Mehran free zone set to boost Iran–Iraq trade

Shafaq News – Ilam

Ilam province is moving to boost cross-border trade with Iraq through the imminent launch of the Mehran free trade zone and the reopening of key crossings, local authorities confirmed on Saturday.

Governor Ahmad Karami said the measures are designed to expand non-oil exports and capitalize on the province’s strategic position along Iraq’s border.

Karami announced that the Chilat crossing and the Hilaleh Shomali market would reopen soon, describing Mehran as “the closest and safest gateway” for trade with Iraq. He argued that turning the area into a free trade zone could attract Iraqi investors under laws allowing full foreign ownership while channeling foreign currency into Iran’s economy.

Iran’s non-oil exports reached $130 billion last year, with Iraq absorbing nearly $11 billion—roughly 20%—making it Tehran’s second-largest trade partner. Karami said Ilam’s border access gave it a “golden opportunity” to capture a larger share of that market.

Officials from both sides are expected to meet next week to finalize the launch of the new facilities. Karami warned, however, that weak packaging and short-term marketing strategies continue to limit the competitiveness of Iranian goods abroad, stressing the need for higher standards and better planning.