Iraq is aiming to increase its annual trade volume with Iran to $20 billion, according to a statement by the Iraqi ambassador to Iran
Says ambassador in Tehran
Iraq aims to boost annual trade with Iran to $20 billion
BAGHDAD — Iraq is aiming to increase its annual trade volume with Iran to $20 billion, according to a statement by the Iraqi ambassador to Iran, Nasir Abdulmuhsin, during a meeting with the governor of Semnan province, Iran.
Semnan, one of Iran’s key industrial provinces, is set to become the first area to establish a joint industrial city with Iraq. Ambassador Abdulmuhsin noted, “Currently, the annual trade volume between the two countries exceeds $10 billion, but Iraq’s goal is to reach $20 billion.”
The ambassador highlighted several common interests between Iraq and Iran that could serve as a foundation for expanding cooperation. He also mentioned that “1,200 Iraqi students are currently studying in Iran to obtain higher education degrees.”
The Joint Chamber of Commerce between Iran and Iraq reported that Iranian exports to Iraq are divided into ten categories: mechanical and electrical equipment, transportation goods, chemicals, agricultural products, food industries, textiles and clothing, metals and mineral products, stones and glass, leather, and various industrial goods. These products make up 65% of Iraq’s total imports, with agricultural products accounting for the largest share at 30%, while leather goods account for just 3%.
Iranian President Masoud Pezeshkian is scheduled to visit Iraq for official meetings with Iraqi officials in Baghdad in September. This will mark Pezeshkian’s first foreign visit since taking office.
Iran’s political influence in Iraq has expanded significantly since the U.S.-led invasion in 2003, which resulted in the fall of Saddam Hussein’s regime. The power vacuum allowed Iran to forge strong ties with various Iraqi political groups, particularly those aligned with the Shia Muslim community, Iraq’s majority population.
Iran’s influence also extends through its support for armed groups in Iraq, including the Popular Mobilization Forces, an umbrella organization of primarily Shia militias that was integrated into Iraq’s state security forces in 2016.