Tehran, Baghdad eye annual $20b trade

Iraj Masjedi Former ambassador to Iraq

Iraj Masjedi

The two countries of Iran and Iraq need each other due to their neighborhood and historical relations and many commonalities in various political, security, economic and cultural fields and they have the capacity to provide parts of each other's needs.

Currently, we have good relations with Iraq in the economic field, especially in the private sector trade, thanks to the agreements and contracts concluded in the past years.

The Islamic Republic of Iran’s export volume to Iraq is now more than nine billion dollars. We export electricity and gas, which are among the most important needs of the Iraqi people.

Many companies from Iran's public and private sectors are currently working in Iraq and are implementing various projects. For example, MAPNA Group is planning to construct a 3000 MW power plant in Basra, Iraq.

However, there were problems regarding the payment of Iran's dues from Iraq.

Fortunately, the Iraqi officials have had a successful cooperation to pay their debt to Tehran, as Iran received its dues. Of course, in the meantime, we have had challenges due to the interference of the United States, but the will of the Iranian and Iraqi officials is to develop the level of commercial and economic trade and increase it from the current annual 12 billion dollars to 20 billion dollars.

The mutual visits of the officials and the memorandums and contracts that are concluded both consolidate the political relations of the two countries and provide the basis for the development of economic exchanges.

In a situation where Tehran and Baghdad are facing economic problems, they can help each other more than before, as both countries are interested in developing relations and need each other.

Iran and Iraq portray a perfect example of excellent neighborly relations, which provide their own interests from this neighborly relation with a correct understanding of each other's concerns. The two capitals provide their own interests through their countless commonalities and maintaining each other’s territorial integrity.