The level of economic relations between Iran and Iraq was targeted at $20 billion based on the volume and bilateral trade balance. At one point during the trade relations between the two countries, it reached the level of 14 billion dollars. With the existing cooperation capabilities between the two countries and economic fields, it will definitely be possible to achieve $20 billion in trade between Iran and Iraq in the coming years.
Yahya Al-Ishaq, Chairman of the Iran-Iraq Joint Chamber, said that in the next 10 years, Iraq will be considered the largest investment country in the region, so those who apply to settle in this country will be the winners.
He said: The future of Iran-Iraq relations is very promising, because the conditions, requirements and capabilities we have, as well as the conditions of Iraq and the atmosphere prevailing in this country and in the region , as well as the financial facilities of the Iraqi country, indicate that Iran-Iraq relations are generally advantageous.
According to Seyed Hamid Hosseini; Member of the Board of Directors of the Joint Chamber of Iran and Iraq Since the Iraqi government has approved and notified its budget and many projects have started in Iraq, an increase in exports to Iraq is expected compared to last year.
In this situation, in the first five months of 2023, Iranian exports to Iraq reached 3 billion 508 million dollars and accounted for 18.3% of the country's exports.
According to this report, the value of Iraq's merchandise trade in 2021 was $148 billion, of which $87 billion (59%) was related to exports and $61 billion (41%) was related to imports.
The study of the evolution of Iraqi trade over the last decade shows that exports of goods (mainly dependent on oil) have always been at a higher level than imports of goods, in contrast to the ups and downs of exports , the import sector was relatively stable.
Iraq's most important trading partners are the United Arab Emirates, China and Iran, and in 2021, Iran accounts for $8.9 billion in exports, or 416% of the Iraqi market and the fourth largest place.
Iran's best position in the Iraqi market was in 2018, with a share of around 16.7% of the said market.
Given that Iraq's trade policy focuses on three areas: attracting foreign investment, expanding private sector activities, and reducing dependence on oil exports, Iran should plan in each of these areas in order to have large-scale cooperation with Iraq.
Furthermore, trade relations between Iran and Iraq are unbalanced and in favor of Iran, and this difference is caused by the lack of diversity and unstable structure of the Iraqi economy, but this situation can harm stability and continuity of bilateral trade. It is necessary for Iran to prevent risks. If business returns to Iraq, it must adopt a new approach in its business dealings with that country, including considering joint ventures with that country.