TEHRAN- The head of the Iran-Iraq Joint Chamber of Commerce, emphasizing the need to create new momentum in the economic relations between the two countries, stated that there is capacity for Iran-Iraq trade to reach $20 billion, and that by resolving some domestic and foreign obstacles, this goal can be achieved.

According to a report by IRNA on Wednesday, Yahya Al-e Es'haq, speaking at a meeting of the Kermanshah Province Export Development Working Group chaired by the governor, referred to regional, global, and domestic conditions and added: "Today, many of our issues in various fields are tied to the economy, and a major part of the solutions for dealing with the current situation must also be pursued in the economic sphere and through practical measures."

The head of the Iran-Iraq Joint Chamber of Commerce, referring to the selection of the title "Pilgrimage and Trade" to introduce the capacities of Kermanshah Province, stated: "Choosing this title can be one of the solutions to some problems, because the potential and actual capacity in this area is very high."

He added: "Kermanshah Province, geographically and in terms of having formal and informal borders, holds a special position and can play a significant role in the development of economic relations between Iran and Iraq."

Al-e Es'haq continued: "In a situation where Iran is facing various issues and threats, utilizing the economic capacities of neighboring countries can be one of the effective solutions for managing the current situation, developing relations, and creating new economic opportunities."

Stating that the goal of increasing Iran-Iraq trade to $20 billion is not just a slogan, he said: "This figure is proposed based on experience and understanding gained from years of activity and examination of the economic relations between the two countries, and I believe that if we resolve some domestic issues and foreign obstacles, it is possible to achieve $20 billion in trade between Iran and Iraq."

The head of the Iran-Iraq Joint Chamber of Commerce, pointing to the capacities of Kermanshah Province, emphasized: "Given its geographical location, border capacities, human resources, and available facilities, Kermanshah has the necessary ability to play an effective role in achieving this goal, and reaching it is feasible."

Need to create new momentum in trade with Iraq

Al-e Es'haq, stressing that all officials and economic activists are responsible for the development of Iran-Iraq trade, said: "All of us must act upon the advice we give and create new momentum in this area."

He added: "The current situation and the existing trend are not sufficient for achieving the great goals of Iran-Iraq trade, and we must change our methods and approaches to bring about the expected developments."

The head of the Iran-Iraq Joint Chamber of Commerce emphasized: "The Iran-Iraq Chamber considers it its duty to be fully present in this path and will do everything in its power to develop the economic relations between the two countries."

Al-e Es'haq, referring to the presence of figures from Kermanshah in the Iran-Iraq Joint Chamber, said: "Mr. Kashfi and Mr. Sanjabi are capable and influential forces from Kermanshah who are active in this field and, alongside the respected governor, can pursue the province's capacities more effectively."

He added: "If there is determination and demand from the provincial administration and officials of Kermanshah to follow up on issues, the Iran-Iraq Chamber is ready to stand by the province with all its strength."

The head of the Iran-Iraq Joint Chamber of Commerce stated: "It is not that the Iran-Iraq Chamber or other relevant bodies lack the capacity and means to help; there are numerous organizational capacities, facilities, as well as individual and specialized capabilities, and by changing our approach and properly utilizing them, we can resolve some of the existing problems."

At the end, Al-e Es'haq, again thanking the organizers of the meeting, expressed hope that: "With the continuation of these sessions, the creation of new momentum in the economic relations between Iran and Iraq, and close cooperation among officials, chambers of commerce, and economic activists, the groundwork will be laid for the development of trade between the two countries and greater utilization of the capacities of Kermanshah Province."

According to an IRNA report; Kermanshah Province shares a total of over 371 kilometers of common border with Iraq, and along this border, there are two official border crossings and five active border markets, and annually nearly three billion dollars worth of goods are exported abroad through these borders.

Also, in early October, Iran’s ambassador to Baghdad said that the two countries are determined to deepen economic and commercial ties, adding that a bilateral trade target of $30 billion is within reach.

