$12 Billion in Trade: Iran and Iraq deepen commerce
Shafaq News/ Trade between Iran and Iraq approached $12 billion in 2024, the secretary-general of the Iran-Iraq Joint Chamber of Commerce Jehanbakhsh Sanjabi Shirazi revealed on Monday.
Shirazi stated that Iran’s imports from Iraq reached approximately $754 million, which he described as “acceptable—though still short of the target—and marked a notable increase compared to 2023 and the average of the past decade.”
“Iran’s annual imports from Iraq typically did not exceed $100 million, except for 2022 when imports surged to about $1.07 billion, part of which included feed ingredients purchased through letters of credit from Iraq’s TBI bank,” he explained.
Looking ahead, Shirazi projected a 20% increase in bilateral trade for 2025, while noting that Iraq remains Iran’s second-largest trading partner, expressing optimism that trade volume will surpass $13 billion and reach $15 billion by the end of 2026. However, he cautioned that the Iraqi market is approaching saturation for Iranian exporters, making a significant surge in exports unlikely in the near term.
Iran’s exports to Iraq through the Mehran border crossing in western Ilam province reached $206.8 million over the past two months, according to provincial customs officials. Overall, trade between the two countries has approached $12 billion annually, with Iran exporting food, petrochemicals, and construction materials.
Both sides have signed agreements to boost commerce through joint economic zones and free-trade areas, with Iraqi officials aiming to raise trade volume to $25 billion through coordinated infrastructure and policy efforts.
