's share of the Iraqi market and replace it with allied Arab countries.
Speaking during a ceremony in southwestern Iranian city of Ahvaz on Tuesday, Jahanbakhsh Sanjabi stated that Europeans have been tasked with a mission to "limit Iran's commercial influence in Iraq and strengthen the position of Western countries and their allies." He described this as a coordinated economic offensive, not merely free-market competition.
"This is not a pure economic competition we are facing, but a confrontation with a full-scale economic war," Sanjabi emphasized.
Sanjabi downplayed the potential for lasting success of these efforts, asserting that Iraq's need for Iranian goods is "structural and long-term" and not susceptible to transient political shifts. He pointed to Iraq's heavy reliance on imports, highlighting a significant opportunity for Iranian exporters.
"Iraq has over $60 billion in annual imports and supplies less than 20 percent of its consumer needs domestically," Sanjabi said. "This means 80 percent of the Iraqi market is dependent on imports, and Iran can seize a significant share of this market."
He warned that the Iraqi market is not just important but "vital" for Iran, and losing it would mean forfeiting immense non-oil export capacity.
Despite these structural ties, Sanjabi acknowledged a recent and concerning decline in Iran's commercial standing, noting that Iran has fallen to become Iraq's fourth trade partner from its previous position as second or third. He identified the United Arab Emirates (UAE) as having rapidly overtaken Iran, though he attributed a substantial portion of the UAE's export figures to Iraq as consisting of re-exports from Chinese, Saudi, and even Iranian companies using Emirati trade routes.