Speaking at a joint meeting between the governors of Ilam in western Iran and Iraq’s Maysan Province on the reopening of the Chilat border crossing, Mohammad Kazem Al-e-Sadegh announced that preliminary approval had been given to build the crossing.

He said the project fits into both governments’ broader strategy to expand regional trade and economic cooperation.

Al-e-Sadegh said the new crossing could turn Ilam Province into a hub for economic exchanges. “If managed properly, this project will not only boost local economic activity and create jobs, but also directly improve the quality of life for border communities through infrastructure development,” he said.

Highlighting the economic potential on both sides, the envoy described the Chilat corridor as a key facilitator for achieving the trade volume target.

“This border crossing can become a successful model for joint cooperation between Iran and Iraq,” he said, adding that the move would increase the region’s share of international trade and meet the needs of local border populations.

The opening of the Chilat crossing in Dehloran County, adjacent to the town of Ali Gharbi in Iraq’s Maysan Province, is part of Tehran and Baghdad’s agreements to strengthen cross-border economic cooperation, particularly in frontier provinces.

As announced by the head of the Islamic Republic of Iran Customs Administration (IRICA), Iran exported non-oil commodities valued at $3 billion to Iraq during the first four months of the current Iranian calendar year (March 21-July 22).

Foroud Asgari said that Iraq was Iran’s second top non-oil export destination in the mentioned period.

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.

In late May 2024, the head of the Department of Spatial Planning and Regional Planning of the Iranian Planning and Budget Organization (PBO) said that Iran exports some 2,200 products, valued at $12 billion, to neighboring Iraq annually.

Speaking in a meeting entitled “Reviewing opportunities and challenges of attracting Iraqi investors and strengthening trade relations between the two countries in line with demarcating Iran in the regional value chain”, Jafar Hosseini said that Iraq, benefiting from $85 billion foreign currency reserves, 130 tons of gold reserves, and 147 billion barrels of proven reserves of crude oil, is among the richest countries in West Asia.

Currently, Iran exports over 2,200 various types of goods and products to Iraq, he said, adding that more than half of the active Iranian traders are present in the Iraqi market.

Developing the trade infrastructures to facilitate trade between the two countries, encouraging traders to invest in Iraq, promoting trade through dispatching and admitting trade delegations and participating in exhibitions of the two countries, etc. are suggested to strengthen the trade and economic relations between Iran and Iraq, he underlined.

On August 17, the second day of his visit to Iraq, Abdolnaser Hemmati, the Governor of the Central Bank of Iran (CBI), met and held talks with Faleh Sari, Iraq's Minister of Finance, regarding outstanding financial claims, as well as technical and economic cooperation.

During the meeting, which was reported by IRNA from the Central Bank, the two sides emphasized the strengthening of economic ties and the need to utilize the technical capabilities of Iranian contractors in Iraq's reconstruction and development projects.

With the aim of accelerating the process of pursuing Iran's financial claims, specific technical proposals were presented by the Central Bank of Iran to the Iraqi government and were reviewed.

At the conclusion of the meeting, both parties stressed the continuation of cooperation to realize mutual interests and to uphold the dignity of the peoples of Iran and Iraq.

On the first day of his trip, which began on August 16, Hemmati also met with Mustafa Nizar al-Ani, Iraq's Minister of Trade. This meeting, held in the context of strengthening bilateral cooperation for the development of trade, investment, and monetary relations, saw both sides emphasize the extensive capacities available for expanding economic relations.

They held consultations on operationalizing previous agreements and raising the level of banking interactions between the two neighboring countries.

In this session, Hemmati highlighted the role of private sector activists in facilitating exports and imports of goods and stressed the necessity of adopting new mechanisms to expedite trade procedures, especially at entry points.

The Iraqi Trade Minister, in turn, welcomed the expansion of cooperation and reiterated his government's determination to resolve challenges facing economic actors and to reinforce trade ties with the Islamic Republic of Iran.

Both meetings underscored the shared commitment of Iran and Iraq to deepen their economic partnership, address outstanding financial issues, and remove obstacles to smoother bilateral trade and technical collaboration.

EF/MA