TEHRAN - Head of Iran-Iraq Joint Chamber of Commerce Yahya Ale Eshaq said trade challenges between the two countries have been mostly resolved and bilateral trade is expected to reach $10 billion by the end of the current Iranian calendar year (March 20, 2023).

Iran and Iraq have set a target of $20 billion in annual trade, and businessmen and authorities of both countries are determined to meet that target, Ale Eshaq told IRNA on Sunday.

According to the official, Iran and Iraq have had the experience of reaching $14 billion in annual trade in previous years.

He added that the international trade recession and lower Iranian electricity and energy sales to Iraq were the main reasons for the decline in trade exchanges between Iran and Iraq.

Ale Eshaq stated that the ban on the export and import of certain goods according to the laws of the two countries has also been a major reason for the decrease in the trade volume.

Referring to the Iraqi prime minister's recent visit to Iran, he noted that various areas of cooperation including joint investments, oil and gas and collaboration in the economic sector were discussed during this trip.

“In general, Iran and Iraq have agreed to improve relations and change the monetary and banking conditions so that the central banks of the two countries will ease the current situation and solve the problems,” he added.

The value of Iran’s exports to Iraq rose 20 percent during the previous Iranian calendar year (ended on March 20) as compared to the preceding year.

Iran exported $8.916 billion worth of commodities to its neighbor in the mentioned year, making Iraq the Islamic Republic’s second-biggest trade partner.

Exports to Iraq accounted for 18.3 percent of the country’s total non-oil shipments in the previous year.

Iran and Iraq signed a memorandum of understanding (MOU) on economic cooperation back in January 2021, at the end of the fourth meeting of the two countries’ Joint Economic Committee.

During the committee meeting, technical committees were formed in various business fields to discuss technical and engineering services and other topics of interest. The meeting also proposed and supported the establishment of a joint investment fund between the two countries and hopes to continue its path.

EF/MA